Corporate Social Responsibility

Introduction – Historical background of CSR

The CSR concept was proposed in 1950s, and it keeps evolving. CSR was defined in 1953 by Bowen as
“the obligations of businessmen to pursue those policies, to make those decisions, or to follow those
lines of action which are desirable in terms of the objectives and values of our society” (Bowen, 1953).

The European Commission has defined CSR as the responsibility of enterprises for their impact on
society (European Commission, 2017). The European Commission believes that CSR is important for the
sustainability, competitiveness, and innovation of EU enterprises and the EU economy. It brings benefits
for risk management, cost savings, access to capital, customer relationships, and human resource
management. Companies can become socially responsible by (European Commission, 2017): following
the law; integrating social, environmental, ethical, consumer and human rights concerns into their
business strategy and operations.

In addition, companies from different industries also have specific strategies and concerns of CSR
implementation (Belu, Manescu, 2013). Despite this, different criteria from the different types of
companies still focus on three main concepts, involving environmental, social and economy which is
consistent with three bottom lines (Ellington, 1994; Crane et al., 2008; Belu, Manescu, 2013). CSR in this
work is generally understood as being the way through which a company achieves a balance of
economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same
time addressing the expectations of shareholders and stakeholders

What is CSR?

The term corporate social responsibility (CSR) refers to practices and policies undertaken by
corporations that are intended to have a positive influence on the world. The key idea behind CSR is for
corporations to pursue other pro-social objectives, in addition to maximizing profits.

CSR initiatives are categorized into three groups: economic growth, ecological balance and social
progress

CSR activities may include:

• Company policies that insist on working with partners who follow ethical business practices

• Reinvesting profits in health and safety or environmental programs

• Supporting charitable organizations in the communities where a company operates

• Promoting equal opportunities for men and women at the executive level

Some aspects of CSR may be required by law. For example, banks and hospitals are legally required to
protect people’s private information. Others are voluntary.
Why Should a Company Implement CSR?

Many companies view CSR as an integral part of their brand image, believing that customers will be
more likely to do business with brands that they perceive to be more ethical. In this sense, CSR activities
can be an important component of corporate public relations. At the same time, some company
founders are also motivated to engage in CSR due to their personal convictions.

What Is the Impact of CSR?

The movement toward CSR has had an impact in several domains. For example, many companies have
taken steps to improve the environmental sustainability of their operations, through measures such as
installing renewable energy sources or purchasing carbon offsets. In managing supply chains, efforts
have also been taken to eliminate reliance on unethical labor practices, such as child labor and slavery.

Advantages of social responsibility

There are a number of advantages when a company chooses to be socially responsible, such as:

• Gives a company a competitive edge

• Attracts strong candidates and increases retention

• Makes your business attractive to investors

• Improves business culture

• Increases customer loyalty and advocacy

• Improves company reputation

• Improves profitability and value

Gives a company a competitive edge

Most customers today agree that social responsibility is a top criterion

when choosing a company to shop from or do business with. Being a

socially responsible company is also a message you can use in your

brand position and marketing.

Attracts strong candidates and increases retention

The success of your company is strongly impacted by the people who work

for you. If you consistently provide a socially responsible culture for your

employees, and you have a reputation for doing so, you can attract and

retain top talent to your organization.

Makes your business attractive to investors

Investors generally believe that a commitment to social change is a great

way to position a company for long-term success. While there must be a

balancing act between focusing on the profitability of an organization and

social initiatives, doing so successfully can create endless opportunities for

companies.

Improves business culture

Your employees are likely to be more motivated and have a greater

commitment to the organization if they see the social initiatives are in place.

Providing time for employees to support their own social initiatives can also

build pride, loyalty and motivation among members of your team. This, in turn,

makes everyone more engaged and productive.

Increases customer loyalty and advocacy

Consumers are drawn to companies that have a reputation for being a good corporate

citizen. Moreover, customer advocacy is key to attracting new customers. As your

loyal customers talk to people they know about your product and share positive

reviews, they will drive more business your way.

