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PROJECT REPORT

ON

CORPORATE SOCIAL RESPONSIBILITIES ADOPTED BY

BANKING & INSURANCE SECTOR

Submitted in partial fulfillment of requirement of Bachelor of Business

Administration (B.B.A) General

BBA VI Semester (B) (M)

Batch 2010-2013

Submitted to: Submitted by:

Ms. Neha Gupta Shweta Mavi

Assistant Professor 13214101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL.

KALKAJI


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TABLE OF CONTENTS

S.NO DESCRIPTION PAGE NO.

1 ACKNOWLEDGEMENT 3

2 CERTIFICATE OF COMPLETION 4

3 STUDENTS DECLARATION 5

4 EXECUTIVE SUMMARY 6-8

5 CHAPTER-1

- INTRODUCTION

- HISTORICAL BACKGROUND

- CURRENT STATE OF THE FIELD

9-36

6 CHAPTER-2

- OBJECTIVES

37

7 CHAPTER-3

- RESEARCH METHODOLOGY

38-42

8 CHAPTER-4

- ANALYSIS

43-77

9 CHAPTER-5

- RECOMMENDATIONS & LIMITATIONS

78

10 CHAPTER-6- CONCLUSION

79

11 CHAPTER-7

- REFERENCES

80


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ACKNOWLEDGMENT

I take this opportunity to express my profound gratitude and deep regards to my guide

Ms. Neha Gupta for her exemplary guidance, monitoring and constant encouragement

throughout the course of this thesis. The blessing, help and guidance given by her time

to time shall carry me a long way in the journey of life on which I am about to embark.

I also take this opportunity to express a deep sense of gratitude to my college, HOD

(Ms. Rashmi Bhatia), my class coordinator (Dr. Ruchi Singhal), and all other faculties for

their cordial support, valuable information and guidance, which helped me in completing

this task through various stages.

Lastly, I thank almighty, my parents, brother, sisters and friends and atlas but not the

least for the constant encouragement and blessings without which this project would not

be possible.

SHWETA MAVI


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CERTIFICATE OF COMPLETION

This is to certify that Shweta Mavi, pursuing BBA 6 thsem (B) (M) from JIMS KALKAJI,

has completed his project on the topic CORPORATE SOCIAL RESPONSIBILITIES

ADOPTED BY BANKING & INSURANCE SECTORunder my guidance.

Her work is appreciable.

Project Guide:

Ms. Neha Gupta

Assistant Professor


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STUDENTS DECLARATION

I hereby declare that the project report titled CORPORATE SOCIAL

RESPONSIBILITIES ADOPTED BY BANKING & INSURANCE SECTOR is my own

work and has been carried out under the table guidance of Ms. Neha Gupta (Assistant

Professor at JIMS Kalkaji). All care has been taken to keep this project error free and I

sincerely regret for any unintended discrepancies that might have crept into this report.

Thank You

(SHWETA MAVI)

BBA 6thSem (B)(M)

Jagannath International Management School

(KALKAJI)

([email protected])

Date:-13/03/2013

Place-Delhi
mailto:[email protected]:[email protected]


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EXECUTIVE SUMMARY

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is a form ofcorporate self-regulation integrated into

a business model. CSR policy functions as a built-in, self-regulating mechanism

whereby a business monitors and ensures its active compliance within the spirit of the

law, ethical standards, and international norms. CSR is a process with the aim 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 who may also be considered

as stakeholders.

The term "corporate social responsibility" came into common use in the late 1960s and

early 1970s after many multinational corporations formed the term stakeholder,

meaning those on whom an organization's activities have an impact. It was used to

describe corporate owners beyond shareholders as a result of an influential book by R.

Edward Freeman,Strategic management: a stakeholder approach in

1984.[2]Proponents argue that corporations make more long term profits by operating

with a perspective, while critics argue that CSR distracts from the economic role of

businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt

the role of governments as a watchdog over powerful multinational corporations.
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Corporate


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BANKING & INSURANCE SECTOR

The economic reforms undertaken in the last 15 years have brought about a

considerable improvement in the health of banks and financial institutions in India. The

banking sector is a very important sector of the Indian economy. The sector has made a

marked improvement in the liberalization period. The limit for foreign direct investment

in private banks has been increased from 49% to 74%.

In addition, the limit for foreign institutional investment in private banks is 49%.

Liberalization and globalization have created a more challenging environment in the

banking sector as well as in the other segments of the financial sector such as mutual

funds, Non Banking Finance Companies, post offices, capital markets, venture

capitalists, etc. Now the challenges faced by the sector would be gaining profitability,

reinforcing technology, maintaining global standards, corporate governance, sharpening

skills, risk management and, the most important of all, to establish 'Customer Intimacy'.

New players have contributed to the launch of innovative products, services and value-

added benefits. Major foreign players have entered the country and announced joint

ventures in both life and non-life areas. These include New York Life, Aviva, Tokio

Marine, Allianz, Standard Life, Lombard General, AIG, AMP and Sun Life among

others.


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CSR ADOPTED BY BANKING AND INSURANCE SECTOR

CSR has been identified as a tool to contribute directly or indirectly to the companys

bottom-line and also ensures its long-term sustainability. It helps companies emerge as

true corporate citizens. CSR means in its essence to be responsible to ones various

stakeholders and not just charity.

At present, the world over, there is an increasing awareness about Corporate Social

Responsibility (CSR), Sustainable Development (SD) and Non-Financial Reporting

(NFR). Consequently, there is a concerted effort among all types of organizations, to

ensure that sustainable development is not lost sight of, in the pursuit of their respective

goals - profit making, social service, philanthropy, etc. CSR entails the integration of

social and environmental concerns by companies in their business operations as also in

interactions with their stakeholders.

The contribution of financial institutions including banks to sustainable development is

paramount, considering the crucial role they play in financing the economic and

developmental activities of the world. In this context, the urgency for banks to act as

responsible corporate citizens in the society, especially in a developing country like

ours, need be hardly overemphasized. Their activities should reflect their concern for

human rights and environment.

Studies over the recent times have revealed that organisations involved in CSR

activities continued to sustain for much longer durations in comparison to those not

involved in such activities. This is the reason why more and more organisations across

sectors are increasingly getting involved in CSR activities.

CSR has been identified as a tool to contribute directly or indirectly to the companys

bottom-line and also ensures its long-term sustainability. It helps companies emerge as

true corporate citizens. CSR means in its essence to be responsible to ones various

stakeholders and not just charity.


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CHAPTER-1

INTRODUCTION

CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility is a form ofcorporate self-regulation integrated into

a business model. CSR policy functions as a built-in, self-regulating mechanism

whereby a business monitors and ensures its active compliance within the spirit of the

law, ethical standards, and international norms. CSR is a process with the aim 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 who may also be considered

as stakeholders.
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Self-policinghttp://en.wikipedia.org/wiki/Corporate


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The term "corporate social responsibility" came into common use in the late 1960s and

early 1970s after many multinational corporations formed the term stakeholder,

meaning those on whom an organization's activities have an impact. It was used to

describe corporate owners beyond shareholders as a result of an influential book by R.

