CHAPTER 5 CORPORATE SOCIAL RESPONSIBILITY

Transcription

1 Definitins test 1. Define: Envirnmental scanning 2. Define: Feasibility 3. Define: Franchise 4. Prvide term fr: An rganisatinal structure that is designed based n the activities belnging t each management functin being gruped tgether. 5. Prvide term fr: Interpersnal relatins in a business that are nt defined by the frmal rganisatinal structure but achieved thrugh the grapevine. 6. Define: Innvatin

2 CHAPTER 5 CORPORATE SOCIAL RESPONSIBILITY

3 Chapter cntent Intrductin Intrducing crprate scial respnsibility (CSR) Crprate gvernance Stakehlder engagement Sustainable develpment Summary

4 Intrductin Develpment and implementatin f CSR is nging prcess Calls fr visin and cmmitment frm leadership and management Mst medium- t large-sized crpratins implement CSR Few cmpanies have institutuinalised CSR

5 Intrducing CSR Cmpanies have a respnsibility fr their impact n sciety and the natural envirnment Cmpanies have a respnsibility fr the behaviur f thse they cnduct business with Businesses need t manage its relatinship with wider sciety

6 Crprate citizenship and crprate scial investment Crprate citizenship crpratins have certain rights and respnsibilities Crprate scial investment cntributin made t sciety (excluding cntributins made thrugh cre business activities)

7 CSR in cntemprary business management Scial drivers Gvernmental drivers Market drivers Ethical drivers

8 Crprate gvernance Refers t the way in which a business makes decisins abut hw t manage its affairs. CSR recgnises the respnsibility f crpratins fr their impact n sciety Is related t CSR and CSR finds expressin in crprate gvernance

9 CSR finds expressin in crprate gvernance Three ways in which CSR cmmittee can determine crprate plicy: Values-based system Stakehlder-engagement prcess A cmbinatin f value-based and stakehlder engagement prcesses.

10 Stakehlder engagement Reasns why cmpanies engage with stakehlders: Respnsible cmpanies want t understand and respnd t sciety s expectatins f a respnsible cmpany Engagement is a means t help build a better relatinship with all parties Engagement helps prvide pprtunities t align business practices with scietal needs and expectatins, helping drive lng-term sustainability and sharehlder value Als used t establish the crprate plicy fr CSR.

11 Defining stakehlders Persns r grups that affect r are affected by the business activities f cmpany Impse varius respnsibilities All stakehlders are imprtant, but degree t which they are priritised depends n the issue and factrs such as influence, knwledge and credibility Basic level f stakehlders: Primary stakehlders Secndary stakehlders.

12 Defining engagement An nging and multi-faceted prcess between crpratin and stakehlders: Prviding infrmatin Capacity building t equip cmmunities and stakehlders t effectively engage Listening/respnding t cmmunity and stakehlder cncerns Including cmmunities and stakehlders in decisin-making prcesses Develping gdwill and better understanding f bjectives and pririties Establishing realistic understanding f utcmes.

13 Defining engagement (cntinued) Level f engagement is determined by: Gals established thrugh interactin with stakehlders Mde f cmmunicatin with stakehlders Nature f the relatinship between the cmpany and its stakehlders Engagement apprach used with stakehlders.

14 Defining stakehlders Persns r grups that affect r are affected by the business activities f cmpany Impse varius respnsibilities All stakehlders are imprtant, but degree t which they are priritised depends n the issue and factrs such as influence, knwledge and credibility Basic level f stakehlders: Primary stakehlders Secndary stakehlders

15 Principles fr stakehlder engagement Key appraches f stakehlder engagement prcess: Invlvement Candur Relevance Learning Actin.

16 The stakehlder-engagement prcess Prepare identify and understand Plan set bjectives Design develp the engagement plan Engage meet bjectives Evaluate assess the utcmes Apply share infrmatin

17 Sustainable develpment Develpment that meets the needs f the present withut cmprmising the ability f future generatins t meet their wn needs. The idea f envirnmental, ecnmic and scial prgress and equity within limits f the wrld s natural resurces Private sectr has finances, management expertise and technlgy t cntribute twards sustainable develpment thrugh CSR Refer t case study, p. 160

18 Summary Crprate scial respnsibility and related cncepts f crprate scial investment and crprate citizenship Histric verview and discussin n scial, gvernmental, market and ethical drivers Imprtance f CSR and plicies and framewrks Principles and prcesses f stakehlder engagement Sustainable develpment