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Society creates a dynamic context in whichfirms operate
CSR is an evolving concept …
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The ideal mix of business goals and
societal expectations evolve over time
The context is dynamic because
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The broad concept that businesses are more than just
profit seeking entities and, therefore, also have an
obligation to benefit society
Defining Corporate SocialResponsibility (CSR)
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Government
Host Community
Business Partners
Core Operations
Spheres of Influence Model of CSR
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)
Company spheresof influence
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Spheres of Influence
Core Operations
• Employees• Health & Safety• Work/life balance• Rights to free assembly and collective bargaining
• Anti-discrimination measures in recruitment, development and promotion• Privacy of personal information• Pension provision• Fair remuneration and working conditions
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)
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Spheres of Influence
Business Partners: Customers, Suppliers andVenture Partners
• Positive / Negative impacts of goods and services misuse• Safety and pricing• Advertising and consumer rights• Vulnerable or disadvantaged groups
• Bribery and corruption• Supply Chain labour issues (child, forced, discrimination, fair
wage, working hours, security)
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)
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Spheres of Influence
Communities
• Surrounding operations• Community and social impacts : water, livelihoods,
discrimination• Security of installations• Land and indigenous rights• Access: access to housing, education
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)
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Spheres of Influence
Advocacy/PolicyDialogue
• Government relations• Political Influence
• Public Advocacy• Campaigns
Source: Amnesty International & Prince of Wales Business Leaders Forum (1999)
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The Enterprises responsibilities should be commensurate
with its economic, social and political power
The Social Contract
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Systemic/macro environmental/general environment
Corporation’s microenvironment or operating/taskenvironment
Superiors, subordinates, and other employees and laborunions
Significant others of business decision makers like family,friends, peers etc .
4 levels of Stakeholders
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CSR embraces the range of economic, legal,ethical, and discretionary actions that affect the
economic performance of the firm
WHAT CSR IS AND IS NOT
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A significant part of a firm's CSR, there- fore, iscomplying with the legal or regulatory requirements
faced in day-to-day operations.
To break these regulations is to break the law, whichis not socially responsible.
WHAT CSR IS AND IS NOT
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Clearly,
Adhering to the law is an important component of any ethicalorganization.But, legal compliance is merely a minimum condition of CSR.
WHAT CSR IS AND IS NOT
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Instead,CSR is about the economic, legal, ethical, and
discretionary issues stakeholders view
as affecting the firm's plans and actions. The solutionsto these issues, the overlap where economic benefit
and social benefit meet, is at the heart of anysuccessful CSR policy.
WHAT CSR IS AND IS NOT