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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.
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