Corporate Social Responsibility by Stephen P Robins [MBA-1] NUML

1. 1
Corporate SocialCorporate Social
ResponsibilityResponsibility

2. 2
ConceptConcept
Business decision making linked with:Business decision making linked with:
 Ethical valuesEthical values
 Compliance with the lawCompliance with the law
 Respect for people, communities and theRespect for people, communities and the
environment.environment.

3. 3
Another definitionAnother definition
Lord Holme and Richard Watts define CSR as:Lord Holme and Richard Watts define CSR as:
 CSR is the continuing commitmentCSR is the continuing commitment
 By a business firm (company)By a business firm (company)
 To behave ethically, andTo behave ethically, and
 Contribute to country’s economic developmentContribute to country’s economic development
 While improving the quality of life of:While improving the quality of life of:
 the workforcethe workforce
 as well as the community and society at large.as well as the community and society at large.

4. 4
The American &The American &
European ConceptsEuropean Concepts
 American businesses mostly think CSR is onlyAmerican businesses mostly think CSR is only
about giving money for worthy causes.about giving money for worthy causes.
 Europeans think CSR is a tool for promotingEuropeans think CSR is a tool for promoting
business. Treat the society well so that societybusiness. Treat the society well so that society
can buy your products. Do more CSR whencan buy your products. Do more CSR when
times are bad.times are bad.

5. 5
Trusteeship TheoryTrusteeship Theory
 Companies really do not belong to any one.Companies really do not belong to any one.
 Shareholders own share of “what remains” butShareholders own share of “what remains” but
not specific assets of the company.not specific assets of the company.
 Directors hold the assets of the company in trustDirectors hold the assets of the company in trust
on behalf of not just shareholders but theon behalf of not just shareholders but the
society at large.society at large.
 A company is a social asset.A company is a social asset.

6. 6
Historical PerspectiveHistorical Perspective
 In fact, CSR came much after Business Ethics.In fact, CSR came much after Business Ethics.
 Business have learned that chasing only profitBusiness have learned that chasing only profit
does not give enough profit.does not give enough profit.
 CSR can actually improve their profitability andCSR can actually improve their profitability and
sustainability of their ventures.sustainability of their ventures.

7. 7
Scope of CSRScope of CSR
 PhilanthropyPhilanthropy
 Doing Business ResponsiblyDoing Business Responsibly
 Being a good citizenBeing a good citizen

8. 8
PhilanthropyPhilanthropy
 Financial donations to worthy causes:Financial donations to worthy causes:
 Do not just throw away money – be carefulDo not just throw away money – be careful
 Do not wait for disasters to show your kindnessDo not wait for disasters to show your kindness
 Setting, running or supporting socially desirableSetting, running or supporting socially desirable
bodies:bodies:
 Monitoring and evaluating them in the processMonitoring and evaluating them in the process
 Supplementing the governmental effortsSupplementing the governmental efforts
towards social welfaretowards social welfare

9. 9
Doing business responsiblyDoing business responsibly
 Essentially being ethicalEssentially being ethical
 Integrity in all that you doIntegrity in all that you do
 FairnessFairness
 To every one: employees, clients, suppliers, allTo every one: employees, clients, suppliers, all
 Protection of all stakeholders’ interestProtection of all stakeholders’ interest
 Serving the common interest of all stakeholdersServing the common interest of all stakeholders

10. 10
Being a good citizenBeing a good citizen
 Compliance with law.Compliance with law.
 Paying your duesPaying your dues
 No tax evasion, directly or indirectlyNo tax evasion, directly or indirectly
 Investment in community:Investment in community:
 Capital nature rather than just recurrentCapital nature rather than just recurrent
 Concern for environmentConcern for environment

11. 11
Concern for EnvironmentConcern for Environment
 Eco-balanceEco-balance
 DeforestationDeforestation
 Soil degradationSoil degradation
 Atmospheric changesAtmospheric changes
 PollutionPollution
 Waste/Discharges managementWaste/Discharges management
 Depletion of resourcesDepletion of resources
 Emphasis on creating re-usable resourcesEmphasis on creating re-usable resources

