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<ul><li>LINKAGES AND POSSIBILITIES </li></ul>
Definitions and Relationships <ul><li>Corporate social responsibility (CSR) is the process by which businesses negotiate t...
Recent Evidence of CSR Interest <ul><li>An Internet search turns up 15,000 plus response to “corporate citizenship” </li><...
Reasons for CSR Activities <ul><li>CSR activities are important to and even expected by the public </li></ul><ul><ul><li>A...
Maximize firm’s profits to the exclusion of all else Balance profits and  social objectives Do what it takes to make a pro...
CSR are Grounded by Opposing Objectives :- <ul><li>Do what it takes to make a profit; skirt the law; fly below social rada...
Businesses CSR Activities <ul><li>Philanthropy </li></ul><ul><ul><li>give money or time or in kind to charity </li></ul></...
I ntegrate CSR  Globally <ul><li>Incorporate values to make it part of an articulated belief system </li></ul><ul><li>Act ...
Business Ethics Development  <ul><li>The cultural context influences organizational ethics </li></ul><ul><li>Top managers ...
Emergence of a Global Business Ethic  <ul><li>Growing sense that responsibility for righting social wrongs belongs to all ...
Four Challenges to a Global Ethic <ul><ul><li>Global rules emerge from negotiations and will reflect values of the strong ...
SPECTRUM OF CSR Good CSR Poor CSR <ul><li>No employment </li></ul><ul><li>No concern for indirect effect (land, water, air...
Main Concepts of CSR Social Contract  (Donaldson, 1982; Donaldson and Dunfee, 1999) – There is a tacit social contract bet...
Key Issues in CSR <ul><li>Labour rights :  </li></ul><ul><ul><li>child labour  </li></ul></ul><ul><ul><li>forced labour  <...
Key drivers of CSR <ul><li>Around the world </li></ul><ul><li>NGO Activism </li></ul><ul><li>Responsible investment </li><...
Key Drivers: NGO Activism <ul><li>Facilitators:  IT (esp Internet), media, low cost travel </li></ul><ul><li>Boycotts, bra...
United Nations Initiatives <ul><li>UN Global Compact </li></ul><ul><li>UN Principles for Responsible Investment </li></ul>...
Implications for Enterprises The Extended Firm Regional Plants / JV Partners Suppliers / Distributors <ul><li>New social a...
Implications for Enterprises: CSR Management <ul><li>How do companies address socio-environmental & legal compliance issue...
CSR Management: Plan, Do, Check, Act method <ul><li>Plan </li></ul><ul><li>Consult stakeholders </li></ul><ul><li>Establis...
Implications for Development:  CSR management CSR performance among 100 emerging market enterprises Source: UNCTAD, 2008
Implications for Development:  CSR management CSR performance among 100 emerging market enterprises Source: UNCTAD, 2008
What is Social Entrepreneurship? <ul><li>Social Entrepreneurship is the use of  business practices such as business planni...
To be Successful A Community  Venture  Needs: <ul><li>A clearly stated purpose </li></ul><ul><li>A governing structure, kn...
Implications for Development <ul><li>CSR ‘ cascade effect ’ on members of the global value chain </li></ul><ul><ul><li>lab...
REFERENCES:- <ul><li>SAINATH views upon CSR </li></ul><ul><li>Views from C.K. PRAHLAD </li></ul><ul><li>Views from TIM INK...
THANK  YOU… <ul><li>PRESENTED BY:- </li></ul><ul><li>SUMIT  MUKHERJEE </li></ul><ul><li>ROLL NO. - 2011126 </li></ul>
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business and societies - possibilities and linkages -----by sumit mukherjee,NIILM-CMS

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this is a presentation where one can get all the possibilities and linkages of CSR in a business society.....made by sumit mukherjee

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  • Companies can engage in CSR activities even while they are acting in unethical ways. For example, Enron was a champion of community involvement, but used off-balance-sheet partnerships to bilk investors and eventually ruin the company. Similarly Parmalat helped many Parma people and gave $2 million to restore the sixteenth- century Correggio frescoes at Parma Cathedral. But he diverted hundreds of millions from publicly held Parmalat to family owned companies like soccer team Parma AC and Parmatour . Companies can say one thing a nd do another .
  • Bullet 1 from Fleming, John E. (2004). Corporate citizenship revisited. AOM Newsletter , 35(1): 4. A 2002 U . S . poll conducted by the Wall Street Journal/NBC showed public esteem for business leaders dropped following reports that companies like Enron, Andersen, and others. Fifty seven percent of respondents said corporate standards and values dropped in the past 20 years compared with 38% who said they were the same. This compares to 1998 when respondents’ reports were 53 – 42%. They proportionately said government should regulate business, and that has occurred, for example Sarbanes-Oxley. From: Harwood, John. (2002, Apr il 11). Public’s esteem for business falls in wake of Enron scandal. WSJ , D5. Corporate scandals in Japan (former Mitsubishi Motors exec utive arrested on suspicion of professional negligence re: defective truck parts); Citibank turfed from Japan for irregularities. Corporate scandals also in Europe: ABB and Barnevik pay; hold kickbacks to suppliers; also make this a worldwide phenomenon .
