Corporate social responsibility (CSR) poses the question of corporate ethics according to the social responsibility of an individual company or an entire group and requires proof of meeting these values. CSR is not a specific management theory but a guiding principle that is based on the concepts of sustainability. A company should deal respectfully with all current business activities that affect themselves, their employees, the environment or the market.
Ethical principles, social and environmental responsibility as well as a sustainable business are standards that can be realized with corporate social responsibility and illustrated with this presentation:
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4. a concept whereby companies integrate social and
environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary
basis.
European Commission (2001)
5. Responsibility
Corporations are liable for
their impact on society.
Impact
It is about social, ecological
and ethical effects
(including the effect on
human rights and consumer
aspects).
MANAGEMENT
Corporations should apply
procedures that point out
and prevent negative
effects, or in other words
conduct CSR management.
Law
Existing regulations and
tariff agreements should be
kept.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Corporate Requirements
6. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Corporate Responsibility
SOCIAL & Ethical
Aspects
Ecological
Aspects
Economic
PROFIT
Contribution to
society's welfare
7. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Social Aspects for Community Behavior
dialogue
orientation
municipal
partnerships
creating new jobscharity
8. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Three-Domain Approach (Schwartz & Carroll, 2003)
Economic &Social
Responsibility
Through purchasing goods and
service at a fair price, corporate
positions are secure which
contribute to the well-being of
society.
LegalResponsibility
Compliance with legislation as a
representation of society
Ethical Responsibility
Compliance with rules, morals
and standards
9. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Stakeholders' Influence
Haveexpectations
anddemands
regardingacompany
Have a big
impact on
companies
(positive or
negative)
Influenced by
business
activities
Stakeholder
(=interest groups)
Owners, investors, banks,
employees, unions,
associations, customers,
suppliers, competitors
10. CORPORATE SOCIAL RESPONSIBILITY (CSR)
Stakeholder Discourse
CIVILSOCIETY/ NGOs
require more regulation and
tighter laws.
CONSUMERS
have power over the market by
sustainable consumption and
boycotts.
STATE/ POLITICS
promote dialogue between
stakeholders
MEDIA
coverage of current social issues
and changes
COMPANIES
comply with economic
competitiveness
INVESTORS
enhance transparency and
generate profits. CSR
11. RELATED CONCEPTS
The Difference between Sustainability and CSR
Sustainability CSR
STAKEHOLDER
FUTRUE GENERATIONS
STAKEHOLDER
Responsi-
bility
ALL HUMANITY
12. IMPLEMENTATION
The 6 Steps of Corporate Social Responsibility
Profile Building
One needs to
understand and get
accustomed to CSR by
defining objectives.
MANAGEMENT
CSR staff, structure and
integrated values are
distributed by the
administration and
responsibility
throughout the levels
of the company.
Competences
CSR understanding is
developed by
working out
strengths and skills.
Analyses
CSR commitment is
developed by internal
and external analyses
taking place with the
help of stakeholders.
Implementation
CSR is integrated and
implemented into
corporate structures
with the help of
corporate governance.
EVALUATION
Continuous follow-up
13. Sales
ecological product
responsibility,
consumer protection,
customer interests
Operation
environmental protection,
employee interests
Overall aspects
fair trade practices, civic
engagement
Procurement
environment protection,
human rights, working
conditions
IMPLEMENTATION
CSR Management: Areas of Activity
14. IMPLEMENTATION
Maturity Pyramid by Schneider (2012)
CSR3.0
businesses as the
proactive political force
CSR 2.0
corporate and social values through
integrated management and classification
CSR 1.0
philanthropic CSR – social sponsoring and CSR
building blocks without classification
CSR 0.0
social commitment
16. PRACTICAL EXAMPLES
Henkel AG & Co: Difference in Determining an Ideal and Real Self-Image (2006)
Henkel Percentage of internal
stakeholders showing
the item fulfilled better
than the target
Percentage of internal
stakeholders showing
the item fulfilled at the
target level
Percentage of internal
stakeholders showing
the item fulfilled worse
than the target
Ideal expression from
the Corporate
Governance perspective
Real expression Difference (gap C)
CSR components that fulfill realconditions betterthan ideal conditions
Activities and steps
in the field of sports
89.9% 7.3% 2.8% 3.87 2.20 1.66 (+)
Sports and healthcare for
employees
82.9% 12.8% 4.3% 3.78 2.34 1.44 (+)
Activities and steps in the
field of culture
86.8% 9.4% 3.8% 3.55 2.35 1.20 (+)
Range of additional
benefits for employees
87.4% 9.2% 3.4% 2.63 1.61 1.01 (+)
Area support around the
company site
66.7% 21.6% 11.8% 2.90 2.26 0.64 (+)
Activities and steps in the
social field
60.6% 27.3% 12.1% 2.94 2.35 0.58 (+)
Activities and steps in the
field of development
assistance
45.9% 17.6% 36.5% 3.45 2.89 0.56 (+)
Product information about
fulfilling legal affairs
58.7% 28.3% 13.0% 2.78 2.34 0.44 (+)
Activities and steps in the
field of health
57.9% 18.9% 23.2% 2.97 2.53 0.44 (+)
17. TOOLS
CSR Key Performance Indicators (Weber, 2008)
CSR KPIs
Brand value
Customer attraction &
retention
Reputation
Employer attractiveness
Employee motivation &
retention
Cost-oriented, price-oriented or capital-value-
oriented brand value
Repurchase rates, market share
Reputation indices and rankings
Applications per vacancy, hiring rate
Fluctuation rate, absenteeism
18. CHECKLIST
General
Have you set a focus for your CSR campaign (environmental, social, etc.)?
Do you know the strengths and weaknesses of the company?
Do you know your own stakeholders? How can you promote the dialogue between you and them?
How can you find your internal and external areas of activity?
How can you change your management, so that CSR can be staffed, structured and integrated into the company's values?
How can you comply with economic and social responsibility permanently?
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