An introduction to utilising and maximising benefit of
Corporate Social Responsibility
Zoe Chilton LLB, MSc WMG 02/02/12

 MSc in Engineering Business
Management at WMG (grad 2011)
 Project with a leading F1 team, investigating CSR and writing their corporate policy
 Currently work for the Motorsport
Industry Association

 The tricky part.. Definition
 CSR
 Corporate Governance
 Different approaches to CSR
 CSR and profitability
 Relevance to industry
 Employee satisfaction
 The ‘bottom line’
 The future of CSR

So.. Just what does CSR mean?

CSR and Corporate Governance
Corporate
Social
Responsibility
• Impact the company has on its surroundings
• Environmental, human, economic
• Corporate image management
• Generally has an external focus
Corporate
Governance
• Obeying the rules
• Taking company decisions which won’t harm others
• Looking after your employees
• Generally has an internal focus

There is no correct definition…
Kotler & Lee
• A commitment to improve community wellbeing through discretionary business practices and contributions to corporate resources
European
Commission
• A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis
Carroll
• The general belief held by growing numbers of citizens that modern businesses have responsibilities to society that go beyond their obligations to stockholders

 Active or Reactive?



What type of sustainability?
 Environmental
Social
Economic
 Stakeholders or shareholders?


Appropriateness to your industry and corporate identity
If existing definitions don’t fit, make your own!

Different approaches to CSR
Examples from Motorsport…

Key contributors to a modern sustainable business
Environmental sustainability
Social sustainability
Economic sustainability
Business sustainability

How this translates to activities
 Social Sustainability:
○ Involvement in education
○ Social welfare campaigns
○
○
Involvement in the local community
Global charitable causes
 Environmental Sustainability:
○ Reducing carbon footprint
○
○
Designing for the environment
Greening manufacturing processes
 Economic Sustainability:
○ You are not running a charity!
○ All activities must be economically viable

How CSR contributes to the
Bottom Line
 CSR is highly valued by shareholders and investors as it often goes hand in hand with good Corporate Governance
 Customers like to see good CSR and may choose your product because of it
 CSR activities can be used to develop new markets
 It is easier to recruit and retain the best employees with a good CSR policy

Consumer electronics
Tobacco
Consider how
CSR can be used in these industries
Petrochemicals
Consumer goods
Mineral
Mining
Alcohol retail

3 rd Generation
Responsible competitiveness
Zadek’s Generations of
Corporate Responsibility –
This shows the evolution of
CSR within companies and industry sectors
2 nd Generation
Strategic Planning
Risk Management
Learning - Innovation
1 st Generation
Pain alleviation - Short-term
Reputation - localised costbenefit