A country with as many socio-economic problems and challenges as SA needs a strong partnership between businesses and individuals to fulfill an important citizenship role.
The corporate world is acknowledging its responsibility towards communities in which it operates.
Individuals need to play a role in maximising the potential of our resources – natural, human or any other resources.
Economically Active Population (EAP)
Individuals who contribute towards the production of goods and services
Jobs aimed at helping and developing communities
Teaching
Social workers
Medical staff
Ways individuals can make a difference
Volunteering
Helping out at churches
Community centres
Outreach programmes
Corporate Social Investment (CSI)
Focus on specific projects
Counts towards Integrated Reporting
Improves Social Responsibility Index (SRI) points for JSE listed companies
Responsibilities of good corporate citizenship
Economic involvement
Fulfilling legal obligations
Acting in an ethical manner
Giving back to communities
Corporate citizenship is often regarded as businesses acting in a socially responsible manner by making charitable donations and encouraging employee involvement in poor communities.
Corporate Social Responsibility (CSR)
The moral obligation to help
Corporate Social Investment (CSI)
The actual capital, resources and labour put into a project
Positive impacts of CSR/CSI
Job creation
Providing goods and services
Education and training
Social interactions
Inclusion and diversity
Negative impacts of CSR/CSI
Inflation
Economic crimes
Unethical behaviour
Loss of cultural values
Pollution
Piracy and plagiarism
Illiteracy
Primary Responsibility
Owners
Employees
Suppliers
Consumers
Competitors
Broader Social Responsibility
The government
Broader community
The government collects taxes from businesses in the formal sector and uses these to create infrastructure and an environment that stimulates more business operations.
Key issues in CSR
Labour rights
Environmental conditions
Human rights
Poverty alleviation
Arguments for CSR/CSI
Society will encounter socio-economic problems without CSR
Expertise to deal with socio-economic issues exists in the organisation
Government is less likely to enforce CSR as law if businesses get involved
CSR promotes the image of the business and gains goodwill
CSR is about making a difference through initiatives in the community
Arguments against CSR/CSI
Providing goods and services is already socially responsible
CSR is spending money without real profits
CSR distracts employees from their jobs
Spending on CSR leads to inflation
CSR creates community expectations that may not be met
General solutions to socio-economic issues
Use of raw materials
Support for employees
Analysis of products and services
Acquisition of input materials
Specific solutions to socio-economic issues
Environmental issues
Labour issues
Ethical issues
Sustainability involves setting up structures to enable the community to become self-sufficient.
A CSR programme is a strategic plan.
Buy-in is critical for CSR to become part of the core and identity of the business.