Improves company reputation

If your organization is continually participating in social initiatives, it gives an

impression to customers, investors and the world as a whole that your organization is

financially viable. This, in turn, can attract new investors and investors alike.

Improves profitability and value

In many cases, companies find that when they introduce more energy-

efficient methods and begin recycling they actually cut operational costs

and benefit the environment. Social responsibility also increases

transparency with investment analysts, shareholders and community

members, which in turn improves the company's reputation and increases

the overall value.

 Disadvantages of social responsibility

While corporate social responsibility is generally advantageous for organizations, there are a few
drawbacks. Here are the primary disadvantages to consider:

● Costs money to implement

While large organizations can afford to allocate a budget to corporate social responsibility reporting, this
can be financially taxing on smaller organizations. While smaller companies can use social media to
share any social responsibility policies or initiatives with customers and community members,
monitoring these channels takes time and resources. It may require the company to hire extra
employees to manage the process effectively, which can be challenging for small businesses.

● Impacts profitability

A company has a fiduciary duty to its shareholders and costly social responsibility initiatives can impact
this directly. This conflict can be challenging for managers, who may feel compelled to choose between
socially responsible decisions or initiatives and focusing on the company's profitability.

● Greenwashing

In some cases, social responsibility initiatives have been used as a ploy to improve a company's image
even though no real change has been made. For this reason, it's important to consider what social
responsibility initiatives you're going to take and evaluate the impact that they will have on the
organization.

What is a CSR strategy?

A corporate social responsibility strategy (CSR) is the total plan a business has to build, execute and optimize
its social responsibilities initiatives.
There are four types of CSR categories, and a CSR strategy helps you define which one is best for your
business, ways in which you can implement it, and track the results of your efforts. 
The four areas of CSR are: 
 Philanthropic responsibility
 Environmental responsibility 
 Ethical responsibility 
 Economic responsibility 
A good CSR strategy builds a business case around how your chosen areas of CSR can integrate into your
business growth plan, and makes sure that your initiative stays on track, hitting every KPI along the way.  

Why is a CSR strategy important?

