The document discusses Corporate Social Responsibility (CSR), defining it as companies integrating social and environmental concerns into their business operations and interactions. CSR aims to balance economic, environmental and social impacts while addressing shareholder and stakeholder expectations. Key aspects of CSR discussed include responsibility, accountability, sustainability, and using a triple bottom line approach measuring financial, social and environmental performance. The document also outlines the scope of CSR activities and some common CSR programs implemented by companies.

1. INTRODUCTION TO CSR
UNIT III
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2. Corporate Social Responsibility
Corporate Social Responsibility is a
management concept
whereby companies integrate social and
environmental concerns in their
business operations and interactions
with their stakeholders.
CSR is generally understood as being
the way through which a company
achieves a balance of economic,
environmental and social imperatives
(“Triple-Bottom-Line- Approach”), while
at the same time addressing the
expectations of shareholders and
stakeholders. In this sense it is important
to draw a distinction between CSR,
which can be a strategic business
management concept, and charity,
sponsorships or philanthropy.
https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-
and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr
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3. Even though the latter can also make a valuable contribution to
poverty reduction, will directly enhance the reputation of a company
and strengthen its brand, the concept of CSR clearly goes beyond
that.
https://youtu.be/E0NkGtNU_9w
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4.  CSR activities may include:
 Company policies that insist on working with partners who follow ethical
business practices
 Reinvesting profits in health and safety or environmental programs
 Supporting charitable organizations in the communities where a company
operates
 Promoting equal opportunities for men and women at the executive level
 https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-
business-guides/glossary/corporate-social-responsibility
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5.  According to Bowen (1953), CSR is defined as ‘the obligation of
businessmen to pursue those policies, to make those decisions or to follow
those lines of action which are desirable in terms of objectives and values
of society’.
https://youtu.be/ZyO4HZMyDW0?list=PLvDdvz8B_JZuUwkzjevxMS4L0kBsv0DuN
https://youtu.be/rAUL4jPcyUo?list=PLvDdvz8B_JZuUwkzjevxMS4L0kBsv0DuN
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6. Scope of CSR
 1. Environment
 This area is mainly related to the protection of the environment. Pollution is a major problem which
has been adversely affecting the environment. There is a pressing need to control water pollution, air
pollution and noise pollution.
 2. Energy
 With mass industrialization spreading extensively across the country, there is a rising need for more
energy. Businesses, therefore, must make rational use of energy and avoid any wastage.
 3. Fair business practices
 CSR propagates fair business practices, which help protect consumers from unethical practices that
may be employed by businesses.
 4. Human resources
 CSR supports the employment of the best talent. Human Resource Management deals with the
process of attracting, developing and maintaining as well as motivating new and existing talent.
 5. Social service
 Several industrial houses promote social service to promote social welfare. E.g.,: The Birlas have
established planetariums to create a general interest in science
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7. Most popular CSR activities
 1. Project Nanhi Kali (M&M)
 Mahindra and Mahindra’s CSR spend in FY 2014-15 stood at Rs. 83.2 crore, its flagship CSR programme being
Nanhi Kali.
 Description
 Project Nanhi Kali involves supporting the education of over 11 lakh underprivileged girls in ten states by providing
material support (uniforms, bags, notebooks, shoes and socks) and academic support (workbooks, study classes).
 Key outcome
 Increased enrolment of girls in schools and reduction in dropouts to less than 10%.
 2. Project MANSI (Tata Steel)
 Tata Steel’s CSR spend in FY 2014-15 stood at Rs 171.46 crore, its flagship programme being Project Maternal
and Newborn Survival Initiative (MANSI).
 Description
 MANSI is a public-private initiative with a goal to reduce child and infant mortality in 167 villages of the Seraikela
block of Jharkhand’s Seraikela-Kharsawan district.
 Key outcome
 Reduction in neonatal mortality rate by 32.7%, reduction in infant mortality (up to the age of one year) rate by
26.5%, increase in institutional delivery from 58% to 81% in 2014-15.
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8. Recent CSR Activities
 1. Happy Move (Hyundai Motor):
 Description
 Hyundai Motor India Ltd. in association with the Archaeological Survey of India (ASI) launched the Happy
Move campaign in January 2016 to spread awareness about Indian heritage monuments.
 As part of this programme, Hyundai conducted an awareness drive with 100 Happy Move Global Youth
Volunteers (80 from Korea and 20 from India) at the heritage sites of Safdarjung’s Tomb, Feroz Shah
Kotla Fort, Qutub Minar and Purana Qila (Old Fort).
