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    Corp. Social Responsibility

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    Nardsdel Rivera
    Corporate social responsibility (CSR) refers to strategies companies use to ensure their operations are ethical and benefit society. CSR initiatives fall under environmental responsibility, human rights responsibility, philanthropic responsibility, and economic responsibility. Practicing CSR can boost competitiveness by strengthening brand image, increasing customer loyalty, reducing costs, retaining employees, gaining access to funding, and reducing regulatory burdens. There are three models of CSR: the traditional conflict model which sees social and economic goals as in conflict, the added value model which views CSR as increasing profits, and the multiple goals model where corporations have social goals beyond shareholder value.

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    Corp. Social Responsibility

    Uploaded by

    Nardsdel Rivera
    151 views3 pages
    Corporate social responsibility (CSR) refers to strategies companies use to ensure their operations are ethical and benefit society. CSR initiatives fall under environmental responsibility, human rights responsibility, philanthropic responsibility, and economic responsibility. Practicing CSR can boost competitiveness by strengthening brand image, increasing customer loyalty, reducing costs, retaining employees, gaining access to funding, and reducing regulatory burdens. There are three models of CSR: the traditional conflict model which sees social and economic goals as in conflict, the added value model which views CSR as increasing profits, and the multiple goals model where corporations have social goals beyond shareholder value.

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    CORP. SOCIAL RESPONSIBILITY

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    Corporate social responsibility (CSR) refers to strategies companies use to ensure their operations are ethical and benefit society. CSR initiatives fall under environmental responsibility, human rights responsibility, philanthropic responsibility, and economic responsibility. Practicing CSR can boost competitiveness by strengthening brand image, increasing customer loyalty, reducing costs, retaining employees, gaining access to funding, and reducing regulatory burdens. There are three models of CSR: the traditional conflict model which sees social and economic goals as in conflict, the added value model which views CSR as increasing profits, and the multiple goals model where corporations have social goals beyond shareholder value.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    151 views3 pages

    Corp. Social Responsibility

    Uploaded by

    Nardsdel Rivera
    Corporate social responsibility (CSR) refers to strategies companies use to ensure their operations are ethical and benefit society. CSR initiatives fall under environmental responsibility, human rights responsibility, philanthropic responsibility, and economic responsibility. Practicing CSR can boost competitiveness by strengthening brand image, increasing customer loyalty, reducing costs, retaining employees, gaining access to funding, and reducing regulatory burdens. There are three models of CSR: the traditional conflict model which sees social and economic goals as in conflict, the added value model which views CSR as increasing profits, and the multiple goals model where corporations have social goals beyond shareholder value.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 3

    CORPORATE SOCIAL RESPONSIBILTY

    WHAT IS CORPORATE SOCIAL RESPONSIBILTY (CSR)?

    Corporate social responsibility (CSR) refers to strategies that companies put into action as
    part of corporate governance that are designed to ensure the company’s operations are
    ethical and beneficial for society.

    CATEGORIES OF CSR
    Although corporate social responsibility is a very broad concept that is understood and
    implemented differently by each firm, the underlying idea of CSR is to operate in an
    economically, socially, and environmentally sustainable manner.

    Generally, corporate social responsibility initiatives are categorized as follows:

    1. ENVIRONMENTAL RESPONSIBILITY
    Environmental responsibility initiatives aim at reducing pollution and greenhouse gas
    emissions, and the sustainable use of natural resources.

    2. HUMAN RIGHTS RESPONSIBILITY


    Human rights responsibility initiatives involve providing fair labor practices (e.g., equal
    pay for equal work) and fair trade practices, and disavowing child labor.

    3. PHILANTHROPIC RESPONSIBILITY
    Philanthropic responsibility can include things such as funding educational programs,
    supporting health initiateves, donating to causes, and supporting community beautification
    projects.

    4. ECONOMIC RESPONSIBILITY
    Economic responsibility initiatives involve improving the firm’s business operation while
    participating in sustainable practices – for example, using a new manufacturing process to
    minimize wastage.

