CORPORATE SOCIAL RESPONSIBILITY - Background & Implications In India


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This Presentation on CSR will give you the very core idea of what is CSR, how it evolved, what are it's applications, its effect on the aspect of Business & Some examples of CSR's Involvement in India!!!!

The Slide No. 25 contains a Youtube Video. The link is given below :

Hope you will get a basic idea of CSR from the presentation.

Thank You.

CORPORATE SOCIAL RESPONSIBILITY - Background & Implications In India

  1. 1. Corporate Social Responsibility
  3. 3. Objectives of the Session At the end of this session, you should be able to identify and describe:  A definition for CSR  Brief History & Types of CSR  Myths Surrounding CSR  Need & Demonstration of CSR  Benefits of CSR  Evolution of CSR In India  Corporates, India & CSR
  4. 4. What is Corporate Social Responsibility?  A concept that encourages organizations to consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of its operations. Goes beyond the statutory obligation to comply with legislation  Sees organizations voluntarily taking further steps to improve the quality of life for:  Employees and their families  Local community  Society at large
  5. 5. Brief History & Types of CSR • Based on the idea of `Social Responsibility (SR)’ before the dominance of corporate businesses and organizations. • The term "corporate social responsibility" came into common use in the late 1960s and early 1970s. • In the 1980s, business and social interest came closer and firms became more responsive to their stakeholders. Generally 2 types of CSR exist : a. Corporations providing funding and resources for worthwhile social causes. b. Taking out a plan to produce products or provide services that are in the best interests of society, in the means of production and services.
  7. 7. Carroll’s Pyramid of CSR
  8. 8. Need For CSR  Issues such as environmental damage, improper treatment of workers, and faulty production leading to customer inconvenience or danger are being highlighted. Investors and investment fund managers have began to take account of a firm’s CSR policy in making investment decisions.  Some consumers have become increasingly sensitive to the CSR program of the firms from which they buy their goods and services.
  9. 9. Need Of CSR For Consumers & Society Important for encouraging businesses Consumer preference Consumer opinions Issues mainly emphasized on by consumers: Product quality Money value Technological advancements • Leads to increase in the awareness of the society • Helps in dealing with societal matters such as: • Nutrition & health issues • Human rights & gender • Labor practices • Involvement in community issues
  10. 10. Demonstration of CSR 1. Environmental Sustainability: Areas include recycling, water management, using renewable energy sources, creating 'greener' supply chains, etc. The highest ranked sustainability consulting firm is Ernst & Young 2. Community Involvement: This can include raising money for local charities, sponsoring local events, employing people from a community, etc. Starbucks is an example of a company that focuses on community involvement. 3. Ethical Marketing Practices: Companies that ethically market to consumers are placing a higher value on their customers and respecting them as people who are ends in themselves.
  11. 11. Potential Business Benefits of CSR  TRIPLE BOTTOM LINE : People, Planet & Profit. People - Relates to fair and beneficial business practices Planet - Refers to sustainable environmental practices Profit - Is the economic value created by the organization after deducting the cost of all inputs HUMAN RESOURCES : A CSR program can be an aid to recruitment and retention, particularly within the competitive graduate student market.  RISK MANAGEMENT : Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.
  12. 12. Potential Business Benefits of CSR  BRAND DIFFERENTIATION : In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. LICENSE TO OPERATE : To avoid interference in their business through taxation or regulations.  SUPPLIER RELATIONS : Emphasize the importance of practicing CSR to suppliers & researching on existing supply chains.
  13. 13. 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 Benefits Of CSR
  14. 14. Evolution Of CSR In India Phase – 1 : In the pre Industrialization period, the main drivers of Charity were 1) Charity 2) Philanthropy The wealthy merchants shared their wealth by building temples, providing food during famines, etc. But with the arrival of colonial rule, the approach changed & the industrial families became strongly inclined towards economic & social considerations. Phase – 2 : During the Independence period, Mahatma Gandhi introduced the notion of trusteeship. Under his influence businesses established trusts for schools and colleges and also helped in setting up training and scientific institutions. All these were in line with Gandhi’s reforms to abolish untouchability, women empowerment & rural development.
  15. 15. Evolution Of CSR In India Phase – 3 : CSR was influenced by the emergence of Public sector undertakings to ensure proper distribution of wealth. The policy of industrial licensing, high taxes and restrictions on the private sector resulted in corporate malpractices. Therefore there was a natural shift of expectation from the public to the private sector and their active involvement in the socio-economic growth. Phase – 4 : Indian companies integrated CSR into a sustainable business strategy. With partial withdrawal of controls and licensing systems there was a boom in the economic growth of the country. This led to the increased momentum in industrial growth, making it possible for the companies to contribute more towards social responsibility What started as CHARITY is now understood and accepted as RESPONSIBILITY.
  16. 16. General Values Statement ENVIRONMENTAL FOCUS “While we have always sought to be sensitive to the environment, we must use our significant resources and capabilities to provide active leadership on environmental issues, particularly those relevant to our business. We are committed to preserving our environment , from the use of more than $2 billion a year in recycled content & suppliers & beautification efforts.”
  17. 17. General Values Statement EMPLOYEE FOCUS Johnson & Johnson’s Balancing Work & Family program reflects our credo commitment to help employees manage work and family life. This effort offers advantages to employees and to the Company, which is able to attract, recruit and retain the most talented employees and offer them a host of benefits.
  19. 19. 21 1995- Tata Business Excellence Model - Makes sustainable growth a priority and has included this in its Key Enterprises Process. 1999- Tata Code of Conduct - Mandates good governance ethical behavior by organizations as well as each and every employee. 1995- Tata Council for Community Initiatives Provides the superstructure for CSR efforts across the Group. 2003- Tata Index for Sustainable Development A CSR measure adopted across the Tata Group.
  20. 20. 22 Areas of Impact Environment Stimulating Economic Growth Sports and Adventure Health for All Education / Arts and Culture
  21. 21. SOCIAL PERFORMANCE  The environment policy of the Company promotes energy conservation, 3Rs (Reduce, Reuse and Recycle), green procurement, environment friendly mobility and environment consciousness among its direct stakeholders.  Maruti Suzuki became the first automobile company in India to register a Clean Development Mechanism (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC).  Maruti Suzuki runs an in-house volunteer programme for its employees. The programme runs in partnership with local NGOs.
  22. 22. Conclusions A. Corporate had moved ahead to a really new level to fulfill their Social Responsibility which not only helps the society but also to these companies to make a reputation in the society. B. The expectations from private sector regarding CSR is very high. C. Corporate companies should be encouraged and motivated to contribute more. So, Companies not doing CSR will not survive. It’s only the Question of “WHEN”…….