Corporate Social Responsibility Corporate Governance

1. Corporate
Social
Responsibility
Corporate
Governance
BY
ABHAY ASHOK KHANE

2. Corporate Social Responsibility
Corporate social responsibility (CSR) is a self regulating business model that helps a company be
socially accountable to itself, its stakeholders, and the public. By Practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the kind of impact
they are having on all aspects of society, including economic, social and environmental.
In the ordinary course of business, a company is operating in way that enhance society and the
environment instead of contributing negatively in them

3. Why CSR is Important
For a company to be socially responsible, it first needs to be accountable to itself and its
shareholders. Companies that adopt CSR programs have often grown their business to the
point where they can give back to society. Thus, CSR is typically a strategy that's
implemented by large corporations. After all, the more visible and successful a corporation is,
the more responsibility it has to set standards of ethical behavior for its peers, competition,
and industry

4. Types Of CSR

6. Standards of CSR
In 2010, the International Organizational for Standardization (ISO) released ISO 26000, a set
of voluntary standards meant to help companies implement corporate social responsibility.
Unlike other ISO standards, ISO 26000 provides guidance rather than requirements because
the nature of CSR is more qualitative than quantitative, and its standards cannot be certified.
ISO 26000 clarifies what social responsibility is and helps organizations translate CSR
principles into practical actions. The standard is aimed at all types of organizations,
regardless of their activity, size, or location. And because many key stakeholders from
around the world contributed to developing ISO 26000, this standard represents an
international consensus.

7. Examples of Corporate Social
Responsibility
Tata Group
Tata group provide curative and preventive health services to 295,075 Community members
Provide scholarships for higher studies
School infrastructure also developed by tata group
Vocational training also run by the tata group
tata group plant 290,850 trees that increase the green coverage
Portable water solution Sumant Molgoankar development foundation (SMDF) is also run by tata group
Donations (including vehicles) helps 52 NGOs for various social programs

8. Starbucks
Starbucks has long been known for its keen sense of corporate social responsibility and
commitment to sustainability and community welfare. According to its 2020 Global Social
Impact Report, these milestones include reaching 100% of ethically sourced coffee, creating
a global network of farmers and providing them with 100 million trees by 2025, pioneering
green building throughout its stores, contributing millions of hours of community service, and
creating a groundbreaking college program for its employees.

9. Corporate Governance
Corporate governance is the by system of rules, practices, and processes which a firm is directed
and controlled. Corporate governance essentially involves balancing the interests of a
company's many stakeholders, such as shareholders, senior management executives,
customers, suppliers, financiers, the government, and the community.
Since corporate governance provides the framework for attaining a company's objectives, it
encompasses practically every sphere of management, from action plans and internal
controls to performance measurement and corporate disclosure.

10. What is corporate governance
Governance refers specifically to the set of rules, controls, policies, and resolutions put in
place to direct corporate behavior. A board of directors is pivotal in governance. Proxy
advisors and shareholders are important stakeholders who can affect governance.
Communicating a firm's corporate governance is a key component of community and
investor relations. For instance, Apple Inc.'s investor relations site outlines its corporate
leadership (its executive team and board of directors). It provides corporate governance
information including its committee charters and governance documents, such as bylaws,
stock ownership guidelines.

11. Benefits of Corporate Governance
Good corporate governance creates transparent rules and controls, provides guidance to leadership, and aligns
the interests of shareholders, directors, management, and employees.
It helps build trust with investors, the community, and public officials.
Corporate governance can provide investors and stakeholders with a clear idea of a company's direction and
business integrity.
It promotes long-term financial viability, opportunity, and returns.
It can facilitate the raising of capital.
Good corporate governance can translate to rising share prices.
It can lessen the potential for financial loss, waste, risks, and corruption.
It is a game plan for resilience and long-term success.

13. Structure of corporate
governance

14. Corporate Governance Models
The Anglo-American Model
The Continental Model
The Japanese Model

18. How to Assess Corporate
Governance
Disclosure practices
Executive compensation structure (whether it's tied only to performance or also to other metrics)
Risk management (the checks and balances on decision-making)
Policies and procedures for reconciling conflicts of interest (how the company approaches business decisions
that might conflict with its mission statement)
The members of the board of the directors (their stake in profits or conflicting interests)
Contractual and social obligations (how a company approaches areas such as climate change)
Relationships with vendors
Complaints received from shareholders and how they were addressed
Audits (the frequency of internal and external audits and how issues have been handled)

19. Examples
Harshad Mehta Scam (1992)
It is one of the most Technical Scam done with cleverness in the year 1992. The protagonist
of the scam Harshad Mehta diverted bank funds worth Rs. 3500 crores to a group of
stockbrokers. These funds were then put into the stock market selectively, causing it to surge
to over 4500 points. The immediate impact of Harshad Mehta scam was sharp felt in share
prices and indices. The market faced loss of 0.1 million crores in terms of market
capitalization. This resulted in the postponing of sanctioning of Private sector Mutual Fund by
SEBI. The Euro-Issues Planned by various companies were delayed due to the scam.

20. PACL Scheme Scam (2015)
It was the scam of Luring near 55 million investors by the technique of raising
letters. The matter involved the alleged collection of about 450 billion rupees ($6.8
investors across the country.