Social responsibility, Corporate Social Responsibility (CSR) and Corporate Social Investment (CSI) Flashcards
Define social responsibility.
- every individual has an obligation to benefit society.
- It is the duty of all businesses to maintain a balance between the economy and the environment.
Define CSR
- to behave ethically while improving quality of life of community and society.
- Corporate Social Responsibility is an obligation required by law and benefits both business and society.
Define CSI
The investment of corporate funds for the purpose of achieving social outcomes. It is the money that the business spends on the community to improve the standard of living of the community.
What is meant by Contemporary Socio - economic issues?
Current social and economic factors that impact the business e.g., HIV, poverty and unemployment.
What is the Triple bottom line?
Refers to the 3Ps that businesses should always consider in their operations - PROFIT, PEOPLE & PLANET
Explain, in detail, the Triple Bottom line.
Profit:
* Triple Bottom line means that businesses should not only focus on profit but also invest in CSI projects.
* Businesses should not make a profit at the expense of its community.
People:
* Business operations should not have a negative impact on the local community.
* Businesses should engage in projects that will benefit communities.
Planet:
* Businesses should not harm the environment for production or profit purposes.
Discuss ways in which a business project can contribute towards the community.
- Charitable contributions to NGOs
- Employee volunteer programmes where employees contribute to the community e.g., visiting elderly people at an old age home
- Train people within the community, especially the unemployed.
- Involvement in the community education /homeless /health and other programmes.
Discuss ways in which businesses can deal with HIV/Aids as a socio- economic issue.
- Develop counselling programmes for infected /affected employees.
- Conduct workshops on HIV/Aids programmes /campaigns.
- Encourage employees to join HIV/Aids support groups.
- Develop strategies to deal with stigma and discrimination.
Discuss ways in which businesses can deal with Unemployment as a socio- economic issue.
- Provide skills development programmes
- Offer bursaries
- Create jobs for community.
- Provide entrepreneurial programmes
Discuss ways in which businesses can deal with Poverty as a socio- economic issue.
- Invest in SME
- offer volunteering programmes.
- Support poverty alleviation programmes
- Donate to local NGOs.
Name 3 Socio-economic issues?
HIV/Aids , Unemployment and Poverty.
Discuss ways in which businesses can contribute time and effort in improving the well-being of employees.
- Allow flexible working hours to enhance productivity.
- Provide transport for employees who work unusually long hours.
- Conduct team-building sessions to improve employees’ morale.
- Offer annual medical assessments to workers.
Discuss ways in which businesses can contribute time and effort in improving the well-being of communities
- invest in education
- Ensure that the products they supply do not harm consumers
- Make ethically correct decisions,
- Donate money to a community project
- Provide sport facilities
- Participate in community projects involving HIV/AIDS, education, etc.
Explain the Purpose of CSR
- CSR aims at creating a safe working environment for employees.
- CSR programmes are internal programmes that businesses use to comply with laws and ethics.
- Business operations address Triple bottom line through CSR programmes by considering its impact.
What are the Components of CSR?
- Health & Safety
- Environment
- Employees and customers
- Community
Positives and Negatives of the Impact of CSR and CSI on business.
Positive:
* Promotes customer loyalty resulting in more sales.
* promote teamwork
* business enjoys the support of communities.
* helps attract investors
Negative:
* It is difficult to accurately measure the effectiveness of social investment.
* Most managers are not trained to handle social programmes.
* Detailed reports must be drawn up
* CSI activities distract business focus from its core business functions.
Positives and Negatives of the impact of CSR and CSI on communities.
Positives:
* Encourages communities to improve their skills.
* Better educational facilities in poor communities.
* Better standard of living of the community
Negatives:
* Businesses are not always equipped to address social problems.
* Communities become dependent on CSR programmes
* Business cannot deliver sustainable CSR programmes.
Discuss the purpose of CSI
- Aims at contributing towards sustainable development of its immediate communities.
- Enforceable by law - government requires business to make CSI contributions.
- CSI projects play a positive role in the development of communities.
What are the CSI focus areas?
CREE
* Community
* Rural development
* Employees
* Environment
What are the Differences between Corporate Social Responsibility (CSR) and Corporate Social Investment (CSI)?
Corporate Social Responsibility:
* The intention is to change business practices.
* Focus is on increasing image and profits.
* Ensure that all internal CSI policies/ practices include stakeholders’ interests/environmental issues.
* Often intended as a marketing initiative.
* Focus is on increasing image and profits.
* Projects are usually linked to the business
Corporate Social Investment:
* Actively committing money and resources to uplift the community.
* Focus is on the upliftment of community without return on investment.
* Ensure that CSI projects are relevant to the needs of communities.
* Intended to benefit and uplift communities through social development.
* Projects are external to the business and have a strong developmental approach.
