ASSIGNMENT # 03

SUBJECT: CORPORATE SOCIAL

RESPONSIBILITY

SUBMITTED TO:

MR.MUZHAR

SUBMITTED BY: BEENISH ABDULLAH

FA14-MBI-005

MBA 1.5 YEAR

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

SAHIWAL

 

CSR BASIC QUESTIONS

What is CSR?

"The social responsibility of business encompasses the economic, legal, ethical and discretionary

expectations that a society has of organizations at a given point in time." Carroll, 1979

What is difference between CSR & sustainability?

These two terms can seem interchangeable, but there are some subtle, and not so subtle,

differences between them:

1. Vision

Corporate Social Responsibility (CSR) looks backwards, reporting on what a business has done,

typically in the last 12 months, to make a contribution to society.

Sustainability looks forward, planning the changes a business might make to secure its future

(reducing waste, assuring supply chains, developing new markets, building its brand).

2. Targets

CSR tends to target opinion formers – politicians, pressure groups, media.

Sustainability targets the whole value chain – from suppliers to operations to partners to end-

consumers.

3. Business

CSR is becoming about compliance.

Sustainability is about business.

4. Management

CSR gets managed by communications teams.

Sustainability by operations and marketing.

5. Reward

CSR investment is rewarded by politicians.

Sustainability investment is rewarded by the City (‘Finally, we provide evidence that High

Sustainability companies significantly outperform their counterparts over the long-term, both in

terms of stock market and accounting performance’).

6. Drive

CSR is driven by the need to protect reputations in developed markets.

Sustainability is driven by the need to create opportunities in emerging markets.

What are alternate terms that are used for CSR?

CSR alternate terms are corporate conscience, corporate citizenship or sustainable responsible

business/ Responsible Business or corporate social performance.

What is triple bottom line?

Triple bottom line (abbreviated as TBL or 3BL) is an accounting framework with three parts:

social, environmental (or ecological) and financial. These three divisions are also called the three

Ps: people, planet and profit, or the "three pillars of sustainability". Interest in triple bottom line

accounting has been growing in both for-profit, nonprofit and government sectors. Many

organizations have adopted the TBL framework to evaluate their performance in a broader

context. The term was coined by John Elkington in 1994.

What are Carroll’s CSR categories?

"The social responsibility of business encompasses the economic, legal, ethical and discretionary

expectations that a society has of organizations at a given point in time."

What is shareholder view of CSR?

Friedman gave the shareholder view of CSR in 1962 “anything beyond shareholders wealth is

fundamentally against the character and nature of free economy” in 1967 he added that “ but not

at the cost of law.”

So from Milton Friedman, "The Social Responsibility of Business is to Increase Its Profits."

What is stakeholder view of CSR?

Freeman gave the stakeholder view. Stakeholder theory requires that the corporation recognize

and respect the vital interests of each of its surrounding stakeholders. This frequently issues in

proposing stakeholder rights and assigning to others correlative duties to recognize and respect

these rights. Stakeholder theory also requires that the corporation integrate interests where

possible, mediate or broker conflicts between interests, and only trade off competing interests

when absolutely necessary and when more conciliatory efforts have already been made and have

failed.

Why do companies engage in CSR?

There are different drivers due to which companies engage in CSR. These drivers are

Economic drivers (instrumental theories support it)

Managerial drivers (integrative theories)

Political drivers (political theories)

Ethical drivers (ethical theories)

Who is a stakeholder and who is a primary and secondary stakeholder?

Broader concept

“A stakeholder is a person or an individual who can or can be affected by firm’s decisions.”

Whereas primary stakeholders are those who have a direct interest in a company, secondary

stakeholders are those who have an indirect interest. For instance, the employees and investors

who depend on a company’s financial well-being for their own are the primary stakeholders.

Secondary stakeholders might include residents who live near a company and are thus affected if

the company decides to pollute local waterways or local workforce boards that count on the

business employing local workers.

What is social responsiveness and what are its different strategies?

The extent to which a corporation responses towards the social issues is called social

responsiveness are there are 4 strategies of it these are,

Reactive strategy. In it company deny its responsibility

Defensive : company accept its responsibility

Accommodative : accept and fulfill the responsibility

Proactive : anticipate the responsibility

What are different types of CSR?

Altruistic CSR:

Altruistic corporate social responsibility is a form of corporate social responsibility (CSR) that

goes beyond ethical behavior to voluntarily donate time and/or money towards certain groups of

stakeholders, even if the time or money commitment sacrifices part of the business profitability.

Altruistic CSR can be viewed as unethical from a business standpoint because it encourages

Utilitarianism, a form of philanthropy in which "ethical actions result in the greatest good for the

greatest number.

Self-enlightened CSR:

In it CSR is done only for company benefit

Strategic CSR:

In it CSR is done for both (company as well as for stakeholders)

Who is regulator of CSR in Pakistan?

SECP (securities exchange commission of Pakistan)

What is CSR specific law in Pakistan?

There is no specific law in Pakistan. But there are CSR voluntary guidelines given by SECP in

2013.

What is instrumental view of CSR?

CSR is used for financial benefit (business case of CSR).