Corporate social responsibility

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Corporate social responsibility

  1. 1. Corporate Social Responsibility Presented by :- Divya Karan Andotra 03-MBA-IB-4th Sem
  2. 2. Corporate Social Responsibility  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”. CSR is also referred to as • ‘corporate’ or ‘business responsibility’ • ‘corporate’ or ‘business citizenship’ • ‘community relations’ • ‘social responsibility’
  3. 3. Benefits of CSR • It aids the attraction and retention of staff. • It attracts green and ethical investment. • It attracts ethically conscious customers. • It can lead to a reduction in costs through recycling. • It differentiates the form from its competitor and can be a source of competitive advantage. • It can lead to increased profitability in the long run
  4. 4. THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY Philanthropic Responsibilities Ethical Responsibilities Legal Responsibilities Economic Responsibilities
  5. 5. THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY • Economic Responsibilities  Business organizations were created as economic entities designed to provide goods and services to societal members.  The profit motive was established as the primary incentive for entrepreneurship.  Business organization was the basic economic unit in our society. As such, its principal role was to produce goods and services that consumers needed and wanted and to make an acceptable profit in the process.  At some point the idea of the profit motive got transformed into a notion of maximum profits, and this has been an enduring value ever since.
  6. 6. • Legal Responsibilities  Society has not only sanctioned business to operate according to the profit motive; at the same time business is expected to comply with the laws and regulations promulgated by federal, state, and local governments as the ground rules under which business must operate.  As a partial fulfillment of the "social contract" between business and society firms are expected to pursue their economic missions within the framework of the law.  Legal responsibilities reflect a view of "codified ethics" in the sense that they embody basic notions of fair operations as established by our lawmakers.  They are depicted as the next layer on the pyramid to portray their historical development, but they are appropriately seen as coexisting with economic responsibilities as fundamental precepts of the free enterprise system.
  7. 7. • Ethical Responsibilities  Although economic and legal responsibilities embody ethical norms about fairness and justice, ethical responsibilities embrace those activities and practices that are expected or prohibited by societal members even though they are not codified into law.  Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders' moral rights.
  8. 8. • Philanthropic Responsibilities  Philanthropy encompasses those corporate actions that are in response to society’s expectation that businesses be good corporate citizens.  This includes actively engaging in acts or programs to promote human welfare or goodwill.
  9. 9. Need for CSR • To fulfill long run self interest of the organisations. • To establish a better public image. • To avoid misuse of resources. • To minimize environmental damage. • For economic and social welfare of the community.
  10. 10. Importance of CSR • The importance of CSR increases with globalization as both investors and customers have become very sensitive to societal and environmental issues. • CSR helps business organisations to:  Impulse their relationship with local communities.  Increase the branding of the organisation.  Building a good corporate image for themselves. • CSR minimizes the negative impact of business activities and create wealth and value for shareholders and community as a whole.
  11. 11. CSR Involves • Conducting business in a ethical way and in the interest of wider community. • Responding positively to emerging societal priorities and expectations. • Being a good citizen in the community. • Balancing shareholder interests against the interest of wider community.
  12. 12. 3P’s of CSR
  13. 13. Economic Responsibilities of Corporations • Financial profit, economic growth and asset creation. • Economic impact through business processes such as:  Outsourcing  Knowledge innovation  Social investments • Monetary support for NGOs.
  14. 14. Social Responsibilities of Corporations • Abolish slavery, forced and child labour. • Provide equal opportunities and vocational training/guidance. • Freedom of expression, thought and religion. • Right to Privacy and Family Life. • Right to take part in political life.
  15. 15. Environmental Responsibilities of Corporations • Use and handling of genetically modified organisms. • Minimizing the Greenhouse gas emissions & Global warming. • Treatment and reduction of waste water. • Soil and water contamination. • Recycling and reuse of materials. • Protection of Forest resources.
  16. 16. Examples of Companies Implementing CSR
  17. 17. A SHOE FOR ME IS A SHOE FOR YOU: TOMS SHOES Blake Mycoskie started Toms Shoes on the premise that for every pair of shoes sold, one pair would be donated to a child in need. This innovative idea resulted from a trip to Argentina where Mycoskie saw an overwhelming number of children without shoes. Toms Shoes recognized that consumers want to feel good about what they buy, and thus directly tied the purchase with the donation. In just four years, Toms Shoes has donated more than 400,000 shoes, evidence that consumers have clearly embraced the cause.
  18. 18. BREWED RESPONSIBLY: STARBUCKS COFFEE • Since Starbucks Coffee started in 1971, the company has focused on acting responsibly and ethically. One of Starbucks' main focuses is the sustainable production of green coffee. With this in mind, it created C.A.F.E. Practices, a set of guidelines to achieve product quality, economic accountability, social responsibility and environmental leadership. The company supports products such as Ethos Water, which brings clean water to the more than 1 billion people who do not have access. To date, Ethos Water has committed to grants totaling more than $6.2 million.

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