Facilitated by Goldengate Consulting July 2012

Introduction Corporate Social Responsibility

Objectives Understanding the basics and fundamental principles of Corporate Social Responsibility (CSR) To appreciate the impact of CSR on businesses To discuss how CSR initiatives can benefit businesses

Corporate Social Responsibility Definition What is Corporate Social Responsibility? CSR! Is that really for me? So technical, very expensive!! I’m overwhelmed

Corporate Social Responsibility Definition What is Corporate Social Responsibility? ‘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 workforce and their families as well as of the local community and society at large’. – World Business Council For Sustainable Development

Corporate Social Responsibility Definition What is Corporate Social Responsibility? The responsibility of business towards the society Corporate Social Responsibility

Definition Our Definition A voluntary initiative on the part of a business to contribute to a better society and a greener and cleaner environment.

Corporate Social Responsibility Definition Analysis of the definition by the World Business Council For Sustainable Development Expectation of stakeholders that companies should behave ethically Expectation that business should contribute to economic development Expectation that business should improve the quality of life of its workforce and their families Expectation that business should play active part in the improvement of the society

CSR in South Africa Corporate Social Responsibility

Past, Present and Future Trends CSR IN SOUTH AFRICA Past Trend – Pre 1994 Past Trend – Pre 1994 Present Trend – Post 1994 Future Trend

CSR Myths, Legislation and Benefits Corporate Social Responsibility

Myths surrounding CSR CSR is not for small businesses It is too complicated and technical It is too expensive It is a market gimmick It is a separate corporate initiative

Corporate Social Responsibility Legislative Framework Companies Act 71 of 2008 King III BBBEE Act 53 of 2003

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

CSR Corporate Culture and Stakeholder Dynamics Corporate Social Responsibility

CSR as a Corporate Culture Synchronisation of CSR with company business strategy Synchronisation of CSR with company business strategy CSR as a group concept CSR as a group concept Culture as a norm

Corporate Social Responsibility Stakeholder Dynamics Driver of CSR Use of Changer Agent Impact of Change Resistance to Change Managing the Change CSR – Driver and Stakeholder Dynamism

CSR Initiatives and Application Corporate Social Responsibility

CSR Initiatives Guiding Principles for CSR Projects CSR is about corporate citizenship It is about giving back to the society It is about business sustainability It is about thriving in a competitive business environment

Corporate Social Responsibility CSR Initiatives CSR Projects for Businesses Market focused initiative Product focused initiative Employee focused initiative Society focused initiative Environmental focused initiative

Corporate Social Responsibility CSR Initiatives CSR Projects for Businesses Employee focused initiative Market focused initiative Society focused initiative Product focused initiative Environmentally focused initiative Result - Driven CSR = Benefits

Corporate Social Responsibility Practical Application of CSR A good CSR Policy must be result-driven Business assessment is important

Corporate Social Responsibility Practical Application of CSR You need to evaluate various aspects of your business and operations You need to evaluate the impact your business is having on your stakeholders. Then set realistic targets on how to improve your business operations and processes. Draw up a result- driven CSR Policy. Embed your CSR into your business strategy. Guidelines

Corporate Social Responsibility Practical Application of CSR Appoint a driver for your CSR initiative Communicate your CSR efforts to all your stakeholders clearly and boldly. Make your CSR initiative part of your business culture Set up CSR measuring indicators to monitor progress and possible deviations. Be enthusiastic about your CSR initiative; be committed to it. Report on your initiatives and measure progress/ impact made. Guidelines

Case Studies Corporate Social Responsibility

Case Studies Case Study A – BYJ Consolidated Group Facts 1. Company is the retail industry 2. Community based CSR initiative – supply of food items to local schools and shelters 3. Business crisis – product recall 4. The response of the company to the crisis

Corporate Social Responsibility Case Studies Case Study A – BYJ Consolidated Group Outcomes 1. Community sympathy for company’s crisis 2. Customer loyalty 3. Sympathetic purchases 4. Increase in sale

Corporate Social Responsibility Case Studies Case Study B – Lungile, Pillay & Associates Facts 1. Small enterprise in a service industry 2. Community based CSR initiative – collaboration with the local library to promote reading and studying among students in the community 3. Specific guidelines were set for borrowing of books 4. The involvement of parents and the local authority in the project

Corporate Social Responsibility Case Studies Case Study B –Lungile, Pillay & Associates Outcomes 1. Community support for the project 2. Parental support and approval for the project 3. Promotion of scholastic activities among students 4. Media attention- Good publicity 5. Customer loyalty 6. New business opportunities for Lungile, Pillay & Associates

Corporate Social Responsibility Case Studies Case Study C – PCG Accounting Services Facts 1. A small accounting firm 2. CSR initiative – market focused 3. Offering free tax seminar as a value added service to existing clients

Corporate Social Responsibility Case Studies Case Study C – PCG Accounting Services Outcomes 1. PCG was offering their clients a service being charged for by other accounting firms in the neighbourhood 2. PCG clients enjoyed the special treatment 3. Existing clients referred their friends and colleagues to PCG 4. PCG became a service provider of choice 5. Positive business reputation

Corporate Social Responsibility Measuring Your Performance Financial Indicators Non- Financial Indicators

Thank You For more information please contact the Fasset Call Centre on or visit Corporate Social Responsibility