Corporate Social Responsibility
and Social Entrepreneurship
Cairo University
Dr. Sherifa Fouad Sherif
History of CSR
• The term Corporate Social Responsibility came
in to common use in the 1950’s, 1960’s and
1970’s with the beginning of the term
stakeholder.
• A stakeholder is “any group or individual who
can affect or is affected by the achievement of an
organization's purpose.” It is in the company’s
strategic interest to respect the interests of all its
stakeholders.
Definitions of Corporate Social
Responsibility
• The World Bank:
• Corporate Social Responsibility (CSR) is the
commitment of business to contribute to
sustainable economic development, working
with employees, their families, the local
community and society at large to improve
quality of life, in ways that are both good for
business and good for development.
Definition of CSR
▫ 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
Definitions of CSR
Corporate Social Responsibility
• Firms have responsibilities to societies
including economic, legal, ethical and
discretionary (or philanthropic).
• Philanthropic: receiving aid from funds set
aside for humanitarian purposes. Some call it
charity.
Definition of CSR
• Companies have two kinds of responsibilities,
commercial and social. Commercial entails running
the business successfully, social entails taking
responsibity as an actor in society and the
community by engaging in activities that go beyond
making profit, such as protecting the environment,
taking care of employees and being ethical in trade.
• CEO, McDonalds
Purpose of CSR
• The purpose of CSR is to make corporate business
activities sustainable in its three dimensions:
▫ Economic
▫ Social
▫ Environmental
Benefits of CSR
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Source of competitive advantage
Attracts ethically conscious customers
Increase profit in the long run
Reduction of costs (re-cycling)
Contribute to economic development
Improve the quality of life for it workforce and their
families
• Improvement of society
• Tax-free incentives for businesses
Corporate Social Responsibility
What is Corporate Social
Responsibility?
The company must act responsibly, and criteria for
social responsibility must be adopted to contribute
toward consolidating better companies not only in
social terms – that is, companies which are more
useful to society – but better companies in purely
economic terms – that is, better quality, more
efficient, more competitive companies
An inevitably broad concept of which we can say that
it includes voluntary actions by companies aimed at
dealing with workers’, consumers’, or investors or
shareholders’ concerns: in short, the concerns of all
citizens.
What is Corporate Social
Responsibility?
Some attempt to define it:
Responsible companies perceive the current
environment – globalization, social demands,
transparency, broadening of markets, environmental
challenges, etc. – as an opportunity to underscore
their role in society, their potential for leadership in
sustainable development.
Some call it a WIN-WIN situation
What is CSR?
The impact of a company’s action on society
Requires a manager to consider his acts in terms of a
whole social system and holds him responsible for
the effects of his acts at all levels in that system
Businesses have an obligation to society which
extends beyond economic and legal duties
Described as one of the most important social
movements of our time
Evolution of CSR
• CSR refers to the strategies corporations or firms
conduct their business in a way that is ethical,
society friendly and beneficial to the community in
terms of development.
• The definition has been changing in meaning and in
practice.
• CSR was limited to philanthropy and has currently
shifted to emphasis on business-society relations.
Corporations contributing and providing solutions for
social problems.
Evolution of CSR
• Phase One-Charity, Philanthropy-Drivers culture and
religion.
• Phase Two-Dedication to the progress of society
• Phase Three-1960-1980-Shift from the focus on
Public organizations to private organizations for
socio-economic development
• Phase Four- 1980-present-Concern for labor and
environmental standards
Present Day CSR
• The concept has evolved whereby organizations
consider the interest of society by taking
responsibility for the impact of their activities on
customers, suppliers, employees, shareholders,
communities and other stakeholders as well as the
environment.
• Focusing on improving the well-being of the local
community and society at large.
• Creating wealth in society and providing better
standards of living.
Corporate Social Responsibility
Pyramid
Key Issues in CSR
• Labor rights
• Environmental conditions
• Human rights
• Poverty Alleviation
Evolution of CSR
• Although the contemporary CSR agenda is maturing,
the term “CSR” has not yet taken hold within many
public sector agencies, either in industrial or
developing countries. Few government initiatives
have been undertaken explicitly as “pro-CSR
initiatives”.
Different Names For CSR
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Corporate Social Responsibility (CSR)
Corporate Conscience
Corporate Citizenship
Responsible Business
Responsible Management
Corporate Philanthropy
Sustainable Business
Creating Shared Values (CSV)
Levels of CSR
Social Obligation – Meet minimum regulations, do
what is required by law, no more
Social Responsibility – Go beyond what is required
by law
Social Responsiveness – Proactive approach,
promote positive change
CSR Concepts
• Corporate Social Responsibility-emphasizes
obligation and accountability to society.
• Corporate Social Responsiveness-emphasizes action
and activity.
• Corporate Social Performance-emphasizes
outcomes and results.
Regulations
• ISO, the International Organization for Standardization,
has launched an International Standard providing
guidelines for social responsibility (SR) named ISO
26000 or simply ISO SR, released November 2010.
• ISO 26000 gives guidance on SR. It integrates
international expertise on social responsibility – what it
means, what issues an organization needs to address in
order to operate in a socially responsible manner, and
what is best practice in implementing SR.
ISO 26000
• It is intended for use by organizations of all types, in
both public and private sectors, in developed and
developing countries, as well as in economies in
transition. ISO 26000 is a powerful SR tool to assist
organizations to move from good intentions to good
actions.
• ISO 26000 contains voluntary guidance, not
requirements, and therefore is not for use as a
certification standard like ISO 9001 and ISO 14001.
What benefits can be achieved by
implementing ISO 26000?
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Competitive advantage
Reputation
Ability to attract and retain workers, customers, clients
Maintenance of employees’ morale, commitment and
productivity
• View of investors, owners, donors, sponsors and the
financial community
• Relationship with companies, governments, the media,
suppliers, peers, customers and the community in which
it operates.
Regulation of Corporate Responsibility
• UN Global Compact-UN initiative to encourage business
worldwide to adopt sustainable and socially responsible
policies and report their implementations. Supporting
the Millennium Development Goals. Launched by Kofi
Enan in 2004.
• The Global Compact is a principle based framework for
businesses, stating 10 principles in the areas of:
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Human Rights
Labor Standards
Environment
Anti-corruption
CSR Management:
Organizational Structure
Audit Committee of Board
Board of Directors
President & CEO
Group Presidents
Chief Financial
Officer
VP of Human
Resources
General Counsel
Corporate
Responsibility Officer
Steering Committee
CSR Management:
Plan, Do, Check, Act method
• Plan
• Consult stakeholders
• Set targets
• Do
• Establish management systems and personnel
Plan, Do, Check, Act Method
• Act
• Take Corrective action
• Check
• Measure progress
• Audit
• Monitor
• Report
Top Trends in CSR For 2013
• According to Forbes magazine:
▫ 1. Going Global
▫ 2. Increasing the level of transparency
▫ 3. Employee engagement
▫ 4. Collaboration-companies compete and collaborate on
CSR issues
▫ 5. Social Media-as a essential communicating tool for CSR
programs
▫ 6. More focus on Human Rights
▫ 7. Earths growing population-stretching resources to cope
with increase, looking for more energy efficient ideas
Success Stories in Egypt
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Vodafone
Coca Cola
Pepsi
Etisalat
Siemens
Petro-safe
Starbucks
McDonalds
Proctor and Gamble
Price WaterHouse Cooper (PWC)
Bank Misr (Misr el Kheir)
CSR and SE
•What is the difference between
Corporate Social Responsibility
and Social Entrepreneurship?
• To be answered next lecture
• Thank You