The document discusses Corporate Social Responsibility (CSR) as the ethical commitment of businesses to contribute positively to society while balancing stakeholder interests. It outlines various responsibilities towards consumers, employees, government, and shareholders, and emphasizes the importance of corporate sustainability, reputation management, and the need for stakeholder engagement. Additionally, it presents different CSR models and frameworks for evaluating a company's social, environmental, and economic performance.

1. CORPORATE
SOCIAL
RESPONSIBILITY
MS. PREETI BHASKAR
ASSISTANT PROFESSOR

2. CONTENT
M E A N I N G O F C S R
C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y T H E O R I E S
P Y R A M I D O F C S R
C O N T E M P O R A R Y C S R C O N C E P T S
C O R P O R AT E S U S TA I N A B I L I T Y
R E P U TAT I O N M A N A G E M E N T
S O C I A L I M PA C T M A N A G E M E N T
T R I P L E B O T T O M L I N E
C S R A N D B U S I N E S S E T H I C S
C S R A N D C O R P O R AT E G O V E R N A N C E
E N V I R O N M E N TA L A S P E C T O F C S R
C S R M O D E L S
D R I V E R S O F C S R

3. MEANING
• Corporate social responsibility is a gesture of showing
the company’s concern & commitment towards
society’s sustainability & development.
• CSR is the ethical behaviour of a company towards
society.

4. Responsibility
towards
Consumers

5. SOCIETY
• Carrying on business with
moral& ethical standards.
• Prevention of environmental
pollution.
• Minimizing ecological
imbalance.
• Contributing towards the
development of social health,
• education
• Making use of appropriate
technology.
• Overall development of
locality.
EMPLOYEE
• To provide a healthy working
environment.
• To grant regular & fair wages.
• To provide welfare services.
• To provide training & promotion
facilities.
• To provide reasonable working
standard & norms.
• To provide efficient mechanism to
redress worker’s grievances.
• Proper recognition of efficiency &
hard work.
CONSUMERS
• Supplying socially harmless
• products.
• Supplying the quality,
standards,
• as promised.
• Adopt fair pricing.
• Provide after sales services.
• Resisting black-marketing &
profiteering.
• Maintaining consumer’s
grievances cell.
• Fair competition.
RESPONSIBILITY TOWARDS:

6. RESPONSIBILITY
TOWARDS
GOVERNMENT
• Obey rules & regulations.
• Regular payment of taxes.
• Cooperating with the Govt to
promote social values.
• Not to take advantage of
loopholes in business laws.
• Cooperating with the Govt
for economic growth &
development
RESPONSIBILITY
TOWARDS
SHAREHOLDERS
• To ensure a reasonable rate
of return over time.
• To work for the survival &
the growth of the concern.
• To build reputation &
goodwill of the company.
• To remain transparent &
accountable

7. CORPORATE SOCIAL RESPONSIBILITY (CSR)
BUSINESS RESPONSIBILITIES IN THE 21ST CENTURY
• Demonstrate a commitment to society’s values and contribute to
society’s social, environmental, and economic goals through
action.
• Insulate society from the negative impacts of company
operations, products and services.
• Share benefits of company activities with key stakeholders as
well as with shareholders.
• Demonstrate that the company can make more money by doing
the right thing.

8. CSR EXAMPLES
IBM UK - Reinventing Education Partnership programme
Interactions and sharing of knowledge through a web-based
technology - the “Learning Village” software. Culture of
openness and sharing of good practice
AVON - a partnership with Breakthrough Breast Cancer, and
its Breast Cancer Crusade has raised over 10 million pounds
since its launch 12 years ago
TOI’s Lead India campaign, campaign for contribution
towards educating the poor

9. CORPORATE
SUSTAINABILITY

10. Corporate sustainability is an approach that creates long-term
stakeholder value by implementing a business strategy that
considers every dimension of how a business operates in the
ethical, social, environmental, cultural, and economic spheres. It
also formulates strategies to build a company that fosters
longevity through transparency and proper employee
development.

11. NEED FOR CORPORATE SOCIAL
RESPONSIBILITY
To reduce the social cost.
To enhance the performance of employees.
It a type of investment.
It leads to industrial peace.
It improves the public image.
Can generate more profit.
To provide moral justification.
It satisfies the stakeholders.
Helps to avoid government regulations & control.
Enhance the health by non polluting measures.

