This presentation discusses corporate social responsibility (CSR) and its importance. It defines CSR using Carroll's four part model of economic, legal, ethical, and philanthropic responsibilities. It outlines the CSR requirements for large Indian companies under new rules. It addresses myths about CSR and highlights benefits like improved reputation, customer loyalty, and attracting employees. Examples of CSR initiatives from various Indian companies are provided relating to health, education, environment and community. Challenges of implementing CSR are also discussed.

1. A presentation on
Corporate Social Responsibility
School of Management Studies
Presented By:
Amit Kumar
Durgesh Kumar
Anil Kumar
Ujjwal Mishra
[2012MB72]
[2012MB88]
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2. Carroll’s Four Part Definition
Ethical Responsibilities
Social Responsibilities
Legal Responsibilities
Economic Responsibilities

3. Carroll’s Four Part Definition
Understanding the Four Components
Responsibility
Societal
Expectation
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 Desired/
(Philanthropic) Expected
Be a good corporate citizen.

4. Draft Rules under the Companies
Act; CSR




The Companies Bill, 2009 (the Bill), as passed by the Rajya Sabha on 8 August
2013 will introduce the concept of „Corporate Social Responsibility‟ (CSR) into
Indian company law.
Applicable to companies with: A net worth of Rs. 500 crore or more; a turnover of
Rs 1,000 crore or more; and a net profit of Rs 5 crore or more during any financial
year.
Companies qualifying are required to form a CSR Committee with at least one
independent director. The CSR spend of a company which meets the
aforementioned threshold is required to be 2% of the average net profits for the
preceding three financial years.
Chapter XXIX of the Bill (Sections 450 and 451) provide for general penalties for
contravention and repeat offences.
CSR activities recognised under the Bill include: Eradicating extreme hunger and
poverty; Promotion of education; Promoting gender equality and empowering
women; Combating HIV, AIDS, Malaria and other diseases etc.

5. Myths surrounding CSR
CSR is not for small businesses
It is too complicated and technical
It is too expensive
It is a market gimmick
It is a separate corporate initiative
Myths

6. The Benefits of Corporate Social
Responsibility
“88% of consumers said they were more likely to
buy from a company that supports and engages
in activities to improve society.”
`
- Better Business Journey, UK
Small Business Consortium

7. Winning new
businesses
Enhanced
Relationship
with
stakeholders
Increase in
customer
retention
Differentiatin
-g
yourself from
the
competitor
Benefits
of CSR
to Firm
Attracting,
Retaining
and
Maintaining
a happy
workforce
Media
interest
and good
reputation
Enhancing
your
influence in
the industry
Access to
funding
opportunities

8. Motivation
Perception
IMPACT OF
CSR ON
CONSUMERS
Attitudes
Most importantly
Association

9. CSR in India
• The pressure on Indian industrialists to demonstrate their
commitment to social development increased during the
independence movement, when Mahatma Gandhi developed the
notion of „trusteeship‟, whereby the owners of property would
voluntarily manage their wealth on behalf of the people.
• TATA was one of the first corporate houses to initiate.
•
A review of contemporary CSR trends in India concluded that
although the corporate sector in India benefited immensely from
liberalization and privatization processes, its transition from
philanthropic mindsets to CSR has been lagging behind its
impressive financial growth

10. Examples
•
Hindustan Unilever‟s, Lifebuoy SWASTHYA CHETNA – health and hygiene
education program. Educate people about health related precautions to 200 million
in rural and urban areas.
•
Tata Tea‟s communication and positioning itself as a catalyst for social awakening
through JAAGO RE campaign.
•
Colgate Palmolive – SPREADING SMILES AT PRATHAM(NGO) , In association
with IDA organize free dental checkup camps , Supported free surgery of children
and young adults suffering from cleft lips.

11. Cont...
•
Marico Industries brand Saffola positioned itself as an edible oil brand that cares for
heart. On World Heart Day they ORGANISE FREE HEART CARE CAMPS.
•
ITC – every 4 notebook that is bought, rs 1 goes for EDUCATION OF UNDER
PRIVILEDGED CHILDREN Concept of E- Choupal .
•
Idea Cellular Ltd. – Had done a campaign on the eve of one year of 26/11 terror
attacks in Mumbai , talk between 20:26 – 21:26hrs and monies earned , a part of it
will go to the INFRASTRUCTURE DEVELOPMENT OF MUMBAI POLICE.
Similarly had done undertaken education of underprivileged children
•
Canon India launched I-CARE in 2008 with Venu Eye Institute and Research centre
to provide eye care and rehabilitation of visually challenged.
•
Proctor & Gamble initiated SHIKSHA for underprivileged children with the motto“Padhega India Badhega India , Mile sabko Shiksha ka Haq” A campaign had run
in April-June09 that r.s 1 from every product that is being bought will go for
education of downtrodden.

12. Environmental Benefits
• Greater material recyclability
• Better product durability and functionality
• Greater use of renewable resources
• Integration of environmental management tools into business
plans,
including
life-cycle
assessment
and
costing, environmental management standards, and ecolabeling.

13. Benefits to the Community and
the General Public
• Charitable contributions
•
Employee volunteer programs
• Corporate involvement in community education, employment
and homelessness programs
• Product safety and quality

14. Challenges
• Non-availability of Clear CSR Guidelines
• Lack of Consensus on Implementing CSR Issues
• Visibility Factor
• Narrow Perception towards CSR Initiatives

15. References
• (Source: A review of Corporate Social Responsibility in India Bimal
Arora , Ravi Puarnik.1999)
• (Source:Economic times, 14/12/2007)
• www.csr-asia.com/upload/hkpresentation
• vi.unctad.org/russiast09/docs/millercsr
• www.trikal.org/ictbm11/pdf/csr/d1142-done.pdf