Evolution of
Harish kumar R
MSW 2 year
Central University of Karnataka, Kalburgi
Introduction
Corporate Social Responsibility (CSR) is an important issue in
contemporary business, management and politics, especially since the
launch of the United Nations Global Compact in 2000 as an initiative to
encourage businesses worldwide to adopt sustainable and socially
responsible policies, and to report on them.CSR is essentially a concept
whereby firms integrate social and environmental concerns in their
business operations and in their interaction with their voluntary and
mandatory activities.
Definition of Corporate Social Responsibility
“CSR is about how companies manage the business processes to produce
an overall positive impact on society.”
According to World Business Council:
“Corporate Social Responsibility is the continuing commitment by
business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as
well as of the local community and society at large”.
Corporate Social Responsibility (CSR) in the
World
The history of CSR is almost as long as that of firms. Concerns about the excesses
of the East India Firm were commonly expressed in the seventeenth century.
There has been a tradition of benevolent (helping needy) capitalism in the UK for
over 150 years, for example, Quaker families such as the Cadburys, Rowntrees
and Hersheys who sought to improve their standard of living as well as enhancing
the communities in which they lived.
In the 19th century, many of owners assumed an active, and indeed, a leading
role in the development of the local communities and society where they were
based.
Business leaders helped get schools and universities built and made financial
contributions over and above their taxes to support infrastructure projects,
museums, sports, and recreation facilities. Great cities like Manchester, Bombay,
New York, and Sydney were given many of their public assets such as libraries and
concert halls by the business leaders of the time.
Cont…
Business leaders such as, Carnegie, Rockefeller and Wellcome went on to endow
great foundations to carry on the community work that they saw as their social
responsibility or good citizenship and established a new level in corporate
charitable behavior. This tradition seems to have been based on two
complementary motives.
First, the ethical imperative often articulated by religious groups was that those
who have wealth and power should help those who do not, and so charitable
giving was expected of wealthy industrialists.
Second, there was an element of social investment in which businesses would
gain long-term benefits from having first-class schools, technical institutes, and
universities in their cities U.S. business schools, for example, were often started
by business leaders and still receive extensive support from firms.Carroll has
described Bowen as the modern Father of Corporate Social Responsibility and
believes that his work marks the beginning of the modern period of literature on
CSR
The concept of corporate social responsibility (CSR) has a long history
associated with how this affects the behavior of organizations.
In the 1960s, key events, people and ideas have played an important role
in characterizing the social changes ushered in during this decade.
In the 1970s, business leaders on traditional management functions in
matters of corporate social responsibility, while
In 1980, the business and social interests of the company came closer and
become more responsive to their members.
In the 1990s, the idea of CSR has become almost universally accepted, CSR
also has been associated with the strategy literature, and finally,
In the 2000s, CSR has finally become an important strategic issue.
CSR in India
CSR in India has evolved through different phases, like community engagement, socially
responsible production and socially responsible employee relations. Its history and
evolution can be divided into four major phases.
PHASE 1 (1850 TO 1914)
The first phase of CSR is known for its charity and philanthropic nature. CSR was
influenced by family values, traditions, culture and religion, as also industrialization.
The wealth of businessmen was spent on the welfare of society, by setting up temples
and religious institutions. In times of drought and famine these businessmen opened up
their granaries for the poor and hungry.
With the start of the colonial era, this approach to CSR underwent a significant change.
In pre-Independence times, the pioneers of industrialization, names like Tata, Birla,
Godrej, Bajaj, promoted the concept of CSR by setting up charitable foundations,
educational and healthcare institutions, and trusts for community development. During
this period social benefits were driven by political motives.
PHASE 2 (1914 TO 1960)
The second phase was during the Independence movement.
Mahatma Gandhi urged rich industrialists to share their wealth and
benefit the poor and marginalized in society.
His concept of trusteeship helped socio-economic growth. According
to Gandhi, companies and industries were the ‘temples of modern
India’.
He influenced industrialists to set up trusts for colleges, and research
and training institutions. These trusts were also involved in social
reform, like rural development, education and empowerment
PHASE 3 (1960 TO 1980)
This phase was characterized by the emergence of PSUs (Public Sector
Undertakings) to ensure better distribution of wealth in society.
The policy on industrial licensing and taxes, and restrictions on the private
sector resulted in corporate malpractices which finally triggered suitable
legislation on corporate governance, labour and environmental issues.
Since the success rate of PSUs was not significant there was a natural shift
in expectations from public to private sector, with the latter getting actively
involved in socio-economic development.
In 1965, academicians, politicians and businessmen conducted a
nationwide workshop on CSR where major emphasis was given to social
accountability and transparency.
