Corporate Social Responsibilities - Challenges ( Research Paper)

7/30/2019 Corporate Social Responsibilities - Challenges ( Research Paper)

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Corporate Social Responsibilities Growing Challenges and Strategies withreference to Public sector and Private Sector in India.

Type: Literature review/ Conceptual PaperName of Research Scholar: Santosh Basavaraj,

Research Scholar,Anna University of Technology, Coimbatore.

Research Supervisor: Dr.B.Rajasekaran,Principal,RKKR School of Management StudiesEttimanickampatty,Coimbatore Road, SALEM 637 504

Abstract

Purpose of the research

The purpose of this research paper is to identify and gain an insight into the set ofchallenges faced by Public sector and Private sector companies in implementingand sustaining good Corporate Social Responsibility practices and exploring the conceptualsolution to face the challenges.

Design/methodology/approach This is an exploratory research design and it is used to seekinsight in to challenges faced in implementing and sustaining Corporate Social Responsibility

(CSR). Various CSR models has been considered for the study, here an attempt is made to

explore the conceptual strategies to meet these challenges.

This research is aimed at very wide exploration of view and this research is interactive in nature

and also open ended.

Findings This research gains an insight of various challenges faced by Public sector andPrivate sector Industries in India and these Challenges are posed by external and as well as

internal environment. Conceptual strategies are evolved in a view to implement and sustain

challenges which enables organizations to cope up.

Practical implicationsThe findings of this research paper will enable the managers to consider

the various options available to face the Challenges of Corporate Social Responsibility. The

output of this research paper is useful for academic purpose also.

Originality/valueChanging scenario has brought many changes in the operation of both publicand private organizations and today organizations are realizing the importance of Corporate

social responsibility and this research is an effort to identify various challenges faced in the area

of Corporate Social Responsibility and explores the various strategies to optimally meet thesechallenges. These strategies are originally conceptualized by this research scholar with a strongliterature review as the bases of study

Keywords: Challenges, conceptual Solutions, Definitions, Literature review


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Corporate scandals

Proactive role

Terms are interchangeable

Intergrated

Dynamic and challenging,shaping future

Go deeperEpistemological

Nonetheless, corporate responsibility in emergingmarkets, while more extensive than commonly believed, is less embedded in corporate

strategies, less pervasive and less politically rooted than in most high-income

OECD countries (p. 46).

RegionalCSR performance varies greatly between countries in Asia, witha wide range of CSR issues being tackled (e.g. education, environment, employee

welfare) and modes of action (e.g. foundations, volunteering, and partnerships). nearly threequarters

of large companies in India present themselves as having CSR policies and

practices versus only a quarter in Indonesia. My review also found that, in contrast to the socially oriented

focus of the


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literature on CSR in developing countries more generally, business ethics dominates

as a research topic in the region, accounting for 42% of all articles on CSR in Africaover the past decade. Latin Americans as the hope for positive change in the

face of persistent poverty, environmental degradation, corruption, and economic

aimed at addressing the socio-economic development challenges of the country,including poverty alleviation, health-care provision, infrastructure development,

and education.This, they argue, stands in stark contrast to many Western CSRpriorities such as consumer protection, fair trade, green marketing, climate change

concerns, or socially responsible investments.

poverty and tax avoidancedeforestation, unemployment, incomeinequality, and crime, mining conglomerate, administered citizenship rights, for example, improving working

conditions in sweatshops, ensuring for employees a living wage, and financing theschooling of child laborers in the absence of legislation requiring this.

Stagnation

poverty alleviation. The corporate response to the Asian

tsunamiindustrial accidents, Baskin (2006) identifiescompetitive advantage in international markets as one of the key drivers for CSR

As already noted, Baskins (2006) survey of CSR

practices in emerging markets indicates growing adoption rates of ISO 14001 andthe Global Reporting Initiatives Sustainability Reporting Guidelines.role of women in the workplace

local NGOs,

media is also emerging as a key stakeholdercivil regulation, litigation against companies, and international

legal instruments.of economic multipliers, including the capacity to generate investment and income,produce safe products and services, create jobs, invest in human capital,

establish local business linkages, spread international business standards, supporttechnology transfer and build physical and institutional infrastructure

It is worth re-emphasizing as a caveat that economic responsibility has two

faceseconomic contribution on the one side and economic dependence on theother.When communities or countries become overly dependent onmultinationals

for their economic welfare, there is the risk of governments compromising ethical,

social, or environmental standards in order to retain their investment, or sufferinghuge social disruption if those businesses do decide to disinvest, as occurred with

Anglo American in Zambia.

Legal ResponsibilitiesIn developing countries, legal responsibilities generally have a lower priority than

in developed countries. This does not necessarily mean that companies flauntthe law, but there is far less pressure for good conduct.

This is because, in manydeveloping countries, the legal infrastructure is poorly developed, and often lacks

independence, resources, and administrative efficiency.

Ethical ResponsibilitiesCrane andMatten (2007a) suggest that ethical responsibilities enjoy a much higherpriority in Europe than in the United States. In developing countries, however,

ethics seems to have the least influence on the CSR agenda.

Similarly, the 2002 revised KingReport was the first to include a section on integrated sustainability reporting,

covering social, transformation, ethical, safety, health, and environmental management

policies and practices (IoD, 2002).


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I would argue that improved ethical responsibilities, incorporating

good governance, should be assigned the highest CSR priorityBy contrast, if we are to work towards an ideal CSR Pyramid for CSR in developing

countries, I would argue that improved ethical responsibilities, incorporatinggood governance, should be assigned the highest CSR priority in developing countries.

It is my contention that governance reform holds the key to improvements

in all the other dimensions, including economic development, rule of law, andvoluntary action. Hence, embracing more transparent, ethical governance practices

should form the foundation of CSR practice in developing countries, which in turn

will provide the enabling environment for more widespread responsible business.

Conclusions.........................................................................................................................................

To summarize, I have argued that CSR in developing countries has the following

distinctive characteristics (Visser et al., 2007):

_CSR tends to be less formalised or institutionalized in terms of the CSRbenchmarks commonly used in developed countries, i.e. CSR codes, standards,

management systems and reports.

_Where formal CSR is practiced, this is usually by large, high profile national

and multinational companies, especially those with recognized internationalbrands or those aspiring to global status.

_Formal CSR codes, standards, and guidelines that are most applicable todeveloping countries tend to be issue specific (e.g. fair trade, supply chain,

HIV/AIDS) or sector-led (e.g. agriculture, textiles, mining).

csr in developing countries 493

_In developing countries, CSR is most commonly associated with philanthropyor charity, i.e. through corporate social investment in education, health, sports

development, the environment, and other community services.

_Making an economic contribution is often seen as the most important andeffective way for business to make a social impact, i.e. through investment, jobcreation, taxes, and technology transfer.

