Q1: Define CSR and list the key drivers of CSR and their impact on businesses.

Ans: Corporate social responsibility (CSR) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.
CSR is about how companies manage the business processes to

produce an overall positive impact on society. CSR is a commitment to improve community well being through discretionary business practices and contribution of corporate resources. Philip Kotler CSR is about business giving back to society CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government.

Corporations may be influenced to adopt CSR practices by several drivers [20].

1. Ethical consumerism
The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand. Industrialization in many developing countries is booming as a result of technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal.

2. Globalization and market forces

As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government regulations, tariffs, environmental restrictions and varying standards of what constitutes labour exploitation are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance. Some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising. Global competition places particular

pressure on multinational corporations to examine not only their own labour practices, but those of their entire supply chain, from a CSR perspective.

3. Social awareness and education

Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behaviour. Through education and dialogue, the development of community in holding businesses responsible for their actions is growing.

4. Ethics training
The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behaviour and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. The most direct benefit is reducing the likelihood of "dirty hands", fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps. Increasingly, companies are becoming interested in processes that can add visibility to their CSR policies and activities. One method that is gaining increasing popularity is the use of well-grounded training programs, where CSR is a major issue, and business simulations can play a part in this.

5. Laws and regulation

Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow businesses to conduct themselves responsibly.

6. Crises and their consequences

Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental management is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989. Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing

thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup.

Q2: Why CSR, what is the relevance of CSR in organisational values mission and vision. Please identify the key stake holders and issues involved in CSR. Ans: In most cases the customers not only demand but also expect leading brands and companies to actively take part in CSR activities. Consumers prefer socially and environmentally responsible companies. We must realize that there are definite social and environmental costs of most commercial activities. It is only fair that companies return some of their profits to help reverse any damages they have caused. Governments cannot do this job all alone. Corporations have better resources and better management skills to help in such actions and they must do their part. In most cases having some kind of a CSR program is a requirement of the government or regulatory authority. Interestingly, it has been observed that companies that are more socially responsible also do better financially. If you look at any list of most successful companies, you will find that they also have substantial CSR programs. Consumers prefer buying from such companies. Governments help them by decreasing taxes and easing regulations. A company that invests in its surroundings has more credibility. Such companies are also able to attract and retain the best employees because people want to work in companies that reflect the same values as them. Y CSR: 1. Changed Public Expectations of Business:

Public expectations from business have changed. It is reasoned that the institution of business exists only because it satisfies the valuable need of the society. Society gave business its charter to exist, and the charter can be amended or revoked at any time that business fails to live up to societys expectations. Therefore, if business wishes to remain viable in the long run, it must respond to societys needs and give society what it wants. 2. Public Image:

Another argument in favour of social responsibility is that it improves public image. Each individual firm seeks an enhanced public image so that it may gain more customers, better employees more responsive money market and other benefits. A firm which seeks better public image should support social goal. 3. Avoidance of Government Regulation:

It seeks to regulate business in the public interest. Government regulation is costly and denies the much needed freedom in decision-making. Before government stretches its long arms, business should discharge its obligation to society.

4.

Business has the Resources:

Another argument for social responsibility is that business has a vast pool of resources in terms of men, talents, fictional expertise and money. Probably, business is without peers in respect of the resources it possesses. With these resources at its command, business is in a better position to work for social goals 5. Prevention is Better then Cure:

If business delays dealing with social problems now, it may find itself constantly occupied with putting out social fires so that it has no time to accomplish its goal of producing goods and services. Since these social problems have to be dealt some time, it is actually more economical to deal with them before they develop into serious social breakdowns that consume management time. 6. Citizenship argument:

If individual members of society have an obligation to improve society, corporations also have this responsibility. After all, corporations unlike citizens are created by the society. Corporations are citizens and citizens have civic duties and responsibilities. The proponents of social responsibility say that the old concept of profit maximization has vanished and even economists have accepted it. They have substituted profit maximization with satisfactory profit. Today, business decision making is a mixture of altruism, self interest and good citizenship. Managers do take actions, which are in the social interest even though there is a cost involved and the connection with the longrange profit is quite remote.

