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Corporate Social Responsibility - Coggle Diagram
Corporate Social Responsibility
more proactive approach
to the traditional corporate concerns of philanthropy and legal compliance
CSR Redefined
Expanded beyond ethics, philanthropy to include sustainability
Shifted from tactical to strategic core of business
Impacts non-financial assets (brand, morale)
Trends in CSR Reporting
80% of companies issue CSR/sustainability reports
90% of G250 companies report on CSR
40% report climate-related financial risks
Increased investment in CSR auditing
CSR used to attract talent, enhance brand, and compete globally
CSR Maturity Curve
Compliance: Reactive, regulatory response, low integration
Integration: CSR embedded in processes/products; business-aligned
Transformation: CSR defines brand, values, and strategic differentiation
SHRM survey: 48% compliance, 45% integration, 7% transformation
Forces Shaping CSR (PESTLE)
Technology: Instant communication, data analytics, privacy concerns
Environmental: Climate regulation, sustainability branding, innovation
Economic: Cost savings, EVP booster, budget constraints
Sociopolitical: Activism, shifting public values, legal pressures
Strategic Alignment of CSR
Requires research, benchmarking, frameworks, and structured planning
Involves measurable outcomes and integrated business goals
:warning:
HR’s Strategic Role in CSR
Culture change: Drive stakeholder and employee engagement
Corporate strategy: Align people strategy with CSR goals
Organization effectiveness: Structure for CSR integration
Human capital development: Redefine purpose, support alignment
Impact on HR Functions
Employee contract: Emphasis on meaningful, mission-driven work
Recruiting: Embed CSR in employer value proposition (EVP)
Brand: Attract purpose-driven talent, especially younger generations
Engagement: Enable employee participation in CSR goals
Work models: Support flexible, low-footprint work styles
Accountability: Incorporate CSR in KPIs and reporting
Training: Embed sustainability in leadership and skill development
EVP and Employer Branding
CSR strengthens EVP
Aligns mission, values, and strategic goals
Enhances attraction, retention, and stakeholder engagement
Monitoring Ethics in Workplace
Compliance vs. Ethics
Compliance: Following legal and regulatory requirements
Ethics: Following moral standards (honesty, respect, fairness, responsibility)
Often overlap in areas: employment rights, corruption, discrimination, records, transparency
Importance of Distinction
Compliance breaches → legal consequences
Ethical breaches → reputational damage
Governance
System of rules/processes ensuring compliance and ethical behavior
Driven by leadership (board, executives)
Features: transparency, accountability, ethical conduct inside and outside the organization
Poor governance leads to boycotts, lawsuits, talent loss
Global Challenges
Ethics and legality differ across countries
Requires balancing:
Ethical universalism (standardized global ethics)
Cultural relativism (adapting to local norms)
Ethics in Supply Chain
Suppliers must align with organizational ethical standards
Focus areas:
Workplace safety
Child labor
Environmental sustainability
Key actions:
Trace product origins
Set and monitor factory standards
Collaborate with suppliers, NGOs, governments
Support supplier improvements
Codes based on International Labour Organization (ILO) standards
Ethical Trade-Offs
E.g., child labor: avoid harm but recognize socioeconomic realities
Sustainability vs. consumer demand: balance ecological impact with market needs
Goal
Integrate ethics into business strategy and supply chain practices
Strengthen brand, build trust, and support community development
Sustainability
Definition of Sustainability
Originated in ecological conservation
Evolved into a systems approach balancing present and future needs
Requires integration of environmental, social, and economic impacts (3 Ps: People, Planet, Profits)
:warning: Key Content – Three Spheres of Sustainability
:warning: Environmental: Resource use, emissions, pollution
:warning: Social: Health, safety, well-being, community impact
:warning:Economic: Profitability, ethical obligations, employment
Overlap is the “Sustainability Sweet Spot”—where all 3 goals align
Examples of Sustainability Sweet Spot
GE’s Ecomagination: Clean tech = carbon reduction + revenue
Pepsico: Healthier products + energy/waste reduction + savings
:warning: Key Content – Redefining Stakeholders
Broader definition includes communities, NGOs, regulators, media, activists
