Mainstreaming CSR
GROUP 5
ANKIT SAKLANI, 13P125
ASHIMA TAYAL, 13P130
JAIN HIMANSHU HEMANT, 13P143
KAUSHIK TRILOK NIHALANI,...
Corporate Social Responsibility
 Concensus Definition
 Obligations of the firm to the society
 Precise Definition
 CSR...
Mainstreaming
 That the activity under consideration is
seen to be on the company’s agenda in
a legitimate, credible and ...
Human Rights
Principle 1: Businesses should
support and respect the
protection of internationally
proclaimed human rights
...
Environment
Principle 7: Businesses should
support a precautionary approach
to environmental challenges
Principle 8: under...
CSR Literature
•Focused on how customers respond to CSR at individual level
•CSR have positive effect on consumer's attitu...
Vogel’s Conceptualization
 CSR activity as a function of an external
market for virtue
 Markets vary in their demand for...
Normative Logics
Business Case Model
Social Values led Model
Syncretic Stewardship Model
8
Business Case Model
 CSR relevant when it translates to a competitive advantage to the firm
 Characterstics
 Existence ...
Social Values led Model
 CSR defined around a particular social issue
 Mainstreamed as a force that drove the organizati...
Syncretic Stewardship Model
 Syncretism is combination of different beliefs or practice
 Has constituents that impact pr...
Feature Business Case Social Values led Case Syncretic Stewardship
case
Role of the external
virtual market
Dominant drive...
SPICE (Society, Partner, Investor, Customer, Employee)
Social Model
S PICE
Business Case Model
PICE SS
I,E
C,P
13
Internal Market for Virtue
The internal market for virtue
captured the extent and manner in
which CSR actions are
demanded...
Degree to which performance improvement &excellence are rewarded
Business Case firms
• Rewarded for
achievement of economi...
Degree to which organizational members use norms, rules or procedures to alleviate unpredictability
Business Case firms
• ...
Degree to which individuals are confrontational or aggressive in their relationships
Business Case firms
• High on asserti...
Cultures of CSR
Dimension of
organizational culture
Business Case Social Values led Syncretic Stewards
Performance High on...
In Conclusion
19
 Many large public companies, at least in Europe and North American multi-nationals
are adopting the Syn...
Thank You
20
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5 mainstreaming csr group 5 setion_c (1)

  1. 1. Mainstreaming CSR GROUP 5 ANKIT SAKLANI, 13P125 ASHIMA TAYAL, 13P130 JAIN HIMANSHU HEMANT, 13P143 KAUSHIK TRILOK NIHALANI, 13P148 RATTANPREET SINGH, 13P161 SHASHANK SHUKLA, 13P166 1
  2. 2. Corporate Social Responsibility  Concensus Definition  Obligations of the firm to the society  Precise Definition  CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy, operations n a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society  Concise Definition  Beyond law commitments and activities pertaining to a wide range of programs It Encompasses ► Corporate Governance and ethics programs ► Health, safety and environment programs ► Human and labor rights ► Human resource management policies ► Community involvement ► Respect for indigenous groups and minorities ► Corporate philanthropy and employee volunteering ► Principles of fair competition, anti-bribery and anti-corruption measures ► Accountability, transparency and performance reporting ► Responsible supplier relations 2
  3. 3. Mainstreaming  That the activity under consideration is seen to be on the company’s agenda in a legitimate, credible and ongoing manner and it is incorporated into day-to- day activities in appropriate and relevant ways.  For something to be mainstreamed it needs to be included in the company’s  Policy development  Technical tools  Performance measures  Political agenda setting processes Coupled (Well funded, Highly visible, firm’s identity) Decoupled (Short term, easily terminated, not diffused in other aspects) 3
  4. 4. Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights Principle 2: make sure that they are not complicit in human rights abuses Labour Principle 3: businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour Principle 6: the elimination of discrimination in respect of employment and occupation 4
  5. 5. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges Principle 8: undertake initiatives to promote greater environmental responsibility Principle 9: encourage the development and diffusion of environmentally friendly technologies. Anti-corruption Principle 10: businesses should work against corruption in all its forms, including extortion and bribery 5
  6. 6. CSR Literature •Focused on how customers respond to CSR at individual level •CSR have positive effect on consumer's attitude Research emanating from Marketing •Whether the firm should engage in CSR and its effect on financial bottom line •Positive relationship between CSR and profitability •Jantzi Social Index Research emanating from Management Literature Different views on CSR Milton Friedman’s View ► Maximize wealth ► Enterprise dependent and accountable to stakeholders ► Firms go through different stages of CSR: Elementary, transformational, value-led programs 6
  7. 7. Vogel’s Conceptualization  CSR activity as a function of an external market for virtue  Markets vary in their demand for CSR: Socially conscious market& Social Economic Market  Firms may vary in their inclination towards CSR performance: CSR sensitive suppliers & Business as Usual Suppliers  Existence of Heterogeneity in market demand and supply  Society has created varying demand for business virtue & firms have responded, rewarded accordingly 7
  8. 8. Normative Logics Business Case Model Social Values led Model Syncretic Stewardship Model 8
  9. 9. Business Case Model  CSR relevant when it translates to a competitive advantage to the firm  Characterstics  Existence of standards so that socially conscious consumers have a decision criteria  CSR does not raise the consumer’s price drastically  Enabled the company to leverage its core competence in a manner that expands the market for CSR  Mainstreaming CSR means aggressively pursuing business opportunities with a CSR dimension  CSR entrepreneurs in these firms only use economic arguments to advocate CSR  CSR efforts restricted to organizational silos where business case is clear  Employees perceived the firm’s commitment as less than genuine 9
