A presentation on
Corporate Social Responsibility
School of Management Studies
Carroll’s Four Part Definition
Carroll’s Four Part Definition
Understanding the Four Components
Be profitable. Maximize sales,
minimize costs, etc.
Obey laws and regulations.
Do what is right, fair and just.
Be a good corporate citizen.
Draft Rules under the Companies
The Companies Bill, 2009 (the Bill), as passed by the Rajya Sabha on 8 August
2013 will introduce the concept of „Corporate Social Responsibility‟ (CSR) into
Indian company law.
Applicable to companies with: A net worth of Rs. 500 crore or more; a turnover of
Rs 1,000 crore or more; and a net profit of Rs 5 crore or more during any financial
Companies qualifying are required to form a CSR Committee with at least one
independent director. The CSR spend of a company which meets the
aforementioned threshold is required to be 2% of the average net profits for the
preceding three financial years.
Chapter XXIX of the Bill (Sections 450 and 451) provide for general penalties for
contravention and repeat offences.
CSR activities recognised under the Bill include: Eradicating extreme hunger and
poverty; Promotion of education; Promoting gender equality and empowering
women; Combating HIV, AIDS, Malaria and other diseases etc.
Myths surrounding CSR
CSR is not for small businesses
It is too complicated and technical
It is too expensive
It is a market gimmick
It is a separate corporate initiative
The Benefits of Corporate Social
“88% of consumers said they were more likely to
buy from a company that supports and engages
in activities to improve society.”
- Better Business Journey, UK
Small Business Consortium
CSR in India
• The pressure on Indian industrialists to demonstrate their
commitment to social development increased during the
independence movement, when Mahatma Gandhi developed the
notion of „trusteeship‟, whereby the owners of property would
voluntarily manage their wealth on behalf of the people.
• TATA was one of the first corporate houses to initiate.
A review of contemporary CSR trends in India concluded that
although the corporate sector in India benefited immensely from
liberalization and privatization processes, its transition from
philanthropic mindsets to CSR has been lagging behind its
impressive financial growth
Hindustan Unilever‟s, Lifebuoy SWASTHYA CHETNA – health and hygiene
education program. Educate people about health related precautions to 200 million
in rural and urban areas.
Tata Tea‟s communication and positioning itself as a catalyst for social awakening
through JAAGO RE campaign.
Colgate Palmolive – SPREADING SMILES AT PRATHAM(NGO) , In association
with IDA organize free dental checkup camps , Supported free surgery of children
and young adults suffering from cleft lips.
Marico Industries brand Saffola positioned itself as an edible oil brand that cares for
heart. On World Heart Day they ORGANISE FREE HEART CARE CAMPS.
ITC – every 4 notebook that is bought, rs 1 goes for EDUCATION OF UNDER
PRIVILEDGED CHILDREN Concept of E- Choupal .
Idea Cellular Ltd. – Had done a campaign on the eve of one year of 26/11 terror
attacks in Mumbai , talk between 20:26 – 21:26hrs and monies earned , a part of it
will go to the INFRASTRUCTURE DEVELOPMENT OF MUMBAI POLICE.
Similarly had done undertaken education of underprivileged children
Canon India launched I-CARE in 2008 with Venu Eye Institute and Research centre
to provide eye care and rehabilitation of visually challenged.
Proctor & Gamble initiated SHIKSHA for underprivileged children with the motto“Padhega India Badhega India , Mile sabko Shiksha ka Haq” A campaign had run
in April-June09 that r.s 1 from every product that is being bought will go for
education of downtrodden.
• Greater material recyclability
• Better product durability and functionality
• Greater use of renewable resources
• Integration of environmental management tools into business
costing, environmental management standards, and ecolabeling.
Benefits to the Community and
the General Public
• Charitable contributions
Employee volunteer programs
• Corporate involvement in community education, employment
and homelessness programs
• Product safety and quality
• Non-availability of Clear CSR Guidelines
• Lack of Consensus on Implementing CSR Issues
• Visibility Factor
• Narrow Perception towards CSR Initiatives
• (Source: A review of Corporate Social Responsibility in India Bimal
Arora , Ravi Puarnik.1999)
• (Source:Economic times, 14/12/2007)