Organisations need to balance society’s expectations on their behaviour with the cost/value to the organisation of exceeding legislative controls.

 

Society provides organisations (which are separate legal entities) with many of the same rights as individual citizens.  In turn, organisations have societal responsibilities, governed by legislation and also common practice.

 

From an organisational perspective, there is increased recognition of social responsibilities in addition to considering economic contribution to society (in providing jobs and paying taxes).

 

Society tends to form around moral rules which can support or counter legal rules.  For example, beliefs about the immorality of legislation surrounding apartheid in South Africa led to its ultimate removal.  Moral rules depend on the agreement of the majority of people within the society.  Breaking these will lead to social sanctions such as disapproval or exclusion.  Organisations must consider moral rules as well as legislation if they are to retain their “licence to operate”.

 

CSR relates to the concept of organisations going beyond compliance to the accepted moral or legal rules and being proactive in responding to the collective interests of society.  The philosophy adopted by the organisation highlights the importance of various stakeholders:

 

Survival	Profitability	Philanthropy	Responsibility
employees, customers, suppliers	shareholders, government, employees, customers, suppliers	“good causes”, the community, shareholders, government, employees, customers, suppliers	society

 

Stakeholders have certain social expectations from companies:

 

Customers	want to buy from companies who share their views
Employees	want to share their values with their organisation
Communities	want jobs & revenue to be created locally as well as environments in which they want to work and live
Suppliers	want to partner with companies with sound business practices and reputations
Government	want businesses to support its aims for society
Media	want organisations to deliver public expectations
Investors	want to see added value and avoid damaging crises