PHASE 4 (1980 ONWARDS)
In this last phase CSR became characterized as a sustainable business
strategy.
The wave of liberalization, privatization and globalization (LPG),
together with a comparatively relaxed licensing system, led to a boom
in the country’s economic growth.
This further led to an increased momentum in industrial growth,
making it possible for companies to contribute more towards social
responsibility. What started as charity is now understood and
accepted as responsibility.
NATIONAL VOLUNTARY GUIDELINES (NVG)
National voluntary guidelines8 are applicable to all businesses
irrespective of size, sector or location. These guidelines were designed
with the aim of assisting enterprises to become responsible entities
much before the CSR Act (Companies Act-2013) came into force. In fact
various propositions from NVG have been taken into consideration for
structuring the Companies Act. The principles behind the guidelines are
as follows:
PRINCIPLE 1
Businesses should conduct and govern themselves with ethics,
transparency and accountability.
PRINCIPLE 2
Businesses should provide goods and services that are safe and contribute to
sustainability throughout their life cycle.
PRINCIPLE 3
Businesses should promote the well-being of all employees.
PRINCIPLE 4
Businesses should respect the interests of, and be responsive to, all
stakeholders, especially those who are disadvantaged, vulnerable and
marginalized.
PRINCIPLE 5
Businesses should respect and promote human rights.
PRINCIPLE 6
Businesses should respect, protect, and make efforts to restore the
environment.
PRINCIPLE 7
Businesses, when engaged in influencing public and regulatory policy,
should do so in a responsible manner.
PRINCIPLE 8
Businesses should support inclusive growth and equitable
development.
PRINCIPLE 9
Businesses should engage with and provide value to their customers
and consumers in a responsible manner.
Infosys Technology Ltd
The software industry is one of the fastest growing industries and
highest earner of foreign exchange in the Indian economy.
Infosys has over 91000 employees of 70 nationalities with a global
presence in 25 countries.
Infosys foundation is a small branch of Infosys Firm, promoting
healthcare, education, social rehabilitation and arts. Infosys foundation
does some other activities, such as relief operations during natural
disaster etc.
During tsunami in the end of 2004 in south Asia. Infosys Foundation
helped victims in Tamil Nadu and other places by distributing food,
clothes and utensils.
Education
Some of initiatives and programs that were implemented by foundation
are Construction and donation of school building for poor and orphaned
students in Orissa, Tamil Nadu, Pondicherry, Kerela and Karnataka.
Creating a book bank for Engineering, Media, Mathematics, Science,
History, and other students, which can be accessed by needy students in
rural area in Karnataka.
The foundation also established more than 15000 libraries in schools
across India since 2006 and donated books to school and woman centers in
Karnataka.
 The foundation sponsored several teacher training programs that helped
the teachers to develop and innovate teaching methods. Infosys sponsored
a high-tech computer lab at Gulbarga University and donated video
projectors to produce live program at Nehru Planetarium in Bangalore.
Healthcare
The Foundation constructed central pathology lab at Victoria
hospital, Bangalore and completed the construction of Sankara eye
hospital to provide aid to people from economically challenged.
Infosys super-specialty hospital was constructed on Sassoon hospital
premises in Pune.
The Foundation also provided equipment, medicines, and financial
help to government hospitals, and some medical centers in Tamil
Nadu, Jammu &Kashmir, Mahrashtra, Bihar, Kerala and Karnataka
where economically needy patients were offered free medicines, and
also supplied free medicines to diabetic children in Bangalore.
Social Rehabilitation and Rural Upliftment
The foundation collaborates with institutions and developmental
organization to address social inequity and rural upliftment.
Foundation is working with Kalika India, a trust in rural Bangalore that
works with under privileged woman and children, providing education and
aiding economic development.
The foundation helped in the rehabilitation of this group. As part of the
social rehabilitation efforts, the foundation sponsored the rehabilitation of
tribal communities from Orissa by training them in occupation such as
agriculture, horticulture, sericulture, floriculture, apiculture, fishery
sciences, maintaining machinery, welding and carpentry.
Rehabilitation program for those affected by the Orissa flood in September
2008 was also sponsored by the foundation.
CONCLUSION
It is clear from CSR trends and practices that social responsibility has
both an ethical or moral component as well as a business component.
In India is headed in a positive direction as there already exists a
multitude of enabling organizations and regulatory bodies such as the
Department of Public Enterprises (DPE), Ministry of Corporate Affairs
(MCA), and Indian Institute of Corporate Affairs (IICA). These
institutions have already set the wheels in motion and are playing an
important role in making CSR a widespread practice and in ensuring
success in reducing inequalities without risking business growth.
