BUMA131

UNIT 5: CORPORATE SOCIAL RESPONSIBILITY

LEARNING OUTCOMES
 EXPLAIN AND DEFINE WHAT CORPORATE SOCIAL RESPONSIBILITY IS
 EXPLIAN WHY A COMPANY WOULD CONSIDER IMPLEMENTING CSR
PROGRAMMES
 DEFINE CORPORATE GOVERNANCE
 EXPLAIN CORPORATE GOVERNANCE COMPLIANCE REQUIREMENTS
 EXPLIAN WHO THE STAKEHOLDERS OF A COMPANY ARE
 GIVE REASONS WHY A COMPANY SHOULD ENGAGE WITH ITS
STAKEHOLDERS
 DESCRIBE HOW A COMPANY WOULD GO ABOUT ENGAGING WITH
ITS STAKEHOLDERS
 DEFINE THE CONCEPT OF SUSTAINABLE DEVELOPMENT
 DESCRIBE THE CONTRIBUTION OF CSR TO SUSTAINABLE
DEVELOPMENT
THEME BREAKDOWN

 THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY

(PG 146-158)
 EXPLAIN “CORPORATE SOCIAL RESPONSIBILITY” (CSR) IN YOUR OWN
WORDS
 EXPLAIN THE RATIONALE FOR IMPLEMENTING CSR PROGRAMMES IN
BUSINESS ORGANISATIONS

 THEME 2:GOVERNANCE & STAKEHOLDERS (PG 158 – 174)

 EXPLAIN CORPORATE GOVERNANCE
 DISCUSS STAKEHOLDER ENGAGEMENT IN THE ORGANISATIONAL
CONTEXT
 DESCRIBE THE CONCEPT “SUSTAINABLE DEVELOPMENT” IN YOUR
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.1. WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

 CSR IS AN UMBRELLA CONCEPT THAT RECOGNISES THE FOLLOWING POINTS:

 COMPANIES HAVE A RESPONSIBILITY FOR THEIR IMPACT ON SOCIETY AND THE NATURAL
ENVIRONMENT.THIS RESPONSIBILITY MAY EXTEND BEYOND LEGAL COMPLIANCE AND
LIABILITY OF INDIVIDUALS
 COMPANIES HAVE A RESPONSIBILITY FOR THE BEHAVIOUR OF OTHERS WITH WHOM THEY DO
BUSINESS (FOR EXAMPLE,WITHIN SUPPLY CHAINS)
 COMPANIES NEED TO MANAGE THEIR RELATIONSHIPS WITH WIDER SOCIETY,WHETHER FOR
REASONS OF COMMERCIAL VIABILITY OR TO ADD VALUE O SOCIETY.
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.1. WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

 THE EXISTANCE OF A BUSINESS IN AN ENVIRONMENT HAS AN IMPACT ON THE ENVIRONMENT

IN WHICH IT EXISTS.ANY DECISION AND ACTIVITY THAT THE BUSINESS PARTAKES IN WILL
AFFECT THE ENVIRONMENT.TRANSPARENCY AND ETHICAL BEHAVIOUR ARE STANDARDS THAT
HAVE BEEN DEVELOPED TO TRANSFORM THE BUSINESSES IMPACT ON THE ENVIRONMENT.

 5.2.1.1.CORPORATE CITIZENSHIP & CORPORATE SOCIAL INVESTMENT

 CORPORATE CITIZENSHIP – RECOGNISES CORPORATIONS AS LEGAL PERSONS WITH CERTAIN
RIGHTS & RESPONSIBILITIES IN THE SAME WAY AS INDIVIDUAL CITIZENS HAVE RIGHTS &
RESPONSIBILITIES AS MEMBERS OF A COMMUNITY.
 CORPORATE PERSONHOOD MEANS THAT CORPORATIONS ARE GRANTED CONSTITUTIONAL
RIGTHS.
 RESPONSIBILITIES INCLUDE THE RIGHT TO GOVERN INTERNAL AFFAIRS,THE RIGHT TO ENTER
INTO CONTRACTS,THE RIGHT TO HOLD ASSETS,THE RIGHT TO HIRE,AND THE RIGHT TO SUE
AND THE RIGHT TO BE SUED.
 Introducing CSR (continued)

Corporate citizenship Corporate social investment

Recognises corporations as Contribution made to society

legal persons with certain (excluding contributions
rights and responsibilities. made through core business
activities)
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.2. THE TRIPLE BOTTOM LINE

 TRIPLE BOTTOMLINE: A COMPANY’S WORTH SHOULD BE MEASURED IN

FINANCIAL,SOCIAL AND ENVIRONMENTAL TERMS.

