Transcript of "Corporate social responsibility (1)"
Learning Objective:• What is C.S.R• Goal Of CSR• Evolution of C.S.R• C.S.R Initiatives of different companies• Five Fast Facts
Corporate social responsibility (CSR, also called corporateconscience, corporate citizenship, socialperformance, or sustainable responsible business) is a formof corporate self-regulation integrated into a business model.CSR policy functions as a built-in, self-regulating mechanismwhereby business monitors and ensures its active compliancewith the spirit of the law, ethical standards, andinternational norms.
….is to embrace responsibility for the companys actionsand encourage a positive impact through its activities on theenvironment, consumers, communities, employees,stakeholders and all other members of the public sphere.Furthermore, CSR-focused businesses would proactivelypromote the public interest (PI) by encouraging communitygrowth and development, and voluntarily eliminatingpractices that harm the public sphere, regardless of legality.
The term "corporate social responsibility" came in to commonuse in the late 1960s and early 1970s, after many multinationalcorporations formed.The term stakeholder, meaning those on whom an activitiesorganizations have an impact, was used to describe corporateowners beyond shareholders as a result of an influential bookby R. Edward FreemanStrategic management: a stakeholder approach in 1984
Aptech Limited, a leading education player with a global presence, has played an extensive and sustained role in encouraging and fostering education throughout the country since inception. As a global player with complete solutions-providing capability, Aptech has a long history of participating in community activities. It has, in association with leading NGOs, provided computers at schools, education to the underprivileged and conducted training and awareness-camps. Aptech students donated part of the proceeds from the sale of their art work to NGOs. To propagate education among all sections of the society throughout the country, especially the underprivileged, Aptech fosters tie-ups with leading NGOs throughout the country, including the Barrackpur-based NGO, Udayan, a residential school for children of leprosy patients in Barrackpur, established in 1970.The company strongly believes that education is an integral part of the country’s social fabric and works towards supporting basic education and basic computer literacy amongst the underprivileged children in India.
The poor and ignorant of India’s rural population turn to nearest towns andcities for healthcare. They face indifference and exploitation. Hope gives wayto despair. This gave inspiration to AVON for locating MATAKAUSHALYADEVI, PAHWA CHARITABLE HOSPITAL. Mr Sohan Lal Pahwa, AVONs Chairmanand Principal Trustee of the hospital, spent a good part of his working lifedevoted to philanthropy. The hospital, in its 5th year of inception, has risen toserve a model healthcare facility boasting of some bold experiments in itsvery early years of existence. It’s support since inception has been of theorder of Rs. 3 crore to date and it continues uninterrupted. Reaching out tothe needy farther afield, the hospital holds regular camps in surroundingvillages to propagate scientific approach to healthcare. Recently the hospitaltook the social responsibility concept a step further and formulated a schemetitled Celebrated Female Child to enable and inspire positive and enduringenvironment for societys all–consuming passion for sons only to end.
The K. C. Mahindra Education Trust was established in 1953 bylate Mr K. C. Mahindra with an objective to promote education.Its vision is to transform the lives of people in India througheducation, financial assistance and recognition to them, acrossage groups and across income strata. The K. C. MahindraEducation Trust undertakes number of educationinitiatives, which make a difference to the lives of deservingstudents. The Trust has provided more than Rs. 7.5 Crore in theform of grants, scholarships and loans. It promotes educationmainly by the way of scholarships. The Nanhi Kali project hasover 3,300 children under it. they aim to increase the numberof Nanhi Kalis (children) to 10,000 in the next 2 years, byreaching out to the underprivileged children especially in ruralareas.
General Electric has promised to buy 25,000 electric cars in the next five years. This purchase will help decrease the amount of carbon being emitted. However Despite public disapproval, the Vermont Yankee nuclear plant reopened after a small leak. The public is concerned that one day there will be a large problem at the plant, yet production continues. The seriousness and commitment of the CSR plan depends upon the company. Many corporations are moving towards being more earth-friendly, but remember that the main purpose of any corporation is to make money. If production is cheaper and no laws prohibit their production, some may opt to be a little less environmental to keep profits at a maximum, while others are genuinely interested in being as green as possible.
The primary reason (30%) companies invest in CSR is to make an impact oncritical issues.• A similarly high percentage (25%) say the primary reason is to demonstratea company’s values in action.• Interestingly, only 15% of executives see customer loyalty as the primarydriver of CSR, and a smaller number (4%), cite employee retention andrecruitment as the top factor.IMPLICATION: Corporations want to be active, substantive partners inaddressing social issues. Non-profits, consumers and advocates have anopportunity to leverage and help direct significant resources and expertisefrom the corporate sector to make a meaningful impact.
Eighty-three per cent of executives report that non-profit partners withexpertise and credibility are important to the success of CSR. Seventy-nineper cent say that non-profits are “valuable partners” in their CSR efforts.• Most (59%) executives say they fund non-profit organizations to advancetheir company’s CSR or pro-social efforts.• A majority (73%) agree that non-profits bring expertise that help CSRprograms to thrive, with an identical number finding that non-profits providethe foundation and infrastructure for effective CSR programs.• Many (72%) executives say that funding non-profit partners makesorganizations more effective in their CSR efforts.IMPLICATION: Non-profits will be vital to CSR in the years ahead, particularly ascorporations seek to intensify their CSR efforts on social issues. The real opportunityfor both sectors is to build partnerships that create knowledge that can be sharedacross industry to maximize the impact of CSR.
Ninety-four percent of respondents say that strong and vocal support fromsenior management is important to successful CSR programs.• Most executives (91%) say well-defined objectives and clear outcomes areimportant.• A sizable majority (80%) agree that a focus on a specific issue or area isimportant.IMPLICATION: To facilitate long-term success, corporate teamsshould engage senior executives early and often – and tackle the toughquestions together on objectives and scope. Senior management canhelp sharpen the focus and desired impact of CSR programs.
A significant number of executives (26%) say that the primary focus of theirCSR is multi-issue, spanning environmental sustainability, education, globaldevelopment and more.• The most cited single-issue focus for CSR was environmentalsustainability, reported by 22% of executives.• Three other priorities – economic development, education and globaldevelopment – were each highlighted by 10% of executives as the primaryfocus of their company’s CSR.• Other top priorities include children and family issues (9%), health andnutrition (7%), and arts and culture (4%).IMPLICATION: It matters less whether a company focuses on a single issueor a broader portfolio of issues, and more whether companies have designedprograms to foster genuine change and maximize their impact. The best CSRoutcomes result from well-focused efforts that are aligned with a company’score competencies and business strategy.
CSR programs have multiple internal and external stakeholders. Amongexecutives, 86% cite employee engagement as an important part of thesuccess of CSR, and 80% point to customer participation.For our Social Impact team, this prompts other key questions: What are themost effective channels for driving participation in CSR? And, what role doescrowd sourcing and social media play? In early 2011, we’ll release new surveyfindings that speak to these questions and offer insights into the role of crowdsourcing and social media in fostering engagement in CSR. “We have learned how much a little help can impact the communities that we work in. Additionally, that people appreciate when large corporations show their human side.” - Survey Respondent
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