PROFIT & NOT FOR PROFIT: BUILDING A COMMON GROUND Nona Pooroe Utomo

WHAT IS CSR? “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforces and their families as well as of the local community and society at large.” World Business Council for Sustainable Development

Corporate Social Responsibility Benefits of CSR Legislative Framework Benefits of CSR Winning new businesses Enhancing your influence in the industry Attracting, Retaining and Maintaining a happy workforce Increase in customer retention Differentiating yourself from the competitor Saving money on energy and operating cost Access to funding opportunities Media interest and good reputation Benefits Enhanced Relationship with stakeholders

t The term [CSR] is often used interchangeably with others, including corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play.” (Kennedy School of Government, Harvard University)

ARGUMENT AGAINST CSR: 1)Social issues are not the concern of business. 2)Managers do not have the expertise to make social decisions – they are oriented towards finance and operations. 3)Business already has enough power - if given decision making power in the social domain, business will be given too much power. 4)The ability to compete in global market place could be limited.

ARGUMENT FOR CSR: 1)The rise of large corporations has created social problems, they should be responsible for solving these problems: allows business to be part of the solution. 2)Protects business self-interest 3)Prevent un-ethical conduct which can have serious reputation and financial costs. 4)Addresses issues by being proactive and using business resources and expertise. 5)Public strongly support it.

 What do these definitions tell us about CSR?  How does CSR relate to other concepts?  What other issues arise?  What are some of the common understanding that emerge?

WHAT ARE THE CHALLENGES – for NGOs: 1)Different funding structure: corporation vs donor agencies 2)(Subjective) Morality issues 3)Inferiority – readiness to embrace new frontier 4)Human resources