Edward Freeman,Strategic management: a stakeholder approach in

1984.[2]Proponents argue that corporations make more long term profits by operating

with a perspective, while critics argue that CSR distracts from the economic role of

businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt

the role of governments as a watchdog over powerful multinational corporations.

CSR is titled to aid an organization's mission as well as a guide to what the company

stands for and will uphold to its consumers. Development business ethics is one of the

forms ofapplied ethics that examines ethical principles and moral or ethical problems

that can arise in a business environment. ISO 26000 is the recognized international

standard for CSR. Public sector organizations (the United Nations for example) adhere

to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar

principles but with no formal act of legislation. The UN has developed the Principles for

Responsible Investment as guidelines for investing entities.

Approaches

Some commentators have identified a difference between the Canadian (Montreal

school of CSR), the Continental European and the Anglo-Saxon approaches to

CSR. And even within Europe the discussion about CSR is very heterogeneous.

A more common approach to CSR is corporate philanthropy. This includes monetary

donations and aid given to local and non-local nonprofit organizations and communities,

including donations in areas such as the arts, education, housing, health, social welfare,

and the environment, among others, but excluding political contributions and

commercial sponsorship of events.
http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Anglospherehttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Anglospherehttp://en.wikipedia.org/wiki/Continental_Europehttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-2http://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/Stakeholder_(corporate)


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Some organizations do not like a philanthropy-based approach as it might not help build

on the skills of local populations, whereas community-based development generally

leads to more sustainable development.

Another approach to CSR is to incorporate the CSR strategy directly into the businessstrategy of an organization. For instance, procurement ofFair Trade tea and coffee has

been adopted by various businesses including KPMG. Its CSR manager commented,

"Fair trade fits very strongly into our commitment to our communities."

Another approach is garnering increasing corporate responsibility interest. This is

called Creating Shared Value, or CSV. The shared value model is based on the idea

that corporate success and social welfare are interdependent.

A business needs a healthy, educated workforce, sustainable resources and adept

government to compete effectively. For society to thrive, profitable and competitive

businesses must be developed and supported to create income, wealth, tax revenues,

and opportunities for philanthropy. CSV received global attention in the Harvard

Business Review article Strategy & Society: The Link between Competitive Advantage

and Corporate Social Responsibility

[1] by Michael E. Porter, a leading authority on competitive strategy and head of the

Institute for Strategy and Competitiveness at Harvard Business School; and Mark R.

Kramer, Senior Fellow at the Kennedy School at Harvard University and co-founder of

FSG Social Impact Advisors. The article provides insights and relevant examples of

companies that have developed deep linkages between their business strategies and

corporate social responsibility. Many approaches to CSR pit businesses against society,

emphasizing the costs and limitations of compliance with externally imposed social and

environmental standards. CSV acknowledges trade-offs between short-term profitabilityand social or environmental goals, but focuses more on the opportunities for competitive

advantage from building a social value proposition into corporate strategy. CSV has a

limitation in that it gives the impression that only two stakeholders are important -

shareholders and consumers - and belies the multi-stakeholder approach of most CSR

advocates.
http://en.wikipedia.org/wiki/Fair_Tradehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/Creating_Shared_Valuehttp://en.wikipedia.org/wiki/KPMGhttp://en.wikipedia.org/wiki/Fair_Trade


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Many companies use the strategy of benchmarking to compete within their respective

industries in CSR policy, implementation, and effectiveness. Benchmarking involves

reviewing competitor CSR initiatives, as well as measuring and evaluating the impact

that those policies have on society and the environment, and how customers perceive

competitor CSR strategy. After a comprehensive study of competitor strategy and an

internal policy review performed, a comparison can be drawn and a strategy developed

for competition with CSR initiatives.

Social accounting, auditing, and reporting

For a business to take responsibility for its actions, that business must be fully

accountable. Social accounting, a concept describing the communication of social and

environmental effects of a company's economic actions to particular interest groups

within society and to society at large, is thus an important element of CSR.

Social accounting emphasizes the notion of corporate accountability. D. Crowther

defines social accounting in this sense as "an approach to reporting a firms activities

which stresses the need for the identification of socially relevant behavior, the

determination of those to whom the company is accountable for its social performance

and the development of appropriate measures and reporting techniques." An example

of social accounting, to a limited extent, is found in an annual Director's Report, under

the requirements ofUK company law.

A number of reporting guidelines or standards have been developed to serve as

frameworks for social accounting, auditing and reporting including:

Account Ability's AA1000 standard, based on John Elkington's triple bottom

line (3BL) reporting

The Prince's Accounting for Sustainability Project's Connected Reporting

Framework

The Fair Labor Association conducts audits based on its Workplace Code of

Conduct and posts audit results on the FLA website.
http://en.wikipedia.org/wiki/Social_accountinghttp://en.wikipedia.org/wiki/Accountabilityhttp://en.wikipedia.org/wiki/Director%27s_Reporthttp://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)http://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/w/index.php?title=The_Prince%27s_Accounting_for_Sustainability_Project&action=edit&redlink=1http://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/output/page171.asphttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://en.wikipedia.org/wiki/Fair_Labor_Associationhttp://www.accountingforsustainability.org/output/page171.asphttp://www.accountingforsustainability.org/output/page171.asphttp://en.wikipedia.org/w/index.php?title=The_Prince%27s_Accounting_for_Sustainability_Project&action=edit&redlink=1http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/John_Elkingtonhttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)#AA1000_Series_of_Standardshttp://en.wikipedia.org/wiki/AccountAbility_(Institute_of_Social_and_Ethical_AccountAbility)http://en.wikipedia.org/wiki/UK_company_lawhttp://en.wikipedia.org/wiki/Director%27s_Reporthttp://en.wikipedia.org/wiki/Accountabilityhttp://en.wikipedia.org/wiki/Social_accounting


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The Fair Wear Foundation takes a unique approach to verifying labour conditions in

companies' supply chains, using interdisciplinary auditing teams.

Global Reporting Initiative's Sustainability Reporting Guidelines

Good Corporation's Standard developed in association with the Institute of Business

Ethics

Synergy Codethic 26000[2] Social Responsibility and Sustainability Commitment

Management System (SRSCMS) Requirements Ethical Business Best Practices

of Organizations - the necessary management system elements to obtain a

certifiable ethical commitment management system.

The standard scheme has been build around ISO 26000 and UNCTAD Guidance on

Good Practices in Corporate Governance. The standard is applicable by any type of

organization.;

Earthcheck www.earthcheck.org Certification / Standard

Social Accountability International's SA8000 standard

Standard Ethics Aei guidelines

The ISO 14000 environmental management standard

The United Nations Global Compact requires companies to communicate on their

progress (or to produce a Communication on Progress, COP), and to describe the

company's implementation of the Compact's ten universal principles. This

information should be fully integrated in the participants main medium of

stakeholder communications, for example a corporate responsibility or sustainability

report and/or an integrated financial and sustainability report. If a company does not

publish formal reports, a COP can be created as a stand-alone document.

The United Nations Intergovernmental Working Group of Experts on International

Standards of Accounting and Reporting (ISAR)provides voluntary technical

guidance on eco-efficiency indicators, corporate responsibility reporting,and corporate governance disclosure.