12. 12
Environmental Risk ManagementEnvironmental Risk Management
 Identify and define risks being posed (or faced)Identify and define risks being posed (or faced)
by the company.by the company.
 Establish the extent and probability of risks.Establish the extent and probability of risks.
 Assess cost of:Assess cost of:
 The consequences of the risk after it takes placeThe consequences of the risk after it takes place
 preventing it from happeningpreventing it from happening
 Assign specific responsibilityAssign specific responsibility

13. 13
ERM -2ERM -2
 Define means of handling it.Define means of handling it.
 Preventing it through:Preventing it through:
 Better technologyBetter technology
 Better materialsBetter materials
 Better maintenanceBetter maintenance
 Insurance:Insurance:
 Actual lossActual loss
 Claims against the companyClaims against the company

14. 14
Strategies forStrategies for
Prevention of Industrial PollutionPrevention of Industrial Pollution
 Environmental processes’ auditEnvironmental processes’ audit
 Waste management auditWaste management audit
 Material usage reviewMaterial usage review
 Non-solid effluents auditNon-solid effluents audit
 Financial considerationsFinancial considerations
 Cost benefit analysis of being eco-balancedCost benefit analysis of being eco-balanced
 Use of new cleaner technologyUse of new cleaner technology
 Life cycle assessmentsLife cycle assessments
 Spreading awareness among usersSpreading awareness among users

15. 15
Resource ManagementResource Management
 Energy resources (fossil fuels vs. others)Energy resources (fossil fuels vs. others)
 Re-cycling of materialsRe-cycling of materials
 Using re-cycled materialUsing re-cycled material
 Using bio-degradable materialUsing bio-degradable material
 Conservation of life supporting systemsConservation of life supporting systems
 Forests, trees, water sources, mountainsForests, trees, water sources, mountains
 Wild lifeWild life
 Responsible use of landResponsible use of land

16. 16
Some BigSome Big
Environmental DisastersEnvironmental Disasters
 Chernobyl Nuclear Disaster (1986)Chernobyl Nuclear Disaster (1986)
 Nuclear reactors went berserkNuclear reactors went berserk
 Exxon Valdez (1989) in AlaskaExxon Valdez (1989) in Alaska
 11.5 million barrels of crude spilled11.5 million barrels of crude spilled
 Tokiamora Accident (1999)Tokiamora Accident (1999)
 Nuclear radiation leakedNuclear radiation leaked
 Bhopal Tragedy (1984)Bhopal Tragedy (1984)
 Leakage of poisonous gas, killing 300 and affecting 400,000Leakage of poisonous gas, killing 300 and affecting 400,000
personspersons
 Gulf of Mexico (2010)Gulf of Mexico (2010)
 Leakage of crude oil, polluting virtually the entire gulfLeakage of crude oil, polluting virtually the entire gulf

17. 17
Shades of CSRShades of CSR
 Official posture and realityOfficial posture and reality
 Spending more money on publicizing CSR thanSpending more money on publicizing CSR than
actual CSR work.actual CSR work.
 Lip service: strings attached helpLip service: strings attached help

18. 18
Formulating CSR Policy
 Set a Code of Ethics outlining CSR Values
to be upheld
 Establish current position on CSR values
 Discuss with relevant stakeholders
 Employees
 Pressure groups
 Clients
 Draw up a formal CSR Policy

19. 19
CSR Policy
 Formally promulgate the CSR policy
 Prescribe systems
 Establish responsibility for each party
 Set realistic strategies and targets
 Keep all concerned informed
 Monitor achievements
 Revise policy or targets as necessary

20. 20
Bench Marking in CSR
 You do as much as others are doing.
 Can any one set “minimums”?
 Who ensures compliance?
 How to monitor compliance?

21. 21
CSR in PakistanCSR in Pakistan
 Mostly companies consider philanthropy to beMostly companies consider philanthropy to be
the only means of CSR.the only means of CSR.
 However change is coming.However change is coming.
 Telenor’s Karo MumkinTelenor’s Karo Mumkin
 PTC’s tree plantingPTC’s tree planting
 Mobilink’s medical helplineMobilink’s medical helpline

22. 22
CSR SurveyCSR Survey
People in Pakistan want companies to:People in Pakistan want companies to:
 Promote educationPromote education
 Create employmentCreate employment
 Provide health care to publicProvide health care to public
 Reduce pollutionReduce pollution
 Provide better work placeProvide better work place

23. 23
Thank youThank you