Chapter 2Corporate Culture and CSRhow they interrelate and consequences for successful implementation

Arranged By :Dewa Ayu Kartika Venska ( 105030201121007 )Diajeng Roro Ayu Mustika ( 105030200121021 )Ikbar Haskara D. ( 105030201121011 )Zakky Zamrudi ( 105030201121014 )

Sub-chapter mapping

Introduction

WHAT IS COR PORATE CULTURE ?

WHAT IS CORPORATE SOC IALR E S PONS I B I L I T Y ( C S R ) ?

HOW CAN I C CA HE L P COMPANIES UNDERSTAND THE IMPORTANCE OF CSR AND COR PORAT E CUL TUR E ?

IMP L I CAT IONS FOR THE FUTUR E

Introduction

Globalization has changed the world and has created awe-inspiring opportunities for both consumers and companies alike .Company grow with expansion the world . The multinational role has changed .

Company has significant role , not only about related with consumer and producers, but also environment and society . The company must be legal in law not only to reach high economy .

Where does this development come from ?There are 5 main fields of concern shaping the world today and in the future , they can be briefly stated as follow :• -The development of communication, information and medical technologies is realized more

quickly, reducing the time span between research and implementation and enabling companies to enter markets faster while working on new products to be introduced shortly after

• -The development represent a new cultural diversity with a multitude of attitudes, experience, ways of living and working, offering new possibilities and insight into different cultures and how they affect people behavior .

• -This way, one culture will not rise to eliminate another , but will coexist and find new ways of cooperation to survive

• -the world faces new threats. Terrorism such as the 9/11 attacks and epidemics such as SARS threaten the lives of people around the world and have a disastrous influence on the economics

• -As part of our culture, religion and values are experience renaissance . Their own values and religious beliefs provide them with a sense of security and truth , embracing again the importance and significance of culture

But what role do companies play in this constellation , and how does it relate to corporate culture and CSR ? And what do they have to do to survive in the era of globalization and participate in creating a peaceful world back

WHAT IS CORPORATE CULTURE?• Culture is the driving force in changing the word.• Corporate culture comprises the attitudes, values,

beliefs, norms and customs of company, defining the way it acts, how it achieves its economic success and how it interacts with employees and suppliers.• Culture has the same influence in relation to

activities and changes witin companies.

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What is Corporate Social Responsibility ?

• CSR Forum defines Corporate Social Responsibility as a business conducted in a transparent and open and based on moral values and uphold respect for employees, communities and the environment (Wibisono, 2007, p.8).

• Philip Kotler and Nancy Lee also said that Corporate Social Responsibility has the ability to improve the image of the company because if the company does business well and follow the rules set by the government then the government and society will provide flexibility for the company to operate in their territory. This positive image will be a very valuable asset for the company to maintain its survival during a crisis (Kotler & Nancy, 2005)

CSR not similar to Charity• CSR created cause of a long term purposes

• Charity created cause of an incidental moment or temporary purposes. Sometimes happen only once

5 Pillars of CSR Activity• Building Human Capital• Strengthening Economics• Assessing Social Chession• Encouraging Good Governance• Protecting The Environment

The Types of CSR• Cause Promotion ( invite the community to donate time,

money or objects to help, overcome it, or prevent the problem )

• Cause-Related Marketing ( Buy our product, a few percent will be donated )

• Corporate Social Marketing ( Behavioral Changes )

• Corporate Philanthrophy ( Scholarship, give something to people who need, free cataract surgery, immunization, etc )

• Corporate Volunteering ( Engage the employees of the company to do CSR )

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ICCA (Institute for Corporate culture Affairs)

an international not-for-profit association aiming at mainstreaming CSR, which helped the company in defining and creating basis for future action in terms of CSR and integrate it with corporate culture, based on Frankfurt, Germany

Purposes of ICCAThis institute stresses that CSR needs to be embedded

in a corporate environment, in order to ensure that CSR becomes not just an ‘add on’, but an integral part of

companies’ core business.

Corporate environments

Value

beliefs

Norm

CSR

HOW CAN ICCA HELP COMPANIES UNDERSTAND THE IMPORTANCE OF CSR AND CORPORATE CULTURE ?

ICCA

Company’s root

Varieties of services and

eventFuture CSR progress

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IMPLICATIONS FOR THE FUTURE

• culture always has an impact on companies and therefore their own corporate culture. Corporate culture comprises the values and beliefs lived throughout the companies, representing an impetus for change.

• However, corporate culture can only be translated by using CSR.• Cooperation between the academic and the business world will

guarantee the recirculation of experiences and knowledge into companies and universities, contributing to the dissemination of good practices and knowledge.

• The developments in the field of CSR require a sound basis of understanding of the relationships of theories and activities; only then can multinational corporations contribute to a sustainable and peaceful world and create a cultural identity that will ensure their future survival