The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance

of companies.
http://en.wikipedia.org/wiki/Fair_Wear_Foundationhttp://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://en.wikipedia.org/w/index.php?title=GoodCorporation&action=edit&redlink=1http://www.goodcorporation.com/PDF/standard_2007.pdfhttp://en.wikipedia.org/w/index.php?title=Synergy_Codethic_26000&action=edit&redlink=1http://en.wikipedia.org/wiki/Earthcheckhttp://en.wikipedia.org/w/index.php?title=Social_Accountability_International&action=edit&redlink=1http://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/wiki/Standard_Ethics_Aeihttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://www.unglobalcompact.org/COP/http://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nationshttp://en.wikipedia.org/w/index.php?title=Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)&action=edit&redlink=1http://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://en.wikipedia.org/wiki/FTSE_Grouphttp://en.wikipedia.org/wiki/FTSE4Good_Indexhttp://en.wikipedia.org/wiki/FTSE4Good_Indexhttp://en.wikipedia.org/wiki/FTSE_Grouphttp://www.unctad.org/en/docs/iteteb20063_en.pdfhttp://www.unctad.org/en/docs/iteteb20076_en.pdfhttp://www.unctad.org/en/docs/iteipc20037_en.pdfhttp://en.wikipedia.org/w/index.php?title=Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Intergovernmental_Working_Group_of_Experts_on_International_Standards_of_Accounting_and_Reporting_(ISAR)&action=edit&redlink=1http://en.wikipedia.org/wiki/United_Nationshttp://www.unglobalcompact.org/COP/http://www.unglobalcompact.org/COP/http://en.wikipedia.org/wiki/United_Nations_Global_Compacthttp://en.wikipedia.org/wiki/ISO_14000http://en.wikipedia.org/wiki/Standard_Ethics_Aeihttp://en.wikipedia.org/wiki/SA8000http://en.wikipedia.org/w/index.php?title=Social_Accountability_International&action=edit&redlink=1http://en.wikipedia.org/wiki/Earthcheckhttp://en.wikipedia.org/w/index.php?title=Synergy_Codethic_26000&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Synergy_Codethic_26000&action=edit&redlink=1http://www.goodcorporation.com/PDF/standard_2007.pdfhttp://en.wikipedia.org/w/index.php?title=GoodCorporation&action=edit&redlink=1http://en.wikipedia.org/wiki/Global_Reporting_Initiativehttp://en.wikipedia.org/wiki/Fair_Wear_Foundation


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In some nations, legal requirements for social accounting, auditing and reporting exist

(e.g. in the French bilan social), though international or national agreement on

meaningful measurements of social and environmental performance is difficult. Many

companies now produce externally audited annual reports that coverSustainable

Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary

widely in format, style, and evaluation methodology (even within the same industry).

Critics dismiss these reports as lip service, citing examples such as Enron's yearly

"Corporate Responsibility Annual Report" and tobacco corporations' social reports.

In South Africa, as of June 2010, all companies listed on the Johannesburg Stock

Exchange (JSE) were required to produce an integrated report in place of an annual

financial report and sustainability report. An integrated report includes environmental,

social and economic performance alongside financial performance information and is

expected to provide users with a more holistic overview of a company. However, this

requirement was implemented in the absence of any formal or legal standards for an

integrated report. An Integrated Reporting Committee (IRC) was established to issue

guidelines for good practice in this field.

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, though there is a large body of

literature exhorting business to adopt measures beyond financial ones (e.g., Deming's

Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes found a

correlation between social/environmental performance and financial performance.

However, businesses may not be looking at short-run financial returns when developingtheir CSR strategy. Intel employs a 5-year CSR planning cycle.

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.
http://en.wikipedia.org/w/index.php?title=Bilan_social&action=edit&redlink=1http://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Johannesburg_Stock_Exchangehttp://en.wikipedia.org/wiki/Johannesburg_Stock_Exchangehttp://en.wikipedia.org/wiki/Integrated_reportinghttp://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Volunteeringhttp://en.wikipedia.org/wiki/Volunteeringhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Philanthropyhttp://en.wikipedia.org/wiki/Balanced_scorecardhttp://en.wikipedia.org/wiki/W._Edwards_Deminghttp://en.wikipedia.org/wiki/Integrated_reportinghttp://en.wikipedia.org/wiki/Johannesburg_Stock_Exchangehttp://en.wikipedia.org/wiki/Johannesburg_Stock_Exchangehttp://en.wikipedia.org/wiki/Enronhttp://en.wikipedia.org/wiki/Lip_servicehttp://en.wikipedia.org/wiki/Methodologyhttp://en.wikipedia.org/wiki/Evaluationhttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/wiki/Sustainable_Developmenthttp://en.wikipedia.org/w/index.php?title=Bilan_social&action=edit&redlink=1


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CSR may be based within the human resources, business development orpublic

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.

The business case for CSR within a company will likely rest on one or more of these

arguments:

Triple Bottom-Line

People planet profit, is also known as the Triple Bottom Line are words that should be

used and practiced in every move an organization makes. People relates to fair and

beneficial business practices toward labour, the community and region where

corporation conducts its business. Planet refers to sustainable environmental practices.

A triple bottom line company does not produce harmful or destructive products such as

weapons, toxic chemicals or batteries containing dangerous heavy metals for

example. Profit is the economic value created by the organization after deducting the

cost of all inputs, including the cost of the capital tied up. It therefore differs from

traditional accounting definitions of profit.

Human resources

A CSR program 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, fundraising activities or

community volunteering. CSR has been found to encourage customer orientation

among frontline employees.
http://en.wikipedia.org/wiki/Human_resourceshttp://en.wikipedia.org/wiki/Business_developmenthttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/Business_casehttp://en.wikipedia.org/w/index.php?title=The_Triple_Bottom_Line&action=edit&redlink=1http://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/wiki/Planethttp://en.wikipedia.org/wiki/Profithttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Employee_retentionhttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Fundraisinghttp://en.wikipedia.org/wiki/Payroll_givinghttp://en.wikipedia.org/wiki/Graduate_schoolhttp://en.wikipedia.org/wiki/Employee_retentionhttp://en.wikipedia.org/wiki/Recruitmenthttp://en.wikipedia.org/wiki/Profithttp://en.wikipedia.org/wiki/Planethttp://en.wikipedia.org/wiki/Peoplehttp://en.wikipedia.org/w/index.php?title=The_Triple_Bottom_Line&action=edit&redlink=1http://en.wikipedia.org/wiki/Business_casehttp://en.wikipedia.org/wiki/Board_of_directorshttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Business_developmenthttp://en.wikipedia.org/wiki/Human_resources


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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. Several majorbrands,

such as The Co-operative Group, The Body Shop and American Apparel are built on

ethical values. Business service organizations can benefit too from building a reputation

for integrity and best practice.

Engagement Plan

An engagement plan will assist in reaching a desired audience. A corporate social

responsibility team, or individual is needed to effectively plan the goals and objectives of

the organization. Determining a budget should be of high priority. The function of

corporate social responsibility planning:

1. To add discussion and analysis of a new set of risks into corporate decision-making.

2. To represent issues within the corporation that watchdogs, NGOs and advocates

represent within society.

