CORPORATE SOCIAL
RESPONSIBILITY
Why businesses should be socially responsible
What is Corporate Social
Responsibility?
Corporate Social Responsibility (CSR):

Transparent business practices based on ethical values

Compliance with legal requirements

Respect for people, communities, and the environment

Thinking beyond pure profit: socially responsible
companies consider the totality of their impact on
people and the planet.
Corporate Social Responsibility
Includes:
Environmentalawareness–seekingenvironmentallyfriendlysolutions
 Philanthropy– donatingtocharities;fundingsocialprojects
Ethicalemploymentpractices–treatingemployersfairly
What about the shareholders?
Why should for-profit businesses be
concerned about Corporate Social
Responsibility?
Investing in communities is good for
business
 Today more and more economic analysts
believe that CSR plays important role for
business competitiveness.
 In today’s globalized business climate,
consumer concern for social issues is at an
all-time high, as is the importance these
customers place on CSR when choosing
where to shop.
According to a 2011 study conducted by the ad agency network
TBWA/Worldwide and TakePart:
7 in 10 young adults consider themselves social activists.
1 in 3 support or boycott businesses based on the causes they
care/don’t care about.
4 in 5 say they'd be more likely to purchase from a company that
supports a cause they care about (if price and quality are equal)
and 3 in 4 would think more highly of a company that supports a
social cause.
A stunning 3 in 4 believe that corporations should create
economic value for society by addressing its needs .
Consumers care more about who you are
rather than what you do – Global RepTrack 100
The Global RepTrack 100 Study is conducted annually by the
Reputation Institute, a global consulting company, and analyzes
feedback from up to 60,000 consumers across 15 countries.
The study concludes that a person’s willingness to buy,
recommend, work for, and invest in a company is 60% driven by
their perceptions of the company.
42% of how these perceptions are formed is based on their
understanding of the firm’s corporate social responsibility
practices.
How does corporate giving effect profit?
CECP Giving in Numbers Brief findings:
 The most generous companies in 2010 realized
strong business returns from 2010 to 2013
 Companies that increased their corporate giving
by more than 10% in 2010 also increased median
revenues by 11% from 2010 to 2013
Well-Known Companies Regularly Engaged in
CSR Practices
The top 10 companies with the Best CSR Reputation, as
identified by the Reputation Institute:
Microsoft
Daimler
Google
Volkswagen
Disney
Sony
BMW
Colgate
Apple
Lego
Where do contributions go?
Civic and Public Affairs 5%
Health and
Social Services 27%
Community and
Economic.Development
14%
Culture and arts 5%
Civic & Public Affairs
Community & Economic
Development
Culture and arts
Disaster Relief
Education
Disaster Relief 3%
Environment 3%
Education 28%
CECP Giving in Numbers Brief
Environment
Key Takeaways:
 In the era of globalization, consumers place more and
more importance on CSR when choosing where to
shop
 The number of businesses that have increased their
corporate giving has grown and a number of these
experienced an increase of profit as a direct result
 Be socially responsible, help to make world a
better place to live and make your business more
sustainable!
Sources:
1.
Corporate Social Responsibility is Millenial’s New Religion by Andrew Swinard,
Crains Chicago Business, March 25, 2014, retrieved from
http://www.chicagobusiness.com/article/20140325/OPINION/140329895/corporatesocial-responsibility-is-millennials-new-religion
2.
What is Corporate Social Responsibility? by Nicole Fallon, Business News Daily, Feb.
27, 2014, retrieved from http://www.businessnewsdaily.com/4679-corporate-socialresponsibility.html
3.
The Companies With the Best CSR Reputations, by Jacquelyn Smith, Forbes
magazine, Dec. 10, 2012, retrieved from
http://www.forbes.com/sites/jacquelynsmith/2012/12/10/the-companies-with-thebest-csr-reputations/3/
4.
CECP Giving in Numbers Brief, retrieved from
http://cecp.co/research/benchmarking-reports/giving-in-numbersindex.html#.U8GM2bflqzc
5.
Global RapTrack Report 2014, Reputation Institute