  10. 10. Social Values led Model  CSR defined around a particular social issue  Mainstreamed as a force that drove the organization  Noneconomic criteria and the stakeholders associated with them are dominant  Economic criteria and external market for virtue are irrelevant  It is a hybrid organization between for-profit and non-profit sectors  Social vision integral to the fabric of the firm right from inception Establish authenticity of its business purpose and goals 10
  11. 11. Syncretic Stewardship Model  Syncretism is combination of different beliefs or practice  Has constituents that impact profitability and social concerns  Encompass a larger and more diverse set of stakeholders  Often rife with paradoxes and contradictions  CSR narrative is complex, nuanced, negotiated  CSR Entrepreneurs need to be effective politicians and diplomats who can negotiate, persuade and communicate among internal and external stakeholders  Motivation often appeared to be mixed – economic and noneconomic  Emphasis on how CSR impacts company culture Striking a balance between demand and rewards for noneconomic vs economic criteria at the individual and organizational level 11
  12. 12. Feature Business Case Social Values led Case Syncretic Stewardship case Role of the external virtual market Dominant driver of CSR Secondary influencer of CSR Important, integrated influencer of CSR Role of the internal virtual market Weak in influencing CSR Dominant influencer of CSR Important, integrated influencer of CSR Objectives Economic Noneconomic Economic / Noneconomic Bottom Lines Financial Social/Noneconomic Balanced, mixed Key Challenge Find nexus of business opportunity and social responsibility Business viability Balancing economic and noneconomic criteria Narrative Competitive advantage Evangelism Interdependence CSR Leadership philosophy Primacy of stockholders True-believer in social cause Servant of diverse stakeholders CSR Mainstream Orientations 12
  13. 13. SPICE (Society, Partner, Investor, Customer, Employee) Social Model S PICE Business Case Model PICE SS I,E C,P 13
  14. 14. Internal Market for Virtue The internal market for virtue captured the extent and manner in which CSR actions are demanded, encouraged and rewarded by senior managers and board of directors as well as the propensity of employees to provide, supply or deliver on such demand Quantity of CSR InternalpriceofCSR Business Oriented Syncretic steward Value Led Standard self interest Social Entrepreneurs Socially Conscious 14
  15. 15. Degree to which performance improvement &excellence are rewarded Business Case firms • Rewarded for achievement of economic goals Social Values led firms • Rewarded for achievement in non- economic goals Syncretic stewards • Rewarded for balance of economic and non- economic goals Business Case firms • Considerable power distance between the company and non-profit social partner • The firm wielding power Social Values led firms • Counter intuitively, there were power distance differences • Founder regarded as a messiah-like person • Founder wields power Syncretic stewards • Power distance low • Participation by both internal and external stakeholders • Increased employee participation in CSR initiatives Performance orientation Power distance Degree to which members of a collective expect power to be distributed unequally Cultures of CSR 15
  16. 16. Degree to which organizational members use norms, rules or procedures to alleviate unpredictability Business Case firms • Highest on uncertainty avoidance • Planned extensively, had to produce quarterly results • Followed well established routines Social Values led firms • The lowest on uncertainty avoidance • Founders of the firms moved forward with a strong sense of mission not understanding how to accomplish it Syncretic stewards • – low on uncertainty avoidance • Understood the possibility of conflicting duties and problems • Relied on negotiations and creative approaches to problem solving Business Case firms • These firms put profits and timelines before people Social Values led firms • High on human orientation • Focus on people and their quality of life high Syncretic stewards • High on human orientation • Focus on people and their quality of life high Uncertainty avoidance Humane orientation Degree to which organization rewards individuals for being fair, altruistic and caring. It can be judged by how the firm treats its employees, external stakeholders 16
  17. 17. Degree to which individuals are confrontational or aggressive in their relationships Business Case firms • High on assertiveness • Highly confrontational and competitive internally, pitting one group against the other Social Values led firms • Highly assertive when it came to making decisions about their focal issue, but were less aggressive in their approach Syncretic stewards • Mixed and nuanced on assertiveness • Were less assertive while dealing with stakeholders but more assertive with the press or industry trade groups Business Case firms • low on future orientation and more short term in their CSR planning • They need to be flexible and adapt to changing market conditions quickly Social Values led firms • Mid-range in future orientation • Clearly understood their long term challenge of dealing with a major social issue Syncretic stewards • highest in future orientation • Saw the importance of stakeholder engagement as a route to long-term legitimacy and viability Assertiveness Future orientation Degree to which organization encourages its members to plan for the future versus the present 17
  18. 18. Cultures of CSR Dimension of organizational culture Business Case Social Values led Syncretic Stewards Performance High on Economic High on Noneconomic High on economic / Noneconomic Power Distance High Mixed Low Uncertainty High Very Low Low Humane Low High High Assertiveness High High Mixed Future Low Low to Medium High 18
  19. 19. In Conclusion 19  Many large public companies, at least in Europe and North American multi-nationals are adopting the Syncretic Stewardship Model in stead of the Business case model  Firms internal market is playing a very crucial role in the way CSR is integrated and mainstreamed into the regular operations of the company  In the long run, the companies following Business Case model need to look into the social implications to stay socially relevant. Companies following the Social Values model need to look into the financial sustainability of the project as well  Hence, we can conclude that to remain socially relevant and sustain the initiative over a longer period of time, all the companies will soon start following the Syncretic Stewardship Model
  20. 20. Thank You 20

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