In this lesson, we look at the benefits of CSI to the community.
Corporate Social Responsibility (CSR) is the way in which businesses operate responsibly and ethically. They use their physical, financial, and human resources to positively impact their entire scope of stakeholders. In its true sense, CSR should benefit businesses, communities, and the environment.
Corporate Social Investment (CSI), on the other hand, does not necessarily benefit businesses. It is more community centred. Because of this, CSI projects must be relevant to the needs of communities.
With that said, companies often address the socio-economic issues that have a negative impact on their business operations, that way, they also gain something in the process. Possible CSI programmes include building schools, providing better medical facilities, and offering skills development programmes to needy communities.
Table of Contents
What Are the Advantages of CSI to the Community?
- Improved quality of life: Solving socio-economic problems helps to improve the quality of life in communities.
- Better school facilities: Schools in poor communities receive better educational facilities.
- Job opportunities: CSI projects can provide job opportunities to unemployed individuals in communities.
- Bursaries: Community members can receive bursaries, which encourages them to further their education.
- Rehabilitation: Businesses can provide rehabilitation centres to help community members who suffer from drug addictions.
- Medical facilities: Providing medical infrastructure, like clinics, improves the health of communities.
- Skills development: Skills development programmes empower community members by teaching them skills that can help them start their own businesses or get better paying jobs.
Typical Exam Questions for the Benefits of CSR/CSI to the Community
When the question only asks for the advantages of CSR/CSI
- Discuss the positive effects of Corporate Social Investment (CSI) for local communities.
- Analyse the benefits that communities may enjoy though Corporate Social Investment (CSI) projects.
When you can name advantages or disadvantages of CSR/CSI
- Critically assess the role of CSR on communities.
- Explain the impact of CSR on communities.
- Discuss the impact of Corporate Social Investment (CSI) on South African communities.
Let the marks guide you. Typically, each benefit listed, in a full, descriptive sentence, counts for TWO (2) marks. If a question is out of EIGHT (8) marks, you must list FOUR benefits.
Essay questions may ask you to “evaluate the impact of CSR.” If you are preparing to write an essay on CSR, be prepared to list at least FOUR advantages and FOUR disadvantages.
Other Articles Related to This
To read the other articles related to social responsibility and corporate social investment, you can click on the following links:
- Definition of CSR, Social Responsibility and Corporate Citizenship
- Definition of Corporate Social Investment: CSI vs CSR
- Real World Examples of CSI and CSR: Google and GrandWest
- Benefits of CSR (or CSI) to the Business – Positive Impact
- Discuss the Disadvantages of CSR to the Community
You can download the flash cards below to help you with your NSC exam revision. You will find more on my Facebook page: Nonjabulo SA. Share them with your friends and test each other online.
1. Discuss the positive effects of Corporate Social Investment (CSI) for local communities.