2. DEFINITION
Activities that “represent firm’s
efforts to do more to address a wide
variety of social problems than they
would have done in the course of
their normal pursuit of profits”
3. WHAT IS CSR?
Corporate social responsibility (CSR) refers to business practices
involving initiatives that benefit society. A business's CSR can
encompass a wide variety of tactics, from giving away a portion of a
company's proceeds to charity, to implementing "greener" business
operations.
CSR is the way in which an organization should strive to balance
between economic, social, and environmental imperatives on one hand
and the expectations and the welfare of shareholders on the other
hand.
Identifying, accessing and controlling hazards and its impact by
educating employees, visitors, and the public on the health, safety
environment responsibility.
4. WHY CSR?
Company is a reliable business partner:
Every company gives top priority to the satisfaction of its customers. Its
aim is to improve the quality of customer service. Thus become a
reliable partner.
Feel responsible for the environment.
Companies take steps to minimize the negative effects on the
environment. Their goal is to protect waters, reducing harmful gases and
environmental education of employees.
Good and safe working conditions.
Company's most important asset is its people. So company should
increase the level of safety and health at work places.
Companies refer to not only a business entity, but also a member in
local communities in which it is operating. Company's aim is to support
local communities, develop scientific institution, health services etc.
5. HOW CSR?
THERE IS NO PARTICULAR OR A
PREDEFINED WAY TO IMPLEMENT
CSR ACTIVITIES IN RESPECTIVE
SEGMENTS.
CORPORATE SOCIAL RESPONCIBILITY
IS COMPLETELY A VOLENTARY
PROCESS THROUGH OUT THE
WORLD.
6. COMING TO INDIA, IT IS THE ONLY COUNTRY WHICH
MANDATED THE CSR PROGRAM IN COMPANIES ACT 2013.
Various provisions are made in this CSR
Section 135 of companies act provides the threshold limit for
applicability of CSR to a company
a) Net worth more than 500 Crore
b) Turnover of the company Rs.1000 Crore or more
C) Net profit of the company 5 Crore or more
CSR policy should spend at least 2% of its average net profit for
the immediately preceding 3 financial years on CSR activities
7. BUT HERE IS THE PROCESS WHICH EVERY COMPANY MAY FOLLOW
DEVOLOPING A CSR STARATGY
OPERATIONALISING THE
INSTITUTIONAL MECHANISAM
DUE DELIGENCE OF THE
PARTNER
PROJECT DEVELOPMENT
PROJECT APPROVAL
FINALIZING THE
ARRANGEMENTS WITH
IMPLEMENTING AGENCY
PROJECT MONITORING AND
REPOTING
IMPACT MEASURMENT
REPORT CONSOLIDATION
AND COMMUNICATION
+
+
+
+
PROJECT IMPLEMENTATION
9. Empowers the even the smallest of farmers by giving them relevant
information upon:-
1. Fair market prices of their produce.
2. Weather information.
3. Techniques to enhance farm-production.
4. Information on seed quality and what they should buy.
5. Type of fertilizer and or manure to be used.
6. Better accessibility to the market.
e - Choupal
10. Social &
Farm forestry
Helps the farmers and tribals to produce plantations on their
wastelands.
Provides the farmers with cloned seeds which grow better
and produce better in harsh conditions.
Provides farmers with know-how to convert their wasteland
into a plantation producing land.
11. Integrated
Watershed
Development
Provides water to the areas where there is scarcity of water.
Plan covers over 100000 hectares of water-stressed lands.
Helps in building of water harvesting, water retaining
structures in water-stressed areas.
12. ITC's watershed development programme has generated
over 4.7 million person days of work till date
ITC is expanding PPPs with state governments in
watershed development programmes to cover nearly
400,000 acres in 5 states by 2018
Which is equal to 25 times to Vijayawada
13. Women's
Empowerment
This programme has benefitted to more than400000 rural women to
become self sufficient.
This programme imparts education to rural women so that a better
society can be made.
Has created self-help groups of women which have now become self-
sufficient by Self-micro financing.
Imparting education to the children through the local educated
women.
14. Initiatives Milestones
Livestock Development
176 Cattle Development Centres
3,520 villages covered annually
Primary Education
2,52,329 children covered
through 2,334 Supplementary
Learning Centres
15. ADVANTAGES OF CSR
1. Win new business
2. Increase customer retention
3. Differentiate ourselves from competitors
4. Improve business reputation and its image
5. Generate positive publicity
6. Satisfies employees
7. Cost reductions through
a. Employee retention
b. Less advertising investment
8. Long term future for business (deliver a sustainable society where stakeholders prosper)
9. Attracts investors
16. SHIFT FROM THE PROFIT MAKING OBJECTIVES.
COMPANY REPUTATION TAKES A HIT.
CUSTOMER CONVICTION.
MADATION IN COMPANIES ACT.
DISADVANTAGES
17. METHODS TO OVERCOME THE DISADVANTAGES IN CSR
Continuity: If a company started CSR activities it
should be continuously done. If it is stopped the
customer or stake holders relation may be lost.
Pricing strategy: If the company is continuously
following ethical practices of CSR. The customer will
purchase products even though the price of the
products may increase.
Industrial advertising: If CSR activities of a company
is more acceptable when compared to other
competitor automatically the stake holders attract
more in number.
18. IS ECONOMIC DEVOLOPEMENT A PERQUSITE FOR CSR
OR
DOES ECONOMIC DEVOLOPMENT FOLLOW CSR?
THE ANSWER IS NOT SIMPLE BECAUSE THE CSR INVOLVES A
NUMBER OF STAKEHOLDERS WITH UNIQUE DEMANDS OF THEIR
OWN.
THEREFORE CSR NEED TO BE A PART OF THE DNA OF AN
ORGANISATION. THIS REQUIRES THAT THE ORGANISATION BE
DRIVEN NOT ONLY BY THE RULES AND REGULATIONS, BUT ALSO BY
IDEALISM.
CONCLUSION
