Facilitated by Goldengate ConsultingJuly 2012

Introduction

Corporate Social Responsibility

Corporate Social ResponsibilityObjectivesObjectives

• Understanding the basics and fundamental principles of Corporate

Social Responsibility (CSR)

• To appreciate the impact of CSR on businesses

• To discuss how CSR initiatives can benefit businesses

Corporate Social ResponsibilityDefinitionDefinition

What is Corporate Social Responsibility?

CSR! Is that really for me? So

technical, very expensive!!

I’m overwhelmed

Corporate Social ResponsibilityDefinitionDefinition

What is Corporate Social Responsibility?

‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’.

– World Business Council For Sustainable Development

Corporate Social ResponsibilityDefinitionDefinition

What is Corporate Social Responsibility?

The responsibility of business towards the society

Corporate Social Responsibility

Corporate Social ResponsibilityDefinitionDefinition

Our Definition

A voluntary initiative on the part of a business to contribute to a better society and a greener and

cleaner environment.

Corporate Social ResponsibilityDefinitionDefinition

Analysis of the definition by the World Business Council For

Sustainable Development

• Expectation of stakeholders that companies should behave

ethically

• Expectation that business should contribute to economic

development

• Expectation that business should improve the quality of life of its

workforce and their families

• Expectation that business should play active part in the

improvement of the society

CSR in South Africa

Corporate Social Responsibility

Corporate Social ResponsibilityPast, Present and Future Trends Past, Present and Future Trends

CSR IN SOUTH AFRICA

Past Trend – Pre 1994

Present Trend – Post 1994 Future Trend

CSR Myths, Legislation and Benefits

Corporate Social Responsibility

Corporate Social ResponsibilityMyths surrounding CSR

CSR is not for small businesses

It is too complicated and technical

It is too expensive

It is a market gimmick

It is a separate corporate initiative

Corporate Social ResponsibilityLegislative Framework Legislative Framework

Companies Act 71 of 2008

King III

BBBEE Act 53 of 2003

Corporate Social ResponsibilityBenefits of CSRLegislative Framework

Benefits of CSR

Winning new businesses

Enhancing your influence in the

industry

Attracting, Retaining and

Maintaining a happy workforce

Increase in customer retention

Differentiating yourself from the

competitor

Saving money on energy and operating cost

Access to funding opportunities

Media interestand goodreputation

Bene

fits

Bene

fits

Enhanced Relationship with

stakeholders

CSR Corporate Culture and Stakeholder Dynamics

Corporate Social Responsibility

Corporate Social ResponsibilityCSR as a Corporate Culture

Synchronisation of CSR with company

business strategyCSR as a group

conceptCulture as a norm

Corporate Social ResponsibilityStakeholder Dynamics

Driver of CSRUse of

Changer Agent

Impact of Change

Resistance to Change

Managing the Change

CSR – Driver and Stakeholder Dynamism

CSR Initiatives and Application

Corporate Social Responsibility

Corporate Social ResponsibilityCSR Initiatives

Guiding Principles for CSR Projects

• CSR is about corporate citizenship

• It is about giving back to the society

• It is about business sustainability

• It is about thriving in a competitive business environment

Corporate Social ResponsibilityCSR Initiatives

CSR Projects for Businesses

Market focused initiative

Product focused initiative

Employee focused initiative

Society focused initiative

Environmental focused initiative

Corporate Social ResponsibilityCSR Initiatives

CSR Projects for Businesses

Employee focused initiative

Market focused initiative

Society focused initiative

Product focused initiative

Environmentally focused initiative

Result - Driven CSR= Benefits

Corporate Social ResponsibilityPractical Application of CSR

• A good CSR Policy must be result-driven

• Business assessment is important

Corporate Social ResponsibilityPractical Application of CSR

• You need to evaluate various aspects of your business and operations

• You need to evaluate the impact your business is having on your

stakeholders.

• Then set realistic targets on how to improve your business operations

and processes.

• Draw up a result- driven CSR Policy.

• Embed your CSR into your business strategy.

Guidelines

Corporate Social ResponsibilityPractical Application of CSR

• Appoint a driver for your CSR initiative

• Communicate your CSR efforts to all your stakeholders clearly and boldly.

• Make your CSR initiative part of your business culture

• Set up CSR measuring indicators to monitor progress and possible

deviations.

• Be enthusiastic about your CSR initiative; be committed to it.

• Report on your initiatives and measure progress/ impact made.

Guidelines

Case Studies

Corporate Social Responsibility

Corporate Social ResponsibilityCase Studies

Case Study A – BYJ Consolidated Group

Facts

1. Company is the retail industry

2. Community based CSR initiative – supply of food items to local

schools and shelters

3. Business crisis – product recall

4. The response of the company to the crisis

Corporate Social ResponsibilityCase Studies

Case Study A – BYJ Consolidated Group

Outcomes

1. Community sympathy for company’s crisis

2. Customer loyalty

3. Sympathetic purchases

4. Increase in sale

Corporate Social ResponsibilityCase Studies

Case Study B – Lungile, Pillay & Associates

Facts

1. Small enterprise in a service industry

2. Community based CSR initiative – collaboration with the local

library to promote reading and studying among students in the

community

3. Specific guidelines were set for borrowing of books

4. The involvement of parents and the local authority in the

project

Corporate Social ResponsibilityCase Studies

Case Study B –Lungile, Pillay & Associates

Outcomes

1. Community support for the project

2. Parental support and approval for the project

3. Promotion of scholastic activities among students

4. Media attention- Good publicity

5. Customer loyalty

6. New business opportunities for Lungile, Pillay & Associates

Corporate Social ResponsibilityCase Studies

Case Study C – PCG Accounting Services

Facts

1. A small accounting firm

2. CSR initiative – market focused

3. Offering free tax seminar as a value added service to existing

clients

Corporate Social ResponsibilityCase Studies

Case Study C – PCG Accounting Services

Outcomes

1. PCG was offering their clients a service being charged for by other

accounting firms in the neighbourhood

2. PCG clients enjoyed the special treatment

3. Existing clients referred their friends and colleagues to PCG

4. PCG became a service provider of choice

5. Positive business reputation

Corporate Social ResponsibilityMeasuring Your Performance

• Financial Indicators

• Non- Financial Indicators

Thank You

For more information please contact the Fasset Call Centre on 086 101 0001

or visit www.fasset.org.za

Corporate Social Responsibility