_Business often finds itself engaged in the provision of social services that wouldbe seen as governments responsibility in developed countries, for example,

investment in infrastructure, schools, hospitals, and housing.

_The issues being prioritized under the CSR banner are often different indeveloping countries, for example, tackling HIV/AIDS, improving working

conditions, provision of basic services, supply chain integrity, and povertyalleviation.

_Many of the CSR issues in developing countries present themselves as dilemmasor trade-offs, for example, development versus environment, job creationversus higher labour standards, strategic philanthropy versus political governance.

_The spirit and practise of CSR is often strongly resonant with traditionalcommunitarian values and religious concepts in developing countries, for

example, African humanism (ubuntu) in South Africa and harmonious society(xiaokang) in China.

_The focus on CSR in developing countries can be a catalyst for identifying,designing and testing new CSR frameworks and business models, for example,Prahalads Bottom of the Pyramid model and Vissers CSR Pyramid for

Developing Countries.Research into CSR in developing countries is still relatively underdeveloped and

tends to be adhoc with a heavy reliance on convenience-based case studies or

descriptive accounts. The focus is often on high profile incidents or branded companies


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and a few select countries (e.g. Brazil, China, India, South Africa), with a

general lack of comparable benchmarking data.Hence, there is an urgent need for further research on CSR in developing

countries at the international, regional, national and sectoral levels, as well as ontheoretical constructs. There is a dearth of international research which surveys the

nature and extent of CSR in developing countries, as compared with developed

countries. Next to this need for more data in general, there is need for morecomparative work which analyses CSR between regions (e.g. Africa, Latin America,

Asia) and between countries within regions. On a more national or regional level,

there is need for detailed national research on CSR, especially on the more than

100 developing countries that appear to have had no academic papers publishedabout them in CSR journals. Alongside these efforts there seems to be a specificneed for more sectoral research on CSRcodes and practices, especially for the lesser

494 csr in global contextcovered industries like chemicals, financial services, infrastructure (including construction),

manufacturing (including motor), media, retail, telecommunications,

and travel and leisure. Finally, all these different streams of empirical researchshould inform more conceptual work on CSR conceptions, frameworks, or modelsthat are more applicable to developing countries.

What is clear fromthis chapter, therefore, is that CSR in developing countries is arich and fascinating area of enquiry, which is becoming evermore important in CSR

theory and practice. And since it is profoundly under-researched, it also represents

a tremendous opportunity for improving our knowledge and understanding aboutCSR.

Every WPP company is a distinctive brand inits own right; all have their own identities andown areas of expertise.a fast moving creative environment made more

challenging by the need to balance commercial

goals with changing social expectations.Sustainable development will increasingly shape

consumer products. Some far-thinking companiesare already building sustainability into strategies

and products.

Unilever, for example, has three sustainabilityinitiatives in agriculture, fish and water.

informing

consumers of the social and environmental

significance of their purchase decisions.

Business leaders knownow more than everthey must establish and maintain a reputation

for social responsibility and good governance.

leading socially responsible

investment indexes, the Dow Jones SustainabilityWorld Index and the FTSE4Good Sustainability

Index, whilst recognising that we will have towork to maintain this position.

In the long term, successful companies will

be those that have a strong reputation for

corporate responsibility and respond creatively

to the challenges of sustainable development.This Review explains what WPP is thinking and


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By donating our time, money and intellectual capital tocharities we can make a positive contribution to society.

doing about CSR. We welcome your comments.

In 2001 our Groups total social investment, including proCharity and community donations by causeTotal 3.6 million ($5.8 million)_Local community1,019,947

_Health735,241_Education637,084_September 11413,605_Other causes403,543_Arts307,002_Environment86,523_Drugs/Alcohol

Employee volunteering

Our operating companies encourage their people to participatein community projects and charity work.

Social marketingSocial marketing is the fee work we do for governments,charities, corporations and other organisations workingon social issues. Like our pro bono projects, this is anopportunity for our people to use their creativity tomake a difference on some of todays biggest issues.WPP companies work on social marketing campaignscovering a diverse range of issues from child labour toliteracy and air pollution. Below are just two examplesOgilvy Outreach in India developed a campaign forclient Castrol India to help drought-affected regionsand boost sales of Castrol CRB Plus, a tractor lubricant.The company invested in water harvesting initiatives,

including dam and canal repairs and the construction ofwater tanks. To mobilise local communities, the initiativeswere introduced in partnership with local NGOs. Messagesabout the importance of water conservation and the roleCastrol was playing were promoted through a diversecommunications program, including puppet shows, bannersand community meetings. The results? Over 100 hectaresof canals and 47 hectares of dams were repaired; 42 farmbunds, 48 water tanks and two ponds were constructed.Top-of-mind recall for Castrol CRB Plus shot up from 45%to 91% during the campaigns first year.Consumers see community involvement as importantfor a business; they are prepared to change their buyinghabits for a product or service linked with a charityor cause.

Nurturing talentWe know that our business depends on talent

the diversity of people, their skills andcreativity. Yet,

But oddly, a focus on talent isnt the norm


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across the industry. Theres so much focus onthe work but theres a strange neglect of the

talented people who do the work. Thats notgood for the industry or its people, but it is an

opportunity for WPP.

What a privilege, and

what an awesome responsibilityprofessionalism, caring, and affirming. These can

make people wince, but, when practiced forthrightly

and consistently, make a company an excellent

place to work and a place that brings out the best

in all its people.

Often it comes down to a self-fulfilling prophecy.

When managers expect little of their people they

get it. Conversely, when they respect, mentor and

challenge people, they are usually surprised by the

good results.

No business, no matter how big or small, no

matter whether it has one office or hundreds,

no matter what products or services it sells, can or

should escape its responsibility to society at large.

Certainly businesses are responsible to their owners

and employees, but they are also responsible to

the communities in which they operate. This social

responsibility is magnified for international

businesses operating across the globe.

sensitive to the environmental impact of our

operations.

proper relationship with the governments

business, is measured not onlyin financial results but also in how we conduct

ourselves

Does marketing to children exploit the innocence

of young people and encourage them, for example,

to adopt unhealthy eating habits?

_Should we represent a country cited by respected

non-governmental organisations (NGOs) for

human rights abuses?

_Are there products which, while lawful, should

nonetheless not be marketed to certain segments

of the population, or perhaps not marketed at all?

_Are the political activities and fund-raising of

those employed in our public affairs companies

consistent with law and accepted standards of

ethical conduct?

_Should WPP public relations agencies pay for news

coverage in markets where it is common practice?

Ducking the hard questions, then, is not the

answer. But if we cannot avoid the hard questions


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we must make sure they are asked thoughtfully,

and disposed of correctly.

life is not so

accommodating. There are many shades of grey.

But the difficulty of the decision does not permit

us to walk away from it.

