LO4

 The relationship that leadership and

management have in the context of:

1. Corporate social responsibility

2. Values
3. Ethics
4. Meeting stakeholders needs
  “Social responsibility is the responsibility of an
organisation for the impacts of its decisions and
activities on society and the environment,
through transparent and ethical behaviour that:
1. Contributes to sustainable development,
including the health and the welfare of society
2. Takes into account the expectations of
stakeholders
3. Is in compliance with applicable law
4. Is integrated throughout the organization.
 The aim is to increase long-term profits and
shareholder trust through positive public
relations and high ethical standards to reduce
business and legal risk by taking
responsibility for corporate actions.
 CSR strategies encourage the company to
make a positive impact on the environment
and stakeholders including consumers,
employees, investors, communities, and
others.
 Corporate social initiatives
 Corporate social responsibility includes six types of corporate
social initiatives:
 Corporate philanthropy: company donations to charity, including
cash, goods, and services, sometimes via a corporate foundation
 Community volunteering: company-organized volunteer
activities, sometimes while an employee receives pay for pro-
bono work on behalf of a non-profit organization
 Socially-responsible business practices: ethically produced
products which appeal to a customer segment
 Cause promotions: company-funded advocacy campaigns
 Cause-related marketing: donations to charity based on product
sales
 Corporate social marketing: company-funded behavior-change
campaigns
 All six of the corporate initiatives are forms of
corporate citizenship. However, only some of
these CSR activities rise to the level of cause
marketing, defined as "a type of corporate social
responsibility (CSR) in which a company's
promotional campaign has the dual purpose of
increasing profitability while bettering society."
 Companies generally do not have a profit motive
when participating in corporate philanthropy and
community volunteering. On the other hand, the
remaining corporate social initiatives can be
examples of cause marketing, in which there is
both a societal interest and profit motive.
 CSR may be based within:

1. Human resources,
2. Business development
3. Public relations
4. A separate unit reporting to the CEO or
the board of directors.
 Engagement plan
 An engagement plan can assist in reaching a
desired audience. A corporate social
responsibility individual or team plans
the goals and objectives of the organization.
As with any corporate activity, a defined
budget demonstrates commitment and scales
the program's relative importance.
 CSR Leadership, is about five things:
1. Setting and communicating a vision that takes
into account and balances the short-term, the
bigger picture, and the long view
2. Making tough decisions in the short-term to
protect and nourish the long-term
3. Motivating and inspiring the troops to do the
above.
4. Treating all stakeholders well (including
employees)
5. Creating an ethical culture to do the right thing
 Every organization has a set of values,
whether or not they are written down.
 The values guide the perspective of the
organization as well as its actions.
 Writing down a set of commonly-held values
can help an organization define its culture
and beliefs. When members of the
organization subscribe to a common set of
values, the organization appears united when
it deals with various issues.
 they play an important role in determining
how the organization confronts problems and
issues.
 Values may come from the common purpose
for which the organization works, the
organization’s leadership or from other
sources.
 Guide
 Value statements list the principles and ethics
to which an organization adheres.
 They form an ethical foundation for the
organization. These principles and ethics
then guide the behavior of organization
members.
 They assist organizations in determining
what is right and wrong. Members then act in
certain ways, using the values as a guide.
 Community
 Value statements also serve as a reference
point for community members outside the
organization.
 . They provide basic information about how
the organization operates and about its
perspectives on ethical problems
1. Communication of values is important both
internally and externally.
2. Talk about your organization’s values in
meetings and writings.
3. Publicly acknowledge those who have lived
out the organization’s values.
4. Give new members of the organizations
copies of the organization’s values, and post
them prominently.
5. Allow members and outsiders to update the
organization’s values on a regular basis.
 A Stakeholder is any individual or group that has
an interest in a decision or proposed action.

 There are two types of stakeholders.

1. Internal stakeholder – it includes shareholders
and employers.
2. External stakeholder – it includes customers,
suppliers, government, financial institutions,
local community, non-governmental
organizations (NGO’s) etc.
 Employees
 Employees are the workers employed by the firm.
Employees include both management and
subordinate staff
 Employees are a big reason for a firm’s success.
 Wage levels , working conditions , job security ,
personal development .
 Top Management
job security , status, personal power, organizational
profitability, growth of the organization
 Government
The government is a major player in any business
environment as it plays a regulatory and supervisory
role. The government aims to ensure that all
companies abide by the existing legal provisions.

 such as tax payment, licensing, standardization and

protection of consumer
 Customers

 They keep companies in business by purchasing

their products and subscribing to their services.

 Customers want to achieve value for their money

through quality products, reliable services, good
customer care and fair prices
 Creditors

 They provide financing to the company by

issuing loans and buying corporate bonds.

 They are important as they help to meet the

firm's capital budgeting needs. Their objectives
include receiving repayment on loan amounts
and interests earned.
 Local community
All businesses must appreciate the role of the
local community as a stakeholder.

 In order to operate effectively and be well

accepted in the area, the organisation should be
valued by the local community and help local
people
 Pressure groups

 non-profit and usually voluntary organization

whose members have a common cause for
which they seek to influence political or
corporate decision makers to achieve a
declared objective