Corporate Social Responsibility (CSR) - Complete
Study Notes
1. Definition of CSR
CSR is the relationship between a business, society, and the environment. It refers to the responsibility
a business has to contribute positively to society and minimise negative impacts.
2. Importance of CSR
• Improves brand reputation and customer loyalty.
• Helps maintain sustainable relationships with stakeholders.
• Ensures long-term environmental and social well-being.
• Encourages ethical business behaviour.
3. CSR in a Business Context
Businesses must meet societal expectations by contributing to social and environmental well■being.
CSR includes ethical dealings, community upliftment and responsible use of resources.
4. CSR Issues Businesses Must Address
• Crime
• Poverty
• Lack of education
• Unemployment
• Environmental concerns
• Poor health services
• Poor housing
• Inequality
5. Primary and Secondary Responsibilities
Primary Responsibility: Direct stakeholders such as employees and shareholders.
Secondary Responsibility: Indirect stakeholders such as communities, government and the
environment.
6. Levels of CSR Responsibility (Pyramid)
Economic: Be profitable.
Legal: Follow the law.
Ethical: Do what is right, fair and just.
Discretionary: Voluntary contributions to society.
7. Arguments FOR CSR
• Stronger community support and brand loyalty.
• Helps tackle social issues like poverty and education.
• Ensures sustainable use of resources.
• Leads to innovation and new business opportunities.
• Builds a positive reputation.
8. Arguments AGAINST CSR
• CSR can be costly.
• Benefits are difficult to measure.
• Can distract from core business operations.
• Risk of ‘greenwashing’.
• Pressure from communities can become excessive.
9. Sustainable Business Practices
• Environmentally sustainable operations (reduce pollution, conserve resources).
• Socially sustainable workplace (skills development, health and safety).
• Develop society (education and healthcare programmes).
• Influence suppliers to follow sustainable standards.
10. Stakeholders in CSR
Stakeholders include employees, customers, suppliers, shareholders, communities, government,
unions and media. Businesses must prioritise stakeholder needs using a stakeholder interest–influence
matrix.
11. Designing a CSR Programme
1. Communicate the need for CSR.
2. Create a CSR policy.
3. Brainstorm CSR initiatives.
4. Identify resources and skills needed.
5. Implement the CSR projects.
6. Monitor progress.
7. Make improvements.
12. CSR Strategy Principles (Blowfield & Murray)
• Concept of Citizenship
• Strategic Intent
• Leadership
• Structure & Management
• Stakeholder Relationships
• Transparency
13. CSR Reporting
Businesses report on financial, social and environmental performance. Reports include business
profile, impact areas, CEO statements, and sustainability policies.
CSR Levels Table
CSR Concept Description
Economic Responsibility Ensures business remains profitable and competitive.
Legal Responsibility Obeys national and industry laws and regulations.
Ethical Responsibility Acts fairly, avoids harming society and environment.
Discretionary Responsibility Voluntary activities such as donations and community projects.