We believe that this approach has served uswell until now. But the increased focus on CSR,

in particular by the investment community,

means that we can no longer simply say, trustus to make the right decisions. We now needto be able to demonstrate how we ensure that

consistent standards are applied throughout

the Group and what procedures are used when

difficult cases arise.marketing inevitablyinvolves questions of ethicsEstablish a CSR committee across major Groupcompanies to oversee policy and coordinate activity._Ensure each company nominates a senior CSRrepresentative._Ensure Group audit identifies risks and confirmsmanagement practices._Require companies to report annually to the parentcompany via a strengthened CSR survey._Track worldwide infringements of regulatory codesof practice or regulations.

Marketing ethics targetsnew recycling projectEnergy consumption.Recycling of other materials including toner cartridges,cans, glass and computer equipment.

The Topsy Foundation:Supporting families affected by AIDSWPP companyOgilvy & Mather, South AfricaHome-based care and community outreach for over1,200 families in South African townships, includingfood, social welfare, clothing and medical services._In-house care for children who have lost their familiesThe alleviation of poverty through skills training andemployment in Topsy projects such as brick-building,pottery, ceramics, glassware and candle-making, aswell as a beadwork and sewing initiative for womenwho have become the main breadwinner due to AIDSand need income to support their families.Creative ideas have the power to change the world.The company is helping to bring poetry and the arts to awider audience as well as raise money for the homeless.The Forward Poetry Prizes an annual poetrycompetition that honours established and up andcoming poets._Big Arts Week helping professional artists to volunteertheir time and share their skills with local schoolchildren._Bedtime Reading Week a national campaign to inspiremore parents to read with their children.

World Vision:


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Educating the street children of KenyaCross-Group support for healthy babiesPartnership Against Drugs:Communicating a stronger messageUniversity Partnerships:Developing tomorrows leaders

National Campaign to PreventTeen Pregnancy:Breaking the silenceRight To Play:Supporting every childs right to playThe American Cancer Societys Hope Lodge:A home away fromhome for cancer patientsbono work and charitable donations, was worth 12.3 million($19.7 million), equivalent to 0.3% of revenue or 2.9% of our

pre-tax profits._approachIn this Review we set out to be transparent and candid aboutour performance, We have assessed the full range of CSR issues in the contextof our business and believe that the most significant areasfor us are:_Social investment, including donations andpro bono work._The development of our people._Marketing ethics._A small environmental impact

How we manage Corporate SocialResponsibilityCSR Policy in 2002Code of Business ConductCode of Business ConductTo track and improve our performance weneed to know how

our companies are managing social, ethical and environmentalissues, and how they perform. Since adopting our CSR Policy,we have begun to collect performance information from ouroperating companies annually.

But by and large

So if there was ever a time when Corporate Social

Responsibility was thought to be a sort of optional

accessory, useful for casting the holding companysboard of directors in a flattering light but with no

serious commercial implications, that time has gone

for ever. Western media. Today, an e-mail to a pressure

group is all thats needed to turn a local factory

issue into a major threat to the reputation of a

multinational company. With the firewalls down,deserved and adverse publicity can no longer be

safely contained within some remote corporate

silobut will wash freely around every product

they make and every enterprise they own. The investment made now by companies that are

establishing reputations for CSR leadership willbe handsomely repaid by brand sales in the future. In a world more pure and saintly than our own,

it could perhaps be expected for companies to


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behave with consistent social responsibilityevenwhen incurring additional cost and gaining no

commercial advantage from doing so.

Happily, however, when it comes to CSR,

a reputation for decency, if honestly earned,

really does seem to offer tomorrows companies

an invaluable (and technologically unchallengeable)competitive advantage.

CSR remains a very relevant strategic Marketing tool. Adam Lindgreen, et al (2009), observed

that CSR practices are more prevalent in

organizations that employ relational marketing practices.

Business cannot escape from society andsociety cannot exist without business (Davis and Frederick, 1985). Thus, there is a twowayrelationship between business and society, Cannon (1994) holds the view that

business is expected to create wealth, supply market, generate employment, innovate

and produce a sufficient surplus to sustain its activities and improve its competitivenesswhile contributing to the maintenance of community in which it operates.

SA8000 may emerge as theinternational social accountability standard.Consumers consider switching to another

company's products and services, speak out against the company to family/friends,

refuse to invest in that company's stock, refuse to work at the company and boycott thecompany's products and services in case of negative corporate citizenship behaviours

(Edenkamp, 2002). CSR practically has the

same effects as advertisements, because it sheds a positive light on a brand or product.That is why CSR can also be seen as an expression of marketing.People want to be engaged with companies that share their values (Scott

Beaudoin, 2009).

As corporations pursue growth through globalization, they haveencountered new challenges that impose limits to their growth and potential profits.

while 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 ofadvertising (Fry, Keim & Meiners, 1986).

CSR has shifted decisively from the realm of `nice to do' to the realm of `need todo' not just because it is a serious and sustained interest of consumers but also becauseopinion leaders recognise the fact and will act accordingly.

In

1970, Milton Friedman of New York Times rightly wrote: the social responsibility of

business is to increase profits. The concept of CRM is a very effective tool for earning aprofit while at the same time being socially responsible.

This will be expected and demanded -while becoming

another point-of-entry hygiene factor.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.If companies do not inform consumers properly about the CSR


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initiatives they take, they will not reap the benefits of their investments in CSR.

like education, health, livelihood creation, skill development, and

empowerment of weaker sections of the society.

Notable efforts have come from theTata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation

among others. The 2010 list of Forbes Asias 48 Heroes of Philanthropy contains four

Indians. The 2009 list also featured four Indians. India has been named among the topten Asian countries paying increasing importance towards corporate social

responsibility disclosure norms.

creating rural entrepreneurs.Coca-cola India worked hard towards water conservation and community

development has been given Golden Peacock Global award 2008 for CSR. successful inrestoring water conservation programme.

Many companies use CSR as a way to burnish their image, generate brand

equity, and increase employee loyalty.goodwill associated with being a good

corporate citizen into their marketing initiatives in efforts to gain sustainablecompetitive advantages.

A number of studies conducted in past arrived at

positive association between CSR and financial performance (Ruf et al, 2001).

Hindustan Unilever Ltd. (HUL) through its Surf Excel brand gained immeasurablereputation in the course of its campaign of education to poor children.

Companies going for CSR find it comparatively easy to recruit and retain the

skilled employees for a sufficient long period of time which are vital for the success ofbusiness (Krishna, 1992).

