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Corporate Social Responsibility.
Paper by : Omkar S. Tembe
Vipul S. Phadtare
(TY BCA)
D.G.College of Commerce , Satara.
CSR! Is that really
for me? So
technical, very
expensive!!
I’m overwhelmed
 Introduction :-
 Corporate Social Responsibility is the continuing commitment by business to behave ethically
and contribute to economic development while improving the quality of life of the workforce and
their families as well as of the local community and society at large.
– World Business Council For Sustainable Development
 The impact of a company’s actions on society.
The responsibility of business towards the
society
Corporate Social Responsibility
Frederick provides expanded framework for understanding
the evolution of CSR concept
1) Corporate social stewardship 1950s – 1960s
2) Corporate social responsiveness 1960s – 1970s
3) Corporate/business ethics 1980s – 1990s
4) Corporate/global citizenship 1990s – 2000s
 Evolution of C.S.R :-
 Canadian Government :
“CSR is generally understood to be the way a company achieves a balance or integration
of economic, environmental and social imperatives while at the same time addressing
shareholder and stakeholder expectations.”
 UK Government :
“The Government sees CSR as the business contribution to our sustainable development
goals. Essentially it is about how business takes account of its economic, social and
environmental impacts in the way it operates maximizing the benefits and minimizing the
downsides.”
 European Union:
“a concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary basis.”
 Different Definitions :-
 Myths about 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
 Opting CSR gives guarantee about ethical behaviour of business.
 Process of CSR :-
Plan
• Consult stakeholders
• Establish code of conduct
• Set targets
Do
• Establish management
systems and personnel
• Promote code compliance
Check
• Measure progress
• Audit
• Report
Act
• Corrective action
• Reform of systems
 Carroll’s Definition of CSR :-
Responsibility Social Expectations Examples
Economic Required Be profitable, Maximize sales, Minimize
costs ,etc .
Legal Required Obey laws and regulations
Ethical Expected Do what is right.
Discretionary
(Philanthropic)
Desired/Expected Be a good corporate citizen.
give money or time to charity.
1) Labour rights:
child labour
forced labour
right to organize
safety and health
2) Environmental conditions
water & air emissions
climate change
3) Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings
4) Poverty Alleviation
job creation
public revenues
skills and technology
 Key Issues In CSR :-
 CSR Management Structure :-
Group
Presidents
Chief
Financial
Officer
VP of
Human
Resources
General
Counselor
C.S.R
OFFICER
Steering
Committee
Board Of Directors
President and CEO
Audit Committee of
Board
 Principles of CSR :-
1) Ethical behaviour
2) Respect for rule of law
3) Respect for international norms of behaviour
4) Respect for and considering of stakeholder interests
5) Accountability
6) Transparency
7) Precautionary approach
8) Respect for human rights
 3 Levels of CSR :-
1st Level 2nd Level 3rd Level
Improve law/ regulations
standards
Infrastructure for physically
challenged employees
Ash management: ash brick
factory
Department of environmental
management
Foundations (i.e. : financial
aid beyond immediate
community/tax planning with
positive impact)
Quality Circle: empowering
community
Reclamation (turning ash in
to soil)
Income generation for
community
R&R: land for land
Local Government
participation
Forestation / Greening Distributed Generation:
Regional dev.
Community development
office
Center for power efficiency
and Env. Protection
(CenPEEP)
Cultivation in public land
Paternity leave
 Spectrum of CSR :-
Good CSRPoor CSR
•No employment
•No concern for indirect effect (land,
water, air)
•Destruction of agricultural land
•Not willing to listen to other
stakeholders
•Appropriate of land not being
compensated
•Non compliance of rule of land
•Taking care of workers
•Low dependence on non
renewable resources
•High awareness about CSR
initiatives
•Land compensation
•Increased monitoring system
•Environment responsibility
 Practical Examples of CSR :-
 Practical Examples of CSR :-
 Practical Examples of CSR :-
1) TOI’s Lead India campaign, campaign for contribution towards
educating the poor.
2) Coke’s sale was banned as the result of tests, including those by the
Indian government, which found high concentrations of pesticides.
3) Bharat Petroleum Corporation Limited, Maruti Suzuki India
Limited, and Hindustan Unilever Limited are providing improved
medical and sanitation facilities, building schools and houses, and
empowering the villagers by providing vocational training.
 Practical Examples of CSR :-
 Benefits of C.S.R :-
Benefits
of CSR
Winning new
businesses
Enhancing your
influence in the
industry
Attracting,
Retaining and
Maintaining a happy
workforce
Increase in
customer retention
Differentiating
yourself from the
competitor
Saving money
on energy and
operating cost
Access to funding
opportunities
Media interest
and good
reputation
Enhanced
Relationship with
stakeholders
1) Corporate Social Responsibility in India - Putting Social-Economic
Development on a Fast Track --------------- Sathish, Ramya.