3. To assess the future. An organizations long term and short term future needs to be

thought of.

4. To help prioritize consideration of socially and environmentally friendly projects that

might otherwise lack a corporate advocate.
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5. To keep corporations aware of potential major societal impacts even when a negative

impact may not be immediate, and thus lessen liability.

6. To positively influence decision making where societal impacts are maximized, whilst

ensuring efforts are within a given budget.

Developing an Engagement Plan

Commit to coming up with and improving on your companies goals. CSR commitments

communicate the nature and direction of the firm's social and environmental activities

and, will help others understand how the organization is likely to behave in a particular

situation

1. Do a scan of CSR commitments

2. Hold discussions with majorstakeholders

3. Create a working group to develop the commitments

4. Prepare a preliminary draft

5. Consult with affected stakeholders

6. Revise and publish the commitments

7. Consider what is feasible within the budget

To ensure employee buy-in, include employees in the process of developing the

vision and values. To spark the process, create a CSR working group or hold a

contest for the best suggestions, encouraging employees and their

representatives to put some thought into their submissions.

Host a visioning session and ask participants to think about what the firm could

look like in the future as a CSR leader. Review the CSR priorities to determine which codes ofethics or conduct fit best

with the firm's goals.
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Consultants are recommended when planning for CSR activities involving small,

medium and large sized corporations. All levels of management should be on board,

and the support of high ranking corporate officials should be given.

License to operate

Corporations are keen to avoid interference in their business

through taxation orregulations. 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.

Supplier Relations

Businesses are constantly relying on suppliers to reduce overall costs, while improving

the quality of their goods or services. Many North American companies have

downgraded the volume of suppliers they do business with, and award contracts to a

select few, in order to lower operating costs. By establishing a strong supply chain,

companies are able to push for continuous quality improvements, and price reductions.

The long-term benefits of the listed above create a better value for stakeholders.

Some multi-national companies like General Motors can shift suppliers, if a lower offer

is made by the competition. As a result, competitiveness, and greater profits are

created, in turn contributing to a stronger market

The strategic use of supplier relations can benefit single, double and triple bottom-lines.

Corporations excelling in supply relations include Wal-Mart, Ford, General

Motors, Toyota and Nestle. All companies listed above have gained tangible results

through the practice of ensuring sound supply chains, and sourcing materials

from ethical sources.

Emphasizing the importance of practicing CSR to suppliers, researching their existing

supply chain, and sending out CSR check-sheets to existing suppliers is important to

staying on-track of a companys implemented CSR activity.
http://en.wikipedia.org/wiki/Consultantshttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Regulationshttp://en.wikipedia.org/wiki/Health_and_safetyhttp://en.wikipedia.org/wiki/Health_and_safetyhttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/w/index.php?title=Bottom-lines&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Supply_relations&action=edit&redlink=1http://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/wiki/Fordhttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Nestlehttp://en.wikipedia.org/wiki/Ethicalhttp://en.wikipedia.org/wiki/Ethicalhttp://en.wikipedia.org/wiki/Nestlehttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Fordhttp://en.wikipedia.org/wiki/Wal-Marthttp://en.wikipedia.org/w/index.php?title=Supply_relations&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Bottom-lines&action=edit&redlink=1http://en.wikipedia.org/wiki/General_Motorshttp://en.wikipedia.org/wiki/Supply_chainhttp://en.wikipedia.org/wiki/Qualityhttp://en.wikipedia.org/wiki/Health_and_safetyhttp://en.wikipedia.org/wiki/Health_and_safetyhttp://en.wikipedia.org/wiki/Regulationshttp://en.wikipedia.org/wiki/Taxationhttp://en.wikipedia.org/wiki/Consultants


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Criticisms and concerns

Critics of CSR as well as proponents debate a number of concerns related to it. These

include CSR's relationship to the fundamental purpose and nature of business and

questionable motives for engaging in CSR, including concerns about insincerity andhypocrisy.

Nature of business

Milton Friedman and others have argued that a corporation's purpose is to maximize

returns to its shareholders, and that since only people can have social responsibilities,

corporations are only responsible to their shareholders and not to society as a whole.

Although they accept that corporations should obey the laws of the countries within

which they work, they assert that corporations have no other obligation to society. Some

people perceive CSR as in-congruent with the very nature and purpose of business,

and indeed a hindrance to free trade. Those who assert that CSR is contrasting

with capitalism and are in favor of the free market argue that improvements in

health, longevity and/orinfant mortality have been created by economic

growth attributed to free enterprise.

Critics of this argument perceive the free market as opposed to the well-being of society

and a hindrance to human freedom. They claim that the type of capitalism practiced in

many developing countries is a form of economic and cultural imperialism, noting that

these countries usually have fewer labour protections, and thus their citizens are at a

higher risk of exploitation by multinational corporations.

A wide variety of individuals and organizations operate in between these poles. For

example, the Leadership Alliance asserts that the business of leadership (be it

corporate or otherwise) is to change the world for the better. Many religious and cultural

traditions hold that the economy exists to serve human beings, so all economic entities

have an obligation to society.
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Moreover, as discussed above, many CSR proponents point out that CSR can

significantly improve long-term corporate profitability because it reduces risks and

inefficiencies while offering a host of potential benefits such as enhanced brand

reputation and employee engagement.

Motives

Some critics believe that CSR programs are undertaken by companies such as British

American Tobacco (BAT), the petroleum giant BP (well known for its high-profile

advertising campaigns on environmental aspects of its operations), and McDonald's to

distract the public from ethical questions posed by their core operations. They argue

that some corporations start CSR programs for the commercial benefit they enjoythrough raising their reputation with the public or with government. They suggest that

corporations which exist solely to maximize profits are unable to advance the interests

of society as a whole.

Another concern is that sometimes companies claim to promote CSR and be committed

to sustainable development but simultaneously engage in harmful business practices.

For example, since the 1970s, the McDonald's Corporation's association with Ronald

McDonald House has been viewed as CSR and relationship marketing. More recently,

as CSR has become main stream, the company has beefed up its CSR programs

related to its labor, environmental and other practices. All the same, in McDonald's

Restaurants v Morris & Steel, Lord Justices Pill, May and Keane ruled that it was fair

comment to say that McDonald's employees worldwide 'do badly in terms of pay and

conditions' and true that 'if one eats enough McDonald's food, one's diet may well

become high in fat etc., with the very real risk ofheart disease.'

