Corporate Social Responsibility

• Corporate Social Responsibility (CSR) is a business's commitment to contribute to society, the environment, and stakeholders' well-being, beyond just maximizing profits.
• CSR encompasses economic, legal, ethical, and philanthropic responsibilities.
• Before 1950, businesses primarily focused on employee productivity.
• Emerging factories was criticized regarding child labor, leading to the industrial welfare movement that improved labor conditions and performance.
• Patrick Murphy (1978) classified CSR eras before and after the 1950s

Evolution of CSR Eras:

• Up to 1950s (Philanthropic Era): Companies mainly donated to charities.
• 1953-67 (Awareness Era): Companies became aware of their broader responsibilities and community involvement.
• 1968-73 (Issue Era): Companies addressed specific issues like urban decay, racial discrimination, and pollution.
• 1974-8 and Beyond (Responsiveness Era): Companies took concrete actions to manage CSR, alter boards, examine ethics, and use social performance metrics.
• The 1950s had more discussion than actual CSR implementation.

1960s CSR Definitions

• Keith Davis (1960): CSR involves business decisions beyond economic or technical interests, with socially responsible actions potentially leading to long-term economic benefits.
• William C. Frederick (1960): CSR involves a public responsibility to use economic and human resources for broader societal benefits, not just private interests.

CSR Accelerates in the 1970s

• Harold Johnson (1971): A socially responsible firm balances multiple interests (employees, suppliers, communities, nation), not just profits.
• Archie B. Carroll (1979): Businesses have economic (profitability), legal (compliance), ethical (fairness), and discretionary (philanthropic) responsibilities.

CSR in the 1980s

• Expanded to include broader societal obligations beyond legal and shareholder focus.
• Thomas M. Jones (1980): CSR is a corporation's duty to serve various societal groups beyond stockholders and regulations.
• True CSR is willingly adopted beyond legal obligations.
• Responsibility includes customers, employees, suppliers, and local communities.

CSR in the 1990s

• CSR evolved and influenced business theories, becoming the basis for concepts and practices.
• Corporate Social Performance (CSP) measuring a company's societal impact.
• Stakeholder Theory considers all stakeholders, not just shareholders.
• Business Ethics integrates ethical considerations into decision-making.
• Sustainability focuses on long-term environmental and social responsibility.
• Corporate Citizenship positions companies as responsible members of society.

CSR Timeline

• 1950s: CSR concept emerges.
• 1970s: Shift toward stakeholder theory and accountability.
• 1990s: Focus on sustainability and environmental responsibility.
• 2000s-present: Adoption of CSR strategies, transparency, ethics, and SDGs.
• Howard R. Bowen coined the term ''Father of CSR'' in the 1950s.

Importance of CSR

• Builds brand reputation
• Attracts and retains talent
• Risk management
• Sustainability
• Regulatory Compliance
• Competitive advantage
• Increases rivals' costs
• Boosts sales and revenue

The Triple Bottom Line

• John Elkington (1994): Businesses should create long-term value and be responsible corporate citizens.
• The Triple Bottom Line (TBL) framework focuses on People, Planet, and Profit, not financial outcomes.

Key Elements of TBL

• People: Social Responsibility - Fair labor, employee welfare, communityengagement, diversity, equity, businesses impact society.
• Planet: Environmental Responsibility - Reduce carbon emissions, waste, energy use, resource depletion, sustainability.
• Profit: - Economic Impact-Businesses look at how they can create long-term economic sustainability, ethical profit, and economic development.

Benefits of TBL

• Strengthens reputation with customers, investors, and the public
• Reduces liabilities and regulatory risks
• Adopting innovative technologies to improve sustainability
• Securing long-term success through adapting to market changes

Challenges of Implementing TBL

• High initial costs, ROI may take time.
• Quantifying social and environmental impact is complex
• Competing priorities in industries with tight margins or high enviro impacts.
• Implementing sustainability reporting for transparent communication.

Stakeholder

• Stakeholders are individuals/groups who affected by or affect a company's actions, objectives, and policies. Stakeholders include:
• Internal: employees, shareholders, managers.
• External: customers, suppliers, communities, regulators, NGOs.