A CSR strategy is essential to ensure your business delivers effective corporate social responsibility initiatives.
Having a CSR strategy enables your business to remain goal-driven for CSR, and to know what success looks
like for your initiatives. Your CSR strategy can thread into your business growth plan. When you create a CSR
strategy you align CSR with other business goals like improving employee engagement, increasing investor
appeal, and solidifying your brand reputation. CSR done well can indirectly (positively) affect a number of ROI-
centered goals.
How does CSR integrate into business strategy?
Linking your CSR strategy to your company’s purpose and values is vital. Once you’ve identified them, this will
enable you to align your CSR strategy to it. You can then show how it’s contributing to your long-term strategy
and support continued investment in your CSR program.
Who decides the CSR strategy? 
A CSR strategy is not built by one person alone. A collective of productive heads is much better than one.
However, the project certainly needs one core manager to lead the way, assign responsibilities and ensure
everyone stays on track. 
Some companies have a CSR department, and some assign CSR to Human Resources teams or Office
Managers. Depending on your goals of using CSR, it can also be the responsibility of marketing or
communications teams. 
How to Create a successful CSR Strategy? 
Let’s dive into the thick of it. Above, we looked at what a Corporate Social Responsibility strategy is, here are
the steps you need to take to ensure your strategy runs smoothly.
1. Define the concept 
Especially today, CSR can mean many different things to different people. It depends on someone’s culture
and past experiences with CSR that will determine their opinion and definition of it. 
At this stage, it’s important to speak to and understand all stakeholders’ concerns; leadership, employees,
consumers, professional organizations or unions, local communities, or environmental groups. Once you’ve
understood concerns, you can consider where there is a match, and how your CSR program can address these.
Define or redefine what CSR means to your business, and make sure the entire business is on the same page.
Once you know everyone understands what CSR is, then you can start discussing it without bias or
misconceptions. 
2. Understand the benefits for social
Before your CSR strategy even begins, you need to get the project approved, and to do that requires buy-in
from internal stakeholders. 
It’s important to spend a lot of time researching the benefits of CSR and find some example businesses that
have profited from having a successful CSR plan in place.
Once you have an idea of the ways you can benefit from CSR, this will help guide your business case—spoiler
alert for step three—to one that is more specific for your business. 
3. Get project approval
You may have seen this one coming, but launching a CSR plan does require a certain amount of budget and
human resources from your business. You can certainly use tools to optimize the CSR experience, however,
until you get to that point you’re going to need people power. 
Put together a business case for implementing a CSR strategy and make sure you include all of the potential
benefits a unique CSR initiative can bring to your business. 
Your business case doesn’t need to include the initiative you’re going to be launching or even the tools and
people needed to create success. It needs to be broader, cover what CSR can do for your business, and the
initial resources required to kick the project off. 
4. Set project goals
 Next up on your list for implementing and launching a CSR plan is setting goals. These goals and KPIs showcase
your strategy is positively impacting your business, and that your CSR project is on track. 
In the early stages, they can be anything from winning board member buy-in, have 100% of employees
understand what CSR is, host 3-5 meetings with potential CSR SaaS providers, ahem we’re right here, to name
a few. 
Further down the line, they can be more KPI-orientated like employee engagement rates, online brand
sentiment, or lower customer churn. 
All of these goals are designed around making progress to launching.
5. Run a current CSR analysis
A current analysis includes a full review of any CSR initiative you currently have running, be it officially or
unofficially, within your company. 
Perhaps employees have set up their form of a socially responsible initiative that can be something bigger with
new support from the company. For example, fundraisers like bake sales, community running groups,
volunteering days, in-office recycling, meat-free Fridays, or eliminating single-use plastics. 
Or, perhaps there are small acts of kindness floating around the office that inspire a broader initiative idea. For
example, an employee of the month award, team brunches, budding office plant life or wellbeing initiatives.
If you’ve been hosting CSR initiatives for a while, but they just haven’t been taking off, then look at the project
tools and communication styles you’re using to support it. Perhaps there are some operational changes to the
cause you can introduce to help it run smoother.  
Try to identify what may be the problem with the current solutions you have and find new ways to approach
the problem. Look at all  of your current areas of CSR and note down what you currently have. Bring these
pieces together to form your strategy – so that they connect to what your employees are interested in and the
broader business strategy, including long-term goals.
6. Research your CSR initiatives
You have the benefits of what CSR can bring to your business, you’ve won company buy-in, now it’s time
to find your initiative and digital CSR tools. 
This stage includes researching social and environmental initiatives you think will be a good fit for your
company’s mission and vision and those that answer employees’ values. 
Corporate Social Responsibility research also includes looking at the initiatives of others in your industry. How
are other businesses aligning CSR to their company purpose? It could inspire some great ideas or possible
collaborations of your own.
Lastly, this step includes different tools you may need to support your CSR efforts. Consider technology that
empowers your employees to take the initiative and communication tools to help stay on top of everything. 
7. Launch your CSR campaign
Once you’ve done all of the above, you should be in a comfortable position to launch your CSR campaign— it’s
potentially the most important part of your CSR plan. 
You get one shot at launching it as effectively as possible, so it’s time to make it count. Your CSR launch needs
to be communicated clearly to the right stakeholders; this includes: 
 Employees
 Shareholders or investors
 External stakeholders, partners, & local communities
 Press 
 Customers 
 Fans and followers 
 Make sure that each of these groups has a clear communication plan and priority so that your initiative
launches with maximum impact. For example, your employees need to know the ins and outs of your initiative
before your fans and followers.
8. Manage your program to success
Last on your list is the maintenance of your CSR campaign or campaigns. What KPIs or goals have you
set? Consider all types of goals. 
For example, if your initiative was to plant 100 trees by planting one for every time an employee took a bike to
work instead of driving, then consider every goal around this goal. 
 How many trees have you planted? 
 How many individual employees have biked to work? 
 Has your employee engagement rate and happiness increased? 
Consider your larger Corporate Social Responsibility mission, but also consider the smaller KPIs and data points
that help you get there. 
It’s also a good idea to collect qualitative feedback alongside quantitative feedback. Ask employees how
they’re feeling about your CSR initiatives. If they’re not engaging, then how can you adapt them to make them
more relatable, offer them more choice, and win employees’ interest? 
CSR Strategy best practices
When creating your corporate social responsibility strategy, there are a few best practices to help make the
process smoother and more efficient.
Define your WHY: Your corporate social responsibility strategy needs a reason for being. From day one, align
on the purpose and vision for the strategy. It will help define every step you make in its creation.
Assemble a stellar team: Efficient CSR initiatives need top talent to get them on the way. Assemble an internal
team from multiple departments to help you build this strategy. Socially responsible companies start with
socially responsible employees.
Ask for feedback: For CSR programs to be successful you’ll need feedback. This comes from your employees.
Ask employees what they would like to see from potential CSR programs, and understand the social or
environmental challenges they’re passionate about.
Strategize & benchmark: It’s time to look toward socially responsible companies for guidance. All of the best
CSR leaders had to start somewhere. Look at ethical business practices that are working well for similar
companies, understand their successful CSR initiatives, and benchmark your own corporate strategy against
them.
Soft launch: A strategic corporate social responsibility launch needs to be released in phases. Align your
internal CSR leaders on the launch calendar and start with a soft launch. This acts like market feedback
research and gives your team time to adjust your strategy accordingly.
Launch with a stellar campaign: It’s time to join the socially responsible companies out there that are leading
the way. If you’ve followed our steps and best practices your CSR strategy should give your business a
competitive advantage against other brands and you can start enjoying social or environmental benefits, and
eventually will see a result in your financial performance.

