Corporate Social

Responsibility
and Social
Entrepreneurship
 History of CSR
The term Corporate Social Responsibility
came in to common use in the 1950s,
1960s and 1970s with the beginning of
the term stakeholder.
A stakeholder is any group or individual
who can affect or is affected by the
achievement of an organization's
purpose. It is in the companys
strategic interest to respect the interests
of all its stakeholders.
Definitions of Corporate
Social Responsibility

The World Bank:

Corporate Social Responsibility (CSR) is the
commitment of business to contribute to
sustainable economic development, working
with employees, their families, the local
community and society at large to improve
quality of life, in ways that are both good for
business and good for development.
Definition of CSR
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
Definitions of CSR
Corporate Social Responsibility
Firms have responsibilities to societies
including economic, legal, ethical and
discretionary (or philanthropic).

Philanthropic: receiving aid from

funds set aside for humanitarian
purposes. Some call it charity.
Definition of CSR
Companies have two kinds of responsibilities,
commercial and social. Commercial entails
running the business successfully, social
entails taking responsibity as an actor in
society and the community by engaging in
activities that go beyond making profit, such
as protecting the environment, taking care of
employees and being ethical in trade.

CEO, McDonalds
Purpose of CSR
The purpose of CSR is to make
corporate business activities sustainable
in its three dimensions:
Economic
Social
Environmental
Benefits of CSR
Source of competitive advantage
Attracts ethically conscious customers
Increase profit in the long run
Reduction of costs (re-cycling)
Contribute to economic development
Improve the quality of life for it workforce
and their families
Improvement of society
Tax-free incentives for businesses
 Corporate Social
Responsibility
What is Corporate Social
Responsibility?
The company must act responsibly, and
criteria for social responsibility must be
adopted to contribute toward consolidating
better companies not only in social terms
that is, companies which are more useful to
society but better companies in purely
economic terms that is, better quality, more
efficient, more competitive companies

An inevitably broad concept of which we can

say that it includes voluntary actions by
companies aimed at dealing with workers,
consumers, or investors or shareholders
concerns: in short, the concerns of all citizens.
 What is Corporate Social

Responsibility?
Some attempt to define it:

Responsible companies perceive the

current environment globalization, social
demands, transparency, broadening of
markets, environmental challenges, etc.
as an opportunity to underscore their role
in society, their potential for leadership in
sustainable development.

Some call it a WIN-WIN situation

 What is CSR?
The impact of a companys action on society
Requires a manager to consider his acts in
terms of a whole social system and holds
him responsible for the effects of his acts at
all levels in that system
Businesses have an obligation to society
which extends beyond economic and legal
duties
Described as one of the most important
social movements of our time
 Evolution of CSR
CSR refers to the strategies corporations or
firms conduct their business in a way that is
ethical, society friendly and beneficial to the
community in terms of development.
The definition has been changing in
meaning and in practice.
CSR was limited to philanthropy and has
currently shifted to emphasis on business-
society relations. Corporations contributing
and providing solutions for social problems.
 Evolution of CSR
Phase One-Charity, Philanthropy-Drivers
culture and religion.
Phase Two-Dedication to the progress of
society
Phase Three-1960-1980-Shift from the focus
on Public organizations to private
organizations for socio-economic development
Phase Four- 1980-present-Concern for labor
and environmental standards
 Present Day CSR
The concept has evolved whereby
organizations consider the interest of society
by taking responsibility for the impact of their
activities on customers, suppliers, employees,
shareholders, communities and other
stakeholders as well as the environment.
Focusing on improving the well-being of the
local community and society at large.
Creating wealth in society and providing
better standards of living.
 Corporate Social
Responsibility
Pyramid
Key Issues in CSR
Labor rights

Environmental conditions

Human rights

Poverty Alleviation
 Evolution of CSR
Although the contemporary CSR agenda
is maturing, the term CSR has not yet
taken hold within many public sector
agencies, either in industrial or
developing countries. Few government
initiatives have been undertaken
explicitly as pro-CSR initiatives.
 Different Names For CSR
Corporate Social Responsibility (CSR)
Corporate Conscience
Corporate Citizenship
Responsible Business
Responsible Management
Corporate Philanthropy
Sustainable Business
Creating Shared Values (CSV)
Levels of CSR
Social Obligation Meet minimum
regulations, do what is required by law,
no more
Social Responsibility Go beyond
what is required by law
Social Responsiveness Proactive
approach, promote positive change
 CSR Concepts
Corporate Social Responsibility-
emphasizes obligation and
accountability to society.
Corporate Social Responsiveness-
emphasizes action and activity.
Corporate Social Performance-
emphasizes outcomes and results.
 Regulations
ISO, the
International Organization for Standardization , has
launched an International Standard providing
guidelines for social responsibility (SR) namedISO
26000or simplyISO SR, released November 2010.

ISO 26000 gives guidance on SR. It integrates

international expertise on social responsibility
what it means, what issues an organization needs
to address in order to operate in a socially
responsible manner, and what is best practice in
implementing SR.
 ISO 26000
Itis intended for use by organizations of all
types, in both public and private sectors, in
developed and developing countries, as well
as in economies in transition. ISO 26000 is a
powerful SR tool to assist organizations to
move from good intentions to good actions.
ISO 26000 contains voluntary guidance, not
requirements, and therefore is not for use as
a certification standard like ISO 9001 and
ISO 14001.
What benefits can be
achieved by implementing
ISO 26000?
Competitive advantage
Reputation
Ability to attract and retain workers, customers,
clients
Maintenance of employees morale,
commitment and productivity
View of investors, owners, donors, sponsors and
the financial community
Relationship with companies, governments, the
media, suppliers, peers, customers and the
community in which it operates.
Regulation of Corporate
Responsibility
UN Global Compact-UN initiative to encourage
business worldwide to adopt sustainable and
socially responsible policies and report their
implementations. Supporting the Millennium
Development Goals. Launched by Kofi Enan in
2004.
The Global Compact is a principle based
framework for businesses, stating 10 principles
in the areas of:
Human Rights
Labor Standards
Environment
Anti-corruption
 CSR Management:
Organizational
Structure Board of Directors
Audit Committee of Board

President & CEO

Group Presidents Chief Financial VP of Human General Counsel Corporate Steering Committee
Officer Resources Responsibility Officer
 CSR Management:
Plan, Do, Check, Act
method
Plan

Consult stakeholders
Set targets
Do

Establish management systems and

personnel
Plan, Do, Check, Act Method
Act
Take Corrective action
Check
Measure progress
Audit
Monitor
Report
 Top Trends in CSR For
2013
According to Forbes magazine:
1. Going Global
2. Increasing the level of transparency
3. Employee engagement
4. Collaboration-companies compete and
collaborate on CSR issues
5. Social Media-as a essential communicating
tool for CSR programs
6. More focus on Human Rights
7. Earths growing population-stretching
resources to cope with increase, looking for
more energy efficient ideas
 Success Stories in
Egypt
Vodafone
Coca Cola
Pepsi
Etisalat
Siemens
Petro-safe
Starbucks
McDonalds
Proctor and Gamble
Price WaterHouse Cooper (PWC)
Bank Misr (Misr el Kheir)
 CSR and SE

What is the difference

between Corporate
Social Responsibility and
Social Entrepreneurship?