Corporate Social Responsibility and Stakeholders

Question 1

What is Corporate Social Responsibility?

Answer 1

There is no one definition of CSR, but in essence it means integrating social and environmental concerns into business operations and company strategy. This includes acting ethically and considering, beyond what is required by regulation, the impact of, and the approach to, its workforce, the community and the environment.

Question 2

What are some advantages of CSR?

Answer 2

1. For sustainability;
2. To reduce reputational risk;
3. To attract and retain capital/workforce;
4. For innovation
5. For competitive advantage

Question 3

What types of CSR issues are there?

Answer 3

1. Environmental- impact on environment including carbon footprint and energy efficiency, approach to plastic and waste.
2. Community - relationships and supporting local community groups, charitable donations to local charities.
3. Employees - employee wellbeing and protection and approach to diversity and inclusion.
4. Ethics - consider adopting code of ethics and the right approach to business practices.
5. Suppliers - The checks it imposes on suppliers to ensure alignment with company’s ethics and don’t have bad business practices.

Question 4

What are the categories of CSR Activity (the 4 Ps)?

Answer 4

1. Philanthropy
2. Partnerships
3. Pet projects
4. Propaganda

Question 5

What should an organisation consider when deciding what CSR targets and measurements to use?

Answer 5

1. Focus on outcomes - how the initiative changed the lives of the beneficiaries of the initiatives and/or helped create a better planet
2. Measuring the outcome using both quantitative and qualitative measures
3. Listen to stakeholders
4. Do not undervalue stories - Stories can be powerful e.g. how someone’s life was changed by the organisation’s initiative.
5. Learn from others
6. Identify and measure risks
7. Measure, refine, modify, measure again