2) Corporate Social Responsibility Issues --------------- Site Visit C
Raipur & Korba – Chhattisgarh, India
3) Corporate Social and Environmental Responsibility in India – Assessing the
UN Global Compact's Role ………………… CSR Asia
www.fasset.org.za
www.bsr.org
www.mollenbaker.net
www.wekipedia.com
 References :-
Thank you !!!

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Corporate Social Responsibility

  • 1. Corporate Social Responsibility. Paper by : Omkar S. Tembe Vipul S. Phadtare (TY BCA) D.G.College of Commerce , Satara. CSR! Is that really for me? So technical, very expensive!! I’m overwhelmed
  • 2.  Introduction :-  Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. – World Business Council For Sustainable Development  The impact of a company’s actions on society. The responsibility of business towards the society Corporate Social Responsibility
  • 3. Frederick provides expanded framework for understanding the evolution of CSR concept 1) Corporate social stewardship 1950s – 1960s 2) Corporate social responsiveness 1960s – 1970s 3) Corporate/business ethics 1980s – 1990s 4) Corporate/global citizenship 1990s – 2000s  Evolution of C.S.R :-
  • 4.  Canadian Government : “CSR is generally understood to be the way a company achieves a balance or integration of economic, environmental and social imperatives while at the same time addressing shareholder and stakeholder expectations.”  UK Government : “The Government sees CSR as the business contribution to our sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates maximizing the benefits and minimizing the downsides.”  European Union: “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”  Different Definitions :-
  • 5.  Myths about 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  Opting CSR gives guarantee about ethical behaviour of business.
  • 6.  Process of CSR :- Plan • Consult stakeholders • Establish code of conduct • Set targets Do • Establish management systems and personnel • Promote code compliance Check • Measure progress • Audit • Report Act • Corrective action • Reform of systems
  • 7.  Carroll’s Definition of CSR :- Responsibility Social Expectations Examples Economic Required Be profitable, Maximize sales, Minimize costs ,etc . Legal Required Obey laws and regulations Ethical Expected Do what is right. Discretionary (Philanthropic) Desired/Expected Be a good corporate citizen. give money or time to charity.
  • 8. 1) Labour rights: child labour forced labour right to organize safety and health 2) Environmental conditions water & air emissions climate change 3) Human rights cooperation with paramilitary forces complicity in extra-judicial killings 4) Poverty Alleviation job creation public revenues skills and technology  Key Issues In CSR :-
  • 9.  CSR Management Structure :- Group Presidents Chief Financial Officer VP of Human Resources General Counselor C.S.R OFFICER Steering Committee Board Of Directors President and CEO Audit Committee of Board
  • 10.  Principles of CSR :- 1) Ethical behaviour 2) Respect for rule of law 3) Respect for international norms of behaviour 4) Respect for and considering of stakeholder interests 5) Accountability 6) Transparency 7) Precautionary approach 8) Respect for human rights
  • 11.  3 Levels of CSR :- 1st Level 2nd Level 3rd Level Improve law/ regulations standards Infrastructure for physically challenged employees Ash management: ash brick factory Department of environmental management Foundations (i.e. : financial aid beyond immediate community/tax planning with positive impact) Quality Circle: empowering community Reclamation (turning ash in to soil) Income generation for community R&R: land for land Local Government participation Forestation / Greening Distributed Generation: Regional dev. Community development office Center for power efficiency and Env. Protection (CenPEEP) Cultivation in public land Paternity leave
  • 12.  Spectrum of CSR :- Good CSRPoor CSR •No employment •No concern for indirect effect (land, water, air) •Destruction of agricultural land •Not willing to listen to other stakeholders •Appropriate of land not being compensated •Non compliance of rule of land •Taking care of workers •Low dependence on non renewable resources •High awareness about CSR initiatives •Land compensation •Increased monitoring system •Environment responsibility
  • 16. 1) TOI’s Lead India campaign, campaign for contribution towards educating the poor. 2) Coke’s sale was banned as the result of tests, including those by the Indian government, which found high concentrations of pesticides. 3) Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited, and Hindustan Unilever Limited are providing improved medical and sanitation facilities, building schools and houses, and empowering the villagers by providing vocational training.  Practical Examples of CSR :-
  • 17.  Benefits of C.S.R :- Benefits of CSR Winning new businesses Enhancing your influence in the industry Attracting, Retaining and Maintaining a happy workforce Increase in customer retention Differentiating yourself from the competitor Saving money on energy and operating cost Access to funding opportunities Media interest and good reputation Enhanced Relationship with stakeholders
  • 18. 1) Corporate Social Responsibility in India - Putting Social-Economic Development on a Fast Track --------------- Sathish, Ramya. 2) Corporate Social Responsibility Issues --------------- Site Visit C Raipur & Korba – Chhattisgarh, India 3) Corporate Social and Environmental Responsibility in India – Assessing the UN Global Compact's Role ………………… CSR Asia www.fasset.org.za www.bsr.org www.mollenbaker.net www.wekipedia.com  References :-