Corporate Social Responsibility:
Introduction & Definitions
Suthisak Kraisornsuthasinee
Assistant Professor
Faculty of Commerce & Accountancy
Thammasat University
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Introduction: CSR
The Dawn of the CSR Era
Drivers of CSR
Benefits and Challenges
CSR Definitions and Scope
Issues & Initiatives of CSR
From Principles to Practice
Future of CSR: On the Way to ISO
Organizations promoting CSR
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The Dawn of the CSR Era
“85% of (140 Chief Executives of U.S. based MNCs)
believe that sustainable development will be even more
important to their business model in five years than it is
today.”
RecentSurvey adm inisteredby
PriceW aterhouseCooper
International Institute of Sustainable Development
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The Dawn of the CSR Era
“Overall, respondents see CSR as becoming an
even more important part of business practice five
years from now, and will make crucial an necessary
contributions for the betterment of people and the
environment.”
Survey adm inisteredat
The European Conference on CSR (Maastricht,Novem ber7-9,2004)&
The BSR AnnualConference (New York,Novem ber9-12,2004)
Business for Social Responsibility and Dutch Ministry of Economic Affairs
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Drivers of CSR
The shrinking role of government
Demands for greater disclosure
Increased customer interest
Growing investor pressure
Competitive labor markets
Suppliers relations
5 Business and Sustainable Development (BSD Global)
Benefits of CSR…
Increased sales and market share.
Strengthened brand positioning.
Enhanced corporate image and clout.
Increased ability to attract, motivate, and retain
employees.
Decrease operating costs.
Increased appeal to investors and financial
analysts.
Kotler and Lee, 2005
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… and Challenges
Choosing a social issues.
Selecting an initiative to address the issue.
Developing and implementing program plans.
Evaluation.
Kotler and Lee, 2005
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What is CSR?
Variety of Terms
Corporate Citizenship
Corporate Philanthropy
Corporate SocialResponsibil
Corporate Responsibility
SocialResponsibility
GlobalCitizenship
O rganizationalSocialResponsi
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Definitions: Concept
Philip Kotler & Nancy Lee (2005)
“a commitment to improve community
well-being through discretionary business
practices and contributions of corporate
resources”.
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Definitions: Practice
WBCSD (World Business Council for
Sustainable Development)
“The continuing commitment by business to
behave ethically and contribute to
sustainable economic development while
improving the quality of life of the workforce
and their families as well as of the local
community and society.”
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Definitions: Practice
BSR (Business for Social Responsibility)
“achieving commercial success in ways that
honor ethical values and respect people,
communities, and the natural environment.”
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Scope
Economic
CSR and
Environ- CSR ? CSR ? SustainableDevelopm ent
mental
CSR ?
CSR ?
Social
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Scope
Product & worker safety
Labor standards
Human rights
Equal opportunity and access
People
Corporate Values and purpose
Transparency and accountability
Tacking corruption
Local and global environmental quality CCoorrppoorraattee
Cleaner production processes GGoovveerrnnaannccee
Eco-efficiency
&&EEtthhiccss
Environmental Technology
Enterprise development
Contribution Community Investment
Environment To Development Education
Health/HIV/AIDS
Corporate Citizenship Digital Divide
The World Economic Forum, 2002
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Issues: by Value Chain
14 CSR The WBCSD’s Journey
Issues: by Social Ratings
KLD Social Rating Criteria
Community
Corporate Governance
Diversity
Employee Relations
Environment
Human Rights
Products
15 KLD Research & Analytics Inc.
Initiatives
Cause Promotions
Supporting social causes through promotional
sponsorships
Cause-related Marketing
Making a contribution or donating a
percentage of revenues to a specific cause
based on product sales or usage.
Kotler and Lee, 2005
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Initiatives
3. Corporate Social Marketing
Supporting behavior change campaigns.
4. Corporate Philanthropy
Making direct contribution to a charity or
cause.
Kotler and Lee, 2005
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Initiatives
Community Volunteering
Providing volunteer services in the community.
Socially Responsible Business Practices
Adopting and conducting discretionary
business practices and investments that
support social causes.
Kotler and Lee, 2005
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From Principles to Practice
Framework for CSR
Provide Leadership
- Articulate purpose, principles and values
internally and externally;
- Promote ‘business case’internally;
- Engage the financial sector;
- Enter the debate on globalization and the role of
business in development;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
Define what it means for your company
- define the issues;
- Agree on company’s spheres of influence;
- Identify key stakeholders;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
Make it happen
- put corporate citizenship on board agenda;
- establish internal performance, communication,
incentive and measurement systems;
- engage in dialogue and partnership;
- encourage innovation and creativity;
- build the next generation of business leaders;
The 2002 World Economic Forum & BSD Global
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From Principles to Practice
4. Be Transparent about it
- Agree what and how to measure;
- Develop a program for external reporting;
- Be realistic.
The 2002 World Economic Forum & BSD Global
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Future of CSR: On the Way to ISO
The International Organization for
Standardization (ISO) decided to develop
standard for ISO in 2002
1st Discussion in 2004
2nd international meeting to draft the
standard in September 2005
in Bangkok
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Organizations promoting CSR
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Thank you for your attention
Q & A Session
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