Relations between Organisations, their Communities, and Environments.Omar El-Hamzawi

The Approach, Simplified

• How do organisations create, maintain and improve harmonious relationships with their communities and environments?

Contents

• The Role of a Business in Society• The Aim of a Business• Define Corporate Social Responsibility

• What approaches do businesses take?• Society – Behaving Ethically• People• Government / Other Bodies

• Environment• Businesses displaying Corporate Social Behavior

Roles of a Business in Society

• The aim of a Business• Core aim of any given business• Initiatives: Philanthropy, Charity, Going Green• Importance: being able to successfully manage

CSR and engage with the society and environment in many different ways.

(Cormack, 2013).

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.”

• (Baker, 2008)

(Campbell, 2008)

Society – Benefiting People

• Supplying goods/services that customers cannot / do not want to produce themselves• Creation of Jobs – Economic development• Investment in technology & skills of employees

• (Thorpe, 2013)

Society – Government / Other Bodies• Human Rights Principle• Labour Standards• Factory / Office land allocation• CO2 Emission regulations • Fighting Corruption

• (Porter, 2006)

Real Examples –Bad vs. Good• Volkswagen• Emissions Scandal• Software could detect when they were being tested, changing the

performance accordingly to improve results • CEO resigned, Recalled 8.5 million cars, Stocks fell by 30%

(Hotten, 2015).• The Co-operative Bank UK

• Announced itself as an ethical bank• Deposits will never be lent onwards to firms that manufacture arms or

pollute the environment.

• Apple• Going 100% Solar in Singapore• $45million Solar Plant (Climate Action Programme, 2015).

Conclusions Drawn• Companies aren't required, however those who choose to be

see outstanding results• Shows true commitment• Benefits Public Relations – Sales boosts• Bonds between organisations and their customers/society are

crucial to their success.

References• Baker, (2008). Corporate Social Responsibility . [online] Available at:

http://www.mallenbaker.net/csr/against.php [Accessed 11 Nov. 2015].

• Campbell, B. (2015). How Business and Society are Related. [online] Business Insider. Available at: http://businessinsider.com/business/how-

business- and-society-are-related# [Accessed 9 Nov. 2015].• Climate Action Programme, (2015). Apple to use 100% solar power in

Singapore. [online] Available at: http://www.climateactionprogramme.org/news/apple_to_use_100_solar_power_in_singapore [Accessed 11 Nov. 2015].

• Cormack, M. (2011). The Role of Business in a Society - An Agenda for Action. [online] The Conference Board. Available at: http://www.ecrc.org.eg/backend/uploads/resources/ Articles_report_12_CGI%20Role%20of%20Business%20in%20Society %20Report%20FINAL%20(6-6).pdf [Accessed 9 Nov. 2015].

• Hotten, R. (2015). Volkswagen: The scandal explained - BBC News. [online] BBC News. Available at: http://www.bbc.co.uk/news/

business-34324772 [Accessed 11 Nov. 2015].

References Continued• Porter, M. (2006). The Link between Competitive Advantage and Corporate

Social Responsibility. [online] Harvard Business Review. Available at: http://f2.washington.edu/fm/sites/default/files/Porter

%20Business%20Case%20for%20CSR.pdf [Accessed 8 Nov. 2015].• Thorpe, D. (2013). Why CSR? The Benefits Of Corporate Social Responsibility.

[online] Forbes.com. Available at: http://www.forbes.com/sites/devinthorpe/2013/05/18/why-csr-the-benefits-of-corporate-

social- responsibility-will-move-you-to-act/ [Accessed 8 Nov. 2015].