 The volunteers undertook activities to maintain the amenities and gardens at these heritage sites and
conducted awareness drives to educate the visitors on the value of heritage
 2. YouthSpark (Microsoft)
 Description
 Microsoft, in partnership with NASSCOM, launched the fourth edition of YouthSpark Live in 2016 to
encourage young girls to consider computer science as a future employment opportunity.
 As a part of this programme, 300 young girls in the age group of 15–24 from the under-represented
communities attend a day’s workshop focused on demystifying computer coding, thus making computer
code more accessible and understandable.

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9. Aspects of CSR
Responsibility
 Social responsibility refers to a firm’s obligations to adopt policies and
plans of action that are desirable in terms of the expectations, values, and
interest, of society.
 A firm can fulfil its social responsibility in the following ways:
 Discharging its obligations to its employees
 Fair advertising
 Economical prices and quality merchandise for customers
 Generation of employment opportunities in society
 Donations to orphanages, NGOs, etc. and contributions to educational
institutions and research centres
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10.  Accountability
 Accountability includes a firm’s systems for developing policies, indicators, targets, and
processes to manage its full range of activities. It covers emerging CSR issues such as
business ethics, diversity, marketplace behaviour, governance, human rights, and labour
rights as well as financial and environmental performance.
 There are eight main types of corporate accountability:
 Moral
 Administrative
 Political
 Managerial
 Market
 Legal
 Constituency relation
 Professional accountability
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11. Sustainability
 The concept of sustainable development requires‘ development that meets
the needs of the present without compromising the ability of future
generations to meet their own needs.
 Corporate sustainability refers to a firm’s role in achieving sustainable
development and entails a balanced approach toward economic progress,
social progress, and environmental stewardship.
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12. Green Globe
 Green Globe 21 is a worldwide benchmarking and certification program
that facilitates sustainable travel and tourism for consumers, firms, and
communities. It is based on Agenda 21 and the principles for sustainable
development that were endorsed by 182 governments at the United
Nations Rio de Janeiro Earth Summit in 1992.
 It specifies ten areas in which travel, and tourism operations could
contribute to society, including waste minimization, management of
freshwater resources, wastewater management, energy efficiency,
conservation and management, and treating hazardous substances.
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13.  Triple Bottom Line (TBL) Approach
 Triple bottom line (TBL or 3BL) is an accounting framework with three parts:
social, environmental (or ecological), and financial. Many firms use TBL to
evaluate their performance from a broader perspective to create greater business
value.
 TBL consists of three Ps: profit, people, and the planet. It aims to measure a
firm’s financial, social, and environmental performance over a period.
 People(human capital) – This includes fair and beneficial business practices
toward labour and the community and region in which a firm operates.
 Planet (natural capital) – It includes sustainable environmental practices.
 Profit – It includes economic value created by a firm after deducting the costs of
inputs and tied-up capital. From the viewpoint of sustainability, it is considered the
real economic profit enjoyed by the host society.
https://youtu.be/l5MPOuhmpmk
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14. Social Contract
 Firms are expected to operate with a profit motive and to comply with
governmental laws, rules, and regulations. Archie Carroll proposed a four-layered
pyramid model of responsibility. In this model, one type of responsibility cannot be
achieved if an underlying responsibility in the pyramid model is absent.
 This pyramid is organised as follows:
 Level 1 (Economic Responsibility) – A firm must survive by producing goods and
services at a profit.
 Level 2 (Legal Responsibility) – A firm must operate within legal and regulatory
frameworks.
 Level 3 (Ethical Responsibility) – A firm has responsibilities over and above those
codified in-laws that are in line with societal norms and customs.
 Level 4 (Philanthropic Responsibility) – A firm has responsibilities above and
beyond its basic motivations, such as making efforts to benefit society.
 https://freecourses.net/management/corporate-social-responsibility/
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15.  Ethical Issues in International Business Practices
 1. Employment Practices and Ethics
 Ethical issues may be related to employment practices in many nations. Conditions in a host
country may be much inferior to those in a multinational’s home nation. 12-hour workdays, minimal
pay, and indifference toward protecting workers from toxic chemicals are common in some
developing nations.
 2. Human Rights
 Basic human rights are still denied in many nations. Freedom of speech, association, assembly,
and movement and freedom from political repression, etc. are not universally accepted.
 3. Environmental Pollution
 Ethical issues may arise if environmental regulations in the host nation are much inferior to those
in the home nation. Many nations have strict regulations regarding emissions of pollutants,
dumping and use of toxic materials, etc. Developing nations may not be so strict, resulting in
increased levels of pollution from operations of multinationals in host nations.
 4. Corruption
 Corrupt government officials are common, and international businesses often seem to or gain
financial and business advantages by bribing those officials, which is clearly unethical
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