12. STRATEGY FOR CORPORATE
SUSTAINABILIT Y
• BUSINESS CASE FOR
SUSTAINABILITY
• TRANSPARENCY
• STAKEHOLDER ENGAGEMENT
• THINKING AHEAD

13. • Business case for sustainability
The challenge for many businesses in this new field is to quantify the positive impacts of
sustainability. Sustainability can increase revenue, reduce energy expenses, reduce waste
expenses, reduce materials and water expenses, increase employee productivity, reduce hiring
and attrition expenses, and reduce strategic and operational risks.[2] Furthermore, sustainable
business practices may attract talent and generate tax breaks.[
• Transparency
Transparency deals with the idea that by having an engaging and open environment in the
company as well as the community will improve performance and increase profits. It is an open
culture that promotes employee involvement in the innovation and creative processes.
Reaching out to the community creates a much bigger team is extremely cheap and provides
evaluation from all angles. Companies are looking inward and realizing changes must be made
to fulfill environment needs such as energy efficiency, limiting product waste and toxicity, and
designing innovative products. One way for companies to accomplish this is through open
communications with stakeholders characterized by high levels of information disclosure,
clarity, and accuracy.[4]

14. • Stakeholder engagement
Sustainability requires a company to look internally and externally to understand their
environmental and social impacts. This requires the engagement of stakeholders to understand
impacts and concerns. A business can address sustainability internally by educating employees
and seeking to reduce impacts through waste reduction, energy efficiency, etc. Employee
engagement can be a powerful motivator by having a philanthropy committee or a green team.
As a company looks externally, stakeholders include customers, suppliers, community, and
non-government organizations.
• Thinking ahead
Companies have adapted by implementing new creative ideas related to sustainability, such as
preparing upgraded technology that can transform the product rather than throwing away old
materials. New solutions that improve recycling and waste redirecting can ultimately reduce
costs and increase profits. For example, Wal-Mart has redirected more than 64 percent of the
waste generated by stores and Sam’s Club facilities. In 2009 alone, they recycled more than
1.3 million pounds of aluminium, 120 million pounds of plastics, 11.6 million pounds of mixed
paper and 4.6 billion pounds of cardboard. Annually, they expect to save around $20 million and
prevent 38 million pounds of waste being sent to landfills.

15. REPUTATION
MANAGEMENT

16. Reputation management refers to the influencing and
controlling of an individual's or group's reputation..
Reputation management (sometimes referred to as rep
management, online reputation management or ORM) is the
practice of attempting to shape public perception of a person or
organization by influencing online information about that entity.

17. A recent analysis of 170,000 company ratings from
respondents in 15 countries sheds light on which are
perceived by consumers as the most socially responsible.
Top 10
1. Lego
2. Microsoft
3. Google
4. Walt Disney Company
5. BMW Group
6. Intel Robert
7. Bosch
8. Cisco Systems
9. Rolls-Royce Aerospace
10. Colgate-Palmolive
https://www.forbes.com/sites/karstenstrauss/2017/09/13/the-10-companies-with-the-best-csr-
reputations-in-2017/

18. SOCIAL IMPACT
MANAGEMENT

19. • Social impact management is about asking a new and broader set
of questions regarding the traditional terrain of business. For
example, it is common for a business strategy discussion to
explore a firm’s purpose in terms of its vision for competitive
positioning. What is less common is for that discussion to consider
the firm’s intentions and the implications for consumers,
employees, and community members, given the different choices
around growth objectives and product development.
• Companies that are breaking the mold are moving beyond
corporate social responsibility to social innovation. These
companies are the vanguard of the new paradigm. They view
community needs as opportunities to develop ideas and
demonstrate business technologies, to find and serve new
markets, and to solve longstanding business problems.

20. TRIPLE BOTTOM
LINE

21. • Triple bottom line (or otherwise noted as TBL or 3BL) is an
accounting framework with three parts: social, environmental (or
ecological) and financial.
• Some organizations have adopted the TBL framework to
evaluate their performance in a broader perspective to create
greater business value.
A triple bottom line
measures a company's
degree of social
responsibility,
its economic value, and
its environmental impact.

22. • Economic Measures • Environmental Measures • Social Measures
• Personal income
• Cost of underemployment
• Establishment churn
• Establishment sizes
• Job growth
• Employment distribution by
sector
• Percentage of firms in each
sector
• Revenue by sector
contributing to gross state
product
• Sulfur dioxide concentration
• Concentration of nitrogen
oxides
• Selected priority pollutants
• Excessive nutrients
• Electricity consumption
• Fossil fuel consumption
• Solid waste management
• Hazardous waste
management
• Change in land use/land
cover
• employment rate
• Female labor force
participation rate
• Median household income
• Relative poverty
• Percentage of population
with a post-secondary
degree or certificate
• Average commute time
• Violent crimes per capita
• Health-adjusted life
expectancy

23. CSR AND
CORPORATE
GOVERNANCE

24. • Corporate governance is the system of rules, practices and
processes by which a company is directed and
controlled. Corporate governance essentially involves balancing
the interests of acompany's many stakeholders, such as
shareholders, management, customers, suppliers, financiers,
government and the community.
• Since corporate governance also provides the framework for
attaining a company's objectives, it encompasses practically every
sphere of management, from action plans and internal controls to
performance measurement and corporate disclosure.
https://www.investopedia.com/terms/c/corporategovernance.asp

25. BENEFITS OF CORPORATE GOVERNANCE
• Good corporate governance ensures corporate success and economic growth.
• Strong corporate governance maintains investors’ confidence, as a result of
which, company can raise capital efficiently and effectively.
• It lowers the capital cost.
• There is a positive impact on the share price.
• It provides proper inducement to the owners as well as managers to achieve
objectives that are in interests of the shareholders and the organization.
• Good corporate governance also minimizes wastages, corruption, risks and
mismanagement.
• It helps in brand formation and development.
• It ensures organization in managed in a manner that fits the best interests of
all.

