CSR is an evolving concept

Society creates a dynamic context in which

firms operate

The context is dynamic because

The ideal mix of business goals and
societal expectations evolve over time

Defining Corporate Social

Responsibility (CSR)

The broad concept that businesses are more than just

profit seeking entities and, therefore, also have an
obligation to benefit society

Spheres of Influence Model of CSR

Company spheres
of influence
Core Operations

Business Partners
Host Community
Government
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

Spheres of Influence

Core Operations

Employees
Health & Safety
Work/life balance
Rights to free assembly and collective bargaining
Anti-discrimination measures in recruitment, development and
promotion
Privacy of personal information
Pension provision
Fair remuneration and working conditions

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

Spheres of Influence
Business Partners: Customers, Suppliers and
Venture Partners

Positive / Negative impacts of goods and services misuse

Safety and pricing
Advertising and consumer rights
Vulnerable or disadvantaged groups
Bribery and corruption
Supply Chain labour issues (child, forced, discrimination, fair
wage, working hours, security)

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

Spheres of Influence
Communities

Surrounding operations
Community and social impacts : water, livelihoods,
discrimination
Security of installations
Land and indigenous rights
Access: access to housing, education

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

Spheres of Influence
Advocacy/Policy
Dialogue

Government relations
Political Influence
Public Advocacy
Campaigns

Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)

The Social Contract

The Enterprises responsibilities should be commensurate

with its economic, social and political power

4 levels of Stakeholders
Systemic/macro environmental/general environment
Corporations microenvironment or operating/task
environment
Superiors, subordinates, and other employees and labor
unions
Significant others of business decision makers like family,
friends, peers etc.

WHAT CSR IS AND IS NOT

CSR embraces the range of economic, legal,

ethical, and discretionary actions that affect the
economic performance of the firm

WHAT CSR IS AND IS NOT

A significant part of a firm's CSR, there- fore, is
complying with the legal or regulatory requirements
faced in day-to-day operations.
To break these regulations is to break the law, which
is not socially responsible.

WHAT CSR IS AND IS NOT

Clearly,

Adhering to the law is an important component of any ethical

organization.
But, legal compliance is merely a minimum condition of CSR.

WHAT CSR IS AND IS NOT

Instead,
CSR is about the economic, legal, ethical, and
discretionary issues stakeholders view
as affecting the firm's plans and actions. The solutions
to these issues, the overlap where economic benefit
and social benefit meet, is at the heart of any
successful CSR policy.