Royal Dutch Shell has a much-publicized CSR policy and was a pioneer in triple bottom

line reporting, but this did not prevent the 2004 scandal concerning its misreporting ofoil

reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since

then, the Shell Foundation has become involved in many projects across the world,

including a partnership with Marks and Spencer(UK) in three flower and fruit growing

communities across Africa.
http://en.wikipedia.org/wiki/Employee_engagementhttp://en.wikipedia.org/wiki/British_American_Tobaccohttp://en.wikipedia.org/wiki/British_American_Tobaccohttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/McDonald%27s_Corporationhttp://en.wikipedia.org/wiki/Ronald_McDonald_Househttp://en.wikipedia.org/wiki/Ronald_McDonald_Househttp://en.wikipedia.org/wiki/McDonald%27s_Restaurants_v_Morris_%26_Steelhttp://en.wikipedia.org/wiki/McDonald%27s_Restaurants_v_Morris_%26_Steelhttp://en.wikipedia.org/wiki/Heart_diseasehttp://en.wikipedia.org/wiki/Royal_Dutch_Shellhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Oil_reserveshttp://en.wikipedia.org/wiki/Oil_reserveshttp://en.wikipedia.org/wiki/Marks_and_Spencerhttp://en.wikipedia.org/wiki/Marks_and_Spencerhttp://en.wikipedia.org/wiki/Oil_reserveshttp://en.wikipedia.org/wiki/Oil_reserveshttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Royal_Dutch_Shellhttp://en.wikipedia.org/wiki/Heart_diseasehttp://en.wikipedia.org/wiki/McDonald%27s_Restaurants_v_Morris_%26_Steelhttp://en.wikipedia.org/wiki/McDonald%27s_Restaurants_v_Morris_%26_Steelhttp://en.wikipedia.org/wiki/Ronald_McDonald_Househttp://en.wikipedia.org/wiki/Ronald_McDonald_Househttp://en.wikipedia.org/wiki/McDonald%27s_Corporationhttp://en.wikipedia.org/wiki/Sustainable_developmenthttp://en.wikipedia.org/wiki/McDonald%27shttp://en.wikipedia.org/wiki/BPhttp://en.wikipedia.org/wiki/British_American_Tobaccohttp://en.wikipedia.org/wiki/British_American_Tobaccohttp://en.wikipedia.org/wiki/Employee_engagement


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Critics concerned with corporate hypocrisy and insincerity generally suggest that better

governmental and international regulation and enforcement, rather than voluntary

measures, are necessary to ensure that companies behave in a socially responsible

manner. A major area of necessary international regulation is the reduction of the

capacity of corporations to sue states underinvestor state dispute settlement provisions

in trade or investment treaties if otherwise necessary public health or environment

protection legislation has impeded corporate investments. Others, such as Patricia

Werhane, argue that CSR should be considered more as a corporate moral

responsibility, and limit the reach of CSR by focusing more on direct impacts of the

organization as viewed through a systems perspective to identify stakeholders. For a

commonly overlooked motive for CSR, 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.

Principles of Corporate Social Responsibility

The main principles involving corporate social responsibility

involve economic, legal, ethical and discretionary aspects. A corporation needs to

generate profits, while operating within the laws of the state. The corporation also needs

to be ethical, but has the right to be discretional about the decisions it makes. Levels of

corporate social responsiveness to an issue include being reactive, defensive,

responsive and interactive. All terms are useful in issues management. Selecting when

and how to act can make a difference in the outcome of the action taken.

Ethical consumerism

The rise in popularity ofethical consumerism over the last two decades can be linked tothe rise of CSR. As global population increases, so does the pressure on limited natural

resources required to meet rising consumer demand. Industrialization, in many

developing countries, is booming as a result of both technology and globalization.
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Consumers are becoming more aware of the environmental and social implications of

their day-to-day consumer decisions and are therefore beginning to make purchasing

decisions related to their environmental and ethical concerns. However, this practice is

far from consistent or universal.

Globalization and market forces

As corporations pursue growth through globalization, they have encountered new

challenges that impose limits to their growth and potential profits. Government

regulations, tariffs, environmental restrictions and varying standards of what constitutes

"labor exploitation" are problems that can cost organizations millions of dollars. Some

view ethical issues as simply a costly hindrance, while some companies use CSRmethodologies 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 of advertising. (Fry, Keim, Meiners 1986,

105) Global competition places a particular pressure on multinational corporations to

examine not only their own labor practices, but those of their entire supply chain, from a

CSR perspective. that all government is controlling.

Social awareness and education

The role among corporate stakeholders is to work collectively to pressure corporations

that are changing. Shareholders and investors themselves, through socially responsible

investing are exerting pressure on corporations to behave responsibly. The extension of

SRI bodies driving corporations to include an element of ethical investment into their

corporate agendas generates socially embedded issues. The main issue correlates to

the development and overall idea of ethical investing or SRI, a concept that isconstructed as a general social perspective. The problem becomes defining what is

classified as ethical investing. The ethics or values of one SRI body will likely different

from the next since ethical opinions are inherently paradoxical. For example, some

religious investors in the US have withdrawn investment from companies that fail to

fulfill their ethical expectations.
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The Non-governmental organizations are also taking an increasing role, leveraging the

power of the media and the Internet to increase their scrutiny and collective activism

around corporate behavior. Through education and dialogue, the development of

community awareness in holding businesses responsible for their actions is

growing.[36]In recent years, the traditional conception of CSR is being challenged by the

more community-conscious Creating Shared Value concept (CSV), and several

companies are refining their collaboration with stakeholders accordingly.

Ethics training

The rise of ethics training inside corporations, some of it required by government

regulation, is another driver credited with changing the behavior and culture ofcorporations. The aim of such training is to help employees make ethical decisions

when the answers are unclear. Tullberg believes that humans are built with the capacity

to cheat and manipulate, a view taken from Trivers (1971, 1985), hence the need for

learning normative values and rules in human behavior. The most direct benefit is

reducing the likelihood of "dirty hands", fines and damaged reputations for breaching

laws or moral norms. Organizations also see secondary benefit in increasing employee

loyalty and pride in the organization. Caterpillarand Best Buy are examples of

organizations that have taken such steps.

Increasingly, companies are becoming interested in processes that can add visibility to

their CSR policies and activities. One method that is gaining increasing popularity is the

use of well-grounded training programs, where CSR is a major issue, and business

simulations can play a part in this.

One relevant documentary isThe Corporation, the history of organizations and their

growth in power is discussed. Corporate social responsibility, what a company does in

trying to benefit society, versus corporate moral responsibility (CMR), what a company

should morally do, are both important topics to consider when looking at ethics in CSR.

For example, Ray Anderson, in The Corporation, takes a CMR perspective in order to

do what is moral and he begins to shift his company's focus towards the biosphere by

utilizing carpets in sections so that they will sustain for longer periods.
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This is Anderson thinking in terms of Garret Hardin's "The Tragedy of the Commons,"

where if people do not pay attention to the private ways in which we use public

resources, people will eventually lose those public resources.

Geography

In a geographical context, CSR is fundamentally an intangible populist idea without a

conclusive definition. Corporations who employ CSR behaviors are empirically

dissimilar in various parts of the world. The issue of CSR diversity is produced through

the perpetual differences embedded in the social, political, cultural, and economic

structures within individual countries. The immense geographical separations feasibly

contribute to the loosely defined concept of CSR and difficulty for corporate regulation.

