Business and politics

1. 1. 1. Module 7 CORPORATE SOCIAL RESPONSIBILITY
2. 2. CSR • It stands for “corporate social responsibility”. In general CSR or
business responsibility can be described as an approach by which a company:
1. Recognizes that its activities have a wider impact on the society in which it
operates; and that developments in society in turn impact on its ability to
pursue its business successfully 2. Actively manages the economic, social,
environmental and human rights impact of its activities across the world.
kiran.shetty763@gmail.c om 2
3. 3. 3.Seeks to achieve these benefits by working closely with other groups and
organizations 4. There are four main parts to CSR • Economic • Legal • Ethical
• Voluntary and philanthropic kiran.shetty763@gmail.c om 3
4. 4. Strategies companies adopted 1. Workplace 2. Environment 3. Responsible
marketing 4. Community involvement kiran.shetty763@gmail.c om 4
5. 5. Types of Social responsibility 1. Responsibility towards the customers 2.
Social responsibility to prospects 3. Social responsibility to community 4.
Responsibility towards human resources 5. Responsibility to society and
ecological environment 6. Responsibility towards government 7. Social
responsibility to global business environment kiran.shetty763@gmail.c om 5
6. 6. The company and its social responsibilities • CSR is a form of corporate
self regulation integrated into a business model. • The term “CSR” came into
common use in the late 1960’s and early 1970’s after many multinational
corporations formed the term stakeholder, meaning those on whom an
organization’s activities have an impact kiran.shetty763@gmail.c om 6
7. 7. Sustainability • CSR is closely linked with the prinicples of sustainability,
which argues that enterprises should make decisions based not only on
financial factors such as profits or dividends , but also based on the immediate
and long term social and environmental consequences of their activities
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8. 8. How companies benefit from CSR activities • CSR benefits • Reduced costs
• Increased business leads • Increased reputation • Improved relationship with
stakeholders • Managing the risks a co faces • Innovation in processes,
products and services • Social responsibilities for economic growth
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2. 9. 9. CSR principles and strategies • The UN global compact’s ten principles in
the areas of human rights, labour, the environment and anti corruption enjoy
the universal consensus and are derived from: 1. The Universal declaration of
human rights 2. The international labour organization’s Declaration on
fundamental principles and rights at work 3. The Rio declaration on
environment and Development kiran.shetty763@gma il.com 9
10.10. 4.The united nations convention against corruption 5.The UN global
compact asks companies to embrace , support and enact, within their sphere
of influence, a set of core values in the areas of human rights, labour standards,
the environment and anti corruption. kiran.shetty763@gmail.c om 10
11.11. A. Human Rights • Principle 1: Businesses should support and respect the
protection of internationally proclaimed human rights • Promoting the rule of
law : societies where human rights are respected are more stable and provide
a better environment for business. • Addressing consumer concerns: Access
to global information means that consumers are increasingly aware of where
their goods come from and the conditions under which they are made.
kiran.shetty763@gmail.c om 11
12.12. Value chain management: Global sourcing and distribution means that
companies need to be aware of potential human rights issues both upstream
and downstream Increasing worker productivity and retention: Workers who
are treated with dignity and given fair and just remuneration for their work are
more likely to be productive and remain loyal to an employer. New recruits
increasingly consider the social, environmental and governance record of
companies when making their choice of employer. kiran.shetty763@gmail.c
om 12
13.13. • Principle 2:make sure that they are not complicit in human right abuses.
• Complicity Respecting human rights includes avoiding complicity, which is
another way, beyond their own direct business activities, that businesses risk
interfering with the enjoyment of human rights. Complicity is made up of 2
elements: • An act or omission (failure to act) by a co, or individual
representing a company, that helps “(facilities, assists)” another, in some way,
to carry out a human right abuse and kiran.shetty763@gmail.c om 13
14.14. • 2.the knowledge by the company that its act or omission could provide
such help. Contemporary issues: • Globalization • Growth of civil society •

3. Transparency and accountability • Crime • State owned enterprise
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15.15. B.Labour • Principle 3: Businesses should uphold the freedom of
association and the effective recognition of the right to collective bargaining.
• collective bargaining refers to a voluntary process or activity through which
employees and workers discuss and negotiate their relations, in particular
terms and conditions of work and the regulation of relations between
employers,workers and their organizations kiran.shetty763@gmail.c om 15
16.16. Principle 4: The elimination of all forms of forced and compulsory labour
Principle 5: the effective abolition of child labour Principle 6: the elimination
of discrimination in respect of employment and occupation
kiran.shetty763@gmail.c om 16
17.17. C.ENVIRONMENT • Principle 7: businesses should support a
precautionary approach to environmental challenges. • Principle 8: undertake
initiatives to promote greater environmental responsibility • Principle 9:
encourage the development and diffusion of environment friendly
technologies kiran.shetty763@gmail.c om 17
18.18. D.Anti corruption • Principle 10: businesses should work against
corruption in all its forms, including extortion and bribery
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19.19. Models of CSR • There are 3 models : 1. Conflict model: In the traditional
conflict model for corporate social responsibility, social values and benefits
are seen as in conflict with shareholder profits. Under this model, corporations
opting to practice forms of social responsibility are likely to see added costs
for doing so. kiran.shetty763@gmail.c om 19
20.20. 2.Added value model • A second model for conceptualizing corporate
social responsibility is to see social and environmental commitments as a
means to increase profit. While proponents of this model tend to acknowledge
that conflicts persist in business decisions, they also believe that CSR
investments are also capable of generating new revenues. This model tends to
focus on issues like the value of CSR in attracting socially conscious
consumers, finding socially conscious employees and managing the risks of
negative press. kiran.shetty763@gmail.c om 20

4. 21.21. 3. Multiple Goals model • Finally a third model for corporate social
responsibility posits a role for social values in corporate decisions that are
untethered to economic values. Under this model, corporations have goals
beyond shareholder value, including the enhancement of their community
without respect to monetary gain. kiran.shetty763@gmail.c om 21
22.22. Best practices of CSR • Corporate responsibility is an issue where by most
of the companies are dominating with respect to gain the market share in the
economy. • Key components of CR: 1. Corporate governance 2. True
governance should provide all stakeholders with 3. Clarity, openness and
democracy in all the organization’s policies, procedures or strategies and 4.
CR report 5. Sustainable communities kiran.shetty763@gmail.c om 22
23.23. Need of CSR • Social approach is very important to corporate
organizations, which demand that they should be responsive to the social
problems of society • To establish a good corporate image, business
organizations include social responsibility as to corporate objectives • Legal
provisions like pollution and environmental laws also direct a co to take up
social problem • Donations to approved NGOS are exempted from the income
tax kiran.shetty763@gmail.c om