Facilitated by Goldengate Consulting

1. Facilitated by Goldengate Consulting July 2012

2. Corporate Social Responsibility Introduction

3. Objectives 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

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

5. Definition 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

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

7. Definition 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.

8. Definition 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

9. Corporate Social Responsibility CSR in South Africa

10. Past, Present and Future Trends Corporate Social Responsibility Past, Present and Future Trends • CSR IN SOUTH AFRICA Past Trend – Pre 1994 Present Trend – Post 1994 Future Trend

11. Corporate Social Responsibility CSR Myths, Legislation and Benefits

12. Myths surrounding CSR Corporate Social Responsibility 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

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

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

15. Corporate Social Responsibility CSR Corporate Culture and Stakeholder Dynamics

16. CSR as a Corporate Culture Corporate Social Responsibility Synchronisation of CSR with company business strategy Culture as a norm CSR as a group concept

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

18. Corporate Social Responsibility CSR Initiatives and Application

19. CSR Initiatives Corporate Social Responsibility • 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

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

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

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

23. Practical Application of CSR Corporate Social Responsibility • Guidelines • 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.

24. Practical Application of CSR Corporate Social Responsibility • Guidelines • 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.

25. Corporate Social Responsibility Case Studies

26. Case Studies Corporate Social Responsibility • Case Study A – BYJ Consolidated Group • Facts • Company is the retail industry • Community based CSR initiative – supply of food items to local schools and shelters • Business crisis – product recall • The response of the company to the crisis

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

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

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

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

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

32. Measuring Your Performance Corporate Social Responsibility • Financial Indicators • Non- Financial Indicators

33. Corporate Social Responsibility Thank You For more information please contact the Fasset Call Centre on 086 101 0001 or visit www.fasset.org.za