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. CORPORATE SOCIAL RESPONSIBILITY
Teaching notes
Learning outcomes of session
The session will cover:
 The meaning of corporate social responsibility (CSR)
 CSR strategy
 CSR activities
 The rationale for CSR
 Developing a CSR strategy
In addition, definitions will be provided of the following concepts and terms:
 Corporate social responsibility (CSR)
 Stakeholder theory
 Strategic CSR
Key concepts and terms
Contents
These notes contain:
 An outline of the session
 Definitions of key concepts and terms
 Questions and discussion points
 A bibliography

Session outline
The meaning of corporate social responsibility (CSR)
● CSR refers to the actions taken by businesses that further some social good
beyond the interests of the firm and that which is required by law.
● It is concerned with the impact of business behaviour on society and can be
regarded as a process of integrating business and society.
CSR strategy
CSR strategy determines how socially responsible behaviour is exercised both outside
and within the firm.
CSR activities
CSR activities include:
● Incorporating social characteristics or features into products and manufacturing
processes.
● Adopting progressive human resource management practices.
● Achieving higher levels of environmental performance through recycling and
pollution abatement.
● Advancing the goals of community organizations.
The rationale for CSR
There are two arguments for CSR (Hillman and Keim, 2001):
1. There is a moral imperative for businesses to ‘do the right thing’ without regard to
how such decisions affect firm performance (the social issues argument).
2. Firms can achieve competitive advantage by tying CSR activities to primary
stakeholders (the stakeholders argument).

Developing a CSR strategy
● Identify the areas in which CSR activities might take place by reference to their
relevance in the business context of the organization and an evaluation of their
significance to stakeholders.