Purpose, Value & Vision

Values & Vision help to bring together the people in the organisation and get them working towards a common aim. This can motivate employees more powerfully than other incentives, such as pay and perks. Companies which were consistently clear about their purpose and values, and more importantly lived by them, outperformed the US stock market average by fifteen times.

PepsiCos business is based on its sustainable vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

Purpose, Value and Vision..

What is the Company for?

 What do we stand for? What is our vision? Process - developed co-operatively? Statement - Journey of continuous improvement? Usage - Helps set business goals? Applicability - Able to measure & report business performance? Social Responsibility requires the identification of various interest groups, which may affect the functioning of a business organization and may also be affected by its functioning. Normally various groups associated with a business organization are shareholders, workers, customers, creditors, suppliers, government and society in general. The management owes responsibility towards all these groups. Therefore, management should show a standardized norm of behavior. Shareholders: The first responsibility of the management is to protect the interest of shareholders. The interests of majority of shareholders and large minority of shareholders are generally well protected through either direct participation in the management actions or they have real power to intervene, if necessary. They should be informed about the functioning of the organization adequately and timely. Therefore, management has a responsibility to provide proper safeguard to the money invested by shareholders. Workers: Workers have direct interest in an organization because by working there, they satisfy their needs. Thus, it is the managements responsibility to protect the interest of workers in the organization. This can be done by the management in the following ways: - Management should treat workers as another wheel of the cart - Management should develop administrative process in such a way that promotes cooperative endeavor between employers and employees.

The management should adopt a progressive labor policy based on recognition of genuine trade union rights participation of workers in management, creating a sense of belongingness, improving their living and working conditions. - Management should pay fair and reasonable wages and other financial benefits to workers. Customers: Management owes a primary obligation to give a fair deal to the customers. This can be done in the following ways: - Customers should be charged a fair and reasonable price. - The supply of goods and services should be of uniform standard and of reasonable quality. - Management should not indulge in profiteering, hoarding, or creating artificial scarcity. - Management should not mislead the customers by false, misleading and exaggerated advertisements. Creditors, Suppliers and Others: They affect the organization in various ways. Therefore, the management is responsible to fulfill its obligations towards them. This can be done in the following ways. - Management should create healthy and cooperative inter business relationship between different businesses. Management should provide accurate and relevant information to creditors and suppliers. - Payments of price of materials, interest on borrowings, other charges should be prompt. Government: It is very closely related with the business system of the country. It provides various facilities for the development of business. Government, no doubt, exercises control over business, but these controls are meant for overall development of business. Management can discharge its obligation to government by: - Management should be a law-abiding citizen - Management should pay taxes and other dues fully, timely & honestly. - It should not corrupt government workers and public servants and the democratic process - It should not buy political favors by any means Society: Organizations exist within a social system and get facilities from the system. Therefore, they owe obligations to the society as a whole. This can be done by:

Management should maintain fair business policies and practices. - It should play a proper role in civic affairs. - It should provide and promote general amenities and help in creating better living conditions in general. -

CSR- Some Global Concerns

Defining the issue some confusion Partnership dilemmas Challenges for government Not reduced to high visibility projects Implementation as an integrated process not activity CSR to be linked with sustainable development Whether CSR should be mandatory and CSR reporting standardised Supply chain responsibility

CSR in India Some concerns

Lack of conviction of the necessity of CSR in Corporates Lack of partnership approach between Corporates &

NGOs

 Lack of interest in Non Financial Expertise from

Corporates by NGOs

Q3: In PPP lies the future of CSR. Build a convincing business case in favour of such partnerships explaining why and how their success is possible???

Ans: Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP or P3. In some types of PPP, the government uses tax revenue to provide capital for investment. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by providing guaranteed annual revenues for a fixed period. PPP begins when an organization decides to take on the catalyst role and bring public and private organizations together to tackle a specific social problem. The catalysts investment makes it possible for public and private organizations to join forces and apply their strengths to achieve specific health goals. This investment may be relatively modest, but it unleashes considerable energy and commitment. PPP is a practical option that uses existing resources to address health and social problems.
Public-private partnerships (PPP) can achieve positive results for the public and at the same time meet the individual organizational goals of the partners. Such partnerships allow considerable leveraging of each partners resources and unique strengths, and results are often attained in less time, at lower cost, and with greater sustainability than efforts by any single partner.

