Lecture Note 1

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility

SETH BOAHEN
Department of Management Studies
[email protected]
Lecturer: Ms. Zelda Arku
Dpt. Of Management Studies
[email protected]

UNIVERSITY OF MINES AND

TECHNOLOGY
 This course is designed to contribute to the dialogue on
ethical issues, sustainability and social responsibility.
Ultimately, students will be aware of the importance of
ethics and role of CSR in the business to encourage moral

Aim of the Course

practices and sensitivity towards the ethical dimension of
managerial problems.

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 Our Objective
By the end of the course, the students will be able to;

a)Identify the different principles of corporate social responsibility,

sustainability and ethical management.
b)Build the capacity of the students to dialogue on ethical issues
c)Demonstrate the relevant issues of sustainability and social responsibility
and
d)Demonstrate how organisations can be ascribed to moral responsibility
and secure legitimacy

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 Textbooks and Course Materials

• Borkowski, M. (2007). Business ethics. Coatings Magazine, 28(5), 42.

https://doi.org/10.12660/gvexec.v5n3.2006.34296
• Brennan, N. (2005). Corporate governance: Accountability, enterprise and
international comparisons, 2005. The International Journal of Accounting
(Vol. 40). https://doi.org/10.1016/j.intacc.2005.09.005
• Brin, P., & Nehme, M. N. (2019). Corporate Social Responsibility: Analysis
of Theories and Models. EUREKA: Social and Humanities, 5(5), 22–30
https://doi.org/10.21303/2504-5571.2019.001007
• Byars, S. M. (2018). Business Ethics SENIOR CONTRIBUTING AUTHORS.
Retrieved from
https://oraprdnt.uqtr.uquebec.ca/pls/public/docs/GSC1730/O0000737491_B 4

usinessEthics OP.pdf
 Semester Schedule

WEEK DATE OFFICIAL ACTIVITY TOPIC

1 1 – 7 June 2025 STUDY TOUR

2 9 – 13 June 2025 LECTURE 1 Overview of Corporate Social Responsibility (CSR)

3 16 – 20 June 2025 LECTURE 2 Theories of Corporate Social Responsibility

4 23 – 27 June 2025 LECTURE 3 Corporate Ethics and Governance

5 30 – 4 July 2025 LECTURE 4 Critical Issues for CSR

6 7 – 11 July 2025 LECTURE 5 CSR Trends in Ghana

7 14 - 18 July 2025 LECTURE 6 CSR and Strategic Management

8 21 – 25 July 2025 LECTURE 7 CSR in Small and Medium Enterprises

9 28 – 1 Aug 2025 LECTURE 8 Corporate Social Responsibility Case Analysis

10 4 – 8 Aug 2025 LECTURE 9 Revision

11 11 – 15 Aug 2025 LECTURE 10 5

12 18 – 15 Sept 2025 EXAMINATION

 Course Aims and Objectives
The aims of this course are:

• To prepare the student to understand the concepts and principles of CSR;

• To help the student integrate the critical issues of CSR;

• To help the student understand the role of CSR and Ethics in business;
and

• To prepare students with the ability to argue for and against the
assumptions of social responsibility business
 The objectives of this course
• To provide a general overview and historical perspective of CSR;
• To explain the context of CSR theories and its applicability;
• To evaluate corporate ethics and governance as applied to CSR;
• To discuss the critical issues of CSR;
• To analyse the forms of business and their role in CSR practice; and
• To provide case analysis to guide the application of theories to CSR
issues

Slide 7
 Course Outline
This course is designed to cover the following areas:
• Overview of CSR;
• Theories of CSR;
• Corporate Ethics and Governance;
• Critical Issues for CSR;
• CSR Trends in Ghana;
• CSR and Strategic Management;
• Forms of Business and CSR in SMEs;
• CSR Case Analysis.
 Course Assessment
• Student Assessment: Two forms of student assessment are designed namely,
Continuous assessment & Examination

• The continuous assessment carries 40% of the total mark and will consist of
individual assignments, group work and attendance.

• Self-Assessment will be given for each topic treated to encourage the student to test
and consolidate his or her understanding of the discipline.

• There will be 10 marks for attendance, 20 marks for a quiz and 10 marks for group
case study analysis.
•
 Lecture 1

OVERVIEW OF CORPORATE SOCIAL

RESPONSIBILITY (CSR)
 Objectives
 To provide the general overview of corporate social
responsibility (CSR);
 Define CSR
 To discuss the historical perspectives
 To examine the benefits of CSR
 Introduction
• Corporate Social Responsibility (CSR) refers to the self-regulated business
model that helps a company to be socially accountable to itself, its
stakeholders, and the public at large.
• CSR is a broad concept that can take many forms depending on the
company and industry.
• Through CSR, corporations commit to fostering sustainable development,
both socially and environmentally, while they carry out their business
operations.
• CSR as a concept has become dominant in corporate reporting of both large
and medium organisations.
• The broad definition is viewed from two paradigms namely the global and
local perspective.
 Introduction
• The global perspective is the relationship between global
corporations, the government of countries and individual citizens.
• The local perspective views CSR as the relationship between a
corporation and the local society in which it resides or operates.
• An example will be a mining or Oil and Gas corporation residing
and operating within a community like Tarkwa and Atuabo in
Nzema respectively
 CSR Definitions