References:
• http://www.janalakshmi.com/wp-
content/uploads/evolution_of_csr_in_india.pdf
• http://shodhganga.inflibnet.ac.in/bitstream/10603/15950/12/12_cha
pter%203.pdf
Evolution of csr(haris h)

Evolution of csr(haris h)

  • 1.
    Evolution of Harish kumarR MSW 2 year Central University of Karnataka, Kalburgi
  • 2.
    Introduction Corporate Social Responsibility(CSR) is an important issue in contemporary business, management and politics, especially since the launch of the United Nations Global Compact in 2000 as an initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on them.CSR is essentially a concept whereby firms integrate social and environmental concerns in their business operations and in their interaction with their voluntary and mandatory activities.
  • 3.
    Definition of CorporateSocial Responsibility “CSR is about how companies manage the business processes to produce an overall positive impact on society.” According to World Business Council: “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”.
  • 4.
    Corporate Social Responsibility(CSR) in the World The history of CSR is almost as long as that of firms. Concerns about the excesses of the East India Firm were commonly expressed in the seventeenth century. There has been a tradition of benevolent (helping needy) capitalism in the UK for over 150 years, for example, Quaker families such as the Cadburys, Rowntrees and Hersheys who sought to improve their standard of living as well as enhancing the communities in which they lived. In the 19th century, many of owners assumed an active, and indeed, a leading role in the development of the local communities and society where they were based. Business leaders helped get schools and universities built and made financial contributions over and above their taxes to support infrastructure projects, museums, sports, and recreation facilities. Great cities like Manchester, Bombay, New York, and Sydney were given many of their public assets such as libraries and concert halls by the business leaders of the time.
  • 5.
    Cont… Business leaders suchas, Carnegie, Rockefeller and Wellcome went on to endow great foundations to carry on the community work that they saw as their social responsibility or good citizenship and established a new level in corporate charitable behavior. This tradition seems to have been based on two complementary motives. First, the ethical imperative often articulated by religious groups was that those who have wealth and power should help those who do not, and so charitable giving was expected of wealthy industrialists. Second, there was an element of social investment in which businesses would gain long-term benefits from having first-class schools, technical institutes, and universities in their cities U.S. business schools, for example, were often started by business leaders and still receive extensive support from firms.Carroll has described Bowen as the modern Father of Corporate Social Responsibility and believes that his work marks the beginning of the modern period of literature on CSR
  • 6.
    The concept ofcorporate social responsibility (CSR) has a long history associated with how this affects the behavior of organizations. In the 1960s, key events, people and ideas have played an important role in characterizing the social changes ushered in during this decade. In the 1970s, business leaders on traditional management functions in matters of corporate social responsibility, while In 1980, the business and social interests of the company came closer and become more responsive to their members. In the 1990s, the idea of CSR has become almost universally accepted, CSR also has been associated with the strategy literature, and finally, In the 2000s, CSR has finally become an important strategic issue.
  • 7.
    CSR in India CSRin India has evolved through different phases, like community engagement, socially responsible production and socially responsible employee relations. Its history and evolution can be divided into four major phases. PHASE 1 (1850 TO 1914) The first phase of CSR is known for its charity and philanthropic nature. CSR was influenced by family values, traditions, culture and religion, as also industrialization. The wealth of businessmen was spent on the welfare of society, by setting up temples and religious institutions. In times of drought and famine these businessmen opened up their granaries for the poor and hungry. With the start of the colonial era, this approach to CSR underwent a significant change. In pre-Independence times, the pioneers of industrialization, names like Tata, Birla, Godrej, Bajaj, promoted the concept of CSR by setting up charitable foundations, educational and healthcare institutions, and trusts for community development. During this period social benefits were driven by political motives.
  • 8.
    PHASE 2 (1914TO 1960) The second phase was during the Independence movement. Mahatma Gandhi urged rich industrialists to share their wealth and benefit the poor and marginalized in society. His concept of trusteeship helped socio-economic growth. According to Gandhi, companies and industries were the ‘temples of modern India’. He influenced industrialists to set up trusts for colleges, and research and training institutions. These trusts were also involved in social reform, like rural development, education and empowerment
  • 9.
    PHASE 3 (1960TO 1980) This phase was characterized by the emergence of PSUs (Public Sector Undertakings) to ensure better distribution of wealth in society. The policy on industrial licensing and taxes, and restrictions on the private sector resulted in corporate malpractices which finally triggered suitable legislation on corporate governance, labour and environmental issues. Since the success rate of PSUs was not significant there was a natural shift in expectations from public to private sector, with the latter getting actively involved in socio-economic development. In 1965, academicians, politicians and businessmen conducted a nationwide workshop on CSR where major emphasis was given to social accountability and transparency.
