Corporate Social

Responsibility
Introduction
Corporate Social Responsibility
is basically a new business
strategy to reduce investment
risks & maximize profit by
taking all the key shareholders
into confidence. Many
companies often use this
concept in their advertising &
social marketing initiatives.
Acc. To Dr. Madhav Mehra
(president UK based world environmental
foundation & world council for Corporate
Governance)

the importance of Corporate Social Responsibility

would increase further as the future market would be
driven by a young population for whom social, ethical
& environmental issue were very important & who
liked to be informed about the organization.
Importance of Corporate Social
Responsibility
The importance of CSR has increased with
globalization as both investors &
customers have become very sensitive to
societal & environmental issues.
With growing globalization, CSR had been
increasing as it helps the business
organizations to impulse their relationship
with local communities, increase the
branding of the organization & building a
good corporate image for themselves.
Need for Social Responsibilities
The iron law of responsibility
To fulfill long run self interest
To establish a better public image
To avoid government regulation
and control
To avoid misuse of natural
resources and economic power
To minimize environmental damage
CSR is based on 3 Ps viz., People,
Planet & Profit

PEOPLE

CSR

PLANET PROFIT
 CSR stresses on the following issues:

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Stakeholders
Interest
Economic Sustainability
& Development Corporate profit
& social prosperity
There are various levels an organization has to
undergo for being more responsible & More involved.

SOCIAL RESPONSIBILTY

SOCIAL RESPONSIVENESS

SOCIAL OBLIGATION

LEVEL OF SOCIAL INVOLVEMENT

 Corporate social responsibility offers many
benefits both internally & externally to the
organizations.
Externally it helps in the way:
a) To create +ve image amongst the people for its
company.
b) Earns special respect for the top management &
the subordinates.
c) Creates short term employment opportunity by
taking various projects like campaigns against
smoking, literacy programs etc.
d) By having good reputation, it is easy for the
management to recruit employers & more
important is to retain them.
e) By controlling pollution & minimizing wastes by
recycling used products.
 Internally it is helpful to an organization through
various ways:
a) It creates a sense of loyalty & trust amongst the
employees in the organizational ethics.
b) It serves as a diversion from routine workplace
practice & gives a feeling of satisfaction to the
employees.
c) It improves operational efficiency of the company
by increasing the efficiency of employers resulting
into increase in quality of product & productivity.
d) Employers feel motivated & are more productive.
e) CSR helps to ensure that the organization
complies with regulatory requirement.
 CSR helps in visualizing 2 extreme
views that to whom is management more responsible.

LESS SOCIAL RESPONSIBILITY MORE

Ist Stage 3rd Stage 4th Stage

Owners 2nd Stage Elements Whole
& Employees Of Specific Society
Management Environment
 Cntd...
Management: Corporate Contribution earlier was limited to financial
donation. This is giving way to more holistic approach as employees
are now getting involved & companies like GE, Tatas, Infosys etc.,
encourage their employees to give back to communicate who sustain
their business.

Employees: Ever increasing corporate social responsibility reflects

the growing expectation of the employees, about the growing role of
company in society & the response of companies towards the
community.

Environment: Many organizations like Infosys, Tatas, ITC & many

more are helping people to harmonize with nature by reducing
pollution. Social responsibility is not only improving the external
environment but also improving internal environment which includes
improving quality of work life, reducing hazard in workplace, equality
in employment etc.

Society: The most important way in which scope of social

responsibility can be viewed is in terms of social concern & promotion
of common welfare programmes for the upliftment of poor & needful
public.
Example of CSR
INDIAN OIL

At Indian Oil CSR has been the corresponds of

success right from its inception. The corporations
objective can be seen in its mission statement
.to help enrich the quality of life of the
community & preserve ecological balance & heritage
through a strong environmental conscience. every
year Indian oil fixes a portion of its profit for
spreading smiles in millions of live through a
comprehensive community welfare & development
programme.
As part of its environmental protection initiatives
Indian oil has invested nearly Rs. 7,000 cr. In the
technologies at its refineries for production of green
fuels meeting global standards.