corporate social responsibility approaches

1. CORPORATE
SOCIAL
RESPONSIBILITY
: MAKING A
DIFFERENCE

2. UNDERSTANDING CSR?
• CSR is a concept whereby organizations consider
the interests of society by taking responsibility for
the impact of their activities on customers,
suppliers, employees, shareholders, communities
and other stakeholders, as well as the environment.
• This obligation is seen to extend beyond the
statutory obligation to comply with legislation and
sees organizations voluntarily taking further steps
to improve the quality of life for employees and their
families as well as for the local community and
society at large.

3. DEFINITION
• The Mahindra Group defines Corporate
Social Responsibility as making socially
responsible products, engaging in socially
responsible employee relations and making a
commitment to the community around it.
• It dedicates 1% of its profit (after tax), on a
continuous basis towards Corporate Social
Responsibility.

4. Corporate Social Responsibility
(CSR)
Carroll’s Four Part Definition
Understanding the Four Components
Responsibility Societal
Expectatio
n
Examples
Economic Required Be profitable. Maximize
sales, minimize costs, etc.
Legal Required Obey laws and regulations.
Ethical Expected Do what is right, fair and just.
Discretionary
(Philanthropic)
Desired/
Expected
Be a good corporate citizen.
2-16

5. Pyramid of CSR

6. Corporate Social Responsibility
(CSR)
CSR in Equation Form Is the Sum of:
Economic Responsibilities (Make a profit)
+
Legal Responsibilities (Obey the law)
+
Ethical Responsibilities (Be ethical)
+
Philanthropic Responsibilities (Good corporate citizen)
= CSR

7. Models of Corporate social
responsibility:
1) The Traditional Paradigm
2) A Strategic Perspective
3) A Symbiotic Perspective
4) A Corporate Innovation Perspective
5) An Entrepreneurial Perspective

8. The Traditional Paradigm
• Till 1990’s CSR was understood purely in terms of
philanthropy. Welfare programs and initiatives were introduced
not as a duty but as a form of social responsibility that
reflected the virtues of the organization.
Bottlenecks:
• Lack of complete and long term commitment towards such
activities
• Less involvement of community in such activities
• Low level of transparency and accountability at the
implementation level.
But today the society doesn’t need free hospitals or
education but rather they aspire for continuous
measures which can raise their standards of living.

9. A Strategic perspective
• Efforts to align CSR with corporate strategy.
• ITC's e-Chaupal has been a great developmental
initiative which has also added value to its own
agricultural products. It comprises improving
the lives of farmers and villagers.
• HLL’s ‘Project Shakti’ launched in the year 2001,
meets the both ends and integrates its business
interest with national interests. Its strategy was
to recruit women from those rural areas for
direct sales operations. This enabled the
company to penetrate the rural market and also
providing employment to women thus
enhancing their status in their families and
society.

10. A Symbiotic Perspective
• A symbiotic relationship between companies and
NGO’s from which they are mutually benefited and
at the same time meeting the needs of the society
were developed.

11. – HDFC ( Housing Development Finance corporation
Ltd.) has partnered with smile Foundation under CSR
Program. Under this they will work for the welfare of
Orphans by promoting education and rendering
health services to a few selected remote areas in the
western part of Orissa. In the Sambalpur region of
Orissa, the smile foundation has been supporting
four orphanages with residential facilities.

12. A Corporate Innovation
Perspective
• Some personalities and leaders consider
CSR as a source of innovation in the
pursuit of CSR activities many
organizations have enjoyed the fruits of
innovations.

13. An Entrepreneurial Perspective
• CSR has also led to the development of
Entrepreneurship. Where Entrepreneurs
has started new ventures which not only
bring profits to them but also create long
term benefits to the community, society &
the environment.

14. –Beautician Shahnaz Hussain, who
started herbal clinic on the principle
of “Care and Cure” based on
ayurvedic system.
–Procter & Gamble (P&G) substituted
vegetable oils for petroleum
derivatives in Tide detergent

15. Conclusion and Suggestions:
In Indian context the companies in order to
enhance their CSR initiatives should:
• Integrate CSR into their business strategy which
is directed to the mutual development of society
and company itself.
• To achieve higher standards the organizations
should change their CSR initiatives as per the
dynamic environment.
• Transition of CSR approach from philanthropy to
a self-sustainable holistic approach.

16. VARIOUS SURVEYS
CONDUCTED ON CSR:
• In June 2008, a survey was carried out by TNS India (a
research organization) and the Times Foundation -
understanding of the role of corporations in CSR
• FINDINGS
over 90 per cent of all major Indian
organizations surveyed were involved in
CSR initiatives. the private sector was more involved in
CSR activities than the public and government
sectors. The leading areas that corporations were
involved in were livelihood promotion, education,
health, environment, and women's empowerment.

17. • In a survey carried out by the Asian
Governance Association, which ranks
the top 10 Asian countries on corporate
governance parameters, India has been
consistently ranked among the top
three along with Singapore and Hong
Kong, for the last eight years.

18. • In Survey undertaken by TNS
Automotive, India has been ranked
second in global corporate social
responsibility. State-owned Bharat
Petroleum and Maruti Udyog were
ranked as the best companies in India.

19. EXPENDITURE
SOURCE: http://www.ibef.org/india/CSR.aspx
0
1
2
3
4
5
6
7
INDIA
$6.31Bn
U.S.A
$3.68Bn
CORPORATE
SOCIAL
RESPONSIBILITY
EXPENDITURE
2007-08

20. Rural Development
• Airtel has tied up with Indian Farmers Fertiliser
Cooperative Limited (IFFCO) to reach farmers
directly. Farmers will receive free voice
messages twice daily on farming techniques,
weather forecasts, dairy farming, rural health
initiatives, fertilizer availability, loan information
and market rates.
• HDFC has started a 'village adoption' scheme to
improve the investment climate in Indian
villages.