Difference Between Stakeholder and Shareholder Approach

Shareholder Theory:

• Sole purpose of a company is to increase shareholder wealth.
• Milton Friedman (1970): Maximize shareholders' profits, within the legal framework.
• Intention: To maintain the financial performance and increase Shareholder Wealth, and for managers to spend the corporation's money.

Stakeholder Theory:

• Companies have responsibilities to multiple groups.
• Edward Freeman (1984): Companies should create value not only for shareholders but other stakeholders (employees, customers, suppliers, communities). Aim: Balance all stakeholders needs and interest, enhance corporate reputation, foster innovation, reduce risks and long-term sustainability

Why Stakeholders Matter in CSR

• Influence on reputation: Enhances company's public image, reputation, and trust.
• Risk management: Helps identify and mitigate potential risks.
• Innovation: Collaboration with stakeholders leads to CSR initiatives.
• Accountability: Company compliant with legal and ethical factors.
• Impact financial performance: Three factors affecting this includes: Investor Preferences / Customer Loyalty / Employee Productivity

Stakeholder Engagement Process

1. Identify Stakeholders:

• Map out external and internal relevant Stakeholders, then categorize them.

2. Understand Stakeholder Interests:

• Learn stakeholder group expectations and values to align with CSR and corporate goals.

3. Engage Stakeholders:

• Develop active involvement strategies in decision-making, communication, and CSR initiatives.

4. Listen and Respond to Feedback:

• Adjust CSR practices based on stakeholder feedback through channels.

5. Monitor and Report:

• Track engagement effectiveness via KPIs and report progress, using monitoring

Methods of Engaging Stakeholders:

Surveys and Feedback,Focus Groups, Public Consultations, Partnerships, Social Media

Challenges of Stakeholder Engagement:

Identifying, conflicting Interests, lack of trust, Resources, Globalization.

CSR enhanced by social values in decision process, process that allow conflict to generate 'win-win' responses

Ethical Issues in CSR involves:

Conflicting values, interests, needing to make choices affecting stakeholders.

• labor rights violations, misleading CSR reporting, Environmental harm, cultural Insensitivity

Ethical Principles in CSR:

Integrity, Fairness, Respect for Stakeholders, Responsibility

• CSR discussion suggests that social concerns primarily impact business decision through: Good will, Over sight, consumer choices

Importance of Ethical Decision-Making

• building trust increases stakeholder, Legal Compliance that ensures companies are with legal and Ethical frameworks.
• Reputation Management is the maintains a positive image.
• Accountability that holds accountability for business decisions
• Common CSR ethical dilemma is to manage: Labour V cost efficiency Environmental impact vs profit Profit vs social good Stakeholder conflict transparency vs image protection

Pivotal Role of Ethical leadership

• ethical Leaders fulfill their economy and responsibility, use mechanism through officers compliance and reporting systems.
• Executive managers can shape and reinforce a culture by paying close attention to, measuring , having ethics and crisis management, being criteria allocation rewards
• Organizational culture comes through consistency between values and conduct

Consequences of unethical CSR

• includes reputation damage, ,financial penalties, loss of consumer trust and employ morale.
• Green washing is a deceptive marketing, that falsely conveys responsiblity.

Video Case Studies

Volkswagen:

• Scandal involved emissions scandal, scientists Volkswagen used software to avoid the test
• The consequences involved: changes in senior management, paying out reparations

Patagonia:

• Patagonia use one percent of it revenue for the planet, and also practices activism.
• prioritize the balance by transferring ownership to NGO to limit short-term profit
• Some aspects of Patagonia can be use for other businesses to adopted.

Non Financial Reporting:

• Social governance reporting used as the CSR reporting
• International: This includes a globally recognized organization the helps produce finacial report
• Aim is to make companies transparent regarding Development.

Key CSR Standards Regulation and Norms:

• compliance, stakeholder, strengthening, Frameworks leaders: compliance ethical.