Starbucks

Corporate Profile
Starbucks Corporation is an American multinational chain of coffeehouses roaster reserves
headquartered in Seattle, Washington. As the world's largest coffeehouse chain, Starbucks is seen to be
the major representation of the United States' second wave of coffee culture.

Starbucks is the world’s largest and most popular coffee company. Since the beginning, this premier cafe
aimed to deliver the world’s finest fresh-roasted coffee. Today the company dominates the industry and
has created a brand that is tantamount with loyalty, integrity and proven longevity

The corporate social responsibility of the Starbucks Corporation address the following issues: Starbucks
commitment to the environment, Starbucks commitment to the employees, Starbucks commitment to
consumers, discussions of ethical and unethical business behavior, and Starbucks commitment and
response to shareholders.

Commitment to the Environment

The first way Starbucks has shown corporate social responsibility is through their commitment to the
environment. In order to improve the environment, with a little push from the NGO, Starbucks first main
goal was to provide more Fair Trade Coffee. What this means is that Starbucks will aim to only buy 100
percent responsibly grown and traded coffee. Not only does responsibly grown coffee help the
environment, it benefits the farmers as well. Responsibly grown coffee means preserving energy and
water at the farms. In turn, this costs more for the company overall, but the environmental
improvements are worth it. Starbucks and the environment benefits from this decision because it helps
continue to portray a clean image.

Commitment to Consumers

The second way Starbucks has shown corporate social responsibility is through their commitment to
consumers. The best way to get the customers what they want is to understand their demographic
groups. By doing research on Starbucks consumer demographics, they realized that people with
disabilities are very important.

The company is trying to turn stores into a more adequate environment for customers with disabilities.
A few changes include: lowering counter height to improve easy of ordering for people in wheelchairs,
adding at least one handicap accessible entrance, adding disability etiquette to employee handbooks,
training employees to educate them on disabilities, and by joining the National Business Disability
Council. By joining the National Business Disability Council, Starbucks gains access to resumes of people
with disabilities.

Commitment and Response to Shareholders

One way Starbucks has demonstrated their commitment and response to shareholder needs is by giving
them large portions. By large portions, Starbucks is implying that they plan pay dividends equal to 35%
or higher of net income to. For the shareholders, paying high dividends means certainty about the
company’s financial well-being. Along with that, they plan to purchase 15 million more shares of stock,
and hopefully this will attract investors who focus on stocks with good results.

Starbucks made their commitment to shareholders obvious by speaking directly to the media about it. In
2004, Starbucks won a great tax break, but unfortunately the media saw them as “money grubbing”.
Their CEO, Howard Shultz, made the decision to get into politics and speak to Washington about
expanding health care and the importance of this to the company. Not only does he want his
shareholders to see his commitment, but he wants all of America to be able to reap this benefits.