26. DRIVERS OF CSR

27. • Values: a value shift has taken place within businesses, as a
result of which they now not only feel responsible for wealth
creation, but also for social and environmental benefits
• Strategy: being more socially and environmentally
responsible is important for the strategic development of an
organisation
• Public pressure: pressure groups, consumers, media, the
state and other public bodies are pressing organisations to
become more socially responsible. organisations are often
driven by one of the above, but see a shift into other spheres
over time. In the main, it has been public pressure centred on
three key areas that has driven the CSR agenda. These
comprise the environment, labour standards and human
rights.
Ref: Simon Zadek, P Pruzan & R Evans (1997)

28. ENVIRONMENTAL
ASPECT OF CSR

29. According to the concept of CSR, a company must trend to:
• reduce the consumption of raw materials and energy,
• reduce production of hazardous waste and pollution,
• respect, protect and restore natural ecosystems
• identify potential negative environmental effects
• introduce mechanisms to internalize external environmental
costs
• take into account environmental objectives at the stage of
product design (eco-design, life cycle analysis )
• implement technologies to reduce harm done to the
environment in production processes
• promote ecological behavior within the company, as well as

30. CSR MODELS

31. MODELS OF CORPORATE SOCIAL
RESPONSIBILITY
Friedman model
Ackerman Model
Carroll Model
Environmental Integrity & Community Model.
Corporate Citizenship Model.
Stockholders & Stakeholders Model.
New Model of CSR.

32. FRIEDMAN MODEL(1962-73)
A businessmen should perform his duty well, he is performing a
social as well as a moral duty.
A businessmen has no other social responsibility to perform
except to serve his shareholders & stockholders.

33. ACKERMAN MODEL (1976)
The model has emphasized on the internal policy goals & their
relation to the CSR.
Four stages involved in CSR.
Managers of the company get to know the most common social
problem & then express a willingness to take a particular project
which will
solve some social problems.
Intensive study of the problem by hiring experts & getting their
suggestions to make it operational.
Managers take up the project actively & work hard.
Evaluating of the project by addressing the issues.

34. Six Strategies in the adoption of CSR.
Rejection strategy
Adversary strategy
Resistance strategy
Compliance strategy
Accommodation strategy
Proactive strategy

35. CARROLL'S CSR PYRAMID
• Carroll's CSR Pyramid is a simple framework that helps argue how and
why organisations should meet their social responsibilities.
The key features of Carroll's CSR Pyramid are that:
• CSR is built on the foundation of profit – profit must come first
• Then comes the need for a business to ensure it complies with all laws
& regulations . Before a business considers its philanthropic options, it
also needs to meet its ethical duties

36. PYRAMID OF CSR Philanthropic
Responsibilities
Be a good
corporate
citizen
Ethical
Responsibilities
Be ethical. Do what
is right. Avoid harm
Legal Responsibilities
Obey the law
Economic Responsibilities
Be profitable.
Carroll Model(1991)

37. • This is the responsibility of business to be profitable
• Only way to survive and benefit society in long-term
ECONOMIC
• This is the responsibility to obey laws and other regulations
• E.g. Employment, Competition, Health & Safety
LEGAL
• This is the responsibility to act morally and ethically
• With this responsibility, businesses should go beyond narrow requirements of the
law E.g. Treatment of suppliers & employees
ETHICAL
• This is the responsibility to give back to society
• The responsibility is discretionary, but still important
• E.g. charitable donations, staff time on projects
PHILANTHROPIC

38. ENVIRONMENTAL INTEGRITY &
COMMUNITY HEALTH MODEL.
This model developed by Redman.
Many corporate in US adopted this model. Corporate contribution
towards environmental integrity &
human health, there will be greater expansion opportunities.
Healthy people can work more & earn more.
CSR is beneficial for the corporate sector.
CSR in a particular form is welcome.

39. CORPORATE CITIZENSHIP MODEL
To be a corporate citizen, a corporate firm has to satisfy four
conditions:
Consistently satisfactory
Sustainable economic performance
Ethical actions
Behaviour.
A particular firm’s commitment to corporate citizenship requires
the fulfillment of certain social responsibilty.

40. STOCKHOLDERS & STAKEHOLDERS
MODEL
Productvists believe that the only mission of a firm is to maximize the
profit.
Philanthropists who entertain the stockholders. CSR is dominated by
moral obligations & not self-interest.
Progressivists believes the corporate behaviour basically motivated by
self interest & should have ability to transform the society for good.
Ethical Idealism concern with sharing of corporate profits for
humanitarian activities.