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Corporate social responsibility

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Corporate social responsibility

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Corporate social responsibility

  1. 1. <ul><li>CSR is a win- win opportunity for companies, financial investors and society at large </li></ul>
  2. 2. Social Responsibility: Definition and Debate <ul><li>Social Responsibility </li></ul><ul><ul><li>The idea that business has social obligations above and beyond making a profit. </li></ul></ul><ul><ul><li>Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law. </li></ul></ul>
  3. 3. Purpose of CSR <ul><li>To engage with the internal and external stakeholders </li></ul><ul><li>Treating the stakeholders ethically </li></ul><ul><li>To create high standards of living </li></ul><ul><li>To protect society and environment </li></ul><ul><li>To take care of shareholders </li></ul><ul><li>Philanthropic contributions to society </li></ul>
  4. 4. Factors Leading to CSR - Drivers <ul><li>Globalization and competition </li></ul><ul><li>Increased size and influence of companies </li></ul><ul><li>Repositioning of governments and its roles </li></ul><ul><li>War for talent </li></ul><ul><li>Growth of global civil society activism </li></ul>
  5. 5. Generations of CSR <ul><li>Social Betterment Social responsiveness </li></ul><ul><li>First Generation- </li></ul><ul><li>Companies can be responsible in ways that do not detract from commercial success. </li></ul><ul><li>Second Generation- </li></ul><ul><li>Focusing on CSR as an integral part of long term business strategy. </li></ul><ul><li>Third Generation- </li></ul><ul><li>Significant contribution to address issues such as poverty, environmental degradation. </li></ul>
  6. 6. A Continuum of Social Responsibility Strategies
  7. 7. Social Responsibility Strategies <ul><li>Reactive Strategy </li></ul><ul><ul><li>Denying responsibility while striving to maintain the status quo by resisting change. </li></ul></ul><ul><li>Defensive Strategy </li></ul><ul><ul><li>Resisting additional social responsibilities with legal and public relations tactics. </li></ul></ul>
  8. 8. Social Responsibility Strategies (cont’d) <ul><li>Accommodation Strategy </li></ul><ul><ul><li>Assuming social responsibility only in response to pressure from interest groups or the government. </li></ul></ul><ul><li>Proactive Strategy </li></ul><ul><ul><li>Taking the initiative in formulating and putting in place new programs that serve as role models for industry. </li></ul></ul>
  9. 9. Corporate Social Responsibility (CSR) Arguments For <ul><li>Balancing corporate power with corporate responsibilities </li></ul><ul><li>Protects business self-interest </li></ul><ul><li>Limits future government intervention </li></ul><ul><li>Addresses issues by using business resources and expertise </li></ul><ul><li>Addresses issues by being proactive </li></ul>
  10. 10. Corporate Social Responsibility (CSR) Arguments Against <ul><li>Business is not equipped to handle social activities </li></ul><ul><li>Dilutes the primary aim of business </li></ul><ul><li>Organization may get power over society </li></ul><ul><li>Increase business power </li></ul><ul><li>Lack of expertise to handle social issues </li></ul>
  11. 11. How do we do it? <ul><li>Key CSR Steps </li></ul><ul><li>Commitment and Vision </li></ul><ul><li>Planning </li></ul><ul><li>Implementation </li></ul><ul><li>Monitoring </li></ul><ul><li>Reporting </li></ul><ul><li>Continuous Improvement </li></ul>
  12. 12. Limitations of Approaches to CSR <ul><li>Lack of clarity of the definition of CSR </li></ul><ul><li>Models of CSR not adopted properly by companies </li></ul><ul><li>Lack of measures to innovate and evolve new CSR models </li></ul><ul><li>Unidentified segment- need to identify the areas of interest & capability to take up CSR in a focused manner. </li></ul>
  13. 13. Organisations <ul><li>IISD (International Institute of Sustainable Development) </li></ul><ul><li>BSR (Business for Social Responsibility) </li></ul><ul><li>WEF (World Economic Forum) </li></ul><ul><li>BSD (Business for Social Responsibility) </li></ul><ul><li>WBCSD (World Business Council for Sustainable Development </li></ul>

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