Corporate Social Responsibility

Why Corporate Social

Responsibility ?
 Business is a product of environment
 Impact on the environment

INTERNAL BUSINESS EXTERNAL

ENVIRONMENT DECESION ENVIRONMENT
CORPORATE SOCIAL RESPONSIBILITY
(CSR)
Abhraham Lincon
Don’t see what country gives you but see what do you give to
country
General
One of humankind’s greatest challenges this century
will be to ensure sustainable, just and balanced
development. The needs of current and future
generations cannot be met unless there is respect
for natural systems and international standards
protecting core social and environmental values. In
this context, it is increasingly recognized that the
role
o
The concept of CSR was first mentioned in 1953 in the
publication
by William J Bown. But this concept had been popularized in
1990.
Corporate social responsibility is basically a corporate
philosophy where by companies decide voluntarily to
contribute to a better society and clear environment.
CSR is represented by contribution undertake by companies to
society through its business activity and social investment.

CSR is a concept of applied ethics. he UN has developed the 

Principles for Responsible Investment as guidelines for
investing entities.
What is Corporate Social Responsibility ?

"Corporate Social Responsibility is the

continuing commitment by business to
behave ethically and contribute to
economic development while improving
the quality of life of the workforce and
their families as well as of the local
community and society at large"
CSR is a concept whereby companies integrate social
and environmental concerns in their business
operation and in their interaction with their
stakeholders on a voluntary basis.

CSR is represented by the contribution undertaken by

the companies to society through its business
activities and its social investments.
Over the last years an increasing number of companies
world wide started promoting their CSR strategies
because the customer the public and the investor
expect them to act sustainable as well as responsible.
Corporate social responsibility (CSR, also called corporate
conscience, corporate citizenship, social performance,
or sustainable responsible business) is a form of corporate 
self-regulation integrated into a business model. CSR policy
functions as a built-in, self-regulating mechanism whereby
business monitors and ensures its active compliance with the
spirit of the law, ethical standards, and international norms. The
goal of CSR is to embrace responsibility for the company's actions
and encourage a positive impact through its activities on the
environment, consumers, employees, communities, stakeholders
 and all other members of the public sphere. Furthermore, CSR-
focused businesses would proactively promote the public interest
 by encouraging community growth and development, and
voluntarily eliminating practices that harm the public sphere,
regardless of legality. CSR is the deliberate inclusion of 
public interest into corporatedecision-making, that is the core
business of the company or firm, and the honouring of a 
triple bottom line: people, planet, profit.
 Common Understanding One: Integration

Corporate Social Responsibility: The Integrated

Approach to Business in the 21st Century

Consumer
Exchange Confidence Interest
Rates Rates
Regulation/Policy
Governance

Economic
Climate Corruption
Change

Environment Social Communities

Waste

Biodiversity Labour/
Workplace
Resource Human
Use Rights
Potential business benefits
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.  However, businesses
may not be looking at short-run financial returns when
developing their CSR strategy.
The definition of CSR used within an organization can vary
from the strict "stakeholder impacts" definition used by many
CSR advocates and will often include charitable efforts and 
volunteering. CSR may be based within the human resources, 
business development or public relations departments of an
organisation or may be given a separate unit reporting to the 
CEO or in some cases directly to the board. Some companies
may implement CSR-type values without a clearly defined
team or programme.
Human resources
A CSR programme can be 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 improve the perception of a
company among its staff, particularly when staff can become
involved through payroll giving, fundraisingactivities or
community volunteering. See also 
Corporate Social Entrepreneurship, whereby CSR can also be
driven by employees' personal values, in addition to the more
obvious economic and governmental drivers.
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 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 that 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.[14]
 Several major brands, such as The Co-operative Group, The Body
Shop and American Apparel[15] 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 as good corporate citizens with
respect to labour standards and impacts on the
environment.

Today, there is growing perception among enterprises

that Sustainable business success and shareholders
value cannot be achieved solely through maximizing
short term profit but through market oriented and
responsive behavior.
 
Corporate Social Responsibility in India –
Putting Social-Economic Development on a
Fast Track
Corporate Social Responsibility (CSR) defined as “the ethical
behavior of a company towards the society,” manifests itself in
the form of such noble programs initiated by for-profit
organizations. CSR has become increasingly prominent in the
Indian corporate scenario because organizations have realized
that besides growing their businesses it is also vital to build
trustworthy and sustainable relationships with the community at
large. This is one of the key drivers of CSR programs.
Another reason fuelling this rapid adoption of CSR is the state
of the Indian society. Though India is one of the fastest growing
economies, socio-economic problems like poverty, illiteracy,
lack of healthcare etc. are still ubiquitous and the government
has limited resources to tackle these challenges. This scenario
has opened up several areas for businesses to contribute
towards social development.
CSR is not a new concept in India. Corporates like the Tata
Group, the Aditya Birla Group, and Indian Oil Corporation, to
name a few, have been involved in serving the community ever
since their inception. Many other organizations have been
doing their part for the society through donations and charity
events.
Today, CSR in India has gone beyond merely charity and
donations, and is approached in a more organized fashion. It
has become an integral part of the corporate strategy.
Companies have CSR teams that devise specific policies,
strategies and goals for their CSR programs and set aside
budgets to support them.
Four years ago, Reliance Industries Ltd. launched a
countrywide initiative known as “Project Drishti”, to restore the
eye-sights of visually challenged Indians from the
economically weaker sections of the society. This project,
started by one of India’s corporate giants has brightened up
the lives of over 5000 people so far.
Today, CSR in India has gone beyond merely charity and donations,
and is approached in a more organized fashion. It has become an
integral part of the corporate strategy. Companies have CSR teams
that devise specific policies, strategies and goals for their CSR
programs and set aside budgets to support them.

For example, organizations like Bharath Petroleum Corporation

Limited, Maruti Suzuki India Limited, and Hindustan Unilever Limited,
adopt villages where they focus on holistic development. They provide
better medical and sanitation facilities, build schools and houses, and
help the villagers become self-reliant by teaching them vocational and
business skills.

On the other hand GlaxoSmithKline Pharmaceuticals’ CSR programs

primarily focus on health and healthy living. They work in tribal
villages where they provide medical check-up and treatment, health
camps and health awareness programs. They also provide money,
medicines and equipment to non-profit organizations that work
towards improving health and education in under-served communities.
Pyramid of CSR
Philanthropic Responsibilities
Be a good corporate citizen.

Ethical Responsibilities
Be ethical.

Legal Responsibilities
Obey the law.

Economic Responsibilities
Be profitable.
 Corporate Social Responsibility (CSR)

CSR in Equation Form Is the Sum of:

Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate citizen)
CSR
 Corporate Social Responsibility (CSR)
Corporate Social Responsibility – An implementation
Guide for Business
• The Global Reporting Initiative (GRI) Sustainability
Reporting Guidelines;
• The International Organization for Standardization
(ISO) standards;
• The AccountAbility AA1000 Series; and
•The social Accountability International SA8000
standards