CORPORATE SOCIAL RESPONSIBILITY
STRATEGY
Introduction
• Wood (1991: 695) reflected that: ‘The basic idea of corporate social
responsibility is that business and society are interwoven rather than
distinct entities; therefore, society has certain expectations for
appropriate business behavior and outcomes’
Definition
• CSR refers to the actions taken by businesses ‘that further some social
good beyond the interests of the firm and that which is required by
law’.
• CSR as a process of integrating business and society.
The Rationale For CSR
• The arguments identified by Porter and Kramer (2006) that support CSR are:
1. The moral appeal – the argument that companies have a duty to be good
citizens.
2. Sustainability – an emphasis on environmental and community stewardship. As
expressed by the World Business Council for Sustainable Social Development
(2006: 1), this involves ‘meeting the needs of the present without
compromising the ability of future generations to meet their own needs’.
3. Licence to operate – every company needs tacit or explicit permission from
government, communities and other stakeholders to do business.
4. Reputation – CSR initiatives can be justified because they improve a
company’s image, strengthen its brand, enliven morale and even raise the
value of its stock.
Strategic CSR
• Deciding initially whether or not the firm should be involved in social
issues
• and then creating a corporate social agenda – deciding what social
issues to focus on
• and to what extent.
• CSR strategy needs to be integrated with the business strategy but it is
also closely associated with HR strategy. This is because it is
concerned with ethical behaviour both outside and within the firm –
with society generally and with the internal community
CSR activities
• Community – skills and education, employability and social
exclusion were frequently identified as key risks and opportunities.
Other major activities were support for local community initiatives
and being a responsible and safe neighbor.
• Environment – most companies reported climate change and
resource-use as key issues for their business.
CSR activities
• Marketplace – the issues most frequently mentioned by companies were
research and development, procurement and supply chain, responsible
selling, responsible marketing, and product safety. There was a rising
focus on fair treatment of customers, providing appropriate product
information and labelling, and on the impacts of products on customer
health.
• Workplace – this was the strongest management performing area as most
companies have established employment management frameworks that
can cater for workplace issues as they emerge. Companies recognized the
crucial role of employees in achieving responsible business practices.
Increasing emphasis was placed on internal communications and training to
raise awareness and understanding of why it is relevant to employees and
valuable for the business. More attention was being paid to health and
well-being issues as well as the traditional safety agenda. More work was
being done on diversity, both to ensure the business attracts a diverse
workforce and to communicate the business case for diversity internally.
Role of HR
● Companies are increasingly required to take account of the impact
of their activities on society.
● The credibility of CSR is dependent on delivery, not on rhetoric, and
HR is responsible for many of the key systems and processes (eg
recruitment, training and communications) on which effective delivery
depends.
● HR people have relevant knowledge and skills in relation to CSR,
eg organizational learning and culture change.
● Managing trust and risk raises fundamental issues about how
people are managed
Role of HR
• CSR offers the HR community opportunities to demonstrate its
strategic focus.
• The way a company treats its employees, including its practices on
diversity, employee representation and development, will
contribute to the picture of a company that is willing to accept its
wider responsibilities.
• HR already works at communicating and implementing ideas,
policies, and cultural and behavioural change across
organizations. Its role in influencing attitudes and links with line
managers and the top team mean it is ideally placed to do the same
with CSR
Developing a CSR strategy
• 1 Understanding society – understanding how the business operates
in the broader context and knowing the social and environmental
impacts that the business has on society.
• 2 Building capacity – building the capacity of others to help manage
the business effectively. For example, suppliers understand the
business’s approach to the environment and employees can apply
social and environmental concerns in their day-to-day roles.
• 3 Questioning business as usual – individuals continually
questioning the business in relation to a more sustainable future and
being open to improving the quality of life and the environment.
Developing a CSR strategy
• Stakeholder relations – understanding who the key stakeholders are
and the risks and opportunities they present. Working with them
through consultation and taking their views into account.
• Strategic view – ensuring that social and environmental views are
included in the business strategy, such that they are integral to the way
the business operates.
• Harnessing diversity – respecting the fact that people are different,
which is reflected in fair and transparent business practices.
