Facilitated by Goldengate Consulting
July 2012
Corporate Social Responsibility
Introduction
Objectives
Corporate Social Responsibility
• Understanding the basics and fundamental principles of Corporate
Social Responsibility (CSR)
• To appreciate the impact of CSR on businesses
• To discuss how CSR initiatives can benefit businesses
Objectives
Corporate Social Responsibility
Definition
Definition
What is Corporate Social Responsibility?
CSR! Is that really
for me? So
technical, very
expensive!!
I’m overwhelmed
Definition
Corporate Social Responsibility
Definition
What is Corporate Social Responsibility?
‘Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving
the quality of life of the workforce and their families as well as of the local
community and society at large’.
– World Business Council For Sustainable Development
Corporate Social Responsibility
Definition
Definition
What is Corporate Social Responsibility?
Corporate Social Responsibility
The responsibility of business towards the society
Definition
Corporate Social Responsibility
Our Definition
A voluntary initiative on the part of a business to
contribute to a better society and a greener and
cleaner environment.
Definition
Definition
Corporate Social Responsibility
Analysis of the definition by the World Business Council For
Sustainable Development
• Expectation of stakeholders that companies should behave
ethically
• Expectation that business should contribute to economic
development
• Expectation that business should improve the quality of life of its
workforce and their families
• Expectation that business should play active part in the
improvement of the society
Definition
Corporate Social Responsibility
CSR in South Africa
Past, Present and Future Trends
Corporate Social Responsibility
Past, Present and Future Trends
CSR IN SOUTH AFRICA
Past Trend –
Pre 1994
Present Trend –
Post 1994
Future Trend
Corporate Social Responsibility
CSR Myths, Legislation and Benefits
Myths surrounding CSR
CSR is not for small businesses
It is too complicated and technical
It is too expensive
It is a market gimmick
It is a separate corporate initiative
Corporate Social Responsibility
Legislative Framework
Corporate Social Responsibility
Legislative Framework
Companies Act 71 of 2008
King III
BBBEE Act 53 of 2003
Benefits of CSR
Corporate Social Responsibility
Legislative Framework
Winning new
businesses
Enhanced
Relationship with
stakeholders
Increase in
customer retention
Saving money
on energy and
operating cost
Benefits
of CSR
Differentiating
yourself from the
competitor
Enhancing your
influence in the
industry
Attracting,
Retaining and
Maintaining a happy
workforce
Media interest
and good
reputation
Access to funding
opportunities
Corporate Social Responsibility
CSR Corporate Culture and
Stakeholder Dynamics
CSR as a Corporate Culture
Culture as a norm
CSR as a group
concept
Corporate Social Responsibility
Synchronisation
of CSR with company
business strategy
Corporate Social Responsibility
Stakeholder Dynamics
CSR – Driver and Stakeholder Dynamism
Driver of CSR
Use of
Changer
Agent
Impact of
Change
Resistance
to Change
Managing
the Change
Corporate Social Responsibility
CSR Initiatives and Application
CSR Initiatives
Corporate Social Responsibility
Guiding Principles for CSR Projects
• CSR is about corporate citizenship
• It is about giving back to the society
• It is about business sustainability
• It is about thriving in a competitive business environment
CSR Initiatives
Corporate Social Responsibility
CSR Projects for Businesses
Market focused initiative
Product focused initiative
Employee focused initiative
Society focused initiative
Environmental focused initiative
Corporate Social Responsibility
CSR Initiatives
CSR Projects for Businesses
Employee
focused initiative
Society focused
initiative
Market focused
initiative
Result - Driven CSR
= Benefits
Environmentally
focused initiative
Product focused
initiative
Practical Application of CSR
• A good CSR Policy must be result-driven
• Business assessment is important
Corporate Social Responsibility
Practical Application of CSR
Corporate Social Responsibility
Guidelines
• You need to evaluate various aspects of your business and operations
• You need to evaluate the impact your business is having on your
stakeholders.
• Then set realistic targets on how to improve your business operations
and processes.
• Draw up a result- driven CSR Policy.
• Embed your CSR into your business strategy.
Practical Application of CSR
Corporate Social Responsibility
Guidelines
• Appoint a driver for your CSR initiative
• Communicate your CSR efforts to all your stakeholders clearly and boldly.
• Make your CSR initiative part of your business culture
• Set up CSR measuring indicators to monitor progress and possible
deviations.
• Be enthusiastic about your CSR initiative; be committed to it.
• Report on your initiatives and measure progress/ impact made.
Corporate Social Responsibility
Case Studies
Case Studies
Corporate Social Responsibility
Case Study A – BYJ Consolidated Group
Facts
1. Company is the retail industry
2. Community based CSR initiative – supply of food items to local
schools and shelters
3. Business crisis – product recall
4. The response of the company to the crisis
Case Studies
Case Study A – BYJ Consolidated Group
Outcomes
1. Community sympathy for company’s crisis
2. Customer loyalty
3. Sympathetic purchases
4. Increase in sale
Corporate Social Responsibility
Case Studies
Corporate Social Responsibility
Case Study B – Lungile, Pillay & Associates
Facts
1. Small enterprise in a service industry
2. Community based CSR initiative – collaboration with the local
library to promote reading and studying among students in the
community
3. Specific guidelines were set for borrowing of books
4. The involvement of parents and the local authority in the
project
Case Studies
Corporate Social Responsibility
Case Study B –Lungile, Pillay & Associates
Outcomes
1. Community support for the project
2. Parental support and approval for the project
3. Promotion of scholastic activities among students
4. Media attention- Good publicity
5. Customer loyalty
6. New business opportunities for Lungile, Pillay & Associates
Case Studies
Corporate Social Responsibility
Case Study C – PCG Accounting Services
Facts
1. A small accounting firm
2. CSR initiative – market focused
3. Offering free tax seminar as a value added service to existing
clients
Case Studies
Corporate Social Responsibility
Case Study C – PCG Accounting Services
Outcomes
1. PCG was offering their clients a service being charged for by other
accounting firms in the neighbourhood
2. PCG clients enjoyed the special treatment
3. Existing clients referred their friends and colleagues to PCG
4. PCG became a service provider of choice
5. Positive business reputation
Measuring Your Performance
• Financial Indicators
• Non- Financial Indicators
Corporate Social Responsibility
Corporate Social Responsibility
Thank You
For more information
please contact the
Fasset Call Centre
on 086 101 0001
or visit www.fasset.org.za