 THESE DIMENSIONS ARE CALLED THE 3 P’s : People; Planet & Profit.

 READ THE CASE STUDY ON PAGE 152-154 – MONDI:BEING PART OF THE SOLUTION
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT (what is the purpose of csr in
business today?)

 THERE ARE STANDARDS AND FRAMEWORKS THAT HAVE BEEN DEVELOPED OVER TIME
TO GUIDE THE BUSINESS COMMUNITY WITH ITS INTERACTION WITH ITS
SURROUNDINGS.
 KEY ISSUES SUCH AS CORPORATE SOCIAL
PERFORMANCE;SUSTAINABILITY,STAKEHOLDER THEORY AND BUSINESS ETHICS ARE
TOPICS WHICH ENCORAGE BUSINESS TO SET ASIDE GOALS THAT ALLOW IT TO
CONSCIOUSLY INTERACT WITHIN THE COMMUNITY IT EXISTS.
 COMPANIES ALSO USE CORPORATE SOCIAL RESPONSIBILITY AS A PUBLIC-RELATIONS
TOOL,TO PROJECT AN IMAGE OF BEING SOCIALLY RESPONSIBLE.
 OTHER COMPANIES USE IT BASED ON THE ORGANISATION’S FOUNDERS BELIEF
SYSTEM.IF THE FOUNDER WAS PHILANTHROPIC THEN THE CULTURE OF THE
ORGANISATION AND ITS GOALS WOULD REFLECT THAT.
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
Introducing CSR (continued)

 CSR in contemporary business management

 Social drivers
 Governmental drivers
 Market drivers
 Ethical drivers
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)

 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT (What makes CSR relevant in

todays society?)
 5.2.3.1. SOCIAL DRIVERS
 IT IS DESIRABLE FOR AN ORGANISATION OR ACTIVITY TO BE THOUGHT
OF AS SOCIALLY RESPONSIBLE.
 WHAT IS A SOCIAL DRIVER?
 THERE ARE CIVIL SOCIETY ORGANISATIONS HAVE HELPED TO
DEVELOP (e.g. Competition Commission)
VOLUNTARY STANDARDS/GUIDELINES AS TO HOW SOCIALLY
RESPONSIBLE CORPORATIONS SHOULD ACT.
MANY COMPANIES ENGAGE IN CSR BECAUSE SOCIETY EXPECTS IT OF
THEM.THE COMPANIES WANT TO PROTECT THEIR REPUTATION BY
MEETING THESE SOCIAL EXPECTATIONS.
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT

 5.2.3.2.GOVERNMENTAL DRIVERS

 MOST GOVERNMENTS ENFORCE LOCAL & NATIONAL LEGAL SYSTEMS

WITH WHICH COMPANIES HAVE TO COMPLY IN ORDER TO OPERATE
IN THAT COUNTRY.
 THESE SYSTEMS INCLUDE LEGISLATION;LABOUR RELATIONS &
ENVIRONMENTAL MANAGEMENT.
 GOVERNMENT CAN ENCOURAGE CSR THROUGH ORGANISATIONAL
SUPPORT.
FOR EXAMPLE SUBSIDIES FOR CSR ORGANISATIONS.
(e.g. YES government intiative)
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT
 5.2.3.3. MARKET DRIVERS

 CSR CAN RESULT IN ADVANTAGES SUCH AS REDUCED COSTS OR INCREASED REVENUES.

 COMPANIES CAN REDUCE COSTS THROUGH CSR BY:
 AVOIDING FINES
 AVOIDING LEGAL COSTS
 USE RESOURCES EFFICIENTLY
 USE ALTERNATIVE RAW MATERIALS SOURCES
 REDUCED RECRUITING COSTS
 INCREASED STAFF RETENTION
 REDUCED COSTS OF CAPITAL

 COMPANIES CAN INCREASE REVENUE THROUGH CSR:

 DEVELOPING ENVIRONMENTALLY FRIENDLY PRODUCTS/SERVICES
 GROWING MARKETS THROUGH JOB CREATION & SOCIAL DEVELOPMENT
 IMPROVED ACCESS TO MARKETS
 AVOID BOYCOTTS
THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT

