Corporate Social Responsibility: Jane M. Fernandez, DIT

Corporate Social
Responsibility
Jane M. Fernandez,DIT
Course Syllabus
Corporate Social Responsibility
Corporate social responsibility (CSR) is a business initiative ensuring that a given company
meets specific goals related to ethics, sustainability, and social impact.
Corporate social responsibility (CSR) is the idea that a business has a responsibility to the
society that exists around it
What is the purpose of corporate social responsibility?
The purpose of CSR is to contribute to society, augment the company’s profile,

earn customer loyalty, and hence make profits.
What is corporate social responsibility in business ethics?
CSR as a part of business ethics is gaining prominence

now. Companies must take up social responsibility, as
customers notice this. If firms do not give back to society,
customers will hesitate to buy from them
Types of Corporate Social Responsibility
1. Environmental Responsibility
❖ Environmental responsibility refers to the belief that organizations should
behave in as environmentally friendly a way as possible.
❖ It’s one of the most common forms of corporate social responsibility.
❖ Some companies use the term “environmental stewardship” to refer to

such initiatives.
Companies that seek to embrace environmental responsibility can do so in several ways:
● Reducing pollution, greenhouse gas emissions, the use of single-use

plastics, water consumption, and general waste
● Regulating energy consumption by increasing reliance on
renewables, sustainable resources, and recycled or partially
recycled materials
● Offsetting negative environmental impact; for example, by
planting trees, funding research, and donating to related causes
.
2 Ethical Responsibility
Concerned with ensuring an organization is operating in a fair and

ethical manner. Organizations that embrace ethical responsibility
aim to practice ethical behavior through fair treatment of all
stakeholders, including leadership, investors, employees, suppliers,
and customers.
Firms can embrace ethical responsibility in different ways.
For example, a business might set its own, higher minimum wage if the one mandated
by the state or federal government doesn’t constitute a “livable wage.
” Likewise, a business might require that products, ingredients, materials, or components

be sourced according to free trade standards.
In this regard, many firms have processes to ensure they’re not purchasing products
resulting from slavery or child labor.
3. Philanthropic Responsibility
Philanthropic responsibility refers to a business’s aim to actively make

the world and society a better place.
In addition to acting as ethically and environmentally friendly as

possible, organizations driven by philanthropic responsibility often
dedicate a portion of their earnings.
While many firms donate to charities and nonprofits that align with their
guiding missions, others donate to worthy causes that don’t directly
relate to their business.
Others go so far as to create their own charitable trust or organization to

give back and have a positive impact on society.
4. Economic Responsibility
Economic responsibility is the practice of a firm backing all
of its financial decisions in its commitment to do good in the
areas listed above.
The end goal is not to simply maximize profits, but make
sure the business operations positively impact the
environment, people, and society.
Benefits of Corporate Social Responsibility
Brand Recognition
According to a study published in the Journal of Consumer

Psychology, consumers are more likely to act favorably
towards a company that has acted to benefit its customers
as opposed to companies that have demonstrated an ability
to delivery quality products.
Investor Relations
In a study by Boston Consulting Group, companies that are

considered leaders in environmental, social, or governance
matters had an 11% valuation premium over their competitors.
For companies looking to get an edge and outperform the

market, enacting CSR strategies tends to positively impact how
investors feel about an organization and how they view the worth
of the company.
Employee Engagement
In yet another study by professionals from Texas A&M, Temple,

and the University of Minnesota, it would found that CSR-related
values that align firms and employees serve as non-financial job
benefits that strengthen employee retention.
Works are more likely to stick around a company that they

believe in. This in turn reduces employee turnover
Risk Mitigitation
● Consider adverse activities such as discrimination against employee groups,

disregard for natural resources, or unethical use of company funds. This type
of activity is more likely to lead to lawsuits, litigation, or legal proceeds where
the company may be negatively impacted financially and be captured in
headline news.
● By adhering to CSR practices, companies can mitigate risk by avoiding

troubling situations and complying with favorable activities.
BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY
● Drives internal innovation

● Improves environmental and supply risk
● Attracts and retains employees
● Expands audience reach
● Builds brand loyalty
● Reduces production costs
● Garners positive publicity
● Serves as a differentiator in your market
Examples of Corporate Social Responsibility
● Starbucks has long been known for its keen sense of

corporate social responsibility and commitment to
sustainability and community welfare. According to its 2020
Global Social Impact Report, these milestones include
reaching 100% of ethically sourced coffee, creating a global
network of farmers and providing them with 100 million trees
by 2025, pioneering green building throughout its stores,
contributing millions of hours of community service, and
creating a groundbreaking college program for its employees.
● Home Depot
● As part of its annual reporting on ESG, Home Depot highlighted
its achievements on focusing on its employees, operating
sustainably, and strengthening its communities. In fiscal year
2020, it invested over $2 billion in increased salaries and benefits
to enhance its employee well-being. It also reduced energy
consumption by 14% from the year prior and are on track to
reduce company-wide emissions by 40% by 2030
● General Motors
● In 2021, General Motors was placed on the Bloomberg
General Equality Index for a fourth consecutive year as well as
being placed in Diversity Inc.'s top 50 companies for diversity
for a sixth consecutive year. In addition, it has planned for a
$35 billion investment from 2020 to 2025 in electric vehicles
and aims for 100% renewable electricity at U.S. sites by 2025
Why Should a Company Implement CSR Strategies?
● Many companies view CSR as an integral part of their brand

image, believing that customers will be more likely to do
business with brands that they perceive to be more ethical.
● In this sense, CSR activities can be an important component of

corporate public relations. At the same time, some company
founders are also motivated to engage in CSR due to their
convictions.
Activity#1
● Why CSR is important?
● Give at least two CSR in your company and explain?

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Corporate Social

The purpose of CSR is to contribute to society, augment the company’s profile,

CSR as a part of business ethics is gaining prominence

❖ It’s one of the most common forms of corporate social responsibility.

❖ Some companies use the term “environmental stewardship” to refer to

● Reducing pollution, greenhouse gas emissions, the use of single-use

Concerned with ensuring an organization is operating in a fair and

” Likewise, a business might require that products, ingredients, materials, or components

Philanthropic responsibility refers to a business’s aim to actively make

In addition to acting as ethically and environmentally friendly as

Others go so far as to create their own charitable trust or organization to

According to a study published in the Journal of Consumer

In a study by Boston Consulting Group, companies that are

For companies looking to get an edge and outperform the

In yet another study by professionals from Texas A&M, Temple,

Works are more likely to stick around a company that they

● Consider adverse activities such as discrimination against employee groups,

● By adhering to CSR practices, companies can mitigate risk by avoiding

● Drives internal innovation

● Starbucks has long been known for its keen sense of

● Many companies view CSR as an integral part of their brand

● In this sense, CSR activities can be an important component of

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