Commitment to Employees

The first and biggest way Starbucks shows their commitment to employees is by just taking care of their
workers. For example, they know how important health care, stock options, and compensation are to
people in this economy. The Starbucks policy states that as long as you work 20 hours a week you get
benefits and stock options. These benefits include health insurance and contributions to employee’s
401k plan. Starbucks doesn’t exclude part time workers, because they feel they are just as valuable as
full time workers. Since Starbucks doesn’t have typical business hours like an office job, the part time
workers help working the odd shifts.

Ethical/Unethical Business Behaviors

The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and the
occasional unethical behavior. The first ethically positive thing Starbucks involves them self in is the NGO
and Fair Trade coffee. Even though purchasing mostly Fair Trade coffee seriously affected their profits,
Starbucks knew it was the right thing to do. They also knew that if they did it the right way, everyone
would benefit, from farmers, to the environment, to their public image.

In the fall of 2010, Starbucks chose to team up with Jumpstart, a program that gives children a head
start on their education. By donating to literacy organizations and volunteering with Jumpstart,
Starbucks has made an impact on the children in America, in a very positive way.

Nestle Philippines

Corporate Profile

Nestle Philippines Incorporated is a large scale, well-known international food manufacturing

corporation engaged in the manufacture of instant coffee, milk and cream. It was established in 1983
and is registered with the Securities and Exchange Commission (SEC) and Bureau of Food and Drugs
(BFAD). Nestle Philippines is committed to helping in community and nation building through programs
that help the underprivileged members of society.

Agronomy Assistance

Since 1960’s, Nestle Philippines has been helping coffee farmers in different parts of the country
through imparting knowledge on how they can improve their crops. Members of the company visit
these farmers regularly to reinforce among them the importance of good plantation management. By
improving methods in growing coffee, farmers get better yields and eventually help increase the coffee
supply in the Philippines as well as help the farmers increase their income.

Health and Nutrition

Nestle is an advocate for good health and proper nutrition. It conducts feeding programs and medical
missions in the areas where it operates.

Education and Manpower Development

• Donate-a-Classroom Program

• Technical Skills Scholarship Program

• Academic Linkage Program

Community Development

• Cut and Sew Livelihood Project

• Yard and Garden Livelihood Project

• Julius Maggi Kitchen

• Street Illuminations Project

Environmental Protection and Preservation

• Nestle Environmental Management

• Solid Waste Management Program

• The Greening the Supply Chain

• Air Emission Testing

Other Corporate Social Responsibility

Nestle sponsored PBSP projects such as the Tree planting Program in Lipa, the Agutayan Artificial Reef
Project and also supported the Cebu Hilly land Reforestation Project and Relief Assistance and
Rehabilitation of disaster victims.

Jollibee

Corporate profile

• The largest fast food chain in the Philippines, operating a nationwide network of over 750
stores.

• A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market
that is more than all the other multinational brands combined.

• Founded by Tony Tan and his family with its humble beginnings as an Ice Cream Parlor, which
later grew into an emerging global brand.

CSR PHILOSOPHY
 • Customer Focus

• Spirit of Family and plan

• Good Quality

• Location

• Culture

Customer focus
“The market is so dynamic and fast-changing, so we do a lot of research. "When Jollibee was small, we
directly asked customers their needs and wants.”

Spirit of Family and Fun

Jollibee knows their target audience very well: the traditional family and all communication materials
focus on the importance of family values, making Jollibee the number one family fast food chain in the
Philippine

Good Quality
The consistently “superior taste” of Jollibee foods is one success secret of their business

Location
Jollibee makes sure that its stores and affiliates are conveniently located.

Culture
A source of Filipino pride
“Excellence, spirit of family and fun, humility to lea, respect for the individual, and teamwork.

FSC Standard

Strict and Committed ad hence to high standards as symbolized by:

Food

Served to the public must meet the company’s excellence standards or it will not be served at all.

Service

Must be fast and courteous.

