The obligation the management of an organization or an individual has towards the well-being and welfare of the community and environment in which they operate or live in
SOCIAL RESPONSIBILITY
Triple bottom line
a measure of the financial, social and environmental impact a business has to indicate its viability and sustainability
bottom line
the bottom line is a measure of a businesses final profits or losses
explain the relationship between social responsibility and the triple bottom line
Financial ( profit)
-A business has to make profits but also use its profits to uplift the community as the people of the community support the business into making profits
Social ( people)
-A business has the obligation to better the lives of the people that live in the community that they operate in , they have the obligation to not exploit their workers and negatively impact the people in any manner.
Environmental( Planet)
- Businesses should harm the environment in which they operate in, in order to make profits or for production
-businesses are advised to use eco-friendly methods of production in order to preserve the environment in which they work in
The investment of corporate funds or assets for the primary purpose of social development in the community
does not increase the businesses profitability
does not market the business
falls outside the business activities and goals and it aims to uplift the community and the environment
CORPORATE SOCIAL INVESTMENT
purposes of the CSI
- aims at sustainable development of its immediate community
- reveals businesses intentions towards the community they operate in
- long-term investment in the development of the community
- plays a positive role in the development of the community
focuses of CSI?
- community development
- rural development
- employee development
- environmental development
The obligation required by law that a company has towards the community, economy and environment
CORPORATE SOCIAL RESPONSIBILITY
Purpose of CSR
- through csr business operations address the triple bottom line by considering how it affects the people, planet, and profits
- csr programmes are internal programmes that are used by the business to comply with laws and ethics
- csr aims at creating a safe workspace for employees
- csr focuses on protection of the environment and the well being of the employees from the community they operate in
explain the csr components
ethical behaviour
- csr ensures that business act fairly, just and honest
- it ensures that businesses treat their employees fairly and they are honest about their business operations with the community
- ensures that the business products are off good quality and they are safe
welfare of the community
- csr ensures that businesses are aware of its communities needs
- csr programmes take on skills develoment and job creation
- csr ensure that business operations do not harm the environment
legal responsiblities
-csr ensures that businesses obey all business laws and regulations
economic viability
- csr ensures that business activities are profitable and they they can help grow the economy
- csr ensures that businesses can take care of threats that will risk the businesses sustainability
what is the difference between CSR and CSI
CSR
CSR programmes are in line with business operations
CSR aims at changing business practices
often used as marketing initiatives
CSR focuses on the image of the business and its profits
CSI
- are outside of business operations
- active commitment of providing money and resources that will uplift the community
- are relevant with the community needs
- do not directly aim to make a profit, csi programmes expect no return on their investment in the community
What are the positive impacts of CSI and CSR on business
- improves the businesses image
- experienced employees may be attracted
- may attract foreign investment, which increases profits
- may give the business competitive advantage in the market
- may promote customer loyalty
- business will work will well with the community and they gain community’s support
what negative impact does CSI and CSR have on the business
- business productivity may slow down as employees need to spend more time on the CSI/CSR projects
- reaching of original business goals may be delayed
- admin increases as detailed CSR/CSI programme reports are required
- small businesses may not be able to implement CSI/CSR programmes as they may not have the financial means
- Business profits may decrease as they financing of the programmes needs to come form the businesses profits
- social investment may reduce economic efficiency
outline the positive impact CSI and CSR have on the community
- welfare of the community is improved as socio-economic issues are addressed
- employment increases as businesses hire employees from the community and CSI projects may require people to work too
- education opportunities are made available
- food parcels and donations provide immediate help for the poor
- the communities standard of living is improved and uplifted
- recreational facilities provided by the programmes may assist the community members in building useful relationships with each other and it may improve their physical health
outline the negative impact CSI and CSR have on the community
-community may become too dependent on the programmes
-some programmes may not be long-term as they may end if business stops operating
-business may not have pure intentions and may just be using the programmes to better their public image
and increase profits
-some businesses may not be properly equipped to address these social challenges
