Corporate social responsibility has become a hot
business topic in recent years and many well-known
business people have expressed their support for it:
 “It takes 20 years to build a reputation and five
minutes to ruin it.” Warren Buffett
 “The business of business should not be about money,
it should be about responsibility. It should be about
public good, not private greed” Dame Anita Ruddick Body Shop
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There are many alternative definitions of CSR.
 An obligation, beyond that required by the law, for a
business to pursue long term goals that are good for
society
 About how a company manages its business to
produce an overall positive impact on society
 Corporate social responsibility (CSR) is about
understanding your business' impact on the wider
world and considering how you can use this impact in
a positive way. (Business Link)
 Conducting business in an ethical way and in the
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interests of the wider community
Responding positively to emerging societal
priorities and expectations
A willingness to act ahead of regulatory
confrontation
Balancing shareholder interests against the
interests of the wider community
Being a good citizen in the community
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The answer is yes and no! There is clearly an
overlap between CSR and business ethics:
 Both are concerned with values, objectives and
decisions based on something other than the pursuit
of profit
 Socially responsible firms must act ethically
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The difference is that:
 Ethics concern actions which can be assessed as
right or wrong by reference to moral principles
 CSR is about the organisation’s obligations to all
stakeholders – and not just shareholders
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Economic: Responsibility to earn profit for
owners
Legal: Responsibility to comply with the law
Ethical: Not acting just for profit, but doing
what is right, just and fair
Voluntary and philanthropic: Promoting
human welfare and goodwill.
Being a good corporate citizen contributing
to the community and quality of life
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Following the codes of practice that embody
moral values.
The objective is to do the right thing, acting
with honesty and integrity and taking into
consideration the interests of everyone
affected by the decision.
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Social Audits: highlights the progress, or the lack of
it, of a business that is committed to acting
responsibly towards all its stakeholders.
The audit process allows employees to feel that
their values and concerns are considered alongside
other stakeholders.
These audits are the outcomes of ‘social accounting’
To be successful in these audits, there must be clear
aims, goals, and a vision.
Shell, BT and the Co-op Bank have used this
approach.