Cleanliness

From kitchen to utensils, must always be maintained.

Commitment to Employees

• Jollibee is proud of its employees who carry out their jobs. Jollibee recognizes them by providing
the highest compensation and benefits packages in the fast-food industry, and modern and
comprehensive training programs.
 • Managers are regularly updated on the latest store operations systems, people-oriented
management skills, among others.

• Service crews are trained on various store stations and food-service innovations.
Jollibee also offers career opportunities for qualified and exceptional crew members to further
their food-service careers as managers.

Community
Skills Enhancement and Education Development for Students (SEEDS)
Maaga ang Pasko
Jollibee Foundation
2 Major Projects
Busog, Lusog, Talino
Farmers Entrepreneurship Program.

Fast facts

• Distributed over 500,000 total gifts in 2010 with Jollibee matching every donation with its own
Jollibee toy, book or school item.

• 2008, Jollibee’s 30th anniversary – the Jollibee Hug and Share dolls special novelty promo was
launched. Sales of the limited-edition dolls raised over P18 million pesos which were donated to
8 charitable institutions. These institutions engaged in programs and projects that directly
benefit children.

• 2009, Focus its efforts on repairing schools severely damaged by typhoons Ondoy and Pepeng.
Jollibee embarked on a Christmas Caravan as it went around distributing toys and books as well
as school supplies to some 36 schools from calamity-stricken areas 8 of the most severely
affected schools also received additional help by getting either a new classroom, desks,
computers and other instructional materials.
2010, The Jollibee and Friends dolls. Raised a total of P12 million from the sales of the Jollibee
and Friends dolls which, Additional P8 million donated from the Jollibee. Will be used to build a
total of 40 public school classrooms beginning 2011. 26 of these classrooms have already been
completed.

Coca- cola company

The Coca Cola Company is the world’s largest beverage company. Coca-Cola also the owner of more
than 500 non-alcoholic beverage brands. The company sells a wide range of beverages that include
waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports
drinks. Products belonging to Coca-Cola Company are sold in more than 200 countries around the globe
since its incorporation in 1886.

Coca Cola Company’s 2020 Vision is based on its mission that consists of three parts:

• To refresh the world.

• To inspire moments of optimism and happiness and,

• To create value and make difference. Recently the company initiated a new marketing campaign
‘One Brand’ that aims to unite four different brands – Coca Cola, Diet Coke, Coca Cola Zero and
Coca Cola Life under the umbrella of Coca Cola.

According to the latest Coca Cola Sustainability Report for 2013/2014

Educating and empowering worker.

During the period of 2012-2013 Coca Cola is mentioned in 26 lists, including the World’s 25 Best
Multinational Workplace

Labor and human rights

Company’s Ethics Line channel provides stakeholders an opportunity to inform perceived violations of
Code of Business Conduct, Workplace Rights or any other violations in a secure and anonymous manner.
In 2013, 44% of workforce in the US was multicultural and 1010 military veterans were hired during the
year.

Health and safety

100 out of 400 new beverage products introduced in 2013 are reduced-, low-, or no calorie.
94% of company-owned facilities comply with Coca Cola Workplace Rights Policy
The rate of lost-time incident decreased in 2013, dropping to a low of 1.9

Social Environment

1. Waste reduction

2. Replenishment of water

3. Reduction of carbon footprint

4. Minimizing packaging

Environment

energy consumption, Energy efficiency improved by 20% compared to 2004. 100 service vans in the US
have been converted into efficient hybrid-electric vehicles. Coca Cola has announced a program to
reduce carbon footprint by 25% by 2020

Water consumption

Coca Cola has announced its commitment to balance its water usage by 2020. In 2013 the company has
replenished an estimated 68% of the volume of its finished beverages and returned about 108.5 billion
liters of water to communities and the nature. Efficiency of water usage is improved for 11 th year in a
row, totaling to 8% improvement since 2010.

Reference of the Study

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https://research-methodology.net/coca-cola-corporate-social-responsibility/

https://businessmirror.com.ph/2019/10/16/coca-cola-philippines-recognized-as-one-of-the-top-
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