•“CSR is the organizations social license to operate, and is

important to legitimize business activity, particularly in the

global activity where businesses are accused of practicing
soulless capitalism”
(Dr Vivian Balakrishnan, Minister of State for Trade and Industry and National
Development, Singapore)

•“Corporate Social Responsibility is achieving commercial

success in ways that honor ethical values and respect people,
communities, and the natural environment” (Business for Social
Responsibility)

•“CSR means addressing the legal, ethical, commercial and

other expectations society has for business, and making
decisions that fairly balance the claims of all key
stakeholders” (RBI)
 In Extended Product Responsibility,
manufacturers are responsible for waste
generated at the end of product’s life.
(Samson & Daft 2005)

 For example: Compaq Computer Australia

(Stephens, 1999)
 Social responsibility is operating business in best
interest of stakeholders -- Management’s only social
responsibility is to maximize profits (Milton Friedman)

 Socioeconomic view is the view that management’s

social responsibility goes well beyond the making of
profits, to include protecting and improving society’s
welfare. (Samson & Daft 2005)
 Discretionary
Responsibility

Ethical
Responsibility

Legal Responsibility

Economic
Responsibility

Source: Carroll 1974, Carroll 1991

 Jas Ahmad
Middlesex University Business School
22 May 2006
 A mixed method approach
 questionnaire-based semi-structured interviews
 scanning of English language press and institutional reports
 expert opinion

 Questionnaire based on World Bank report on CSR

reporting in developing countries (O’Rourke, 2004)
 The semi-structured interviews conducted with chief
executive officers or senior directors of 16 companies
 The sample was non-random and network based
 A cross-section of companies approached based on
industry type, ownership, and size.
 Company size by number of employees
Less than 250 25.0
251-1000 43.8
More than 1000 31.3

Ownership structure
100% publicly owned 50.0
Partly owned by individual/family 25.0
100% privately owned 25.0

Turnover in last financial year in USD

Less than 10 million 25.0
11 million – 50 million 31.3
51 million – 100 million 25.0
More than 100 million 18.8

*All figures percentage of companies surveyed

Type of industry 31%

Size of company 38%

Financial performance of company 75%

Percentage of sample companies

Type of stakeholder Percentage* rating
very important or
important

Employees 100
Customers 81
Shareholders 81
Local community 63
Suppliers 63
Business partners 50

Society at large 38
31
Other investors
*Rounded to the nearest whole number
Type of activity Percentage* engaged
in activity

Making regular financial contributions 69

Making occasional financial contributions 94
Collecting donations from employees 75
Sponsoring events 88
Allowing employees to volunteer expertise 56
Providing free use of company facilities 50

Donating surplus office equipment 75

*Rounded to the nearest whole number

Business objective Now Future

Enhance company share price 25 31

Enhance company reputation 94 94
Increase sales 44 69
Attract and retain high calibre employees 69 75
Promote international business strategies 56 63
Promote domestic business strategies 38 56
Retain government support 19 31
Enhance corporate brand positioning 75 81
Help to withstand the impact of a corporate crisis 31 38
*Rounded to the nearest whole
number
Business objective Percentage Percentage
rating very with
important or written
somewhat policy
important
Environmental protection 87.5 37.5
Employee welfare 100 87.5
Health and safety 93.8 75
Philanthropic and charitable activities 87.5 25
Investment in local community development 56.3 12.5
Environmental and social impact of operations 62.5 12.5
Ethical management of supply chain 75 43.8
Ethical and socially responsible marketing 56.3 25
 56.3 Personal interest of CEO/MD

Customer demand
25

12.5 Board of Directors initiative

Part of company mission/value

6.3

0 20 40 60 80
Percentage of sample companies
 43.8 Lack of awareness

43.8 Costs

12.5 Attitude of employees

31.3 Lack of knowledge and expertise

31.3 No link to business objectives

0 10 20 30 40 50 60 70 80
Percentage of sample companies