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350 definitions of CSR

Six options for doing good

1. Cause promotion. 2. Cause related marketing. 3. Corporate social marketing. 4. Corporate philanthropy. 5. Community volunteering. 6. Social responsible business practices.

What are the base principles which shaped business thinking about social responsibility?

Charity Principle
The charity principle, the idea that the wealthiest members of society should be charitable toward those less fortunate, is a very ancient notion. Andrew Carnegie and John D. Rockefeller are usually credited with pioneering the path of the great modern philanthropists. Carnegie and Rockefeller had given away $332 million and $175 million respectively by the completion of 1913.

Stewardship Principle
As per the stewardship principle employer should act in the general publics interest. Although their firms are privately owned and they try to make profits for the stockholders, business leaders who follow the stewardship principle believe they have an obligation to see that everyone-particularly those in need or at risk-benefits from their firms actions.
HP Brazil, a subsidiary of HP, developed the Digital Garage project where the firm collaborated with local Brazilian foundations and youth clubs to provide young Brazilians from less privileged backgrounds the tools to develop self-esteem, creativity, sociability, entrepreneurship, leadership, citizenship, team work, and IT skills. 7

TIMELINE OF CSR

Social Initiatives and Practices prior to 1950s

1950

Since good argument can be made that CSR began to take

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from in the 1950s, it is useful to consider some developments before that time in way of providing context rather than detailed content. In examining the mid-to-late 1800s, it is apparent that emerging businesses were especially concerned with employees and how to make the more productive workers. It was usually seen that the industrial welfare movement of this early period as an uneven mixture of humanitarianism philanthropy, and business acumen.

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1950

Welfare schemes emanating from this movement sought to

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prevent labor problems and improve performance by taking actions which could be interpreted as both business and social. Individual entrepreneurs and business owners for years gave their own money to support social causes that today might be categorized as socially responsible. Business people were hearing from individuals whose education and professional training merited respect, and their views on the relationship between business and society could not be easily dismissed.

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1950

CSR concepts and practices proliferate in the 1960s

Social responsibility in the final analysis implies a public

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posture towards societys economic and human resources and a willingness to see that those resources are utilized for broad social ends and not simply for the narrowly circumscribed interests of private person and firms. The new concept of social responsibility recognizes the intimacy of the relationships between the corporation and society and realizes that such relationship must be kept in mind by top managers as the corporation and the related groups pursue their respective goals.

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CSR accelerates in the 1970s

1950

Harold Johnson brought forward the concept of Social

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Responsibility through conventional wisdom which is as follows: A socially responsible firm is one whose managerial staff balances a multiplicity of interests instead of striving only for larger profits for its stockholders, a responsible enterprise also takes into account employees, suppliers, dealers, local communities and the nation.

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1950

In its broadest sense, CSR represents a concern with the needs

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and goals of the society which goes beyond the merely economic. In so far as the business system as is exist today can only survive in an effectively functioning free society, the CSR movement represents a broad concern with businesss role in supporting and improving that social order.

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1950

Complimentary themes to CSR ascend in 1980s

In the 1980s, the focus on developing new or defined

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definitions of CSR gave way to research on CSR and a splintering of writing on alternative or complimentary concepts and themes such as corporate social responsiveness, corporate social performance, public policy, business ethics, and stakeholders theory. Just to mention a few. The interest in CSR did not die out; rather, the core concerns of CSR began to be recast into alternative or complementary concepts, theories, models, or themes.

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CSR is the notion that corporations have an obligation to

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constitute groups in society other than stockholders and beyond that prescribed by law and union contract. CSR relates primarily to achieving outcomes from organizational decisions concerning specific issues or problems which have beneficial rather than adverse effects upon pertinent corporate stakeholders. The normative correctness of the products of corporate action have been the main focus of CSR.

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CSR serves as base point for complimentary themes in 1990s

The prominent themes which continued to grow and take centre

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stage in the 1990s included the following: Corporate social Performance, stakeholders theory, business ethics, sustainability, and corporate citizenship. A fair amount of research sought to examine the relationship between CSP and financial performance. In terms of management philosophy or policy, strategic giving, cause related marketing, international donations employee volunteerism, sustainability and global corporate citizenship emerged to characterized many CSR initiatives.

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Introduction of Karmayog CSR rating system in 21st century

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The Karmayog Corporate Social Responsibility (CSR) study

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and ratings present a snap-shot of the largest 500 companies in India, with specific focus on their CSR initiatives. It gives ratings to companies between 0 level to 5 levels. 0 level means much poor CSR activity and 5 level means highest rating regarding CSR activity. It recommends that a company should spent a minimum of 0.2% of its Sales on CSR activities.

