Vladimir Parallag

XII St, Agnes

What is Corporate Social responsibility (CSR)?

Corporate social responsibility (CSR) is a self-regulating business model that helps a
company be socially accountable — to itself, its stakeholders, and the public. By practicing
corporate social responsibility, also called corporate citizenship, companies can be conscious of
the kind of impact they are having on all aspects of society including economic, social, and
environmental. To engage in CSR means that, in the normal course of business, a company is
operating in ways that enhance society and the environment, instead of contributing negatively to
it.

Corporate Social Responsibility is a management concept whereby companies integrate

social and environmental concerns in their business operations and interactions with their
stakeholders. CSR 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. In this sense
it is important to draw a distinction between CSR, which can be a strategic business
management concept, and charity, sponsorships or philanthropy. Even though the latter can also
make a valuable contribution to poverty reduction, will directly enhance the reputation of a
company and strengthen its brand, the concept of CSR clearly goes beyond that.

Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective
needs and capacities of these businesses, and do not adversely affect their economic viability.
UNIDO based its CSR programme on the Triple Bottom Line (TBL) Approach, which has proven
to be a successful tool for SMEs in the developing countries to assist them in meeting social and
environmental standards without compromising their competitiveness. The TBL approach is used
as a framework for measuring and reporting corporate performance against economic, social and
environmental performance. It is an attempt to align private enterprises to the goal of sustainable
global development by providing them with a more comprehensive set of working objectives than
just profit alone. The perspective taken is that for an organization to be sustainable, it must be
financially secure, minimize (or ideally eliminate) its negative environmental impacts and act in
conformity with societal expectations.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

stakeholder engagement, labour standards and working conditions, employee and community
relations, social equity, gender balance, human rights, good governance, and anti-corruption
measures.

A properly implemented CSR concept can bring along a variety of competitive advantages,
such as enhanced access to capital and markets, increased sales and profits, operational cost
savings, improved productivity and quality, efficient human resource base, improved brand image
and reputation, enhanced customer loyalty, better decision making and risk management
processes. CSR strategies encourage the company to make a positive impact on the environment
and stakeholders including consumers, employees, investors, communities, and others. From an
ethical perspective, some businesses will adopt CSR policies and practices because of ethical
beliefs of senior management. For example, a CEO may believe that harming the environment is
ethically objectionable. CSR aims to ensure that companies conduct their business in a way that
is ethical. This means taking account of their social, economic and environmental impact, and
consideration of human rights.

It can involve a range of activities such as:

 Working in partnership with local communities

 Socially responsible investment (SRI)
 Developing relationships with employees and customers
 Environmental protection and sustainability

Some businesses have as their main purpose the fulfilment of social or environmental goals, as
opposed to a business that tries to achieve its financial goals while minimizing any negative impact
on society or the environment. These businesses are called Social Enterprises.

Why is it Important to Organizations?

There have been increased demands from employees, customers and government bodies
for businesses to be more open about their activities and to reach, and maintain, acceptable
standards in their business practice.
For employers, CSR is now seen as an important way to increase competitive advantage,
protect and raise brand awareness and build trust with customers and employees.

Breaking Down 'Corporate Social Responsibility

(CSR)'
Corporate social responsibility is a broad concept that can take many forms depending on
the company and industry. Through CSR programs, philanthropy, and volunteer efforts, businesses
can benefit society while boosting their own brands. As important as CSR is for the community, it
is equally valuable for a company. CSR activities can help forge a stronger bond between employee
and corporation; they can boost morale and can help both employees and employers feel more
connected with the world around them.

In order for a company to be socially responsible, it first needs to be responsible to itself

and its shareholders. Often, companies that adopt CSR programs have grown their business to the
point where they can give back to society. Thus, CSR is primarily a strategy of large corporations.
Also, the more visible and successful a corporation is, the more responsibility it has to set standards
of ethical behavior for its peers, competition, and industry.
CSR in Action — Starbucks
Long before its initial public offering (IPO) in 1992, Starbucks was known for its keen
sense of corporate social responsibility, and commitment to sustainability and community welfare.
Starbucks has achieved CSR milestones such as reaching 99 percent ethically sourced coffee;
creating a global network of farmers; pioneering green building throughout its stores; contributing
millions of hours of community service; and creating a groundbreaking college program for its
partner/employees. Going forward, Starbucks’s goals include hiring 10,000 refugees across 75
countries; reducing the environmental impact of its cups; and engaging its employees in
environmental leadership.

Published Standards for CSR

In 2010, the International Organization for Standardization (ISO) released a set of
voluntary standards meant to help companies implement corporate social responsibility. Unlike
other ISO standards, ISO 26000 provides guidance rather than requirements because the nature of
CSR is more qualitative than quantitative, and its standards cannot be certified. Instead, ISO 26000
clarifies what social responsibility is and helps organizations translate CSR principles into
effective actions. The standard is aimed at all types of organizations regardless of their activity,
size, or location. And, because many key stakeholders from around the world contributed to
developing ISO 26000, this standard represents an international consensus.

10 Examples of Companies with CSR

1. Resorts World Manila (RWM)
CORPORATE SOCIAL RESPONSIBILITY
Our Corporate Social Responsibility (CSR) efforts are designed to make communities win,
a direct reflection of our unwavering commitment towards corporate citizenship. To
achieve this, we link our business to relevant social issues via innovative approaches that
allow both our community and the environment to win. Guided by our core values—
inspiring excellence, unyielding integrity, and true compassion — Resorts World Manila
holds a continuing commitment to: Philippine Tourism and the Arts, Social
Development, and Environmental Sustainability.

2. Coca Cola
Coca-Cola has responded to the humanitarian crisis in the Philippines by suspending
advertising and reallocating its budget to disaster relief programs.

Casualty figures for Typhoon Haiyan have set a modern record for Southeast Asia; over
5,235 people lost their lives, and at least 4.2 million people have been displaced from their
 homes. It struck in early November is among the strongest ever recorded. There is an
estimated US$5.8 billion in storm damage to homes and infrastructure.

“We wish to express our heartfelt solidarity to all Filipinos in these difficult times,”Carlos
Salazar Lomelín, said Chief Executive Officer of Coca-Cola FEMSA, the bottling
company of the Philippines. “It is in times like these when the Philippines sets an example
of resilience and good spirit, and where our values of supporting ourselves as a team come
at its best.”

This is a shining example of corporate social responsibility – a great marketing tool.

Coca-Cola FEMSA gained bottling and distribution rights in the Philippines last year in a
$689 million transaction with another local bottler. FEMSA is the largest producer of Coke
products worldwide, and is now increasing its Philippine manufacturing capability by
acquiring the assets of other beverage makers.

Consumption of Coca-Cola products in the Philippines is higher than most of Asia, and it
is one of Coke’s 10 biggest markets worldwide in terms of volume sales.

3. SONY
Governance
Committed to strong corporate governance, as well as ethical business conduct and
compliance

Community Engagement
Addressing the needs of times and communities, with the guiding philosophy "For the Next
Generation"

Environment
"Road to Zero," a new global environmental plan to achieve a zero environmental footprint

Human Resources
Safe and healthy workplaces that give due consideration to diverse individuals, lifestyles
and life stages

Responsible Supply Chain

Establishing a responsible supply chain that ensures compliance with the Sony Supply
Chain Code of Conduct

Product Responsibility
Ensure product quality to both maintain and enhance satisfaction, confidence, and trust

Innovation
Realizing sustainable society through creative technologies, products and services
4.