Consumers expect firms to conduct

business ethically, and they also showed their willingness to reward ethical behavior

and punish the unethical behavior of firms through their purchase behavior. Customersprefer to purchase from the companies which are conscious about CSR. Corporate social

responsibility ensures that corporations promote

corporate citizenship as part of their culture. Venu Srinivasan (2007) highlighted that CorporateSocial Responsibility is more

than philanthropy and must not mean giving and receiving. Therefore the focus of CSR could

be unlocking the last mileconnectivity. Industry must be a catalyst for social development. They must providethe leadership, know-how, training, etc. The future of marketing is full of CSR (Harish Bijoor,2008). Companies are beginning to realise the fact that in order to gain strategic

initiative and to ensure continued existence, business practises may have to be mouldedfrom the normal practise of solely focusing on profits to factor in public goodwill and

responsible business etiquettes (Raynard and Forstater, 2002). by demonstrating a commitment

to improving the quality of life in the communities in which they operate. consumers

expect corporations to be actively involved in activities of CSR. In todays competitive marketenvironment, corporate social responsibility


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represents a high profile notion that has strategic importance to many companies. CSR

contributes positively to firms market value.Managers can obtain competitive advantages and reap more financial benefits by

investing in CSR. Bharath Petroleum Corporation Limited, Maruti Suzuki India

Limited, and Hindustan Unilever Limited, adopt villagesCorporates have the expertise,

strategic thinking, manpower and money to facilitate extensive social change. Effectivepartnerships between corporates, NGOs and the government will place Indias social

development on a faster track ( Ramya Sathish,2010). One of Intels key programmes, called

Intel - Teach to the future, targetsteachers in schools, colleges and teacher training institutes to make them adept at

handling technology in the classroom and importing digital learning to future

generations (Preeti Mehra, 2004). GE had adopted an NGO called Vidyawhich has been educating underprivileged children for the past 18 years at New

DelhiGlaxoSmithKline 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 improvinghealth and education in under-served communities. SAP India in partnership with

Hope Foundation, an NGO that works for the betterment of the poor and the needythroughout India, has been working on short and long-term rebuilding initiatives for

the tsunami victims.

The SAP Labs Center of HOPE in

Bangalore, a home for street children, where they provide food, clothing, shelter,

medical care and education. (Ramya Sathish, 2010)._Benefits of CSRA new era of social consciousness is evolving throughout the world. fostering dialogue with their

customers. Today companies with the help of CSR reaping the benefits that are proactivelyand strategically building their "Social Brand Capital".CSR helps in increased market share and

new market penetration and also helpsunderstand and transform public perception of a company and industry. In factcompanies can successfully make a business case for improving profitability through

higher market share and increased customer loyalty if they can demonstrate their CSR

practices as unique differentiator (Balasubramanian, 2007). it has historically not been a verylucrative

approach for them to involve in these activities. The business of the 21-st century will

have no choice but to implement CSR. Like any successful management strategy, a CSR

process needs both high level management vision and support, and buy-in at all levelsof the company. CSR does not give immediate results. . The same CSR initiative will also

not work for all types of organisations. Designing CSR initiative requires careful

planning and implementation mechanism. Corporates should integrate the innovativeCSR strategies into different marketing communication strategies to build and sustain acompetitive

advantage.


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Social Audit

Risk associated with business strategies,some time makes sense and some time not D

Voge

Issues and concernsCultural and temporalHaving sketched a broad overview of the ways in which the literature on CSRin developing countries can be classified, as well as giving a flavour of CSR in a

regional context,The picture for small and medium-sized enterprises (SMEs) is slightly different.Although they are

not all unique to developing countries, together they build up a distinctive picture

of how CSR is conceived, incentivized, and practiced in emerging economies. I have

identified ten major drivers for CSR in developing countries, as illustrated in Figure

21.2 and discussed below. Internal drivers refer to pressures from within the country,while external drivers tend to have a global origin. INTERNALDRIVERSEXTERNALDRIVERSSocio-economicprioritiesPoliticalreform


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GovernancegapsCrisisresponseInternationalstandardization

CulturalCompanies consider

themselves as an integral part of the society and act in a socially responsible way(European Commission, 2001) Though

the earlier decades are referred to as false dawns wherein CSR had a regional, personcentered

philanthropic focus, it is now viewed to be inclusive, broad and diverse(Silberhorn and Warren, 2007). Companies facing the challenges of globalization are aware that

CSR can

be of direct economic value. They view these activities not as a cost but an investment, as

a long term strategy minimizing risks linked to uncertainty. (European Commission,

2001). Developed countries like USA and

UK have long seen CSR as a practice that benefits both organizations and society (Etang,

1994). It is

predicted that in the times to come companies will be judged more by their socialpolicies than on their delivery of products and services (Juholin, 2004). Many theorists have

also argued about theeconomic impact of CSR, some relating it positively with the profit (Adenekan, 2007;

Joyner and Payne, 2002) and some feeling that no such relationship exists (Aupperle et

al., 1985) Since CSR and corporate

reputation are the two sides of the same coin (Hillenbrand and Money, 2007)

European Commission (2001) defines CSR as a concept whereby companies decide

voluntarily to contribute to a better society and cleaner environment and as a process by

which companies manage their relationship with stakeholders. In a study of German andUK companies it was found that the largest corporations project CSR as a

comprehensive, sustainable business strategy and recognizes the business-society

interdependence (Silberhorn and Warren, 2007). The twenty six chosen companies were from

different industrial sectors like metals,chemicals and fertilizers, consumer durables, FMCG, services, and InfoTech. The content

analysis of the web pages . (Kirti Dutta, M. Durgamohan)For the sake of easeof analysis the initiatives were classified under five heads, namely: Rural

development,health, education, environment and social causes.

CSR is a multidimensional concept (Stanwick and Stanwick, 1998) and is comprised of a

number of variables. These variables include: firms profitability, charitable giving,

environmental emissions, women and minority members on the board of directors,

women and minority members within the firm, and annual salary and monetary bonus of

the Chief Executive Officer.CSR is not an occasional act of charity or contribution to a school,

hospital or an environmental NGO, but an ongoing commitment that is integrated into the

core business objectives and strategy, Even though they have not spelled out theinitiatives, the approach is similar to Hindustan Unilever Ltd.

Organizations are increasingly realizing that CSR is no longer a collection of discreetpractices or occasional gestures motivated by marketing or public relations. It is rather a


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comprehensive set of practices and policies that should be integrated into the

organizations operations and activities. (Kirti Dutta, M. Durgamohan)We can conclude that CSRinitiatives should form part of the overall business strategy so that

they are taken in the right earnest by firms and successfully implemented. . (Kirti Dutta, M.

Durgamohan)

CSR is often understood only from the perspective of business generosity to community

projects and charitable donations. . (Kirti Dutta, M. Durgamohan)traditionInvestmentincentivesMarketaccessStakeholderactivismSupply

chainsocio-economic development challenges of the country,including poverty alleviation, health-care provision, infrastructure development,

and education. This, they argue, stands in stark contrast to many Western CSRpriorities such as consumer protection, fair trade, green marketing, climate change

concerns, or socially responsible investments.

