This document presents an overview of corporate social responsibility. It defines CSR as a company's commitment to operate in an economically, socially, and environmentally sustainable manner. The document discusses the history of CSR and outlines its key functions such as responsible sourcing, employee engagement, and environmental protection. It also examines the potential benefits of CSR for businesses and society, including better brand recognition, cost savings, and community support. Some disadvantages like implementation costs are also noted. Examples of CSR practices and definitions from sources like the UN and World Bank are provided.

1. Bahir Dar University
Ethiopian Institute of Textile and
Fashion Technology
C o r p o r a t e S o c i a l R e s p o n s i b i l i t y : report
presentation
By: Kibrom Asgele
Jan 2/2020

2. Corporate Social Responsibility

3. Introduction
Corporate Social Responsibility
(CSR) is interchangeably used as:
• Corporate Conscience,
• Corporate Citizenship,
• Social Performance or
• Sustainable Responsible
Business/ Responsible Business.

4. Definition
• Corporate social responsibility
means the obligation, which a
corporation owes to society.
World Bank Group defines CSR
as “
• It is the commitment of
businesses to contribute to
sustainable economic
development by working with
employees, their families, the
local community and society at
large to improve their lives in
ways that are good for business
and for development”.

5. Cont.
According to World Business
Council for Sustainable
Development,
• “It 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”.

6. Cont.
• CSR is generally understood as
being the way through which a
company achieves a balance of:
• Economic,
• Environmental and
• Social imperatives
• Triple bottom line (TBL)
incorporates the notion of
sustainability into business
decisions, coined by John
Elkington in 1994.
• TBL is an accounting
framework with 3 dimensions:
social, environmental and
financial.

7. Cont.
The TBL dimensions are also
commonly called the 3 Ps:
• People (which focuses on the
development of the
community and adherence to
fair labor practices),
• Planet (focused on the
impact on the environment
and what is being done to
integrate sustainable
environmental practices) and
• Profit (the economic value
created by the organization
after deducting the cost of all
inputs, including the cost of
the capital) and are referred
to as the “three pillars of
sustainability”.

8. History
• In the mid-to-late 1800s, there was
growing concern about worker
wellbeing and productivity, among
industrialists raised philanthropy,
industrialist Andrew Carnegie, who
made most of his fortune in the steel
industry, was known for donating large
portions of his wealth to causes related
to education and scientific research.
• The term Corporate Social
Responsibility was officially coined in
1953 by American economist Howard
Bowen (often referred to as the father
of CSR ) in his publication Social
Responsibilities of the Businessman.
• The 1990s marked the beginning of
widespread approval of CSR.

9. Features/ functions of
Corporate Social Responsibility
(bizfluent, 2019, january 13)
The United Nations Industrial Development
Organization notes that the common
functions of corporate social responsibility
include:
• Responsible sourcing of materials
and supplies,
• Employee, vendor, customer and
community engagement and
relations,
• Adherence/devotion to labor
standards,
• Environmental protection and
management,
• Anti-corruption measures,
• Upholding social equity, gender
equity and other human rights goals,
• Conservation of resources, like water
and energy, in production,

10. Why CSR
(Vasan,
2015)?
It can act as a driver for the development of new markets and create real
opportunities for growth.
It strengthens relationships with customers, suppliers, and networks.
It enables continuous improvement and encourages innovation.
It enhances the ability to manage stakeholder expectations.
It encourages more social and environmental responsibility from the corporate
sector at a time when the consumer confidence and the levels of trust in business
are getting damaged.
It can enhance brand image and reputation and generate the ability to attract and
retain employees.
It can provide access to investment and funding opportunities.
It can differentiate yourself from your competitors.
It generates positive publicity and media opportunities due to media interest in
ethical business activities.

11. 4 corporate
responsibility types a
business can practice
(DAILY, 2019, April
22)
1. Environmental efforts
2. Philanthropy
3. Ethical labor practices
4. Volunteering

12. Business benefits of corporate
social responsibility
• Better brand recognition
• Positive business reputation
• Increased sales and customer loyalty
• Operational costs savings
• Better financial performance
• Greater ability to attract talent and retain staff
• Organizational growth
• Access finance/capital - investors are more likely to back a reputable business.
• Attract positive media attention - e.g. when taking part in community activities.
• Reduce regulatory burden - good relationships with local authorities can often make doing business easier.
• Identify new business opportunities - e.g. for the development of new products or services.

13. Cont.
Environmental benefits:
• Greater material recyclability;
• Better product durability and
functionality;
• Greater use of renewable
resources;
• Integration of environmental
management tools into business
plans, including life-cycle
assessment and costing,
environmental management
standards, and eco-labelling.

14. Benefits to the
community and the
general public:
Charitable contributions;
Employee volunteer programmes;
Corporate involvement in community education,
employment and homelessness programmes;
Product safety and quality.
Cont.

15. Disadvantage of
CSR
• CSR Costs Money to Implement
• Conflicts with the Profit Motive
• Consumers are Wise to
Greenwashing

16. Reference
• BIZFLUENT. 2019, january 13. What Are the Functions of Corporate Social Responsibility?
[Online]. Available: https://bizfluent.com/info-8459857-functions-corporate-social-
responsibility.html [Accessed].
• CHRON. 2019, March 04. Pros & Cons of Corporate Social Responsibility [Online]. Available:
https://smallbusiness.chron.com/pros-cons-corporate-social-responsibility-56247.html [Accessed].
• DAILY, B. N. 2019, April 22. What Is Corporate Social Responsibility? [Online]. Available:
https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html [Accessed].
• HASSEN, S. 2016. Corporate Social Responsibility and its impact on profitability (A case study of
Oil MNCs in Ethiopia)(TOTAL, OILIBYIA, AN D KOBIL). St. Mary's University.
• NIBUSINESSINFO.CO.UK. Corporate social responsibility (CSR) [Online]. Available:
https://www.nibusinessinfo.co.uk/content/business-benefits-corporate-social-responsibility
[Accessed].
• THOMAS 2019, SEP 25. A Brief History of Corporate Social Responsibility (CSR).
• VASAN, M. 2015. Corporate Social Responsibility. EduPedia Publications Pvt Ltd, New Delhi.