Corporate SocialResponsibility (CSR) Jeannifer B. Villanueva MPMG 11-011 Dean F. Tolentino
CSR: Origin The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic Management: A Stakeholder Approach in 1984.
CSR: Goal To embrace responsibility for the companys actions Encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere To aid an organizations mission as well as a guide to what the company stands for and will uphold to its consumers To manage the business processes to produce an overall positive impact on society.
CSR DefinitionsBusiness for Social Responsibility: Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.The World Business Council for Sustainable Development: Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
CSR as defined by different countries In Ghana, CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government. In the Philippines, CSR is about business giving back to society.
In the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. In Europe, CSR is operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons.
CSR Common Approaches1. Community – based development2. Philanthropy / Donations3. Education programs4. Environment friendly programs
Criticisms and concerns on CSR Undertaken by companies to distract the public from ethical questions posed by their core operations. Programs used for the commercial benefit Companies claim to promote CSR and be committed to sustainable development but simultaneously engage in harmful business practices. Distracts from the economic role of businesses Acts as window-dressing, or an attempt to pre- empt the role of governments as a watchdog over powerful multinational corporations.