Partnership Impact
Work with corporate instead of against them. Corporate have turned into key resources for their partners. Inherent strengths of leadership, financial and organisational skills as well as

pool of trained individuals, market access and experience on the table.

Equal commitment speeds up delivery time and performance. Win Win situation. The Global Fund to Fight AIDS, Tuberculosis & Malaria , a Geneva based

UN connected organisation, established in 2002 to dramatically upscale global financing of interventions against the three pandemics.

The TB Alliance is financed by public agencies and private foundations, and partners with research institutes and private pharmaceutical companies to develop faster-acting, novel treatments for Tuberculosis that are affordable and accessible to the developing world.

The International AIDS Vaccine Initiative (IAVI), a biomedical publicprivate product development partnership (PDP), was established in 1996 to accelerate the development of a vaccine to prevent HIV infection and AIDS. IAVI is financially supported by governments, multilateral organizations, and major private sector institutions and individuals. Public Private Partnerships for Disaster Management, brings together the Private sector for PPP models with a tool box of partnership opportunities towards Resilient & Sustainability Goals

Q4: Businesses need to focus and report on Triple Bottom Line, briefly explain the requirements of Global Reporting Initiative(GRI)?? Ans:

Green business - the triple bottom line

The phrase was coined by John Elkington in 1994

Sometimes referred to as "TBL", "3BL; triple bottom line simply stands for People Planet Profit Triple Bottom Line reporting is becoming an accepted way for businesses to demonstrate they have strategies for sustainable growth. The triple bottom line is a form of reporting that takes into account the impact your business has in terms of social and environmental values along with financial returns. Whereas traditional models were all about profit, profit and more profit; triple bottom line accounting recognizes that without happy, healthy people to staff a business and the natural environment able to sustain those people and supply resources for trade; business is, well, simply unsustainable in the long run. People This is also known as Human Capital. It really just means treating your employees right, but furthermore also the community where your business operates. In this part of the Triple Bottom Line model, business not only ensures a fair day's work for a fair day's pay; but also ploughs back some of its gains into the surrounding community through sponsorships, donation or projects that go towards the common good. TBL business would not use child labour, would pay fair salaries to its workers, would maintain a safe work environment and tolerable working hours, and would not exploit a community or its labour force. A TBL

business also typically seeks to "give back" by contributing to the strength and growth of its community with such things as health care and education. The Global Reporting Initiative (GRI) has developed guidelines to enable corporations and NGO's alike to comparably report on the social impact of a business. Planet This is Natural Capital. A business will strive to minimize its ecological impact in all areas - from sourcing raw materials, to production processes, to shipping and administration. It's a "cradle to grave" approach and in some cases "cradle to cradle" i.e. taking some responsibility for goods after they've been sold - for example, offering a recycling or takeback program. A TBL endeavour reduces its ecological footprint by, among other things, carefully managing its consumption of energy and non-renewables and reducing manufacturing waste as well as rendering waste less toxic before disposing of it in a safe and legal manner. A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals for example. A number of respected reporting institutes and registries exist including the Global Reporting Initiative, CERES, Institute 4 Sustainability and others. Profit This is more about making a honest profit than raking a profit at any cost - it must be made in harmony with the other two principles of People and Planet. While many major corporations used to sneer at the idea of a Triple Bottom Line reporting system; some have taken the bull by the horns; with a positive flow on effect to their suppliers. Because supply chains are also accountable to the overall impact of a company, they also come under scrutiny in the triple bottom line audits. A good example of this is some big box stores "greening" up their act and in doing so, demanding that their suppliers use less packaging or banning certain ingredients from products. The Global Reporting Initiative (GRI) produces the worlds de facto standard in sustainability reporting guidelines. Sustainability reporting is the action where an organization publicly communicates its economic, environmental, and social performance. The GRIs mission is to make sustainability reporting by all organizations as routine and comparable as financial reporting. The GRI Guidelines are the most common framework used in the world for reporting. More than 1000 organizations from 60 countries use the Guidelines to produce their sustainability reports. (View the worlds reporters at the GRI Reports database). All sorts of organizations report using the GRI Guidelines, such as corporate businesses, public agencies, smaller enterprises, NGOs, industry groups and others.