    BUSINESS BENEFITS OF CSR


    In a way, corporate social responsibility can be seen as a public relations effort. However, it
    goes beyond that, as corporate social responsibility can also boost a firm’s competitiveness.
    The business benefits of corporate social responsibility include the following:

    1. STRONGER BRAND IMAGE, RECOGNITION, AND REPUTATION


    CSR adds value to firms by establishing and maintaining a good corporate reputation
    and/or brand equity.

    2. INCREASED CUSTOMER LOYALTY AND SALES


    Customers of a firm that practices CSR feel that they are helping the firm support good
    causes.

    CORPORATE SOCIAL RESPONSIBILITY Page 1


    3. OPERATIONAL COST SAVINGS
    Investing in operational efficiencies results in operational cost savings as well as reduced
    environmental impact.

    4. RETAINING KEY AND TALENTED EMPLOYEES


    Employees often stay longer and are more committed to their firm knowing that they are
    working for a business that practices CSR.

    5. EASIER ACCESS TO FUNDING


    Many investors are more willing to support a business that practices CSR.

    6. REDUCED REGULATORY BURDEN


    Strong relationships with regulatory bodies can help to reduce a firm’s regulatory burden.

    EXAMPLE - CSR OF STARBUCKS

    Starbucks is a well-known firm that practices corporate social responsibility. As indicated


    by the company: “Starbucks’ social corporate responsibility and sustainability is about
    being responsible and doing things that are good for the planet and each other.”

    Starbucks’ CSR initiatives include:

     Starbucks Youth Action Grants: Awarding grants to inspire and support youth
    action.
     Ethos Water Fund: Raising clean water awareness and providing children with
    access to clean water.
     Ethical Sourcing: Commitment to buying and serving ethically traded coffee.
     Green Building: Using the U.S. Green Building Council’s LEED certification
    program to create energy and water-efficient store designs.

    THE THREE MODELS OF CORPORATE SOCIAL RESPONSIBILITY


    While some concept of corporate social responsibility has been around since the 1950s,
    businesses have seen both an evolving conversation and a growing interest in this area of
    management. Increasingly, corporations both large and small are using commitments to
    social responsibility to promote their products. Examining the three dominant models of
    social responsibility is one way managers and investors can make sure not to miss out on
    this important conversation.

    BASIC
    Corporate social responsibility is the commitment a company has to the community outside
    of its shareholders and employees. The subject isn't without controversy, with some
    claiming corporations have no role in social responsibility and others asserting that they
    can't escape it. Business researcher Elizabeth Redman proposed the three models of
    corporate social responsibility as a way of understanding this often contentious
    conversation. In her work on corporate social responsibility, published in the Roosevelt

    CORPORATE SOCIAL RESPONSIBILITY Page 2


    Review, Redman contends that the discussion often involves one of three conceptual models
    for CSR: a conflict model, an added value model and a multiple goals model.

    TRADITIONAL CONFLICT MODEL


    In the traditional conflict model for corporate social responsibility, social values and
    benefits are seen as in conflict with shareholder profits. Under this model, corporations
    opting to practice forms of social responsibility are likely to see added costs for doing so.
    Proponents of this conceptual model generally argue that the nature of business is one of
    trade-offs between economic and moral values, and corporate managers will inevitably be
    forced to decide between their social and fiduciary responsibilities or their commitment to
    shareholder equity value.

    ADDED VALUE MODEL


    A second model for conceptualizing corporate social responsibility is to see social and
    environmental commitments as a means to increase profit. While proponents of this model
    tend to acknowledge that conflicts persist in business decisions, they also believe that CSR
    investments are also capable of generating new revenues. This model tends to focus on
    issues like the value of CSR in attracting socially conscious consumers, finding socially
    conscious employees and managing the risks of negative press.

    MULTIPLE GOALS MODEL


    Finally, a third model for corporate social responsibility posits a role for social values in
    corporate decisions that are untethered to economic values. Under this model, corporations
    have goals beyond shareholder value, including the enhancement of their community
    without respect to monetary gain. According to Redman, this model is thought to be
    relatively radical, though some corporate officers have expressed support for it.
    Proponents of this model emphasize quality of life as the basis of economic activity.

    CORPORATE SOCIAL RESPONSIBILITY Page 3

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