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Level6-Unit2-Part1

CSR Terminology

Corporate social responsibility, or CSR, is the idea that a company should help the environment and society.Through CSR programs, businesses can contribute to society while also

boosting their own image.Depending on the company, CSR can take on many forms, like philanthropic giving.

Philanthropy.Philanthropy is when a corporation donates money to a cause or organization that helps people. Corporate philanthropy is a common approach to CSR. Typical forms of?corporate philanthropy include monetary donations and aid given to non-profit organizations and deprived communities. For example, PepsiCo has a program called Food for Good, which donates healthy meals to children.

-It can boost the company’s image. –A typical form of corporate philanthropy is?donating money?to charity.

Sony’s CSR policy states its activities can improve social sustainability while advancing Sony’s business value.?Companies engage in philanthropy to help make the world a better place.

Corporate social?responsibility is the idea that a company should help the environment and society.

Halo effect. The halo effect is a favorable perception people have of a company. If a company has halo effect,customers will over look its negative aspects in favor of its positive ones.When a company engages in CSR, it can create halo effect for itself.This can improve customer loyalty and give a company a reputation for social responsibility.

Triple bottom line.The triple bottom line refers to people, plant, and profit.?Companies engage in CSR because they believe the well-being of people, the planet, and the company are interrelated.

People refers to the human capital bottom line. It calls for fair

labor practices and beneficial business practices toward the community where

business operates.

Plant is the environmental bottom line. It calls for sustainable environmental practices as well as reversing the damage done to the environment.

Profit is the economic bottom line. It refers to economic value created by the organization.

-If a company has halo effect, customers will?overlook its negative aspects.

“People” calls for fair labor practices and beneficial business practices toward the community where business operates.

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