CSR

“Corporate social responsibility is about taking into consideration the expectations and demands of various groups in societies which are affected by the actions or can affect the firm” (Freeman 1984)
“How companies manage their business processes to produce an overall positive impact on society” (Epstein 1987)

Why have CSR?

In addition to the Internal and External Triggers of the Company (PEST and SWOT analysis), these aspects should be examined in details.

“The rules, regulations & procedures that achieve the best protection of and balance between the interest of corporate managers, shareholders and other stakeholders” Egyptian Code of CG
“The system by which organizations are directed and controlled” Cadbury Committee
“A set of relationships between a company’s management, its board, its shareholders and other stakeholders” OECD

Better Reputation Among Stakeholders
Instilled trust in customers & vendors
Set means for protecting investor’s rights
Lower Cost of Capital
Transparency for banks to take credit decisions
Compliance signals quality which is valued by investors
Access to Capital Market
Protected shareholders’ rights
Assured higher market valuations
Promoted corporate image
Harnessed growth opportunities
Improved Operational Efficiency
Improved communication
Effective business processes
Ensured quality decision making
Crises management

Shareholders
Protection from majority Shareholders’ abuse
Increased shareholder value
Regulators
Increased financial stability
Other Stakeholders
Trust due to existence of systems, processes, identified decision making process…..etc.

Assessment is based on five main governance attributes to position the company on the Progression Matrix - IFC