Public policies

CSR has inspired national governments to include CSR issues into their national public

policy agendas. The increased importance driven by CSR, has prompted governments

to promote socially and environmentally responsible corporate practices. Over the past

decade governments have considered CSR as a public issue that requires national

governmental involvement to address the very issues relevant to CSR. The heightened

role of government in CSR has facilitated the development of numerous CSR programs

and policies. Specifically, various European governments have implemented public

policies on CSR enhancing their competence to develop sustainable corporate

practices. CSR critics such as Robert Reich argue that governments should set the

agenda for social responsibility by the way of laws and regulation that will allow a

business to conduct themselves responsibly. Actors engaged in CSR:

governments

corporations

civil societies
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Recently, 15 European Union countries have actively engaged in CSR regulation and

public policy development.[42]Recognizably, the CSR efforts and policies are vastly

different amongst countries resultant to the complexity and diversity of governments,

corporations, and civil societies roles. Scholars have analyzed each body that

promotes CSR based policies and programs concluding that the role and effectiveness

of these actors are case-specific. Global issues so broadly defined such as CSR

generate numerous relationships between the different socio-geographic players.

A key debate in CSR is determining what actors are responsible to ensure that

corporations are behaving in a socio-economic and environmentally sustainable

manner.

Regulation

The issues surrounding corporate regulation pose several problems. The concept of

regulation is inherently difficult to address because of the numerous amount of

corporations that exist are vastly dissimilar in terms of corporate behavior and nature.

Thus, regulation in itself is unable to cover every aspect in detail of a corporation's

operations. For example, This leads to burdensome legal processes bogged down in

interpretations of the law and debatable grey areas (Sacconi 2004). For

example, General Electric failed to clean up the Hudson Riverafter contaminating it with

organic pollutants. The company continues to argue via the legal process on

assignment of liability, while the cleanup remains stagnant. (Sullivan & Schiafo 2005).

Government regulation or public institutional regulation is difficult to achieve. Depending

on the political regime and form of government

democracy, parliamentary, presidential issues of governmental ineffectiveness may

transpire. As a result, attempts at CSR policy development and implementation may be

unattainable.

The second issue is the financial burden that regulation can place on a nation's

economy. This view shared by Bulkeley, who cites the Australian federal government's

actions to avoid compliance with the Kyoto Protocol in 1997, on the concerns of

economic loss and national interest.
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The Australian government took the position that signing the Kyoto Pact would have

caused more significant economic losses for Australia than for any other OECD nation.

On the change of government following the election in November 2007, Prime

MinisterKevin Rudd signed the ratification immediately after assuming office on 3

December 2007, just before the meeting of the UN Framework Convention on Climate

Change. Critics of CSR also point out that organizations pay taxes to government to

ensure that society and the environment are not adversely affected by business

activities.

The government of Canada has adopted a national position that expects Canadian

corporations to practice behaviors parallel to CSR. In 2007, Prime Minister Harperwas

aware of Canadas abundant investment into the resource/mineral extractive sector and

encouraged the Canadian mining companies to meet Canadas newly developed CSR

standards and expectations. The method of developing and implementing CSR policies

was achieved through government-company consultation and government stakeholder

cooperation. The successful relationship between the CSR actors within Canadas

government and coutry, may advocate that cooperation amongst constituencies is the

most imperative element to CSR regulation.

The European Union has recently done extensive work to try and find the best form of

regulation. Some critics argue that the creation of a CSR organization with a

democratically appointed minister focused solely on monitoring and enforcing socially

responsible behaviour will be extremely effective.

Laws

The laws legally binding the corporations behavior and activity are quite insignificant in

relation to the global consequences. Only recently have countries included CSR policiesin government agendas legislature. Common types of countries who have implemented

legislation and CSR laws generally consist of socio-economic and politically

sophisticated countries. The level of political stability and effectiveness is inextricably

linked to a countries capacity to ensure national CSR policies.
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The increasing ability and influence corporations have on the economic, political, and

social dynamics of society correlate to the recent studies by the UN Commission on

Human Rights. More research and international political instruments are being explored

to protect and prevent corporations from violating human rights.

Denmark has a law on CSR. On 16 December 2008, the Danish parliament adopted a

bill making it mandatory for the 1100 largest Danish companies, investors and state-

owned companies to include information on corporate social responsibility (CSR) in their

annual financial reports. The reporting requirements became effective on 1 January

2009.[46]The required information includes:

information on the companies policies for CSR orsocially responsible

investments (SRI)

information on how such policies are implemented in practice, and

information on what results have been obtained so far and management

expectations for the future with regard to CSR/SRI.

CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must

state its positioning on CSR in their annual financial report. More on the Danish law can

be found at CSRgov.dk

Crises and their consequences

Often it takes a crisis to precipitate attention to CSR. One of the most active stands

against environmental mismanagement is the CERES Principles that resulted after

the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples

include the lead poisoning paint used by toy giant Mattel, which required a recall of

millions of toys globally and caused the company to initiate new risk management and

quality control processes. In another example, Magellan Metals in the West Australian

town of Esperance was responsible for lead contamination killing thousands of birds in

the area. The company had to cease business immediately and work with independent

regulatory bodies to execute a cleanup.
http://en.wikipedia.org/wiki/UN_Commission_on_Human_Rightshttp://en.wikipedia.org/wiki/UN_Commission_on_Human_Rightshttp://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-46http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-46http://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-46http://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://www.csrgov.dk/sw51190.asphttp://en.wikipedia.org/wiki/Coalition_for_Environmentally_Responsible_Economieshttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Magellan_Metalshttp://en.wikipedia.org/wiki/Magellan_Metalshttp://en.wikipedia.org/wiki/Mattelhttp://en.wikipedia.org/wiki/Lead_poisoninghttp://en.wikipedia.org/wiki/Exxon_Valdezhttp://en.wikipedia.org/wiki/Coalition_for_Environmentally_Responsible_Economieshttp://www.csrgov.dk/sw51190.asphttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Socially_responsible_investmentshttp://en.wikipedia.org/wiki/Corporate_social_responsibility#cite_note-46http://en.wikipedia.org/wiki/Denmarkhttp://en.wikipedia.org/wiki/UN_Commission_on_Human_Rightshttp://en.wikipedia.org/wiki/UN_Commission_on_Human_Rights


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Odwalla also experienced a crisis with sales dropping 90%, and the company's stock

price dropping 34% due to several cases ofE. coli spread through Odwalla applejuice.

The company ordered a recall of all apple orcarrotjuice products and introduced a new

process called "flash pasteurization" as well as maintaining lines of communication

constantly open with customers.

Stakeholder priorities

Increasingly, corporations are motivated to become more socially responsible because

their most important stakeholders expect them to understand and address the social

and community issues that are relevant to them. Understanding what causes are

important to employees is usually the first priority because of the many interrelatedbusiness benefits that can be derived from increased employee engagement. Key

external stakeholders include customers, consumers, investors (particularly institutional

investors), communities in the areas where the corporation operates its facilities,

regulators, academics, and the media.

Branco and Rodrigues (2007) describe the stakeholder perspective of CSR as the

inclusion of all groups or constituents (rather than just shareholders) in managerial

decision making related to the organizations portfolio of socially responsible

activities. This normative model implies that the CSR collaborations are positively

accepted when they are in the interests of stakeholders and may have no effect or be

detrimental to the organization if they are not directly related to stakeholder interests.