Reporting on sustainability performance is an important way for organizations to manage their impact on sustainable development. The challenges of sustainable development are many, and it is widely accepted that organizations have not only a responsibility but also a great ability to exert positive change on the state of the worlds economy, and environmental and social conditions. The GRI refers to the global network of many thousands worldwide that create the Reporting Framework, use it in disclosing their sustainability performance, demand its use by organizations as the basis for information disclosure, or are actively engaged in improving the standard. The network is supported by an institutional side of the GRI, which is made up of the following governance bodies: Board of Directors, Stakeholder Council, Technical Advisory Committee, Organizational Stakeholders, and a Secretariat. Diverse geographic and sector constituencies are represented in these governance bodies. The GRI headquarters and Secretariat is in Amsterdam, The Netherlands.
The GRI Guidelines are the most common framework used in the world for reporting. Common framework for sustainability reporting similar to GAAP for financial reporting Enhance reporting features Credibility Consistency Comparability Simplifies report preparation and assessment

Reporting - How to go about it

Identify and prioritize the key audiences for their communications Decide on the key messages Establish the appropriate communications channels for the target audience Give all relevant contacts for people involved in programs Report on the impact achievements of their social responsibility in business or CSR program, short & long term Over time, ensure communications develop as a two-way dialogue with key stakeholders with a real flow of information and ideas running both ways.

Q5: CSR leads to sustainable business advantage, justify giving advantages that you think accrue to a socially responsible business.

Ans: The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones. The business case for CSR within a company will likely rest on one or more of these arguments:

Human resources
A CSR programme can be seen as an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering.

Risk management
Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These events can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks

Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition which can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and American Apparel are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice.

License to operate
Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity or the environment seriously, and so avoid intervention. This also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay. Those operating away from their home country can make sure they stay welcome by being good corporate citizens with respect to labour standards and impacts on the environment.

CSR Business Advantage

Increased sales & market share Reduce cost, risks, liabilities, litigation cost Access to large talent pool corporate & brand reputation advantage Better employee retention reduced cost of training Availability of growing pool of international capital Customer satisfaction, loyalty, advocacy Improved Corporate Image Improved stakeholder value Sustainable development Status of preferred supplier / partner Environmental sustainability Newer markets / opportunities Stakeholder support in times of crisis Competitive mileage

Q6: Please explain how are Indian and Multinational companies framing their response to CSR by way of initiatives in the area of Climate Change, Alternative Energy sources, Energy efficiency and conservation.

Ans: In India, Vedic period (daan - Merchant charity) -Scriptures advocate

people and environment friendly codes of conduct. Traditionally an eco friendly society is conscious of eco systems and its equilibrium.

Environment

Alternative Energy Sources Climate Change Energy Efficiency and Conservation "Forest Friendly" Practices Green Building or Product Design Recycling Efforts Sustainable Business Practices Water Conservation and Quality

Indicator - Environment

Overall energy consumption Water usage Quantity of solid waste produced by weight/volume Upheld cases of prosecution for environmental offences (CO2/greenhouse gas emissions) Other emissions (eg Ozone, Radiation, SOx, NOx etc) Use of recycled material Percentage of waste recycled Net CO2 contribution made Environmental impact over the supply chain Environmental impact, benefits or costs, of companies core products and services Positive and negative media comments for environmental activities
A committed separate department monitors the Environment Pollution Control and Effluent Treatment facilities, re-cycling of effluents and control of stack emissions. M&M has been the recipient of the prestigious International Award Oscar of the Safety World the Sword of Honour from the British Safety Council, London in 1993. The Award is presented to 30 best/safest companies in the world over.