Fig. 21.2

EvolutionaryPyramid

Empirical test


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NeverthelessProliferate


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Proceedings of ASBBS Volume 18 Number 1 ASBBS Annual Conference: Las Vegas 681 February 2011

CORPORATE SOCIAL RESPONSIBILITY A TOOL TO

CREATE A POSITIVE BRAND IMAGEKaur, Maneet Lovely Professional University, Jalandhar, India.

Agrawal, Sudhir. Symbiosis International University, Noida, India

The present study is based on secondary data, information collected from authentic sources such

as books, journals, magazines and research reports and electronic data gathered through related

web sites. Explanation and exploration of different types of conceptual information presented in

the study is the result of observation, in depth reading, experiences and rational judgement of the

author and co-author of the paper.According to research carried out by Cone Inc. In 2009, 79% of consumers would switch to a brand

associated with the good cause.

After a year economic misery and banking crisis, consumers want to get associated with the brands

that believe more than a profit.

Survival of the company depends upon how responsible company is towards society.Though there are hidden costs but the difference made by such initiatives is huge and there is always

a challenge for corporate to identify Corporate Social Responsibility.

That is, if the company is well known in its community, its Corporate Social Responsibility activities

will strengthen its brand image more than they would if the company were less well known.

In fact, as Paul Abhram, COO, Induslnd Bank, puts it, If you dont start from within, the entire

Corporate Social Responsibility programme would turn out to be meaningless.

the central government is working on a framework for quantifying the Corporate Social

Responsibility initiatives of companies to promote them further.

public-private partnerships to build and maintain schools and hospitals in return for a fixed annuity

payment.

When a brand promotes a high-fit social-cause, it may be more likely to be viewed by someconsumers as opportunistic and seeking commercial gain.

Enriching a brand with ethical and social questions increases its value.

Corporate Social Responsibility initiatives are not only about philanthropy but translating these ideas

into practical business strategies.

With the increase in Corporate Social Responsibility awareness some companies promote a very

elementary understanding of corporate governance and ethical standards.

The most important one is that it helps to build a brands reputation and is a point of differentiation.


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Corporate Social Responsibility initiatives can be extremely effective at forging deep meaningful

connections with its consumers that transforms the loyalty of the consumer to them as a promoter of

the company within their social networks.

Though a number of companies websites and their annual reports include information on these

practices but it is seen that either this information does not reach the consumers or the current

communication strategy is not strong enough to link the Corporate Social Responsibility actions to

brands.

Corporate responsibility and themovement of businessPeter UttingDevelopment in Practice, Volume 15, Numbers 3 & 4, June 2005

Nevertheless, it figures prominently in the discourse of some business leaders and

management gurus. Four claims, in particular, are made:

. CSR can enhance a companys competitive advantage;

. some forms of CSR, such as eco-efficiency or recycling, can actually reduce costs;

. CSR is good for staff morale and motivation; and

. CSR is a proxy for competent management and associated qualities related to innovation, the

ability to anticipate and deal with risks, and learning and using knowledge effectively.

Emerging trends and future challengesConvergence and co-regulationThe emerging forms of NGObusiness collaboration referred to above have been consolidated

and institutionalised since the turn of the millennium.

distinctions between civil society and business, NGOs and companies, or not for profit a nd

for profit are becoming increasingly blurred (Deacon 2003; Stubbs 2003).

Second, a new set of regulatory institutions has emerged, involving so-called multistakeholder

Initiatives

together to promote standard setting, monitoring, reporting, auditing, certification, stakeholderdialogues, and best practice learning.

schemes such as ISO

14001 and SA8000. Owing to the recent origin of these initiatives it is difficult to assess their impact.

Some have also revived the notion that international

labour, environmental, and human rights law applies not only to states but also to TNCs,

A growing number of NGOs that form part of the new CSR

industry are being drawn into both the financial circuits and corporate culture of TNCs.

From corporate responsibility to corporate accountabilitySome of these demands have been articulated by a subset of the alternative globalisation movement,

which has been called the corporate accountability movement (Broad and Cavanagh

1999; Newell 2002; Bendell 2004).

First, CSR allows ample scope for free-riding (whereby economic agents benefit from a

particular initiative without bearing the costs) and greenwash (Greer and Bruno 1996), i.e.

the ability of companies, through PR and minimal adjustments to policy and practice, to

project an image of reform while changing little, if anything, in terms of actual corporate performance.

Many instances have been

documented of companies saying one thing and doing another, or adopting but not effectively

implementing environmental policies or codes of conduct.

Hence corporate responsibility

policy and practice is often characterised by piecemeal and fragmented reforms and window

dressing.

Furthermore, the mainstream discourse on CSR often gives the impression that


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Corporate responsibility and the movement of business

the corporate sector in general is seriously engaged.

The reality is very different. For example,

of the worlds 65,000 TNCs, an estimated 4000 companies produce reports dealing with a companys

social and/or environmental performance (Holliday et al. 2002), and probably fewer

have codes of conduct.

Second, reforms in corporate policies often take place in a context of double standards or

counter-trends.

Reported examples of the latter include Monsantos

influence on the international debate and policy on GMOs; the tobacco industrys attempt to

influence WHO and governments; the resistance of pharmaceutical companies to attempts to

promote cheaper generic drugs;

A third major criticism of CSR relates to so-called regulatory or institutional capture, i.e.

the increasing penetration and influence of large corporations in the public-policy process

through PPPs, formal and informal consultation and dialogue, secondment, and other mechanisms.

These concerns have arisen, for example, in relation to the UN summits and the recent

wave of PPPs, notably those involving UN agencies and TNCs and corporate foundations

(Richter 2001).

This

reaction is heightened when TNCs and business organisations use their voluntary association

with the UN as a tool for resisting attempts by other parts of the UN to consider other regulatoryapproaches.

Fourth, the CSR agenda, based as it is largely on voluntary approaches and a critique of government

regulation, is often perceived as an alternative to law. A series of recent proposals are

attempting to construct a post-voluntarist agenda in which CSR is articulated with (a) complaints

procedures associated with a variety of regulatory institutions (Utting 2002b), and (b)

soft or hard law, which lays down obligations, international standards, rewards, and

penalties in relation to corporate transparency, accountability, and performance (Kamminga

and Zia-Zarifi 2000; ICHRP 2001; Ward 2003).

The

rights and freedoms of companies must be balanced not just by responsibilities and voluntary

initiatives but also obligations.

While standard-setting and other regulatory action associated with CSR are often undertaken

by self-appointed entities whose accountability to external agents may be very limited ornon-existent, corporate accountability highlights issues of legitimacy and governance,

including the question of who decides and who speaks for whom.

the corporate accountability agenda suggests

a re-articulation of voluntary and legal approaches.

Environmental Management Centre May 2005

Res e a r c h C a p s u l e : T h e S t a t u s o f Cor p o r a t e S o c i a l R e s po n s i b i l i t y i nI n d i a A N o t e

Effective CSR aims at achieving commercial success in ways that

honor ethical values and respectpeople, communities, and the natural environment. Simply put it

means what you do, how you do it, and when and what you say.