The stakeholder perspective suffers from a wheel and spoke network metaphor that

does not acknowledge the complexity of network interactions that can occur in cross

sector partnerships. It also relegates communication to a maintenance function, similar

to the exchange perspective.
http://en.wikipedia.org/wiki/Escherichia_colihttp://en.wikipedia.org/wiki/Applehttp://en.wikipedia.org/wiki/Carrothttp://en.wikipedia.org/wiki/Carrothttp://en.wikipedia.org/wiki/Applehttp://en.wikipedia.org/wiki/Escherichia_coli


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HISTORICAL BACKGROUND

In the late 18th century a Scottish philosopher and economist named Adam Smith wrote

numerous articles on these subjects, his magnum opus being The Wealth of Nations in

which he espoused the concepts of free trade and the free market on which the classic

market economy was based.


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Smiths principles were borne out. By the early 19th Century, new technology saw jobs

being created and living standards improved. Unchecked by regulation businesses

flourished and industrialists in Europe and the USA amassed huge fortunes.

However few of these wealthy new industrialists were concerned about the wellbeing of

their employees, society or the environment. The appalling conditions under which

people worked were documented in the novels of Charles Dickens and inspired radical

theorists such as Karl Marx and Friedrich Engels to write about new concepts on labour,

socialism and communism.

By the start of the 20th century, powerful corporations suffered a backlash against their

widespread exploitation. Labour unions were formed, giving a voice to the workers, and

governments began to assume more responsibility for welfare and infrastructure,

gradually introducing anti-trust legislation.

In the 1950s, emerging consumer power saw companies start taking a new interest in

the social and human aspects of their markets it was at about this time scientists and

environmentalists started noticing some worrying changes to the environment.

The 1960s saw a shift in attitudes towards government and business. In 1962 Professor

Milton Friedman, Nobel Prize-winning economist, published his controversial Capitalism

and Freedom. In it he makes the case for economic freedom as a precondition for

political freedom.

The 1980s and 1990s saw communism collapse, globalization emerge and the

information revolution change the way the world did business. As globalization

intensified, so did environmental awareness and the emergence of responsible

business practice. Key developments include: the Brundtland Commission, the

formation of the World Business Council for Sustainable Development, and the United

Nations Global Compact.


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CURRENT STATE OF THE FIELD

By any count, the world is changing faster than ever before. Human numbers are

growing faster, and the impact of our activities is being felt in more and more ways. This

change has profound implications for business, and means that the world of CSR - or

how businesses respond to society's expectations - is at the forefront of this change. So

it's worth looking for what are the current trends and where are they heading.

What drives trends in an area like CSR?


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Three things.

One - attitudes to business and its relationship with society are changed and shaped by

outside events. These can be demonstrations of social problems that substantially

change the environment within which companies do business, which are partially or

wholly caused by business activities, or which businesses are likely partners in finding

solutions.

These can be as diverse as extreme climate events raising the profile and public

concern about climate change, right through to a run of incidences of corporate

corruption. Businesses are called upon to change behaviours or solve problems

because of something external to them.

Two - expert practitioners have a vision for how sustainable business should operate,

and develop new ideas, or increase expertise on past experience, and implement these

within the business. This defines how businesses focus their attention when the

spotlight isn't particularly on them. Do they define CSR as being about philanthropy, or

environmental management, or core purpose and the business model?

Three - outside agencies create a vision for the achievement of future goals, and

actively recruit businesses and partners. So in recent years, the involvement of

businesses in finding ways to meet the millenium development goals has been an

example.


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The Top 10 Trends in CSR for 2012

1. Going Global: The relentless march toward globalization will continue to stretch the

scope of corporate responsibility. For instance, the new conflict minerals requirement in

the Dodd-Frank Financial Reform Act breaks new ground for the scope of corporate

responsibility, by requiring many types of businesses to track four minerals back to their

sources to ensure they dont fuel conflict in the minefields of Central Africa. As this and

similar requirements arise, the trend is clear: Corporate social responsibility leaders will

be increasingly accountable for responsible behavior all along their supply chains.

2. The Triumph (or Tyranny) of Transparency: The pressure for ever increasing

levels of transparency and disclosure will build in 2012. Last year, according to

CorporateRegister.com, more than 5,500 companies around the world

issued sustainability reports, up from about 800 a decade ago. Also, the Rate the

Raters report from confound that more than 100 sets of ratings measure which

companies are the most responsible. All the big four accounting firms are expanding

their practices to audit all of these disclosures and are also sponsoring the expanded

fourth edition of the Global Reporting Initiative Guidelines, which outline

standard CSR disclosures. In 2012 a promising new initiative, the Global Initiative forSustainability Ratings, will endeavor to standardize the ratings framework, but beyond

that there is little relief in sight for the survey-fatigued CSR manager.

3. Employee Engagement Emerges: The connection between CSR and engaged

employees continues to grow. A Hewitt & Associates study looked at 230 workplaces

with more than 100,000 employees and found that the more a company actively

pursues worthy environmental and social efforts, the more engaged its employees are.

The Society for Human Resources Management compared companies that have strong

sustainability programs with companies that have poor ones and found that in the

former morale was 55% better, business process were 43% more efficient, public

image was 43% stronger, and employee loyalty was 38% better.
http://www.corporateregister.com/stats/http://www.corporateregister.com/stats/http://www.forbes.com/companies/csr/?lc=int_mb_1001http://www.forbes.com/companies/csr/?lc=int_mb_1001http://was2.hewitt.com/bestemployers/canada/pdfs/HewittTheGreen30_eng.pdfhttp://www.shrm.org/Research/SurveyFindings/Articles/Pages/AdvancingSustainabilityHR%E2%80%99sRole.aspxhttp://www.shrm.org/Research/SurveyFindings/Articles/Pages/AdvancingSustainabilityHR%E2%80%99sRole.aspxhttp://was2.hewitt.com/bestemployers/canada/pdfs/HewittTheGreen30_eng.pdfhttp://www.forbes.com/companies/csr/?lc=int_mb_1001http://www.forbes.com/companies/csr/?lc=int_mb_1001http://www.corporateregister.com/stats/http://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/#undefinedhttp://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/#undefinedhttp://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/#undefinedhttp://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/#undefined


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4. Political Pitfalls: The elections will dominate the public conversation in the U.S. in

2012, and corporations will be alternately described as greedy, polluting, untrustworthy

political puppet masters and job-creating paragons of virtuewith little room in the

middle. Beyond the rhetoric, candidates wont be able to resist highlighting company

success stories featuring economic, environmental and social benefits. CSR leaders

should choose what they promote wisely and set clear boundaries to avoid becoming

political footballs.

5. Collaboratition:As CSR becomes more of a differentiator, companies will both

compete and collaborate on CSR issues. I devised the term collaboratition in a 2011

speech to describe how companies both compete and collaborate on CSR at the same

time. The numerous CSR ratings, together with data from the Reputation Institutes

2011Pulse Survey,which indicate that CSR is responsible for more than 40% of a

companys reputation, lay the basis for CSR competition. On the other hand, there are a

plethora of associations and multi stakeholder networks that foster collaboration on

CSR topics. Groups like the Electronics Industry Citizenship Coalition demonstrate how

competitors can partner on CSR issues like conflict minerals. Why would they? Such

issues are so massive that working together is clearly more efficient.

