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CSR

CSR. “ CSR is the organizations social license to operate, and is important to legitimize business activity, particularly in the global activity where businesses are accused of practicing soulless capitalism ”

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CSR

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  1. CSR • “CSR is the organizations social license to operate, and is important to legitimize business activity, particularly in the global activity where businesses are accused of practicing soulless capitalism” • (Dr Vivian Balakrishnan, Minister of State for Trade and Industry and National Development, Singapore) • “Corporate Social Responsibility is achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment” (Business for Social Responsibility) • “CSR means addressing the legal, ethical, commercial and other expectations society has for business, and making decisions that fairly balance the claims of all key stakeholders” (RBI)

  2. EPR • In Extended Product Responsibility, manufacturers are responsible for waste generated at the end of product’s life. (Samson & Daft 2005) • For example: Compaq Computer Australia (Stephens, 1999)

  3. Two Opposing Views • Social responsibility is operating business in best interest of stakeholders -- Management’s only social responsibility is to maximize profits (Milton Friedman) • Socioeconomic view is the view that management’s social responsibility goes well beyond the making of profits, to include protecting and improving society’s welfare.(Samson & Daft 2005)

  4. Criteria for Corporate Social responsibility Discretionary Responsibility Ethical Responsibility Legal Responsibility Economic Responsibility Source: Carroll 1974, Carroll 1991

  5. From Principles to PracticeExploring Corporate Social responsibility in Pakistan Jas Ahmad Middlesex University Business School 22 May 2006

  6. Methodology • A mixed method approach • questionnaire-based semi-structured interviews • scanning of English language press and institutional reports • expert opinion • Questionnaire based on World Bank report on CSR reporting in developing countries (O’Rourke, 2004) • The semi-structured interviews conducted with chief executive officers or senior directors of 16 companies • The sample was non-random and network based • A cross-section of companies approached based on industry type, ownership, and size.

  7. Profile of Companies Surveyed Company size by number of employees Less than 250 25.0 251-1000 43.8 More than 1000 31.3 Ownership structure 100% publicly owned 50.0 Partly owned by individual/family 25.0 100% privately owned 25.0 Turnover in last financial year in USD Less than 10 million 25.0 11 million – 50 million 31.3 51 million – 100 million 25.0 More than 100 million 18.8 *All figures percentage of companies surveyed

  8. Factors upon which corporate social obligations depend

  9. Importance of a company’s social responsibility to different stakeholders Type of stakeholder Percentage* rating very important or important Employees 100 Customers 81 Shareholders 81 Local community 63 Suppliers 63 50 Business partners 38 Society at large 31 Other investors *Rounded to the nearest whole number

  10. Engagement in different types of CSR activities Type of activity Percentage* engaged in activity Making regular financial contributions 69 Making occasional financial contributions 94 Collecting donations from employees 75 Sponsoring events 88 Allowing employees to volunteer expertise 56 50 Providing free use of company facilities 75 Donating surplus office equipment *Rounded to the nearest whole number

  11. Business objectives CSR helps to achieve/will help to achieve Business objective Now Future Enhance company share price 31 25 Enhance company reputation 94 94 69 Increase sales 44 75 Attract and retain high calibre employees 69 63 Promote international business strategies 56 56 Promote domestic business strategies 38 31 19 Retain government support 81 75 Enhance corporate brand positioning 31 38 Help to withstand the impact of a corporate crisis *Rounded to the nearest whole number

  12. Importance of and written policies on different aspects of CSR Business objective Percentage rating very important or somewhat important Percentage with written policy Environmental protection 37.5 87.5 87.5 Employee welfare 100 75 Health and safety 93.8 25 Philanthropic and charitable activities 87.5 12.5 Investment in local community development 56.3 12.5 62.5 Environmental and social impact of operations 43.8 75 Ethical management of supply chain 56.3 25 Ethical and socially responsible marketing

  13. Main driver for company engagement in CSR

  14. Perceived barriers to CSR engagement

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