2. Corporate Social Responsibility (CSR) is an
organization’s obligation to consider the interests
of their customers, employees, shareholders,
communities, and the ecology and to consider the
social and environmental consequences of their
business activities.
By integrating CSR into core business processes
and stakeholder management, organizations can
achieve the ultimate goal of creating both social
value and corporate value.
3. Strategic CSR provides companies with
solutions for:
Balancing the creating of economic value with
that
of societal value
How to manage their stakeholder relationships
(especially those with competing values)
Identifying and responding to threats and
opportunities facing their stakeholders
Developing sustainable business practices
Deciding the organization’s capacity for
philanthropic activities
4. Corporate social responsibility is a form of
management that considers ethical issues in all
aspects of the business. Strategic decisions of a
company have both social and economic
consequences. Social responsibility of a company
is a main element of the strategy formulation
process. There is a misconception that corporate
social responsibility is less relevant to small
businesses; however, there is growing recognition
of the importance of social responsibility for
smaller firms.
5. Types
Integrating social responsibility in strategic management requires
sound knowledge of the types of social responsibilities a company
deals with. Economic responsibilities are the most basic type of
social responsibilities. The company is expected to provide goods
to the society at reasonable prices, create jobs and pay due taxes.
Legal responsibilities reflect the obligation to comply with the
laws that regulate business activities; ethical responsibilities mirror
the company's notion of the right business behavior. Some actions
might not be illegal but can be unethical. Making and selling
cigarettes is a case in point.
Finally, discretionary responsibilities are those that are
voluntarily adopted by the business. For example, companies that
adopt the good citizenship approach, actively support charities,
public service advertising campaigns and other public interest
issues.
6. Competitiveness
Strategic management seeks to give the company a
competitive advantage in the market. Intangible sources of
competitive advantage, such as ethical management, have
become important in recent years. A company that better
incorporates social responsibility into its operations will be
in a better position than competitors. For example, a small
business that sources locally, offers discounts to senior
citizens and volunteers for community causes will be in the
good books of its local community. This can translate into
customer loyalty and profitability.
7. Mission Statement
The mission statement is a critical output of the strategic
management process. It identifies what the company
offers and to what markets. The mission statement also
reflects the ethical and moral standards of the company.
In formulating the mission statement, the legitimate
concerns of the external entities, such as stakeholders,
customers, suppliers, the government and local
communities, should be taken into account. This will
boost the legitimacy of the company.
8. There are several stages in the integration of corporate social
responsibility in the company's strategic management process.
Firstly, managers should try to embed ethical principles into the
shared organizational culture. The main idea is to make ethical
consideration a tacit part of the company's psyche. The mission
statement and other strategic documents will be modified to
reflect this emphasis. Secondly, a diagnosis of the company's
current status and deficiencies should be made. The company
determines what type of social responsibility is more attuned to its
core activities and outside community. Finally, the corporate
social responsibility approach is generalized. In this stage, acting
ethically becomes second nature to the company and permeates all
activities of the company
Integration
9. The list of CSR activities which a company could
pick are;
1. eradication of hunger and poverty
2. promotion of education
3. promoting gender equality and empowering women
4. reducing child mortality and improving maternal health
5. ensuring environmental sustainability
6. social business project
7. reducing pollution
8. forestation and decreasing deforestation
9. creating awareness about social issues
10. contribution to the Prime Minister’s National Relief Fund
or any other fund set up by the government
11. any other activity as prescribed by the government.