  • On the left side of the continuum we see that the objective is to maximize firm’s (or individual) gains to the exclusion of all else (an example is Tyco whose CEO and CFO faced trail for larceny—converting $600 m of company assets to their own use); on the right is objective to balance social (CSR) and profit objectives .
  • Th ese may be activities you’ll see in your firms . Integrative philanthropy— Avon Products Inc. “ T he company for women&amp;quot; donates funds to breast cancer research. In Seattle, FareStart partners with Consolidated Restaurants; Pharma companies align with Operation Smile, AIDs donations .
  • Incorporate values in belief statements: McDonald&apos;s: “ We believe that being a good corporate citizen means treating people with fairness and integrity, sharing our success with the communities in which we do business, and being a leader on issues that affect customers ” (McDonald&apos;s Corporation, 1992). Act on values: Starbucks put resources into integrating values . Primary stakeholders are internal to the company such as owners, employees, labor unions, customers and suppliers (Clarkson, 1995). Secondary stakeholders operate external to the firm; they could be nongovernmental organizations, social activists, community groups, and governmental organizations . REI definition of social responsibility: “ Achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment ” includes ethics, community investments, corporate governance, environmental health and safety practices, sustainability, sourcing practices. Matt Hyde, Sr VP of Merchandizing and Logistics at REI said the only way we can be CSR is if we pursue commercial success — it ’ s a given that you have to make money (Nov ember 1, 2004) .
  • If national practice is bribery, then most companies in that nation will use bribery . If a top manager is unethical, then he/she sets a lead that others follow . When managers behave unethically, employees can be demoralized, lose faith in the organization, and even leave their jobs. Others might follow-the-leader themselves and engage in unethical behaviors. High demands for performance and profitability led Enron employees first to cut ethical corners and finally to break laws as well. According to one Enron controller, the logic was as follows: &amp;quot;If your boss was [fudging] and you have never worked anywhere else, you just assume that everybody fudges earnings. Once you get there and you realized how it was, do you stand up and lose your job? It was scary. It was easy to get into &apos;Well, everybody else is doing it, so maybe it isn&apos;t so bad.&apos;&amp;quot;  
  • C reate a cohesive ethical program that meets multiple and sometimes conflicting demands.
  • G lobal rules are likely to emerge from a negotiation process ; they are unlikely to reflect values and habits consistent for all cultures. To the extent that these rules are developed by firms from the Westernized countries, they may not incorporate concerns for much of the world. Second, global ethics may be viewed as an end point rather than a beginning point for developing global ethics. Organizations may hide behind global codes, claiming that the absence of rules means that all behaviors are acceptable as conditions change. Organizations may/will find loopholes then use the rules in defense . A global code of ethics also may serve to depress innovation, since some will hesitate to act in the absence of clear guidelines. However, a static set of guidelines is unlikely to keep pace with globalization.
  • Transcript of "business and societies - possibilities and linkages -----by sumit mukherjee,NIILM-CMS"

    1. 1. <ul><li>LINKAGES AND POSSIBILITIES </li></ul>
    2. 2. Definitions and Relationships <ul><li>Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society </li></ul><ul><li>In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what &quot; should be done ” </li></ul><ul><li>Although the two are linked in most firms, CSR activities are no guarantee of ethical behavior </li></ul>
    3. 3. Recent Evidence of CSR Interest <ul><li>An Internet search turns up 15,000 plus response to “corporate citizenship” </li></ul><ul><li>Journals increasingly “rate” businesses (and NGOs) on socially responsive criteria: </li></ul><ul><ul><li>Best place to work </li></ul></ul><ul><ul><li>Most admired </li></ul></ul><ul><ul><li>Best (and worst) corporate reputation </li></ul></ul>
    4. 4. Reasons for CSR Activities <ul><li>CSR activities are important to and even expected by the public </li></ul><ul><ul><li>And they are easily monitored worldwide </li></ul></ul><ul><li>CSR activities help organizations hire and retain the people they want </li></ul><ul><li>CSR activities contribute to business performance </li></ul>
