Corporate Social Responsibilty - Basic introduction

1. C O R P O R AT E S O C I A L
R E S P O N S I B I L I T Y ( C S R )
Module IV – I B. Com, University of Calicut

3. C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y ( C S R )
• 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.
• To engage in CSR means that, in the ordinary course of business,
a company is operating in ways that enhance society and the
environment, instead of contributing negatively to them.
• CSR activities can help forge a stronger bond between employees
and corporations, boost morale and help both employees and
employers feel more connected with the world around them.

4. Ho
W H A T I S C O R P O R A T E
S O C I A L R E S P O N S I B I L I T Y
( C S R ) ?
• The term corporate social responsibility (CSR)
refers to practices and policies undertaken by
corporations that are intended to have a positive
influence on the world. The key idea behind CSR
is for corporations to pursue other pro-social
objectives, in addition to maximizing profits.
Examples of common CSR objectives include
minimizing environmental externalities, promoting
volunteerism among company employees, and
donating to charity.
- Howard Bowen – Father of CSR

5. • The United Nations Industrial Development Organization
notes that the common functions of corporate social
responsibility include:
• Responsible sourcing of materials and supplies
• Employee, vendor, customer and community engagement and
relations
• Adherence to labor standards
• Environmental protection and management
• Anti-corruption measures
• Upholding social equity, gender equity and other human rights goals
• Conservation of resources, like water and energy, in production

6. W H Y S H O U L D A C O M PA N Y I M P L E M E N T
C S R ?
• Many companies view CSR as an integral part of their brand
image, believing that customers will be more likely to do
business with brands that they perceive to be more ethical. In
this sense, CSR activities can be an important component of
corporate public relations. At the same time, some company
founders are also motivated to engage in CSR due to their
personal convictions.

7. W H AT I S T H E I M PA C T O F C S R ?
• The movement toward CSR has had an impact in several
domains. For example, many companies have taken steps to
improve the environmental sustainability of their operations,
through measures such as installing renewable energy
sources or purchasing carbon offsets. In managing supply
chains, efforts have also been taken to eliminate reliance on
unethical labor practices, such as child labor and slavery.
Although CSR programs have generally been most common
among large corporations, small businesses also participate
in CSR through smaller-scale programs such as donating to
local charities and sponsoring local events.

8. E X A M P L E O F C O R P O R AT E S O C I A L
R E S P O N S I B I L I T Y
• Long before its initial public offering (IPO) in 1992, Starbucks was known
for its keen sense of corporate social responsibility, and commitment to
sustainability and community welfare. Starbucks has achieved corporate
citizenship milestones including:
• Reaching 99% ethically sourced coffee
• Creating a global network of farmers
• Pioneering green building throughout its stores
• Contributing millions of hours of community service
• Creating a groundbreaking college program for its partner/employees
• Starbucks’ goals include hiring 10,000 refugees across 75 countries,
reducing the environmental impact of its cups, and engaging its
employees in environmental leadership.

10. C S R A N D I N D I A
• The Ministry of Corporate Affairs has released a new order notifying the amendments in the
CSR rules for companies. It comes into effect starting Jan 22, 2021.
• The government amended various rules pertaining to the corporate social responsibility (CSR)
regime, including allowing corporates to undertake multi-year projects and making registration
compulsory for agencies implementing CSR activities on behalf of companies.
• The move was aimed at improving the ease of doing business and the quality of CSR projects
while enhancing disclosures and transparency under the new framework.
• The provisions of the 2019 Amendment to the Companies Act, 2013 pertaining to Corporate
Social Responsibility (CSR) came into force on January 22.
• As per the new provisions, every entity that intends to undertake any CSR activity will have to
register itself with the Central Government by filing the form CSR-1 electronically with the
Registrar of Companies, with effect from April 1, 2021. “Form CSR-1 shall be signed and
submitted electronically by the entity and shall be verified digitally… On the submission of the
Form CSR-1 on the portal, a unique CSR Registration Number shall be generated by the
system automatically,

11. C O M PA N I E S U N D E R TA K I N G C S R
A C T I V I T I E S W I L L H AV E T O S H A R E :
Impact Assessment for big CSR projects
Carry forward and set off of CSR expenditure
Annual action plan for CSR by Board every year in addition to CSR
policy
Tweaks in reporting formats of Board Report
Mandatory disclosure of CSR projects and activities on company
website
Capital Asset acquisition and its holding restricted to three bodies
broadly
Transfer of unspent amount to government notified fund
Companies have been allowed to set the excess amount spent
under CSR up to three succeeding financial years.
Non-compliance with CSR provisions has been decriminalized by
shifting such offences to penalty regime

12. S I X C O R E C H A R A C T E R I S T I C S O F C S R
(1) voluntary activities that go beyond those prescribed by law,
(2) internalizing or managing externalities for example a reduction
on pollution,
(3) multiple stakeholder orientation and not only focusing on
shareholders,
(4) alignment of social and economic responsibilities to maximize
the profitability,
(5) practices and values about “why they do it” and the last
element
(6) mentioning that CSR is more than philanthropy alone.
*https://raoul.io/blog/corporate-social-responsibility/

13. C O R P O R AT E C I T I Z E N S H I P
• Corporate citizenship refers to a company’s responsibilities toward
society. The goal is to produce higher standards of living and quality of
life for the communities that surround them and still maintain
profitability for stakeholders.
• All businesses have basic ethical and legal responsibilities; however,
the most successful businesses establish a strong foundation
of corporate citizenship, showing a commitment to ethical behavior by
creating a balance between the needs of shareholders and the needs of
the community and environment in the surrounding area. These
practices help bring in consumers and establish brand and company
loyalty.
• In 2010, the International Organization for Standardization (ISO)
released a set of voluntary standards meant to help companies

14. T H E F I V E S TA G E S O F C O R P O R AT E
C I T I Z E N S H I P
1. Elementary
2. Engaged
3. Innovative
4. Integrated
5. Transforming