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Corporate Social Responsibility and Social Entrepreneurship

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ISO 26000 contains voluntary guidance, not requirements, and therefore is not for use as a certification standard like ISO 9001 and ISO 14001. – PowerPoint PPT presentation

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Title: Corporate Social Responsibility and Social Entrepreneurship


1
Corporate Social Responsibility and Social
Entrepreneurship
  • Cairo University
  • Dr. Sherifa Fouad Sherif

2
History of CSR
  • The term Corporate Social Responsibility came in
    to common use in the 1950s, 1960s and 1970s
    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 companys
    strategic interest to respect the interests of
    all its stakeholders.

3
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.

4
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

5
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.

6
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

7
Purpose of CSR
  • The purpose of CSR is to make corporate business
    activities sustainable in its three dimensions
  • Economic
  • Social
  • Environmental

8
Benefits of CSR
  • 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

9
Corporate Social Responsibility
10
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.

11
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

12
What is CSR?
  • The impact of a companys 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

13
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.

14
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

15
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.

16
Corporate Social Responsibility Pyramid
17
Key Issues in CSR
  • Labor rights
  • Environmental conditions
  • Human rights
  • Poverty Alleviation

18
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.

19
Different Names For CSR
  • Corporate Social Responsibility (CSR)
  • Corporate Conscience
  • Corporate Citizenship
  • Responsible Business
  • Responsible Management
  • Corporate Philanthropy
  • Sustainable Business
  • Creating Shared Values (CSV)

20
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

21
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.

22
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.

23
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.

24
What benefits can be achieved by implementing ISO
26000?
  • 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.

25
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
  • Human Rights
  • Labor Standards
  • Environment
  • Anti-corruption

26
CSR Management Management structure
27
CSR Management Plan, Do, Check, Act method
  • Plan
  • Consult stakeholders
  • Set targets
  • Do
  • Establish management systems and personnel

28
Plan, Do, Check, Act Method
  • Act
  • Corrective action
  • Check
  • Measure progress
  • Audit
  • Report

29
Top Trends in CSR For 2012
  • According to Forbes magazine
  • 1. Going Global
  • 2.Incresing 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

30
Success Stories in Egypt
  • Vodafone
  • Coca Cola
  • Pepsi
  • Etisalat
  • Siemens
  • Petro-safe
  • Starbucks
  • McDonalds

31
CSR and SE
  • What is the difference between Corporate Social
    Responsibility and Social Entrepreneurship?
  • To be answered next lecture
  • Thank You
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