 5.2.3.4. ETHICAL DRIVERS

 ETHICS IS ABOUT DECIDING BETWEEN WHAT IS RIGHT AND WRONG

CONDUCT.
 BUSINESS ETHICS IS A SUBSET OF ETHICS THAT FOCUSES ON DECIDING
BETWEEN RIGHT & WRONG IN THE WORKPLACE AND IN BUSINESS
GENERALLY.
 MARKET SYSTEMS ARE SUB-SYSTEMS TO THE SOCIAL SYSTEM,THUS
ENTERPRISES HAVE A SOCIAL RESPONSIBILITY AS WELL AS LEGAL &
ECONOMIC RESPONSIBILITY TO CONTRIBUTE.
 ENTERPRISES HAVE A RESPONSIBILITY TO NOT INFLICT HARM ON
PEOPLE IN COMMUNITIES.
 THEME 1:CORPORATE SOCIAL RESPONSIBILITY AND
SUSTAINABILITY (PG 146-158)
 5.2.3. CSR IN CONTEMPORARY BUSINESS MANAGEMENT
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
5.3.1. CORPORATE GOVERNANCE DEFINED

CORPORATE GOVERNANCE IS THE SYSTEM BY WHICH COMPANIES ARE MANAGED

AND CONTROLLED.IT ALSO REFERS TO THE RELATIONSHIP BETWEEN THOSE WHO
GOVERN AND THOSE WHO ARE GOVERNED.

CORPORATE GOVERNANCE IS A MANAGEMENT TOOL THAT ALLOWS ORGANISATIONS TO SET

UP MECHANISMS THAT CONTROL RISK,RESPONSE ACTION TAKEN,MONITORING OF
ORGANISATIONAL ACTIVITIES AGAINST SET INDUSTRY AND ORGANISATIONAL
STANDARDS,ASSURANCE AND DISCLOSURE.
OTHER GOVERNANCE ASPECTS REVIEWED IN THE REPORT ARE THE GOVERNANCE OF
INFORMATION TECHNOLOGY ,COMPLIANCE WITH LAWS,RULES,CODES AND
STANDARDS,INTERNAL AUDITS,GOVERNING STAKEHOLDERS RELATIONSHIPS AND
INTERGRATED REPORTING AND DISCLOSURE.

(THE ABOVE EXPLANATION OF CORPORATE GOVERNANCE COMPLIANCE IS MADE UP OF A

FRAMEWORK DESIGNED BY THE 3 KING COMMITTEE REPORTS ON CORPORATE
GOVERNANCE.)
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.3.1. CORPORATE GOVERNANCE DEFINED
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.3.1.1.ROLES AND RESPONSIBILITIES OF BOARDS WITHIN A COMPANY IN TERMS OF GOOD
GOVERNANCE

 BOARD OF DIRECTORS
 A GROUP OF PEOPLE ASSEMBLED TO LEAD AND CONTROL A COMPANY
 THE PURPOSE OF THE BOARD IS TO ENSURE THAT A COMPANY FUNCTIONS IN THE BEST
INTERESTS OF ITS SHAREHOLDERS
 THE BOARD IS THE FOCAL POINT OF THE CORPORATE GOVERNANCE SYSTEM
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
5.3.1.1.ROLES AND RESPONSIBILITIES OF BOARDS WITHIN A COMPANY IN TERMS OF GOOD GOVERNANCE
 BOARDS CONSIST OF BOTH EXECUTIVE AND NON-EXECUTIVE DIRECTORS
 EXECUTIVE DIRECTORS
 FULL-TIME EMPLOYEES OF THE COMPANY
 SENIOR MANAGEMENT ROLE
 E.G.CEO-RESPONSIBLE FOR THE RUNNING OF THE COMPANY’S BUSINESS