    5. 5. Maximize firm’s profits to the exclusion of all else Balance profits and social objectives Do what it takes to make a profit; skirt the law; fly below social radar Fight social responsibility initiatives Comply; do what is legally required Integrate social objectives and business goals Lead the industry and other businesses with best practices Do more than required; e.g. engage in philanthropic giving Articulate social value objectives Corporate Social Responsibility
    6. 6. CSR are Grounded by Opposing Objectives :- <ul><li>Do what it takes to make a profit; skirt the law; fly below social radar </li></ul><ul><li>Fight CSR initiatives </li></ul><ul><li>Comply with legal requirements </li></ul><ul><li>Do more than legally required, e.g., philanthropy </li></ul><ul><li>Articulate social (CSR) objectives </li></ul><ul><li>Integrate social objectives and business goals </li></ul><ul><li>Lead the industry on social objectives </li></ul>
    7. 7. Businesses CSR Activities <ul><li>Philanthropy </li></ul><ul><ul><li>give money or time or in kind to charity </li></ul></ul><ul><ul><li>Integrative philanthropy—select beneficiaries aligned with company interests </li></ul></ul><ul><li>Philanthropy will not enhance corporate reputation if a company </li></ul><ul><ul><li>fails to live up to its philanthropic image or </li></ul></ul><ul><ul><li>if consumers perceive philanthropy to be manipulative </li></ul></ul>
    8. 8. I ntegrate CSR Globally <ul><li>Incorporate values to make it part of an articulated belief system </li></ul><ul><li>Act worldwide on those values </li></ul><ul><ul><li>Cause-related marketing </li></ul></ul><ul><ul><li>Cause-based cross sector partnerships </li></ul></ul><ul><li>Engage with stakeholders </li></ul><ul><ul><li>Primary stakeholders </li></ul></ul><ul><ul><li>Secondary stakeholders </li></ul></ul>
    9. 9. Business Ethics Development <ul><li>The cultural context influences organizational ethics </li></ul><ul><li>Top managers also influence ethics </li></ul><ul><li>The combined influence of culture and top management influence organizational ethics and ethical behaviors </li></ul>
    10. 10. Emergence of a Global Business Ethic <ul><li>Growing sense that responsibility for righting social wrongs belongs to all organizations </li></ul><ul><li>Growing business need for integrative mechanisms such as ethics </li></ul><ul><ul><li>E thics reduce operating uncertainties </li></ul></ul><ul><ul><li>Voluntary guidelines avoid government impositions </li></ul></ul><ul><li>Ethical conduct is needed in an increasingly interdependent world — everyone in the same game </li></ul><ul><li>Companies wish to avoid problems and/or be good public citizens </li></ul>
    11. 11. Four Challenges to a Global Ethic <ul><ul><li>Global rules emerge from negotiations and will reflect values of the strong </li></ul></ul><ul><ul><li>Global rules may be viewed as an end rather than a beginning </li></ul></ul><ul><ul><li>Rules can depress innovation and creativity </li></ul></ul><ul><ul><li>Rules are static but globalization is dynamic </li></ul></ul>
    12. 12. SPECTRUM OF CSR Good CSR Poor CSR <ul><li>No employment </li></ul><ul><li>No concern for indirect effect (land, water, air) </li></ul><ul><li>Destruction of agricultural land </li></ul><ul><li>Not willing to listen to other stakeholders </li></ul><ul><li>Appropriate of land not being compensated </li></ul><ul><li>Non compliance of rule of land </li></ul><ul><li>Taking care of workers </li></ul><ul><li>Low dependence on non renewable resources </li></ul><ul><li>High awareness about CSR initiatives </li></ul><ul><li>Land compensation </li></ul><ul><li>Increased monitoring system </li></ul><ul><li>Environment responsibility </li></ul>
    13. 13. Main Concepts of CSR Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) – There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities. Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is affected by the achievement of an organisation’s purpose.” Argues that it is in the company’s strategic interest to respect the interests of all its stakeholders. <ul><li>CSR (Carrol, 1979) </li></ul><ul><li>Firms have responsibilities to societies including economic, legal, ethical and discretionary (or philanthropic). </li></ul><ul><ul><li>- </li></ul></ul>
