CORPORATE SOCIAL RESPONSIBLITY

A formal definition of Corporate social responsibility (CSR) has been proposed by the World Business
Council for Sustainable Development (WBCSD):
'CSR is the continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as well as of the local
community and society at large.'
CSR thus refers to the idea that a company should be sensitive to the needs and wants of all of the
stakeholders in its business operations, not just the shareholders.
The stakeholders of a company are all those who are influenced by, or can influence, the company's
decisions and actions.
Examples of stakeholder groups are:

shareholders

directors

other employees

customers

suppliers

the government

lenders of funds

community organisations, especially in the local neighbourhood.

Strategies for social responsibility:

1)Proactive strategy: a strategy which a business follow where it is prepared to take full responsiblities
for their action.Taking the initiative in formulating and putting in place new programs that
serve as role models for industry.
2)Reactive strategy:This involve allowing a situation to continue unresolved until the public.
Government or consumer group find out about it.
3)Defence strategy: This involve minimising or attempting to avoid additional obligation
arising from a particular situation.
4)Accomodation strategy: Assuming social responsibility only in response to pressure from
interest groups or the government