Corporate Social Responsibility:
In Practice
Chapter
Eight
Copyright © 2008 McGraw-Hill
Ryerson Ltd.
1
Chapter Outline









Review of Chapter Seven
Responses to Corporate Social Responsibility
Planning for CSR
Trends and Concerns in Corporate Giving
Corporate Voluntarism and Sponsorship
Social Venture Philanthropy (SVP)
Social Enterprise and Entrepreneurship
Small Business and CSR
Contemporary CSR: Investment and Involvement
Chapter 8
Copyright © 2008 McGraw-Hill
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2
Review: Social Responsibility
Theories
1.
2.
3.
Amoral view
Personal view
Social view
◦ Social Contract
◦ Stakeholders
◦ Social Impact
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Review: CSR Concepts

Corporate Sustainability (CS)
◦ Activities

Reputation Management
◦ Image

Social Impact Management
◦ Interdependency

Triple-E Bottom Line (TBL)
◦ Measurment

Corporate Citizenship
◦ Self Interest
Chapter 8
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New Approach to Corporate Citizenship

Limited
◦ Obligation
◦ Focus on corporate giving

Equivalent
◦ Expectations
◦ Emphasis on sustainability

Extended
◦ Rights
◦ Defined as a set of individual, social, civil, and political
rights
Source: Matten and Crane, 2005
Chapter 7
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Responses to
Corporate Social Responsibility
Social Venture
Philanthropy
Social
Enterprise
(for-profit)
Amoral
Corporate
Volunteerism
Social
Enterprise
(nonprofit)
Greenwash
Corporate
Giving
Anti-CSR
Chapter 8
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Planning for CSR

Plan
◦ Conduct CSR assessment
◦ Develop a CSR strategy

Do
◦ Develop CSR commitments
◦ Implement CSR commitments

Check
◦ Verify and report on progress

Improve
◦ Evaluate and improve
Source: Industry Canada, 2006
Chapter 8
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7
Corporate Philanthropy: Definition

The effort of business to contribute to
society socially, manifested by donations
of money or goods and services in kind,
voluntarism (where corporate employees
work for social causes), and sponsorship
of events that contribute to society.
Chapter 8
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3 Types of Corporate Philanthropy
Corporate Giving
1.
◦
◦
2.
3.
Cause-Related Marketing
Strategic Giving
Corporate Volunteerism
Corporate Sponsorship
Chapter 8
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Arguments For
Corporate Giving
Means to express CSR to community
 Promotes image of good citizenship
 Business benefits from volunteer sector
 Benefits from corporate community
investment program
 Company’s success linked to community’s
health

Chapter 8
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Arguments Against
Corporate Giving
Funds given belong to shareholders
 Social welfare is the job of government
 Corporation might become accountable
for actions of charity
 No guidelines or standards to measure,
evaluate, or monitor corporate giving

Chapter 8
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Trends and Concerns in
Corporate Giving

Social Legitimacy: Gained by conforming to
society’s norms and expectations.
◦ Can be improved through association.
Chapter 8
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Trends and Concerns in
Corporate Giving

Pressure to become businesslike
◦ Efficient
◦ Reduce administration costs
◦ Produce return
 Calculate return-on-investment
◦ Accountability

Might move charities away from their
mission
Chapter 8
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Trends and Concerns in
Corporate Giving
Cause-related marketing: The purchase of a
particular product results in a donation
being made by a corporation to a nonprofit organization’s program.
 Concerns:

◦ Charities are selected based on opinion polls not
need
◦ The ratio of amount donated vs. amount spent on
marketing
◦ May encourage donors not to give to those charities
Chapter 8
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Trends and Concerns in
Corporate Giving

Strategic giving: An attempt to rationalize
the shareholder interests with corporate
philanthropy whereby the corporation
benefits directly from the funds given.
◦ Synergy is necessary in partnerships (win-win)
◦ Enlightened self-interest

Concerns:
◦ Controversial nonprofit organizations will be left out
Chapter 8
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2. Corporate Voluntarism

Definition: The time and talent employees
commit to community organizations with
support and / or consent from employers
who recognize the value of such efforts
to society.
Chapter 8
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2. Corporate Voluntarism

Forms of support
◦ Providing facilities, allowing time off, assisting
with personal expenses incurred while
undertaking voluntary activities, special
recognition to employees

Corporate policies regarding voluntarism
◦ Encouraging – positive atmosphere
◦ Enabling – policies to help employees volunteer
◦ Promoting – encourage and reward volunteering
Chapter 8
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3. Corporate Sponsorship
A partnership which has been established
for mutual benefit between a business
sponsor and an event or a non-profit.
 Examples: sports, cultural, and educational
events, literacy, religious, race relations,
drug abuse, environmental issues, etc.

Chapter 8
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Social Venture Philanthropy
The investment of human and financial
resources by corporations in non-profit
community development agencies to
generate a social return instead of only a
financial one.
 Also known as social venturing, the new
philanthropy, and high-engagement
philanthropy.

Chapter 8
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Social Enterprise
A model of business operation where
some or all profits are deliberately used
to further social aims.
 Two types:

(1) non-profit enterprises that contribute all
profits to social initiatives (e.g.,Value Village
thrift stores);
(2) for-profit enterprises that divide profits
between social initiatives and shareholders
(e.g., The Body Shop)
Chapter 8
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Social Entrepreneurship
An innovative, visionary leader of a nonprofit with real-world problem-solving
creativity and a high awareness of ethical
considerations.
 Also referred to as philanthrocapitalism.

Chapter 8
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Small Business and CSR

Challenges:
◦ Entrepreneurs do not have time
◦ Expenses involved
◦ Lack of knowledge of CSR planning

Typical issues for small business:
◦ underground economy; misleading advertising
and financial reporting; improper gift giving
and receiving; tax evasion; nepotism.
Chapter 8
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22
Contemporary CSR:
Investment and Involvement


Community investment: The efforts of a corporation
to help develop a community and create economic
opportunities through a variety of means, from
donations to direct involvement in commercial
undertakings.
Motivation may be based on: religious principles;
making a difference in society; personal experience;
giving something back; and self-interest (e.g., tax
incentives and recognition)
Chapter 8
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23