 NON-EXECUTIVE DIRECTORS
 NOT INVOLVED IN THE DAY-TO-DAY RUNNING OF THE BUSINESS
 DO NOT RECEIVE REMUNERATION;OTHER THAN DIRECTORS FEES
 INDEPENDENT OF MANAGEMENT
 PROVIDE INDEPENDENT JUDGEMENT ON ISSUES FACING THE COMPANY
 MONITOR MANAGEMENTS PERFORMANCE AGAINST THE COMPANY’S STRATEGY
 ENSURE ADEQUATE PROTECTION OF THE INTERESTS OF THE COMPANY WHERE THESE MAY CONFLICT WITH THE
PERSONAL INTERESTS OF THE EXECUTIVE DIRECTORS
 THEY DO NOT HAVE PRIOR BUSINESS OR EMPLOYMENT WITH THE BUSINESS
 E.G. CHAIRMAN OF THE BOARD – RESPONSIBLE FOR THE RUNNING OF THE BOARD
 THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.3.1.2.PRIMARY PRINCIPALS OF GOOD GOVERNANCE (CHARACTERISTICS)
 1) DISCIPLINE – ADHERING TO BEHAVIOUR THAT IS UNIVERSALLY RECOGNISED
 2) TRANSPARENCY – HOW GOOD MANAGEMENT IS AT MAKING INFORMATION AVAILABLE
ABOUT A COMPANY’S ACTIONS,ECONOMIC FUNDERMENTALS & NON-FINANCIAL ASPECTS
 3) INDEPENDENCE – THE EXTENT TO WHICH MECHANISMS HAVE BEEN IMPLEMENTED TO
MINIMISE OR AVOID POTENTIAL CONFLICTS OF INTEREST
 4) ACCOUNTABILITY – MECHANISMS THAT ALLOW FOR THE ACCOUNTABILITY OF DECISION-
MAKERS.INVESTORS SHOULD BE ABLE TO QUERY & ASSESS THE ACTIONS OF THE BOARD & ITS
COMMITTEES.
 5) RESPONSIBILITY – BOARD MEMBERS MUST ACT RESPONSIBLY TOWARDS ALL
STAKEHOLDERS & MANAGEMENT SHOULD ALLOW FOR CORRECTIVE ACTION.
 6) FAIRNESS – ALL SYSTEMS WITHIN THE COMPANY MUST BE BALANCED IN CONSIDERING &
RESPECTING THE RIGHTS OF VARIOUS GROUPS & THEIR COMPETING INTEREST.
 7) SOCIAL RESPONSIBILITY – A WELL-MANAGED COMPANY WILL BE AWARE OF,AND
RESPOND TO,SOCIAL ISSUES WHILE PLACING A PRIORITY ON ETHICAL STANDARDS
Corporate governance
(continued)
 Primary principles of good governance:
Social Discipline
responsibility

Fairness Transparency

Responsibility Independence

Accountability
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.3.2. CORPORATE GOVERNANCE COMPLIANCE (How do businesses comply)

 THE GOVERNANCE(THE WAY THAT ORGANISATIONS ARE RUN) OF CORPORATIONS CAN BE

ON A LAW BASIS,OR AS A CODE OF PRINCIPLES & PRACTICES,OR A COMBINATION OF THE
TWO.

 GUIDANCE FOR GOOD GOVERNANCE

 STATUTORY (LAW) BASIS CODE OF PRINCIPLES

 “COMPLY OR ELSE” “COMPLY OR EXPLAIN”

 WHERE THERE ARE LEGAL SANCTIONS STILL COMPLIES WITH THE LEGISLATION
FOR NON-COMPLIANCE APPROPRIATE STANDARD OF CONDUCT FOR
DIRECTORS
THE LEADERSHIP OF A COMPANY MUST BE SEEN TO BE ANSWERABLE & ACCOUNTABLE TO THAT
COMPANY’S STAKEHOLDERS.
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.3.3. HOW DOES CORPORATE GOVERNANCE RELATE TO CSR?
 CORPORATE GOVERNANCE IS A LEADERSHIP CHALLENGE,AND CSR HAS EVOLVED AS AN ASPECT
OF GOOD CORPORATE GOVERNANCE.(PEOPLE,PLANET & PROFIT)
 MANAGEMENT IS RESPONSIBLE FOR THE IMPLEMENTATION OF & MANAGEMENT OF THE CSR
PROGRAMME.
 A CSR PROGRAMME SHOULD BE EMBEDDED IN A SPECIFIC BOARD-LEVEL STRUCTURE,SUCH AS A
CSR COMMITTEE.
 THERE ARE 3 WAYS IN WHICH THE BOARD & CSR COMMITTEE CAN DETERMINE HOW TO ESTABLISH
THE CORPORATE POLICY FOR CSR:
 1)VALUE-BASED SYSTEM: CSR POLICY IS ALIGNED WITH THE COMPANY’S OWN VISION,MISSION &
VALUES AND GUIDING PRINCIPLES(PROACTIVE ACTION BY THE COMPANY)
 2)STAKEHOLDER-ENGAGEMENT PROCESS: ALLOWS STAKEHOLDERS TODETERMINE WHAT THEY
WANT FROM THE COMPANY/AND WHAT THEY CONSIDER TO BE ISSUES & CULTURE OF THE
COMPANY (REACTIVE APPROACH)
 3)A COMBINATION OF BOTH THE VALUE-BASED & STAKEHOLDER-ENGAGEMENT PROCESSES:WHEN
THE COMPANY MOVES FROM SETTING ITS OWN OBJECTIVES ALIGNED WITH ITS VALUES TO
INVOLVING ITS STAKEHOLDERS.(THIS ALLOWS THE COMPANY TO ENSURE THAT ITS STRATEGY
SATISFIES ITS OWN NEEDS AS WELL AS THE NEEDS OF ITS STAKEHOLDERS.)
Corporate governance
(continued)
Three ways in which a CSR committee can
determine corporate policy:
- Values-based system
- Stakeholder-engagement process
- A combination of value-based and stakeholder
engagement processes
THEME 2:GOVERNANCE & STAKEHOLDERS
(PG 158 – 174)
 5.4. STAKEHOLDER ENGAGEMENT