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1950

Every company harms the environment and people! Corporate Social Responsibility is thus just about two aspects: 1) The steps taken by a company to neutralize, minimize or offset the harmful effects caused by its processes and product-usage. 2) The further steps a company takes using its resources, core competence, skills, location and funds for the benefit of people and the environment.
This is the basic premise for Karmayog undertaking a rating of the

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Corporate Social Responsibility activities of Indias 500 largest companies (by sales)
This is the first time that such an exercise has been done in any country.
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2010

 Results of the Karmayog CSR Ratings of the 500 largest

Indian companies - 2010

Karmayog CSR Rating 2010 - No. of companies Level 5 (highest) - 0 Level 4 - 12 Level 3 - 66 Level 2 - 161 Level 1 - 148 Level 0 (lowest) - 113 -----------------Total - 500

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 Companies with a Level 4 rating are: Ballarpur Industries,

HDFC, Infosys Technologies, Jubilant Organosys, Kansai Nerolac, Larsen and Toubro (L&T), Mahindra and Mahindra, Moser Baer, Tata Consultancy, Tata Steel, Titan Industries and Wipro.

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Arguments in favor of CSR

Balances Corporate Power with Responsibility.
Discourages Governments Regulation. Promotes Long-term profits for business. Improves business value and reputation. Corrects social problems caused by business.

Arguments against CSR

Lower Economic Efficiency and Profit.
Imposes Unequal Costs among Competitors. Imposes Hidden Costs Passed On to Stakeholders. Requires Skills Business may Lack. Places Responsibilities on Business Rather than Individuals.

Ballarpur Industries Ltd

Financial result for time period July 2009 - June 2010
Sales Rs. 3896 Crores Profit before tax Rs. 279 Crores

Net profit after tax Rs. 240 Crores

CSR Budget Not Disclosed Remuneration of MD/CEO Rs. 3 Crore

Industry Sector - Paper

Products / Services - Paper
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CSR activities of BILT

1. Community Welfare
2. Assistance in capacity building 3. Employability training for youth

4. Farmers Training and Demonstration on Best Agricultural Practices

5. Poverty Eradication 6. Rural Development 7. Vocational Training 8. Women
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Larsen & Toubro (L&T)

Financial result for time period April 2009 - March 2010
- Sales Rs. 46565 Crores - Profit before tax Rs. 7345 Crores - Net profit after tax Rs. 5308 Crores - CSR Budget Rs. 64 Crores - Remuneration of MD/CEO Rs. 15 Crores

Industry Sector - Engineering and Machinery

Products

/ Services - Construction and project related activity, Plant & equipment modules for projects, Chemical plant and machinery
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CSR activities of Larsen & Toubro (L&T)

Health
Life Skills Education Employee Volunteering

Vocational training for school dropouts

Mother & Child Health CSI Cell

Larsen & Toubro - Public Charitable Trust

Ladies Clubs
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HDFC ltd
Financial result for time period April 2009 - March 2010
Sales Rs. 12356Crores Profit before tax Rs. 3884Crores

Net profit after tax Rs. 3241Crores

CSR Budget Rs. 10.5Crores Remuneration of MD/CEO Rs. 3.9Crore

Industry Sector - Financial Services

Products / Services - Housing Finance, Consultancy

Service, Leasing
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CSR activities of HDFC ltd

Shelter Assistance Reserve
Akshaya Patra Foundation / Iskcon Food Relief Foundation The Akanksha Foundation Sneha Concern India Foundation The Bhavishya Yaan Mission

CRY Child Rights & You

DHAN Foundation KDFS Savali
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Kansai Nerolac Paints Ltd

Financial result for time period April 2009 - March 2010
Sales Rs. 1856 Crores Profit before tax Rs. 239 Crores

Net profit after tax Rs. 166 Crores

CSR Budget Rs. 0.4 Crore Remuneration of MD/CEO Rs. 2.4 Crore

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CSR activities of Kansai Nerolac Paints ltd.

Free Medical Health Check Up Camp at Jainpur.
Eye Camp organised by Perungudi FactoryParticipation in

AIDS Awareness Camp by Bawal.

Support for Health Camp. Medical Camps at Depots. Snehalay Trust. Distribution of School Bags at Jainpur. Installation of hand pumps in villages of Jainpur Dehat. Distribution of Blankets to Underprivileged.
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Moser Baer (India) ltd

Financial result for time period April 2009 - March 2010.
Sales Rs. 2823Crores. Profit before tax Loss. Net profit after tax Loss. CSR Budget Not Disclosed. Remuneration of MD/CEO Rs. 2.4Crore.

Industry Sector - Engineering and Machinery.

