Responsible Business Concepts: Definitions

Inclusive capitalism

An alternative form of capitalism that uses market-based solutions to address poverty and inequality.

Responsible business

All of the activities and investments aimed at enhancing the social and/or environmental impact of the business. These can be internal to the business (e.g. products or services offered, employee wellness or environmental initiatives) or external to the business, including CSI and SED.

Shared value

A management strategy focused on companies creating measurable business value by identifying and addressing social problems that intersect with their business. CSI and SED can contribute to the shared value strategy if they create business value as well as social value.

Corporate social responsibility (CSR)

Activities and investments aimed at enhancing the social impact of the business. These can be internal (e.g. employee wellness initiatives, products or services offered) or external, including CSI and SED.

Corporate social investment (CSI)

Investments of money, time, products and/or services in projects external to the company and with a primarily developmental intent.

Broad-Based Black Economic Empowerment (BBBEE)

This legislative framework aims to ensure that the economy is structured to enable meaningful participation of the majority of its citizens and to create capacity within the broader economic landscape at all levels; through skills development, employment equity, socioeconomic development, preferential procurement, enterprise development, promoting the entry of black entrepreneurs into the mainstream of economic activity, and the advancement of co-operatives.

Socioeconomic development (SED)

Investments of money, time, products and/or services in projects external to the company and with a primarily economic developmental intent. While similar to CSI, in order to claim SED points on a BBBEE Scorecard, at least 75% of beneficiaries must be black.

Local economic development (LED)

Investments of money, time, products and/or services in projects external to the company and with a primarily community-focused economic developmental intent.

Source: Trialogue Business in Society Handbook 2019

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