ISO 26000:

• helps improve decisions-making in relation to CSR goals

7 key principles of :

• includes stakeholders, rule of law, norms behaviour and human rights

Benefits:

enhances, improves stake holder communication,increases competitive advantages.s

Key Features

• environmental assessment
• Global recognition includes: Regulatory Compliance, Risk Management, Cost Savings, and environmental assessment

GRI(global reporting initiative)

• is a standardized way to communicate CSR goals.and ESG indicators.
• Topic specific standards includes economic, Environmental, and Social standings.
• key benefits is being: transparency,competitive advantages,Stakeholder. Inclusiveness.

Sustainability

• defines how companies disclose information and introduces strict standards, and comprehensive

Key objectives

• Double Materiality : enhanced in the business sector
• Transparency and better decision-making

UN Compact:

Is a global scale volunteer Initiative that help promote Sustainability, labor,and social

Principle:

• support and human rights
• eliminates forms of corruption and promote environmental responsibility

Key principle:

• It is by means of volunteer participation annual communication, and local network and
• integration with SDGS to improve, tools Guidance and sustainability.

SDGS- sustainable development goals:

• is the practice of meeting the needs without comprising the future. and involves social, economical and the Environment with the objective to " blueprint and achieve better sustainable

SDGS relationship

• involves Business, and key and align strategic and ensure measure impact

Improve innovation Stakeholder Reputation

• through innovation stake holders can manage efficiency, engagement resilience, and challenges like Funding availability, policy and global cries.

SDG finance

remain insufficient, and its a struggle with climate change,

• according to, trade needs are from 5 to 7 trillion per and only 15% are on.

B score certification:

• meet high standards for social environmental transparency, and profit business

Certification:

• includes:
• standards -accountability
• transparency with a board of directors.

Benefits:

• provides talent, market differentiation for continued improvement
• requires time cost standards depending company volume and employee size

Criticism

• Includes,scoring and lacks consistent.

Management control:

• helps maintain key for steer in an organizations performance, and processes monitor activities to align with state goals, defining Objectives strategic

Forcasting Budgeting, analysis,

• involves collecting both fiancial and none performance, and suggest a new plan of action through systems

Adapted to CSR:

• can adapt with integrating ESG to the traditional and ethical goals within the company, such as reduce well being emissions ethics

CSR strategy:

• structured approach in order to fulfill social economical responsibility.

The 3 step Business process:

• is prescriptive align behaviours with social norms.

• Analysing data, focusing on impact and with business structure governance.

Benefits of sustainability strategic

• Building trust engagement by encouraging motivation, managing risks through regulations.
• Encouraging of sustainability factors long value creation sustainable

Long term and short term cost and expectations.

Measure performance by establishing tools with indicators and performance reports

Life Cycle Assessment ( LCA) goals are

1. Identify Environmental Impacts:
2. Support Decision-Making, by highlight resourses and emissions
3. Promote Sustainabilty,

LCI

1. Collect data Processes Covered
2. Identify what phase of life cycles ( what happens to the product)

Impact categories with Quantify

• gasses/ emissions
• product description
• water usage, toxicity levels, and what is use after being complete

Interpretation :

• Is analysing impact
• Analysis: Identify what could be improve
• Recommendations to help better materials
• Support to ensure its consistent with the goal

LCA:

• helps Design eco with standouts on emissions. and creating market claims.

Advantages:

• Holistic View: and data decision supports

Challenge to making LCA:

• data complexity need expertise is time consuming.
• this leads to understand. and manage environmental impact

carbon footprint:

• a assessment with green emissions use to or the context to.
• help understand where emissions where
• Setting reduction goals provide
• compliance
• three main categories based on which GHG use

1. direct
2. indirect
3. other indirect. is the first process

process data

• is to obtain what use waste use

1. Calculate what can decrease the waste.
2. analyse high areas and report.

Tools: useful with calculating emissions

Benefits: contribute climate regulatory

Challenges: complexity difficult scale stand

• and helps improve environmental goals

CSR and Innovation.

• Define how the development products are services what that they contribute by aravind
• concept can be related : resposible new products are

Enrivironmentally Innovation

• help pivot to solve major objectives
• helps develop new technologies to resolve pollutions
• helps raised Stakeholder of enviromentally concerns.