  • 10.
    PHASE 4 (1980ONWARDS) In this last phase CSR became characterized as a sustainable business strategy. The wave of liberalization, privatization and globalization (LPG), together with a comparatively relaxed licensing system, led to a boom in the country’s economic growth. This further led to an increased momentum in industrial growth, making it possible for companies to contribute more towards social responsibility. What started as charity is now understood and accepted as responsibility.
  • 11.
    NATIONAL VOLUNTARY GUIDELINES(NVG) National voluntary guidelines8 are applicable to all businesses irrespective of size, sector or location. These guidelines were designed with the aim of assisting enterprises to become responsible entities much before the CSR Act (Companies Act-2013) came into force. In fact various propositions from NVG have been taken into consideration for structuring the Companies Act. The principles behind the guidelines are as follows: PRINCIPLE 1 Businesses should conduct and govern themselves with ethics, transparency and accountability.
  • 12.
    PRINCIPLE 2 Businesses shouldprovide goods and services that are safe and contribute to sustainability throughout their life cycle. PRINCIPLE 3 Businesses should promote the well-being of all employees. PRINCIPLE 4 Businesses should respect the interests of, and be responsive to, all stakeholders, especially those who are disadvantaged, vulnerable and marginalized. PRINCIPLE 5 Businesses should respect and promote human rights. PRINCIPLE 6 Businesses should respect, protect, and make efforts to restore the environment.
  • 13.
    PRINCIPLE 7 Businesses, whenengaged in influencing public and regulatory policy, should do so in a responsible manner. PRINCIPLE 8 Businesses should support inclusive growth and equitable development. PRINCIPLE 9 Businesses should engage with and provide value to their customers and consumers in a responsible manner.
  • 14.
    Infosys Technology Ltd Thesoftware industry is one of the fastest growing industries and highest earner of foreign exchange in the Indian economy. Infosys has over 91000 employees of 70 nationalities with a global presence in 25 countries. Infosys foundation is a small branch of Infosys Firm, promoting healthcare, education, social rehabilitation and arts. Infosys foundation does some other activities, such as relief operations during natural disaster etc. During tsunami in the end of 2004 in south Asia. Infosys Foundation helped victims in Tamil Nadu and other places by distributing food, clothes and utensils.
  • 15.
    Education Some of initiativesand programs that were implemented by foundation are Construction and donation of school building for poor and orphaned students in Orissa, Tamil Nadu, Pondicherry, Kerela and Karnataka. Creating a book bank for Engineering, Media, Mathematics, Science, History, and other students, which can be accessed by needy students in rural area in Karnataka. The foundation also established more than 15000 libraries in schools across India since 2006 and donated books to school and woman centers in Karnataka.  The foundation sponsored several teacher training programs that helped the teachers to develop and innovate teaching methods. Infosys sponsored a high-tech computer lab at Gulbarga University and donated video projectors to produce live program at Nehru Planetarium in Bangalore.
  • 16.
    Healthcare The Foundation constructedcentral pathology lab at Victoria hospital, Bangalore and completed the construction of Sankara eye hospital to provide aid to people from economically challenged. Infosys super-specialty hospital was constructed on Sassoon hospital premises in Pune. The Foundation also provided equipment, medicines, and financial help to government hospitals, and some medical centers in Tamil Nadu, Jammu &Kashmir, Mahrashtra, Bihar, Kerala and Karnataka where economically needy patients were offered free medicines, and also supplied free medicines to diabetic children in Bangalore.
  • 17.
    Social Rehabilitation andRural Upliftment The foundation collaborates with institutions and developmental organization to address social inequity and rural upliftment. Foundation is working with Kalika India, a trust in rural Bangalore that works with under privileged woman and children, providing education and aiding economic development. The foundation helped in the rehabilitation of this group. As part of the social rehabilitation efforts, the foundation sponsored the rehabilitation of tribal communities from Orissa by training them in occupation such as agriculture, horticulture, sericulture, floriculture, apiculture, fishery sciences, maintaining machinery, welding and carpentry. Rehabilitation program for those affected by the Orissa flood in September 2008 was also sponsored by the foundation.
  • 18.
    CONCLUSION It is clearfrom CSR trends and practices that social responsibility has both an ethical or moral component as well as a business component. In India is headed in a positive direction as there already exists a multitude of enabling organizations and regulatory bodies such as the Department of Public Enterprises (DPE), Ministry of Corporate Affairs (MCA), and Indian Institute of Corporate Affairs (IICA). These institutions have already set the wheels in motion and are playing an important role in making CSR a widespread practice and in ensuring success in reducing inequalities without risking business growth.
  • 19.