 THE CSR DEPRATMENT IS ALSO RESPONSIBLE FOR STAKEHOLDER

ENGAGEMENT.

 REASONS WHY COMPANIES ENGAGE WITH STAKEHOLDERS INCLUDE:

 1)RESPONSIBLES COMPANIES WANT TO UNDERSTAND & RESPOND TO
SOCIETY’S EXPECTATIONS OF WHAT IT MEANS TO BE RESPONSIBLE.
 2)ENGAGEMENT IS A MEANS TO HELP BUILD BETTER RELATIONSHIPS
WITH ALL PARTIES
 3)TO PROVIDE OPPORTUNITIES TO ALIGN BUSINESS PRACTICES WITH
SOCIETAL NEEDS & EXPECTATIONS
 THEME 2:GOVERNANCE & STAKEHOLDERS (PG 158 – 174)
 5.4.1.DEFINING STAKEHOLDERS

 STAKEHOLDERS ARE PERSONS OR GROUPS WHO ARE POTENTIALLY AFFECTED BY,OR AFFECT,A COMPANY’S BUSINESS ACTIVITY
 TWO KINDS OF STAKEHOLDERS

 PRIMARY STAKEHOLDERS SECONDARY STAKEHOLDERS

 STKEHOLDERS WHOSE ON-GOING HAVE LESS DIRECT IMPACT ON THE COMPANY

SUPPORT FOR THE COMPANY,IS VITAL CUSTOMERS/ INVESTORS

FOR ITS SURVIVAL.

HAVE A CONTRACTUAL/FINANCIAL
RELATIONSHIP WITH THE COMPANY.
SHAREHOLDERS/EMPLOYEES

MANAGEMENT/EMPLOYESS

STAKEHOLDERS ARE CLASSIFIED INTO 6 BROAD STAKEHOLDER GROUPS:

CIVIL SOCIETY
REGULATORY & POLITICAL
BUSINESS & INDUSTRY
INTERNAL
INVESTMENT COMMUNITY
MEDIA
 Stakeholder engagement
(continued)
Defining ‘stakeholders’
Persons or groups that affect or are affected by the
business activities of a company
Primary stakeholders Secondary stakeholders
• Some contractual or • Have a less direct impact
financial relationship with on the company.
the company. • For example Environmental
• For example shareholders NGO’s and the media
and employees
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.4.2. DEFINING ENGAGEMENT

 ENGAGEMENT REFERS TO AN ON-GOING & MULTI-FACETED PROCESS BETWEEN THE

CORPORATION & STAKEHOLDERS

 PURPOSE OF STAKEHOLDER ENGAGEMENT INCLUDES:

 PROVIDING INFORMATION
 CAPACITY-BUILDINGING TO EQUIP COMMUNITIES & STAKEHOLDERS TO ENGAGE
EFFECTIVELY
 LISTENING & RESPONDING TO COMMUNITY & STAKEHOLDER CONCERNS
 INCLUDING COMMUNITIES & STAKEHOLDERS IN RELEVANT DECISION-MAKING PROCESSES
 DEVELOPING GOODWILL WHEN DECISIONS ARE MADE
 DEVELOPING A BETTER UNDERSTANDING OF OBJECTIVES & PRIORITIES LEADING TO
CONFIDENCE IN DECISIONS
 ESTABLISHING A REALISTIC UNDERSTANDING OF POTENTIAL OUTCOMES
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.4.3. PRINCIPLES FOR STAKEHOLDER ENGAGEMENT

