Chapter seven discusses the integration of social and environmental factors into corporate responsibility (CSR) reporting, emphasizing its historical context and types such as environmental, ethical, philanthropic, and economic responsibilities. CSR reports serve as tools for organizations to assess their non-financial impacts on society and the environment, fostering transparency and ethical business practices. Furthermore, it outlines the importance of stakeholder engagement, sustainability, and social audits in measuring an organization's accountability and performance.

1. CHAPTER SEVEN
Extending Corporate
RESPONSIBILITY: THE INCORPORATION
OF SOCIAL AND ENVIROMENTAL FACTORS
WITH IN THE EXTENAL FACTOR

2. The growth acceptance of corporate social
responsibility reporting, incorporating new industry
• CSR describes the company's commitment to carry out
its business in an ethical way.
• This means managing the business processes while taking
account of their social, economic and environmental
impact, and considering human rights.
• A CSR report is an internal and external-facing
document that enables organizations to evaluate their
ethical, environmental, philanthropic and economic
impact.
• CSR reporting is the practice of reporting an
organization’s performance of non-financial metrics,
providing transparency on the organization’s impact on
society and the environment.

3. History of CSR reporting
• Evidence showing organizations’ concern for society and their
employees’ wellbeing and working conditions can be found as
far back as the 1800s, during the Industrial Revolution.
• Philanthropy was also on the rise during this time, and it was not
uncommon for industrialists and entrepreneurs to make
donations to educational or scientific causes.
• Modern CSR reporting can be traced back to 1953 when the term
was officially coined by the American economist, Howard Bowen.
• In the 1970s, the popularity of CSR reporting began to take
hold, and by the 1980s, many companies were using CSR reports
to showcase their social responsibility, bolster their brand
reputation, and respond to stakeholders.
• CSR is now a widely practiced form of self-regulation across
organizations of all sizes and is often led by an appointed CSR
Manager.

4. Types of corporate social responsibility
• CSR is generally categorized in four ways:
environmental responsibility, ethical/human rights
responsibility, philanthropic responsibility and
economic responsibility.

5. 1. Environmental corporate responsibility
• It refers to the organization’s commitment to
sustainability and environmentally friendly
operations.
• Every year, more companies are prioritizing
sustainable practices, pledging to consider their
environmental impact at every stage of business.

6. 2. Ethical/human rights social responsibility
• refers to a company’s commitment to operate business
in an ethical manner that upholds human rights
principles, such as fair treatment of all stakeholders, fair
trade practices and equal pay.
• Speak up in the name of human rights injustices such as
child labor, racial or gender discrimination and the
fight for a higher minimum wage.
• Much like with responsibility to the environment, there are
ways to endorse ethics at your company by involving
employees in the process.

7. 3. Philanthropic corporate responsibility
• refers to a corporation’s aims, goals and objectives for
actively bettering society as a whole.
• One aspect of corporate philanthropy is donating money
from company earnings to worthy causes within the
local community — often in the form of a trust or
foundation.

8. 4. Economic corporate responsibility
• refers to the practice of making financial decisions
based on a commitment to doing good.
• Some common examples of economic responsibility
include investing in alternative energy sources,
putting more money into education programs and
funding local charities as a way of bolstering their
mission.
• To uphold economic responsibility, business leaders are
challenged to think past operational cost savings and
instead put their obligation to corporate citizenship at
the heart of all financial decisions.

9. • Diversity and inclusion
• Your company can promote diversity from the inside out
by establishing an inclusive hiring practice and
encouraging your teams to embrace different
cultures, backgrounds and identities.
•Governance
• Good governance benefits corporations and society as a
whole.

10. Well-being
• You can show your people that you care about their
mental and physical health by making personal well-
being a priority.
Employee engagement
• You can keep your teams engaged with your company
and the community through CSR initiatives.

11. Supply chain responsibility
• As a company, you can also be socially responsible by
verifying that your vendors and suppliers similarly
prioritize making a positive impact.

12. Developing notions of sustainability
• Sustainability is ability to maintain or support a process
over time.
• Sustainability is often broken into three core concepts:
economic, environmental, and social.
• Sustainable development is a broad term to describe
policies, projects and investments that provide
benefits today without sacrificing environmental,
social and personal health in the future.

13. Objective of social and environmental reporting
• Social reporting aims at measuring (either in monetary or
non-monetary units) adverse and beneficial effects of an
enterprise's activities both on the firm and/or those
affected by the firm; it measures social costs and
benefits.
• The purpose of environmental reporting is to
communication and to fulfill organizations'
accountability in regards to the environmental burden.
• Social reporting is related more to how humans interact
with one another while environmental reporting is more
concerned about how humans change and impact their
environment

14. Identifying the stakholders
• Who are the internal stakeholders?
• All those who interact directly with the company:
• shareholders;
• executives/managers;
• employees;
• trade unions.
• Who are the external stakeholders?
• These include:
• NGOS;
• governments;
• customers;
• local communities;
• business partners;
• suppliers.

15. accounting for externalities
• Externality: an impact, positive or negative, on any party
not involved in a given transaction or economic act, for
example the gap between social cost and private cost.

16. Social auditing
• A social audit is an internal examination of how a
particular business is affecting society. T
• he audit helps companies to determine if they're meeting
their objectives, which may include measurable goals
and benchmarks.