On the other end of the spectrum are initiatives likeGEs ecomaginationprogram, which

furthers competitive advantage. Collaboratition means that companies can and will

collaborate on CSR efforts when that is more efficient, while continuing to compete on

their signature CSR programs.

6. Sustainability Shoppers: Consumers are increasingly tuned in to sustainability

when making their buying decisions. Green labels have been around for a long time,

but Wal-Marts sustainability index is taking it up a notch. Already driving WMT

suppliers to improve performance, in the future the index could appear on a point-of-

sale label for products. Expect green marketing in 2012 to up the ante based on the

successes of campaigns likeTimberlands Earthkeepers line(Nature Needs Heroes).

Perhaps the high water mark for eco-minded advertising was Patagonias brilliantDont

Buy This Jacketmessaging.
http://www.forbes.com/companies/csr/?lc=int_mb_1001http://www.reputationinstitute.com/advisory-services/reptrak-in-country.phphttp://www.reputationinstitute.com/advisory-services/reptrak-in-country.phphttp://www.reputationinstitute.com/advisory-services/reptrak-in-country.phphttp://www.ecomagination.com/http://www.ecomagination.com/http://www.ecomagination.com/http://walmartstores.com/sustainability/9292.aspxhttp://earthkeepers.timberland.com/http://earthkeepers.timberland.com/http://www.patagonia.com/email/11/112811.htmlhttp://www.patagonia.com/email/11/112811.htmlhttp://www.patagonia.com/email/11/112811.htmlhttp://www.patagonia.com/email/11/112811.htmlhttp://www.patagonia.com/email/11/112811.htmlhttp://www.patagonia.com/email/11/112811.htmlhttp://earthkeepers.timberland.com/http://walmartstores.com/sustainability/9292.aspxhttp://www.ecomagination.com/http://www.reputationinstitute.com/advisory-services/reptrak-in-country.phphttp://www.forbes.com/companies/csr/?lc=int_mb_1001


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Its Common Threads Initiative asks customers to pledge to only buy what they need

and instead repair, reuse, and recycle their clothing. Nothing inspires confidence in your

eco-values more than telling customers not to buy your products. Independent

certification schemes like the GoodGuide will continue to proliferate, as will cause

marketing, for the simple reason that it works. Cone Communications reports in its

2010 Cause Evolution Study that even as cause marketing continues to grow,

consumers are eager for more. In fact, 83 percent of Americans want MORE of the

products, services and retailers they use to support causes.

7. Occupy From the Inside: Price Waterhouse Coopers has found that 88% of

millennials, or echo boomers, choose employers based on strong CSR values, and

86% would consider leaving if the companies CSR values no longer met their

expectations. As a new generation goes to work in corporate America, it is bringing

strong social justice values with it. At the same time, companies are under increasing

pressure to go green. So despite the popular view that corporations are in a race to

the bottom, 2012 will see more jobs created for CSR professionals who want to change

business from the inside out.

Companies of all kinds are looking for people to help improve their environmental,

social, and ethical performance throughout their value chains. There are recruiters

like Ellen Weinreb and Martha Montag Brownwho specialize in CSR jobs, and the big

recruiters have caught on too.

8. Social Media Rules: I will admit that I originally got a Facebook account just to

annoy my children. Now Facebook and Twitter are essential communications tools for

any serious CSR program. Social media is not a replacement for hefty annual CSR

reports, but those reports are increasingly static reference documents, used mainly for

looking up facts and grading performance. Social media opens a way for stakeholders

to interact directly with a companys CSR program. Through social media, companies

gain a following of people who are interested in their CSR performance and can keep

tabs on stakeholder sentiment on any emerging issue.
http://www.patagonia.com/us/common-threadshttp://www.goodguide.com/http://www.coneinc.com/research/archive.phphttp://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-millennials-at-work.pdfhttp://weinrebgroup.com/http://www.marthamontagbrown.com/about.htmlhttp://www.forbes.com/social-media/http://www.forbes.com/social-media/http://www.marthamontagbrown.com/about.htmlhttp://weinrebgroup.com/http://www.pwc.com/gx/en/managing-tomorrows-people/future-of-work/pdf/mtp-millennials-at-work.pdfhttp://www.coneinc.com/research/archive.phphttp://www.goodguide.com/http://www.patagonia.com/us/common-threads


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9. Human Rights: Since the 2008 publication of theRuggie Reporton human rights

and transnational corporations, companies have been waking up to human rights issues

across their value chains. For example, the major Internet search companies are

embroiled in basic human rights questions ranging from the protection of free speech

during the Arab Spring to being compelled to identify dissidents in repressive regimes.

In a time of globalization, hyper-transparency, and increasing expectations among

informed stakeholders, the risk in even tacit complicity in human rights violations is

growing. Wise companies will take a hard look at their human rights policies and

practices in 2012 and act to mitigate any liabilities.

10. Earth at Seven Billion and Growing: In 2011 theworlds population topped seven

billion people. Even at seven billion we have averted a Malthusian catastropheso far.

But as more people compete for the Earths resources, the need to be more efficient will

continue to increase. Everything from energy efficient semiconductors to electric cars to

water conserving plants will find new markets in 2012 and beyond. The imperative to

stretch resources ever further will make sustainability a central design principle for the

winning corporations of the future.
http://www.reports-and-materials.org/Ruggie-report-7-Apr-2008.pdfhttp://www.reports-and-materials.org/Ruggie-report-7-Apr-2008.pdfhttp://www.reports-and-materials.org/Ruggie-report-7-Apr-2008.pdfhttp://www.msnbc.msn.com/id/44990504/ns/us_news-life/t/seven-big-problems-billion-people/#.TvH0nWPNltMhttp://www.msnbc.msn.com/id/44990504/ns/us_news-life/t/seven-big-problems-billion-people/#.TvH0nWPNltMhttp://www.msnbc.msn.com/id/44990504/ns/us_news-life/t/seven-big-problems-billion-people/#.TvH0nWPNltMhttp://www.msnbc.msn.com/id/44990504/ns/us_news-life/t/seven-big-problems-billion-people/#.TvH0nWPNltMhttp://www.msnbc.msn.com/id/44990504/ns/us_news-life/t/seven-big-problems-billion-people/#.TvH0nWPNltMhttp://www.reports-and-materials.org/Ruggie-report-7-Apr-2008.pdf


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CHAPTER-2

OBJECTIVES

- TO KNOW WHAT IS CSR (CORPORATE SOCIAL RESPONSIBILITY)

- TO KNOW ABOUT WHAT IS BANKING AND INSUARNCE SECTOR AND

HOW IT WORKS.

- CSR ACTIVITIES DONE BY CORPORATES

- WHAT ARE THE RECENT TRENDS IN CSR

- AND WHAT IS THE CONTRIBUTION OF BANKING AND INSURANCE

SECTOR IN CSR


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CHAPTER-3

RESEARCH METHODOLOGY

INTRODUCTION TO RM

Marketing research is the function which likes the consumers, customers & public to

the marketer through information which is used to identify & define marketing

opportunities & problems, generate, refine & evaluate marketing action; monitor

marketing performances & improve understanding of marketing as a process.

It has following steps:

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