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1.3 Howdo organizations pledge their commitment towards CSR?

Typically, an organization interested in making a pledge towards CSR, will start by first outlining a

commitment towards the concept. Given the gravity of the action and its huge responsibility, thiscommitment will be deliberated on extensively by the top management of the business, before it is

made public. This declaration is somewhat analogous to a Quality Policy of an ISO 9000

organization.

Such a declaration is followed by the development of a CSR management and reporting framework.

CSR risks, opportunities andimpacts,

Once the reporting and management system of the CSR is put into motion, regular audits

and Board / top managementlevel reviews need to be conducted to ensure that the system is

performing as intended3.Finally, organizations may report on their CSR practices in their annual

performance report under a different section, or may even produce an exclusive report focusing on

CSR practices and issues relevant to the organization. This is a cyclic processone of continualimprovements. The learning curve is never-ending.3 See Developing a CSR Management and Reporting Framework athttp://www.bba.org.uk/pdf/forgepart2.pdf

5.2 The Challenges to CSR

Having said that, there are a number of challenges to the implementation of CSR. They are
http://www.bba.org.uk/pdf/forgepart2.pdfhttp://www.bba.org.uk/pdf/forgepart2.pdfhttp://www.bba.org.uk/pdf/forgepart2.pdf


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enumerated below.

Maintaining continuous improvements in safety performance throughout the organization.

Building a more robust safety culture

Achieving significant reductions in resource use.

Reducing waste arising and improving recycling rates.

18 Why Corporate Social Responsibility? by The European Business Campaign. Available at: http://www.csrcampaign.org/why/default.aspx

The Status of CSR in India

Environmental Management Centre 9

Integration of environmental considerations into supply chain management and purchasing

decisions.

To strengthen the people management framework to develop a positive and productive working

environment.

To achieve greater consistency in the management of people processes across the business.

To communicate effectively the organizations goals and direction.

To improve the employee attitude survey ratings.

To achieve greater diversity in the workforce. Build the relationship with business in the community and with Local Authorities.

To integrate consideration of environmental and social issues into the purchasing process.

But perhaps the biggest challenge posed by CSR is its very definition some organizations see CSRas an off-shoot of fair / ethical trade, while others see it as a recognition of employee aspirations at the

work place, while yet others see it as a business element with a philanthropic bent. Clearly, the verdict

on what exactly constitutes CSR is still out.

For the broader picture - which is not as rosy as it seems - Christian Aid, a respected NGO based in

the UK and Ireland, notes that CSR is a wholly inadequate response to the sometimes devastatingimpact that multinational companies can have in an ever more globalized world - and that CSR is

actually used to mask that impact.

Shell in Nigeria claims that it has turned over a new leaf there and strives tobe a 'good neighbour'. Yet it still fails to quickly clean up oil spills that ruin

villages and runs 'community development' projects that are frequently

ineffective and which sometimes even widen the divide in communities living

around the oilfields19

Coca-Cola emphasizes 'using natural resources responsibly'. Yet a whollyowned subsidiary in India is accused of depleting village wells in an area where

water is notoriously scarce and has been told by an Indian court to stop

drawing ground waterThose who

suffer the most as a result are the poor and vulnerable people in developing countries and the

environments in which they live.

19 This quote and the next from Behind the Mask: The Real Face of CSR by Christian Aid, UK. (Source -

http://www.christian-aid.org.uk/indepth/0401csr/)

20 Responsibility Breeds Success by Nigel Twose and Ziba Cranmer. Available at:

http://www1.worldbank.org/devoutreach/march03/article.asp?id=193

Box D: Challenges to CSR20Some of the challenges that have emerged over the course of development
http://www1.worldbank.org/devoutreach/march03/article.asp?id=193http://www1.worldbank.org/devoutreach/march03/article.asp?id=193


25/32

and expansion of business-to-business CSR over the last decades are as

follows:

(a) The first challenge is one of inefficiencies and confusion. Inefficiencies

have emerged as a result of industry structures characterized by shifting

contractual relationships among suppliers and buyers with a lack of longterm

business relationships, and suppliers with multiple buyers.

Increasingly, each buyer has its own code of conduct, CSR trainingRequirements, buyer monitoring and external verification audits. The result

is overlap and repetition, with unnecessary burdens on both the buyers,

who generally cover the cost of monitoring, and the suppliers who have to

allocate time.

(b) The second challenge is insufficient business justification for making

the required CSR investments. Some issues can be addressed through a

cost-benefit analysis framework, but it is likely that for some actors, the

business case does not exist - the risk of market sanction and the benefits

of CSR implementation are not sufficient.

(c) The third challenge is an evolution away from top-down enforcement

by buyers to strategies that incorporate empowerment, capacity building

and training. The top-down policing approach to CSR compliance isinsufficient and a supplier who is only implementing CSR standards

because of buyer insistence can find ways to evade compliance without too

much fear of detection. A number of buyers have now acknowledged the

need for shared ownership of CSR standards throughout the supply chain,including: a focus on the business rationale; capacity-building support at

the factory level, for management and workers alike; and an emphasis on

the role of workers as guarantors of CSR implementation.

In time, the public is likely to become

increasingly discriminating, less willing to take general claims on trust, and more keen to see specific

action.

To understand the challenge of executionof CSR initiatives in a rural developing

economyTo elucidate how businesses are trying

to combat global warming implications To discuss the role of regulations inreducing emissions

To discuss the challenges for companies

in going green.

International Conference on Technology and Business Management March 28-30, 2011

101

Corporate Social Responsibility Issues and Challenges in IndiaNilesh R. [email protected]

MET Institute of Management, NasikIn India CSR is in a

very much budding stage.

A lack of understanding, inadequately trained personnel, coverage, policy etc. further

adds to the reach and effectiveness of CSR programs. Large no. of companies are undertaking these activities

superficially and promoting/ highlighting the activities in Media.

That

is to say, public and private organizations will need to come together to set standards, share best practices,

jointly promote CSR, and pool resources where useful. An alliance of interested stakeholders will be able to take


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collective action to establish CSR as an integral part of doing businessthis is not a passing fad.

A new Trend has started in Corporate is the establishment of special committees within the

board of directors to oversee CSR activities.

According to the Indian Corporate: Sustainable development implies optimizing financial

position while not depleting social and environmental aspects and CSR implies supporting issues related to

children, women and environment.

The 2010 list of Forbes Asias 48 Heroes of Philanthropy contains four Indians.

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. These programs, in

many cases, are based on a clearly defined social philosophy or are closely aligned with the companies business

expertise.

4. Research MethodologyLooking into requirements of the objectives of the study the research design employed for the study is of

descriptive type. Keeping in view of the set objectives, this research design was adopted to have greater

accuracy and in depth analysis of the research study.

