Corporate Social Responsibility (CSR) is a way of doing business where by the company integrates the highest ethical and responsible business practices in all of its operations and dealings with stakeholders.

This encompasses the way the company integrates responsibility internally in - for example - the way it manages human resources, production operations, sales and customer relations, communication and advertisement to corporate governance and transparency of communications to the way the company positions itself in the society through being good corporate citizen - supporting the community in which it operates and addressing the negative environmental impacts from its operations. A strategic approach to CSR means that the company tries to create shared values when designing and implementing CSR programs, i.e. creating both business and societal benefits.

Resource: “Corporate Social Responsibility” presentation was presented by Marina Saprykina, director of CSR Development Centre in Ukraine at the «CSR in Kazakhstan –role of government and media» training on October 3, 2008, Astana.

Please, click here to download the full presentation

Strategic CSR is about creating shared values; i.e. generating benefits to society and to business.

Benefits to business come from direct and indirect sources depending on the choice of CSR strategy and focus of the CSR programs.

Direct benefits often come in the form of cost savings, increased sales or new markets/

Indirect benefits often come in the form building reputation, enhancing brand value and addressing potential risks.

CSR supports a company's management communication with shareholders in 2 different ways:

Recognition of CSR comes from society and stakeholders. This means that effective business engagement in the society should lead to recognizable benefits. To capture this recognition, the company needs to engage in transparent and effective communications about the benefits and impacts to society.

CSR is not obligatory but voluntary, yet has big impact on a company' s position in the market. CSR in a new paradigm in management and is gaining step by step more and more demand. As per a study by the Price Waterhouse, CSR will be one of the top business drivers companies compete on as it tackles the image through communication and has high return on investment on the company starting from employees loyalty to enhancing competitive edge, to gaining new clients and opening new markets.

Ideally the CSR department is the one to handle all CSR related activities. If the company does not have a CSR department then the activities or matters are handled by marketing/communication or HR.

The way the company manages responsibility in its working environment & the people it deals with (for example the way it manages human resources, customer relationship, communication, corporate governance and investors' relations). It also creates a governance system that takes into consideration legitimate stakeholder concerns and directs the company's strategy towards meeting societal needs.

A CSR (social) report is a periodical announcement issued by the company to reflect the level of responsibility it is practicing towards its clients, employees & stake holders, & to communicate a certain CSR project the company is implementing.

CSR and competitiveness are very much related. Growing evidence suggests strong links between competitiveness drivers; the quality of human and social capital and the contribution of corporations to the development of this quality through CSR. At company level, there are two feedback loops to this process:

One is the role of corporations. Corporation needs to be smart about how their CSR activities are directed and positioned at addressing the strategic areas that on the medium to long term enhance the human and social capital of the country and preserves the natural capital.

The other side is that society through markets and policy drivers recognize and internalize responsible practices of companies into market mechanism. Through these feedback loops CSR issues become source of competitive advantages (e.g. cost advantages or enhanced productivity) further increasing the intensity of competition and innovation potential at regional and national levels.