 1.ALWAYS DEMONSTRATE RESPECT FOR STAKEHOLDERS

 2.MAKE AN EFFORT TO UNDERSTAND & RECOGNISE STAKEHOLDER
NEEDS,CONCERNS AND EXPECTATIONS
 3.ACT WITH INTERGRITY,FAIRNESS AND GOOD FAITH
 4.SEEK ALWAYS TO COLLABORATE & TO BECOME A PARTNER OF
CHOICE
5.WORK TO ACHIEVE A MUTUALLY BENEFICIAL OUTCOME WITH
STAKEHOLDERS
 6.ACT WITH CONSIDERED INTENT,PROACTIVELY PLANNING
ENGAGEMENTS TO MEET SPECFIC OBJECTIVES & EVALUATING
RESULTS
Stakeholder engagement
(continued)
Principles for stakeholder engagement
Key approaches of stakeholder engagement
process:
- Involvement
- Candour
- Relevance
- Learning
- Action
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.4.4. THE STAKEHOLDER ENGAGEMENT PROCESS

 3 PRNCIPLES OF THE STAKEHOLDER ENGAGEMENT PROCESS(ACCOUNTABILITY PRINCIPLES

STANDARDS….PRINCIPLES SUPPORT THE REALISATION OF ACCOUNTABILITY):
 1.INCLUSIVITY-ORGANISATION SHALL BE INCLUSIVE & ALLOWS STAKEHOLDERS TO
PARTICIPATE IN DEVELOPING AND ACHIEVING AN
ACCOUNTABLE & STRATEGIC RESPONSE TO SUSTAINABILITY.
 2.MATERIALITY- ORGANISATIONS IDENTIFY THEIR MATERIAL ISSUES THAT ARE RELAVANT
& SIGNIFICANT TO AN ORGANISATION & ITS STAKEHOLDERS.
THESE ISSUES INFLUENCE THE DECISIONS,ACTIONS & PERFORMANCE
OF AN ORGANISATION/STAKEHOLDERS.
 3.RESPONSIVENESS- ORGANISATIONS SHALL RESPOND TO STAKEHOLDER ISSUES THAT AFFECT
ITS PERFORMANCE.THIS PRINCIPLE REQUIRES ORGANISATIONS TO
HAVE THE REQUIRED COMPETENCIES & POCESSES IN PLACE TO DEVELOP
APPROPRIATE RESPONSES.RESPONSES SHOULD BE TIMELY,COMPREHENSIVE &
BALANCED.
Stakeholder engagement
(continued)
• The stakeholder-engagement process
- Prepare – identify and understand
- Plan – set objectives
- Design – develop the engagement plan
- Engage – meet objectives
- Evaluate – assess the outcomes
- Apply – share information
THEME 2:GOVERNANCE & STAKEHOLDERS (PG
158 – 174)
 5.5. SUSTAINABLE DEVELOPMENT

 5.5.1. DEFINING SUSTAINABLE DEVELOPMENT

 SUSTAINABLE DEVELOPMENT IS DEVELOPMENT THAT MEETS THE NEEDS
OF THE PRESENT WITHOUT COMPRIMISING THE ABILITY OF FUTURE
GENERATIONS TO MEET THEIR OWN NEEDS.

 5.5.2.THE CONTRIBUTION OF CSR TO SUSTAINABLE DEVELOPMENT

 RESPONSIBLE BUSINESS PRACTICES IS A REQUIREMENT OF
SUSTAINABLE
DEVELOPMENT.CORPORATIONS,COMMUNITIES,GOVERNMENTS AND
INDIVIDUALS NEED TO WORK TOGETHER TO ACHIEVE THIS GOAL.
Sustainable development

Defining sustainable development

‘Development that meets the needs of the present
without compromising the ability of future generations
to meet their own needs.’
Sustainable development encompasses a number of
areas and highlights sustainability as the idea of
environmental, economic and social progress and
equity – within limits of the world’s natural resources
THEME 2:GOVERNANCE & STAKEHOLDERS (PG 158 – 174)