Available secondary data was extensively used for the study. The investigator procures the required data

through secondary survey method. Different news articles, Books and Web were used which were enumerated

and recorded.

difficulty in

making a business case for CSR, difficulty in integrating CSR with organizational values and practices, and the

lack of organizational buy-in and commitment to CSR.

Other obstacles reported is the lack of time and financial resources to pursue CSR practices are directly related

to the above three.

CSR or link it to core

organizational operations, it will be reluctant to commit and allocate resources or time to such practices.

Moreover, these obstacles also point to another set of findings in the report: respondents view CSR more so as

a means to manage regulatory impacts, reduce risk, and respond to stakeholders concerns, and to a lesser extent

as a strategic source of competitive advantage.

CSR Strategies Focusing on Protection rather than Competitive AdvantageIn order to leverage its CSR/sustainability strategy for competitive advantage, an organization needs the

advanced capabilities of organizational learning and sustainable innovation.

In the article on Corporate Social Responsibility in IndiaPutting Social-Economic Development on a FastTrack by Ramya Sathish mentioned that many CSR initiatives are executed by corporate in partnership with

Non-governmental organizations (NGOs) who are well versed in working with the local communities and are

experts in tackling specific social problems.

In

the current social situation in India, it is difficult for one single entity to bring about change, as the scale is

enormous.

Corporate have the expertise, strategic thinking, manpower and money to facilitate extensive social

change. Effective partnerships between corporate, NGOs and the government will place Indias social

development on a faster track.6

The survey elicited responses from participating organizations about various challenges facing CSR initiatives

in different parts of the country. Responses obtained from the participating organizations have been collated and

broadly categorized by the research team. These challenges are listed below:

Lack of Community Participation in CSR Activities: There is a lack of interest of the localcommunity in participating and contributing to CSR activities of companies. This is largely attributable

to the fact that there exists little or no knowledge about CSR within the local communities as no serious

efforts have been made to spread awareness about CSR and instil confidence in the local communities

about such initiatives. The situation is further aggravated by a lack of communication between the

company and the community at the grassroots.

Need to Build Local Capacities: There is a need for capacity building of the local non-governmentalorganizations as there is serious dearth of trained and efficient organizations that can effectively

contribute to the ongoing CSR activities initiated by companies. This seriously compromises scaling up


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of CSR initiatives and subsequently limits the scope of such activities.

Issues of Transparency: Lack of transparency is one of the key issues brought forth by the survey.There is an expression by the companies that there exists lack of transparency on the part of the local

implementing agencies as they do not make adequate efforts to disclose information on their programs,

audit issues, impact assessment and utilization of funds. This reported lack of transparency negatively

impacts the process of trust building between companies and local communities, which is a key to the

success of any CSR initiative at the local level.

Non-availability of Well Organized Non-governmental Organizations: It is also reported that thereis non-availability of well organized nongovernmental organizations in remote and rural areas that can

assess and identify real needs of the community and work along with companies to ensure successful

implementation of CSR activities. This also builds the case for investing in local communities by way

of building their capacities to undertake development projects at local levels.

Visibility Factor: The role of media in highlighting good cases of successful CSR initiatives iswelcomed as it spreads good stories and sensitizes the local population about various ongoing CSR

initiatives of companies. This apparent influence of gaining visibility and branding exercise often leads

many nongovernmental organizations to involve themselves in event-based programs; in the process,

they often miss out on meaningful grassroots interventions.

Narrow Perception towards CSR Initiatives: Non-governmental organizations and Governmentagencies usually possess a narrow outlook towards the CSR initiatives of companies, often defining

CSR initiatives more donor-driven than local in approach. As a result, they find it hard to decide

whether they should participate in such activities at all in medium and long run.Non-availability of Clear CSR Guidelines: There are no clear cut statutory guidelines or policy

directives to give a definitive direction to CSR initiatives of companies. It is found that the scale of

CSR initiatives of companies should depend upon their business size and profile. In other words, the

bigger the company, the bigger is its CSR program.

Lack of Consensus on Implementing CSR Issues: There is a lack of consensus amongst local

agencies regarding CSR projects. This lack of consensus often results in duplication of activities by

corporate houses in areas of their intervention. This results in a competitive spirit between local

implementing agencies rather than building collaborative approaches on issues. This factor limits

companys abilities to undertake impact assessment of their initiatives from time to time.

Recommendationsserious consideration by all

concerned stakeholders for their effective operationalization to deepen CSR in the companys core business and

to build collaborative relationships and effective networks with all involved.need for creation of awareness about CSR amongst the general public to make

CSR initiatives more effective - various stakeholders including the media to highlight the good workdone.

It is noted that partnerships between all stakeholders including the private sector, employees, localcommunities, the Government and society in general are either not effective or not effectively

operational at the grassroots level in the CSR domain - often creates barriers in implementing CSR

initiatives.

It is recommended that a campaign should be launched to both spread awareness on CSR issuesamongst the general public as well as to involve SMEs to participate more actively in CSR

initiatives.

corporate houses and non-governmental organizations should actively consider poolingtheir resources and building synergies to implement best CSR practices to scale up projects and

innovate new ones to reach out to more beneficiaries. It is found that many CSR initiatives and programs are taken up in urban areas and localities. As a

result, the impact of such projects does not reach the needy and the poor in the rural areas.

It is noted that the Government should consider rewarding and recognizing corporate houses andtheir partner non-governmental organizations implementing projects that effectively cover the

poor and the underprivileged.

It is found that there are approximately 250 corporate houses in the country that are directly

involved invarious CSR initiatives. accreditation mechanism its noticed that companies end up

duplicating each others efforts on similar projects in


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the same geographical locations. pooling their

efforts into building a national alliance national platform Partnership between the Government and other interest groups translate policy pronouncements

into demonstrable action agendas.

Transparency and dialogue can help to make a business appear more trustworthy, Strategic Alliances. Strategic alliances are the cooperative relationship between two or more

organizations that range from shared information and research to joint ventures where minoritypartners are

subcontracted to provide local market access and distribution channels (Porter, 1980).Integration and Learning. An important step in the integration and learning process is the

ability of a company to view itself as something more than a collection of discrete businesses making

products (Prahalad & Hamel, 1990).

Corporate Social ResponsibilityTowards a Sustainable FutureA White Paper

KPMG IN INDIADefinition # 2: According to World Business Council for SustainableDevelopment Corporate Social Responsibility is thecontinuing commitment by business to behave ethically andcontribute to economic development while improving the qualityof life of the workforce and their families as well as of the localcommunity and society at large.The challenge for us is to apply fundamental business principlesto make CSR sharper, smarter, and focused on what reallymatters.

This can be done by:Focusing on priorities Allocating finance for treating CSR as an investment from which returns

are expected Optimising available resources by ensuring that efforts are not duplicated and existing services are strengthened and

supplemented Monitoring activities and liaising closely withimplementation

partners such as NGOs to ensure that initiatives reallydeliver the desired outcomes

Reporting performance in an open and transparent way so

that all can celebrate progress and identify areas for furtheraction.

