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CORPORATE SOCIAL

RESPONSIBILITY

Rajesh DasAssociate ProfessorRavenshaw University

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Meaning

CSR is about how companies manage the

business processes to produce an overallpositive impact on society.

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CSR- Definition

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.

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Corporate Social Responsibility (CSR)

Economic Responsibilities (Make a profit)Legal Responsibilities (Obey the law)

Ethical Responsibilities (Be ethical)

Philanthropic Responsibilities (Good corporate citizen)

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Corporate social responsibility emphasizes

obligation and accountability to society

Corporate social responsiveness emphasizes

action, activity

Corporate socialperformance emphasizes

outcomes, results

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Drivers of CSR

The shrinking role of government

Demands for greater disclosure

Growing investor pressure

Competitive markets

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Benefits of CSR

Strengthened brand positioning.

Enhanced corporate image.

Increased ability to attract, motivate, and retainemployees.

Increased sales and market share.

Increased appeal to investors and financialanalysts.

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Fundamental Principles of CSR

1. Care for all Stakeholders.

2. Ethical functioning.

3. Respect for Workers' Rights and Welfare.

4. Respect for Human Rights.

5. Respect for Environment.

6. Activities for Social and Inclusive Development.

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Pyramid of CSR

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Spectrum of CSR

Good CSRPoor CSR

No employment

No concern for indirect effect

(land, water, air)

Destruction of agricultural land

Not willing to listen to other

stakeholders

Appropriate of land not being

compensated

Non compliance of rule of land

Taking care of workers

Low dependence on non

renewable resources

High awareness about CSR

initiatives

Land compensation

Increased monitoring

system

Environment responsibility

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Key Issues in CSR

Environmental Conditions

Water & Air emissions

Climate change

Poverty Alleviation Job creation Public revenues Skills and technology

Labour Rights:

Child labour Forced labour Right to organise Safety and health

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CSR also known as

Sustainable Development

Corporate Citizenship

Triple Bottom Line approach

Business Ethics

Sustainable Business Practices

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The concept of TBL demands that a company's responsibility lieswith stakeholders rather than shareholders.

The Triple Bottom Line is made up of

Social, Environmental and Economic means the

People, Planet, Profit.

TRIPLE BOTTOM LINE Approach

http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Human_capital

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"People" (human capital) fair andbeneficial

business practices toward labour

and the community and region.

"Planet" (natural capital) refers to

sustainable environmental

practices,do no harm and curtail

environmental impact.

Profit" aspect needs to be seen as

the real economic benefit enjoyedby the host society.

http://en.wikipedia.org/wiki/Human_capitalhttp://en.wikipedia.org/wiki/Natural_capitalhttp://en.wikipedia.org/wiki/Natural_capitalhttp://en.wikipedia.org/wiki/Human_capital

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CSR EXAMPLES

IBM UK - Reinventing Education Partnership programmeInteractions and sharing of knowledge through a web-basedtechnology - the Learning Village software. Culture ofopenness and sharing of good practice

Reliance Foundation

Tata Trust

Bill & Melinda Foundation

TOIs Lead India campaign, campaign for contributiontowards educating the poor

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Companies in trouble Dasani mineral water (part of Coca-Cola).

Cokes sale was banned as the result of tests, includingthose by the Indian government, which found highconcentrations of pesticides.

Communities in India , around Coca-Cola's bottlingoperations are facing severe shortages of water as a resultof the cola major sucking huge amounts of water from thecommon groundwater source

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Issues at NIKE

Nike Inc producer of footwear, clothing, equipment and accessoryproducts for the sports and athletic market.

Selling to approximately 19,000 retail accounts in the US, andapproximately 140 countries around the world.

Manufactures in China, Taiwan, Korea, Indonesia , Mexico as well asin the US and in Italy.

People working - 58% young adults between 20 and 24 years old,83% - women.

Few have work-related skills when they arrive at the factory.

Issue- unhealthy work environmentdebates heated arguments,verbal abuse , 7.8% of workers reported receiving unwelcome sexual

comments, and 3.3% reported being physically abused. In addition,sexual trade practices in recruitment and promotion were reported

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Any Question