Products / Services - Magnetic disc, Compact disc

recordable, Storage units.

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CSR activities of Moser Baer (India) ltd

Green Films.
Strategic initiatives. Employee Engagement.

Education, Youth development, Health and livelyhood.

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DELL INC.
Cause promotions: dell recycle Partner with National Cristina Foundation (serve disabled and economically disadvantaged children and adults). Customers donate computer equipment to charity to receive tax deduction. Cause related marketing: discounts for recycling online To encourage recycling of used product dell offered a deal that recycle three product and get 50 % discount. Corporate social marketing: printer recycling People who buys new printer can recycle their old printer without any additional cost.

 Corporate philanthropy: direct giving Program gives chance to employee to contribute for their choice through payroll deduction. Community volunteering: eco-efficiency team Program for employees to bring innovative ideas for environment oriented projects. Socially responsible business practices: design for environment program They take keen interest in product life span, reduce energy consumption, avoid environmentally sensitive material, promote dematerialization, use parts which can be recycled.

Infosys
Practice in giving back to the society concept Community service for people by providing IT education. training to teachers. Donated computers across india for project computers@classrooms launched by Microsoft. Help in social calamities and social causes and providing jobs to socially backward class people in their campus with their campus. Environment friendly.

 Provide fellowship program in the field of IT, Management, and law in five IITs, three IIMs, National Law College (Mysore).

Invested 7.3 crores in social rehabilitation activities such as

constructing orphanages, girls hostel, and relief center. It has constructed Hospitals, Wards, Rehabilitation Centers, and

Dharmashalas.
Foundation of A Library For Every School in rural areas of Karnataka. So far 10,000 libraries have been set up.

Invested 85.3 lakh in promoting Art and Cultural activities.

REEBOK
A well know and an established company with a rich heritage.
In 1988, Protest against Apartheid in RSA. Reebok Human Rights Awards to young people who made

contributions to prevent human right violations.

A concert Human Rights Now to mark UNs Universal declaration of Human Rights.

In 1992, Reebok Human Rights Production Standards was

established which served as a bench mark for the factories under the company.

 A project named Witness was also launched which equipped the HRD with computers, video cameras to closely monitor issues. In 1996, after allegations from media about employment of child laborers , the Reebok inquired about it and then started selling its soccer balls with label Guarantee: Manufactured without Child Labor In 1997, REAP (Reebok Educational Assistance to Pakistan) was launched also Workers Communication System in Indonesia. Fair Labor Association

Trouble in paradise
Reebok entered Chinese market in 1984 and used to manufacture using sub contractors. Lack of implementation of local Labor Laws and resultant problems like Low wages, poor working conditions and lack of consideration for workers. Also, overtime without pays , fines, hazardous and unhygienic working conditions causing health problems and rampant child labor. Workers were also ignorant of the law.

 Reeboks Response: Setting up of a code of conduct for the companies working in China and its strict implementation. A workshop to encourage co-operation between workers and owners. China Working Womens Network for the female workers working at the factory. In July 2001, Fair Union Elections.

An Unbroken Resolve
But Reebok remains committed to Human Rights and its responsibility towards what it does and to the society. The steps taken by Reebok have become very effective in some fields like it has been able to reduce overtime by 50 hours in China. In 2002, fair union elections took place in China. The proportion of workers were evened out. Announced and Unannounced inspections take place and because of which the conditions in Chinese factories are improving.

Hurricane Katrina
Post scenario of Katrina hurricane
Death of 1,163 people and damage was estimated to be more

than$200 billion. Emigrant saving bank deposited $1000 in the saving bank account of each customers in the area hardest hit by the storm. Georgia specific, a home improvement retailer, sent 65 truckloads of consumer goods.

 Wall mart donated $17 million in cash to relief agencies and

followed of shipping more than 100 truckloads of consumer goods. GE provided a mobile tower plant to a fuel transfer station in Louisiana. Amgen, provided $2.5 million worth of medicines. Casinos paid money to more than 14,000 employees for 90 days even though business was at halt.

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Bibliography
A.T.Lawence, J.Weber. Business & Society. New Delhi: Tata Mcgraw

Hill, 2010. Kotler, N.Lee. Corporate Social Responsibility. Wiley India Pvt.Ltd., 2008 C.V. Baxi, A.Prasad. Corporate Social Responsibility. New Delhi: Excel Books, 2005. R.Jatana, D.Crowther. Corporate Social Responsibility. New Delhi: Deep & Deep Publications Pvt.Ltd., 2007 P.Banerjee, V.Shastri. Social Responsibility and Environmental sustainability in Business. New Delhi: SAGE publication, 2010 www.karmayog.org/ www.google.com/

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