A long term perspective by organisations, which encom- 28

Internal ChallengesSkepticism about viability of the ConceptOvercome by focused efforts to streamline the processes, attackthe issues on hand and hire managerial talent with BPO


29/32

experience. All this led to a turn-around in the operations andshow-casing of the BPOfor every one to see the successLack of infrastructure (IT, space, people, etc.) to handlethe daily stream of potential candidatesOvercome by taking the skills development to the villages via

the CALCs, thus building a resource pipelineExternal ChallengesLower Quality and ThroughputOvercome by providing adequate training, dummy projectsand hand-holding. With the implementation of a batch trackingsoftware,Individual performance and throughput is also monitored andtrackedHesitation by the village folk to send their women folkaway from their villagesOvercome by arranging for transport up to the villages and

making the BPO an all-women center.92Global Issues and Challenges 39

A) Energy 3 - 5

B) Population 5 - 6

C) Environment 7 - 8

D) Health

8 9Good health is absolutely essentialfor social and economic

development.

Keeping in view the importance of PSUs in discharging social obligation, a limited review on the initiatives taken by the PSUs in selected sectors viz. Oil and Natural

Gas

Sector, Coal and Power Sector towards CSR was conducted. The main focus of the review was on the following aspects: CSR Policy System of planning for CSR activities System of fixation of targets for CSR activities Budget allocation and budget utilisation for CSR activities

Monitoring mechanism for implementation of CSR activities3.7 ConclusionThere is a need to promote a drive in Government Companies towards greater

accountability on Corporate Social Responsibility (CSR). In order to attain the social

objectives, there is a need for framing a CSR Policy in every company for prioritisation

of activities for social spending and allocation of separate funds for this purpose.

Moreover, to have an impact of the CSR spending and utilisation of allocated budget,

there should be a system of periodical monitoring and reporting to the Board of

Directors.


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Corporate Social Responsibility as a determinant of marketsuccess: An exploratory analysis with special reference to MNCs

in emerging markets Sandeep K. Krishnan Rakesh Balachandran Doctoral Student, Student, Post Graduate Programme Indian Institute of Management Indian Institute of Management Ahmedabad

Ahmedabad

Vastrapur Vastrapur Gujarat380015,INDIA Gujarat380015,INDIA Ph: +91-79-26327816 +91-79-26327705 Email: [email protected] Email: [email protected]

Marketing Strategies for Firms in Emerging Markets IIM K NASMEI International Conference the consumers and the environment

by these corporations has created large scale public debate and action. negative

publicity caused by the actions of MNCs has led to suspicion about their operations

in the general public in these markets. The case of Coca Cola also proves without

doubt that irresponsible corporate behaviour can have repercussion throughout theirglobal markets.

16Maratha Mandirs Babasaheb Gawde Institute Of Management Studies

CORPORATE SOCIAL RESPONSIBILITY IN INDIADr. Moon Urmila

Head Department of Commerce, Ramnarain Ruia College Mumbai,

[email protected] biggest problem is of lack of budget allocations followed by lack of support from

employees and lack of knowledge as well. Lack of professionalism is another problem

faced by this sector. Absence of training and undeveloped staff are additional problemsfor reduced CSR initiatives.

General Public also do not take enough interest in participating and contributing to CSR

activities of companies as they have little or no knowledge about it.

The increasing demand for more transparency and accountability on the part of the

companies and disclosure of information through formal and improved reporting is alsoinevitable for the companies.

Small companies do not take adequate interest in CSR activities and those which undertake them fail to

disclose it to the society. In the process they loose out on people and their trust in them.

Media can come up with strong support for informing the people at large about the CSR initiatives taken

up by the companies. It can sensitize population and also make them aware of the benefits of CSR to

them. However, media is not doing enough in this regard.

The failure of the government to come up with statutory guidelines to give a definitedirection to companies taking up CSR activities, in terms of size of business and profile

of CSR activities also results into few companies practicing CSR concept adequately.

Suggestions:Companies can set a network of activities to be taken up in a consortium to tackle major

environmental issues.

Everyone in the organisation needs to recognise their own role in promoting CSR.

Training, conferences and seminars could be organised by companies to disseminate andgenerate new knowledge and information in this sector.


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A strong budgetary support would definitely help to grow this sector and research related

to respective industry would enhance their organisations contribution further.

Conclusions:Corporate sustainability is an evolving process and not an end.However, the challenge for the companies is to determine a strong and innovative CSR

strategy which should deliver high performance in ethical, environmental and social areas

and meet all the stakeholders objectives

Corporate Sociiall Responsiibiilliity iin IndiiaSunyoung Lee

A Case Study for the Oxford-Achilles WorkingGroup on Corporate Social Responsibility

Global Challenge: Poverty and the

Environment

CORPORATE SOCIAL RESPONSIBILITY(CSR)The Indian Perspective

October 16, 2008toHE Mr Hideaki Domichi, Honble Ambassador of Japan& Members of JCCIby

Ajay Sethi, DirectorCorporate Catalyst India Pvt LtdTraditional Education Health

ContemporaryCapacity Building skill development, trainingSustainable Development environmental protectionCommunity Development education, health, povertyalleviationSocial Challengeswomen's empowerment, girl childInternal (carried outwithin the organisation) viz.Energy and water conservationEmployee welfare training, healthcare

Affirmative action employment of backward sectionsCorporate governance

External (within vicinity or for society at large), viz.Community developmentCapacity buildingEnvironmental protectionHealthcareCreating awareness - education, health, social issuesE-initiatives Online Information, education, etc.


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BUILDING AN EFFECTIVE CSR PROGRAMMEPHASE 1 - CONCEPTUALISATIONIdentify key areas of focus viz, skill development, education,health, etc.Define the programme - will it be Internal or External or Both

Involve management from various levels in identifying focusareas (maybe create a committee, selecting candidates fromtop, middle and lower management)

PHASE 2 RESOURCE ALLOCATION Define your channel viz, in-house team, NGO, etc. Define budgets Identify key people to implement and monitor the programme Define milestones to achieve

Define monitoring mechanismPHASE 3 - Launch Launch the programme

Run the programme Obtain necessary registrationsPHASE 4 Running the Programme Annual/ bi-annual/ quarterly results and reviews Monitor and report success and/or failure

Take corrective actionCOMMON PITFALLS WHILEPLANNING A CSR PROGRAMME Selecting an inappropriate CSR activity Effective launch, ineffective implementation Spreading resources too thin Weak monitoring mechanismProjected or perceived as a green wash or white wash

Often mistaken for a Public Relations exerciseCHANNELS OF IMPLEMENTING CSR In-house team Trust or Foundation as an independent arm of the company Non-Governmental Organisation (NGO) Industry consortia

Collaboration with on-going Government programmes

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