    14. 14. Key Issues in CSR <ul><li>Labour rights : </li></ul><ul><ul><li>child labour </li></ul></ul><ul><ul><li>forced labour </li></ul></ul><ul><ul><li>right to organise </li></ul></ul><ul><ul><li>safety and health </li></ul></ul><ul><li>Environmental conditions </li></ul><ul><ul><li>water & air emissions </li></ul></ul><ul><ul><li>climate change </li></ul></ul><ul><li>Human rights </li></ul><ul><ul><li>cooperation with paramilitary forces </li></ul></ul><ul><ul><li>complicity in extra-judicial killings </li></ul></ul><ul><li>Poverty Alleviation </li></ul><ul><ul><li>job creation </li></ul></ul><ul><ul><li>public revenues </li></ul></ul><ul><ul><li>skills and technology </li></ul></ul>
    15. 15. Key drivers of CSR <ul><li>Around the world </li></ul><ul><li>NGO Activism </li></ul><ul><li>Responsible investment </li></ul><ul><li>Litigation </li></ul><ul><li>Gov & IGO initiatives </li></ul><ul><li>Developing Countries </li></ul><ul><li>Foreign customers </li></ul><ul><li>Domestic consumers </li></ul><ul><li>FDI </li></ul><ul><li>Government & IGO </li></ul>
    16. 16. Key Drivers: NGO Activism <ul><li>Facilitators: IT (esp Internet), media, low cost travel </li></ul><ul><li>Boycotts, brand damage, influence legislation, domino effect </li></ul><ul><li>e.g. Shell in Nigeria, Exxon in Cameroon, Sinopec in Sudan, Apparel Industry (Nike, Gap), GMO, Wood Products, etc. </li></ul>
    17. 17. United Nations Initiatives <ul><li>UN Global Compact </li></ul><ul><li>UN Principles for Responsible Investment </li></ul><ul><li>UNEP Equator Principles </li></ul><ul><li>ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration) </li></ul><ul><li>UNHCHR Business and Human Rights </li></ul><ul><li>UNODC Anti-corruption </li></ul><ul><li>UNCTAD Corporate Responsibility Reporting, World Investment Report </li></ul>
    18. 18. Implications for Enterprises The Extended Firm Regional Plants / JV Partners Suppliers / Distributors <ul><li>New social and product liability patterns </li></ul><ul><li>Development of Codes of Conduct and CSR reporting </li></ul><ul><li>Expanding sphere of influence </li></ul><ul><ul><li>Application of Code of Conduct to value chain </li></ul></ul><ul><ul><li>CSR management: value chain management = compliance management </li></ul></ul>CSR Drivers Transnational Corporations
    19. 19. Implications for Enterprises: CSR Management <ul><li>How do companies address socio-environmental & legal compliance issues? </li></ul><ul><li>Policies - Code of Conduct </li></ul><ul><li>Systems - Compliance Management </li></ul><ul><li>Reporting - Accounting and Reporting </li></ul>
    20. 20. CSR Management: Plan, Do, Check, Act method <ul><li>Plan </li></ul><ul><li>Consult stakeholders </li></ul><ul><li>Establish code of conduct </li></ul><ul><li>Set targets </li></ul><ul><li>Do </li></ul><ul><li>Establish management systems and personnel </li></ul><ul><li>Promote code compliance </li></ul><ul><li>Check </li></ul><ul><li>Measure progress </li></ul><ul><li>Audit </li></ul><ul><li>Report </li></ul><ul><li>Act </li></ul><ul><li>Corrective action </li></ul><ul><li>Reform of systems </li></ul>
    21. 21. Implications for Development: CSR management CSR performance among 100 emerging market enterprises Source: UNCTAD, 2008
    22. 22. Implications for Development: CSR management CSR performance among 100 emerging market enterprises Source: UNCTAD, 2008
    23. 23. What is Social Entrepreneurship? <ul><li>Social Entrepreneurship is the use of business practices such as business planning, project management, marketing and sales, for advancing social causes </li></ul>
    24. 24. To be Successful A Community Venture Needs: <ul><li>A clearly stated purpose </li></ul><ul><li>A governing structure, knowledgeable advisors </li></ul><ul><li>A solid Business Plan </li></ul><ul><li>Good Project Planning </li></ul><ul><li>A target audience </li></ul><ul><li>A source of money &/ resources to run and expand the organization </li></ul><ul><li>Good Communications, marketing and sales plan </li></ul><ul><li>Solid Leadership </li></ul><ul><li>A good working relationship with other community organizations </li></ul>
    25. 25. Implications for Development <ul><li>CSR ‘ cascade effect ’ on members of the global value chain </li></ul><ul><ul><li>labour conditions (e.g. OSH, right to organise, wages) </li></ul></ul><ul><ul><li>environmental controls </li></ul></ul><ul><ul><li>transfer of new management techniques </li></ul></ul><ul><li>Compensation for weak legal environment in LDCs </li></ul><ul><li>Impact on economic development & national competitiveness??? </li></ul>
    26. 26. REFERENCES:- <ul><li>SAINATH views upon CSR </li></ul><ul><li>Views from C.K. PRAHLAD </li></ul><ul><li>Views from TIM INKPEN </li></ul><ul><li>Views from- DR. ANTHONY MILLER </li></ul><ul><li>United nations conference on trade and development </li></ul>
    27. 27. THANK YOU… <ul><li>PRESENTED BY:- </li></ul><ul><li>SUMIT MUKHERJEE </li></ul><ul><li>ROLL NO. - 2011126 </li></ul>
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