The responsibility of a company for the impacts of its decisions and

activities on society and the environment through transparent and
ethical behaviour that contributes to the sustainable development,
health and the welfare of society; takes into account the expectations
of stakeholders in compliance with applicable law; consistent with
international norms of behaviour; and is integrated throughout the
company.
 CSR DEFINED
“The duty a corporation has to create wealth by using means that avoid
harm, to protect, or enhance societal assets.” - Steiner & Steiner

“A company’s actions that contribute to sustainable development

through the company’s core business activities, social investment and
public policy debate.” - Forstater, MacDonald & Raynard

• “The actions of a company to benefit society beyond the requirements

of the law and the direct interests of shareholders” Pearce & Doh
 Historical Perspective of CSR

• The genesis of CSR can be traced back to the philanthropic endeavors of

industrial moguls like Andrew Carnegie, Henry Ford and John D.
Rockefeller during the late 19th and early 20th centuries.
• Evolution of the CSR concept has a long history associated with how it
impacts on organisations’ behaviour.
• This transformation is aptly illustrated by the Ford Motor Company, which
states that in 1919, the Ford shareholders agreed to the decision of the
Supreme Court of Michigan to grant Dodge brothers their request for
maximum dividends.
• This decision derided Henry Ford’s (company president and principal
stockholder) intention to reinvest the company’s accumulated profits on plant
expansion and stated that the purpose of his company was to serve society
 Historical Perspective of CSR

• In 1999, Henry Ford’s great-grandson, William Clay Ford Jr tried again to

convince the company’s shareholders of the importance of business as a
service to society.
• At this time, however, the younger Ford not only faced no lawsuits but also
received considerable support from various stakeholders, including
shareholders.
• For that reason, the Dodge brothers envisaged no tangible benefit in running a
business with the greater public good in mind.
• In 1999, CSR had already been coupled with the strategy literature and its
relationship with market outcome had been made more explicit, which
probably influenced shareholders’ behaviour.
 Historical Perspective of CSR

• It is interesting to note that shareholders of Ford Motor Company

responded differently in the two periods. The meaning and business
implication of CSR in 1999 was much more palatable to shareholders
than the one advocated in 1919.

• In 1919, the concept of CSR was vaguely framed in moral and macro-
social terms, such that shareholders could not see how it served their
interest or how it was related to the performance and management of the
corporation
 Historical Perspective of CSR

• The contemporary concept of CSR has evolved much beyond philanthropy to

encompass a broader set of business practices aimed at delivering value not only to
the shareholders but also to the stakeholders, including employees, customers,
suppliers, local communities, and the environment.

• In today's business landscape, CSR is not merely an optional practice but an integral
part of business strategy. Companies adopt CSR initiatives for a myriad of reasons.

• For some, it is about managing business risks associated with social or environmental
issues. For others, CSR is a vehicle for innovation and differentiation, enabling them
to meet the evolving demands of consumers, attract top talent, and retain employees.
BENEFITS OF CSR

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 Benefits of CSR

Better Brand Recognition:

When people can easily identify a company because of a CSR project,
they become a household name. It is a common feature now that people
have a better affinity to Goldfields Ghana Limited (GGL) because they
sponsored and supported the Ghana Black Star to Ghana’s first world cup
in 2006.
This significant event will continue to enhance the image and brand
identity of GGL.
In view of this, if GGL was producing and selling a product to the general
public, they would have had a better advantage over their competitors.
 Benefits of CSR
Positive Business Reputation:
This is how positive others think and feel about your business based on
their experience of what they have heard and the facts they have
gathered about your business.
These help them form an opinion about your business that may result
in negative or positive business reputation.
For instance, the number of CSR interventions being undertaken by
GGL like the reconstruction of the TNA park into a 10,000 capacity
ultra-modern sports stadium.

8/26/2025 Slide 22
 Benefits of CSR
Greater Ability to Attract and Retain Talent:
The best indicator is how well is the company taking care of her impacted community?
An answer to this question confirms how well the company will take care of their staff.
The preparedness of an organisation to be socially responsible makes their staff very
confident as they always feel they have an association if a better company hence they
intend to stay.

Easy Access to Capital:

Most financial institutions have included in their credit/lending requirement a CSR policy
and evidence of CSR projects undertaken within a period of time. This additional
requirement has become necessary as financial institutions believe that a company with a
good CSR policy and constantly undertakes CSR projects enjoys both brand recognition
and positive reputation which translates to increase sales and customer loyalty.
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 Benefits of CSR
Increase Shareholder Values:
Better management of CSR implementation leads to better brand
image, a positive business reputation which eventually enhances sales
and revenue leading to profitability and batter share value to the
shareholder.

Finally, increased sales and customer loyalty:

Better financial performance; reduce regulatory oversight;
organisational growth; and increase in accountability among others are
the benefits organisations accrue when they undertake CSR activities.

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THANK YOU

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