Internal: Employees, managers, executive team, departments
External: Customers, local communities, academia, vendors, government
Active stakeholder engagement shapes sustainability strategies
Alliances & Partnerships for Sustainability
NGOs: Local expertise, credibility, cost savings
Government: Infrastructure, policy frameworks, risk mitigation
Examples:
Dole: Sustainable supply chain through local farmer partnerships
Patagonia: Grassroots support, recycled materials, renewable energy, activism
:warning: Triple Bottom Line (TBL)
Measures total value (economic + social + environmental)
Economic: ROI, profits, jobs, taxes, supplier relations
Social: Community engagement, human rights, labor practices
Environmental: Carbon footprint, pollutants, recycling, energy use
HR’s role: Inclusion, engagement, training, wellness, reporting, labor relations
:warning: Key Content – CSR Reporting & Impact
TBL used in public CSR/sustainability reports
Growth driven by:
Shift in public values
Advanced data analytics
Standardized reporting frameworks
CSR now core to branding, competitive advantage
Social Audits
Internal tool to assess ethics, environment, HR, compliance, community impact -
to measure social performance of an Org
Involves all stakeholders
Identifies gaps and action steps
:warning: A social audit is a formal review of an organization’s social and environmental policies and procedures.
:warning: it begins by interviewing all of an organization’s stakeholders—internal and external—and concludes by publishing all results in a format available to all participants.
:warning: Redefining the Bottom Line for Sustainability
Shared value = business strategy + social/environmental benefit
“creating economic value in a way that also creates value for society by addressing its needs and challenges.”
Shared value is profit-driven and sustainable
Methods:
Reconceive products/markets (e.g., mobile banking for poor)
Redefine value chain (e.g., cost-saving sustainability)
Develop local clusters (e.g., infrastructure, suppliers)
:warning: Porter and Kramer contrast corporate shared value (CSV) with corporate social responsibility (CSR) as traditionally defined.
They traditional CSR efforts are too often focused on reputation and only tangentially related to the core business, making their costs too hard to justify and maintain in the long run. CSV efforts, on the other hand, are more supportable because they are “integral to a company’s profitability and competitive position.”
Creating a CSR strategy
Step 1: Executive Commitment
Requires top-level buy-in by demonstrating CSR's business value
Strategic benefits:
Talent attraction and retention
Innovation and product development
Operational and energy cost savings
Enhanced brand image
Compliance and risk reduction
Step 2: Assessment
Internal systems and procedures review
Stakeholder input (internal and external)
Use CSR frameworks and benchmarks
:warning: Evaluate donation recipients for alignment and impact
Ensure donations (money/time) are sustainable and mission-aligned
Step 3: Infrastructure Creation
Build internal governance for CSR (oversight, accountability)
HR’s role:
Ethical hiring, training, supplier compliance
Community engagement, social engagement and partnerships
Code of conduct implementation
Step 4: Plan Implementation
Set strategy, priorities, and measurable objectives
Execute action plans (including events, initiatives)
Use scorecards (HR metrics, business value, accountability)
Step 5: Measurement, Reporting & Evaluation
Tie evaluation to specific objectives
Ensure access to data for marketing and other stakeholders
Step 6: Reassessment & Revision
Revise goals/tactics based on results
Track maturity curve progress
Communicate progress and next steps to organization
Philanthropy in CSR
Donation models:
Direct to charities
Corporate foundations/scholarships
Strategic nonprofit partnerships
In-house community programs (e.g., Google’s "Made with Code")
Employee Volunteerism
Strategic benefits:
Individual: Skill-building, recognition
Team: Camaraderie, collaboration
Organizational: Culture building
Business: Brand enhancement, reputation
Continuum of involvement:
Individual efforts with no support → company sponsored volunteering → fully integrated in strategy
Global vs. Local CSR Approaches
Globally Integrated Programs
Cost-efficient
Strong brand focus
Easier coordination and learning
Minimized donor fatigue
Locally Responsive Programs
Tailored to community needs
Builds local goodwill and credibility
Reduced reputational risk
Diverse partnerships and less replication by competitors