Corporate Social Responsability (CSR): What? How?

"Corporate social responsibility is a hard-edged business decision.
Not because it is a nice thing to do or because people are forcing
us to do it... because it is good for our business“
Niall Fitzgerald
Former CEO, Unilever

”It takes 20 years to build a reputation and five minutes to ruin it.”

Warren Buffett
Berkshire Hathaway

Alternative definitions

1

An obligation, beyond that required by the law, for a business to pursue
long term goals that are good for society

2

About how a company manages its business to produce an overall positive
impact on society

CSR Involves

- Conducting business in an ethical way and in the interests of the wider
community
- Responding positively to emerging societal priorities and expectations
- A willingness to act ahead of regulatory confrontation
- Balancing shareholder interests against the interests of the wider
community
- Being a good citizen in the community

Elements

Economic: Legal:
Responsibility to earn profit for Responsibility to comply with
owners the law

Ethical: Voluntary and philanthropic:
Not acting just for profit, but Promoting human welfare and
doing what is right, just and fair goodwill

Sustainable and Responsible Investing in the United States 1995–2012

TRENDS 2012

Environmental investment factors are incorporated in the management of
551 investment vehicles with $240 billion in assets under management

Product-specific criteria, such as restrictions on investment in tobacco and
alcohol, are included in
the management of 390 investment vehicles with $290 billion in assets.

Governance issues are incorporated by a total of 346 investment vehicles
with $623 billion in assets