This document defines corporate social responsibility and discusses why businesses should engage in it. It defines CSR as business practices that further social good beyond legal compliance and profit motives. CSR involves responsibilities to stakeholders like employees, customers, and society. Businesses benefit from CSR in four ways - morally, through improved reputation, strategically to increase profits, and through competitive advantages. The document also gives examples of how CSR can directly help businesses' bottom lines by attracting investors and customers and boosting contract wins.

1. BARRIE COOK
B00269412

2. Content
• A definition of Corporate Social Responsibility
• What is Corporate Social Responsibility?
• Why should businesses be socially responsible?
• How can businesses make money from Corporate
Social Responsibility?

3. A Definition Of Corporate Social
Responsibility
A situation where the firm goes beyond compliance and
engages in actions that appear to further some social
good beyond the interests of the firm and that which is
required by law (McWilliams et al., 2006)

4. What is Corporate Social
Responsibility(CSR)?
• The practical application of business ethics by the firm and a
wider commitment to building a better society
• CSR is concerned primarily with the firm and it’s relationships
with its various stakeholders
• Stakeholders include shareholders, employees, customers,
suppliers, the community and society and government
• There is also a responsibility towards the sustainability of the
environment
(Needle, 2010, p.300)

5. Why Should Businesses Be Socially
Responsible?
4 Different perspectives (Needle, 2010, p.304)
The moral argument
The business argument
The strategic argument
The critical Perspective

6. How Can Businesses Make Money
From CSR?
• A survey has shown that 80% of investors questioned
would be prepared to pay a premium for shares in well-governed
companies (Hawkins, 2006, p.191)
• Companies that have a responsible approach should be
better placed to win contracts or development
permission in enviromentally sensitive industries
(Hawkins, 2006, p.192)
• Customers who have developed trust in a company due
to its CSR activities are more likely to resist criticisms
of its products and/or activities (Swaen and Chumpitaz, 2008,
p.28)

7. References
 Hawkins, D. (2006). Corporate Social Responsibility:
Balancing tomorrows sustainability and today's
profitability. United Kingdom: Palgrave Macmillan
 Needle, D,.(2010). Business in context: An introduction to
business and its environment. 5th ed. United Kingdom:
Cengage
 Swaen, V & Chumpitaz, R. (2008) Impact of corporate
social responsibility on consumer trust. Reserche et
application en marketing(english edition). [online]. Vol23.
(n-4). p28. Available from
http://rme.sagepub.com/content/23/4/7 . [Accessed : 22
October 2014]