A presentation on the topic 'Why business should not be involved in CSR' given on 'Management' course of MBA, IBA, DU.

1. Why business should not be
involved in CSR?
Prepared for
Tanisha Bukth
Lecturer, IBA, DU
Prepared by:
Ahsan Habib, Roll: 25
Jobair Al Ebud Roll: 27
Naimul Arif, Roll: 31
Faisal Ibn Mizan, Roll: 47
- Batch: MBA 57E

2. 2
“Corporate social responsibility,
once a do-gooding sideshow, is
now seen as mainstream. But as
yet too few companies are doing it
well”
- Daniel Franklin
Executive editor, The Economist

3. CARROLL’S CSR PYRAMID
3

4. CSR: ADVANTAGE OR PROBLEM?
Business Creates problem, they should
solve it.
• No legal obligation.
• No social accountability.
4

5. CSR: ADVANTAGE OR PROBLEM?
It is a good advertisement of the company.
• Failure ruins the advertisement
• Failure defames company.
5
CSR backfired

6. CSR: ADVANTAGE OR PROBLEM?
Business has resources to solve social
problems.
6
• Lack in skills in social activities.
• Chances of low quality service.

7. WHY AVOID CSR?
 Potential conflict of interests
Immorality in ethics!!!
7

8. CSR: DISADVANTAGE
 New form of advertisement
 An way of advertising campaign
 Doing CSR out of marketing budget
 Changing behavior according to customer
preference
8
hypocrisy and green washing
massive oil spill
Texas explosion

9. CSR: DISADVANTAGE
 Price increase
 CSR raises company costs
 Passes on to the consumer
 Difficulty in foreign competition
9
US$1 billion charity
at the expense of bonuses

10. CSR: REDUCED PROFIT?
Purpose of any business is to maximize
profit.
• CSR deters business from their
prime goals.
• Cost incurred from CSR is
deduced from profit
10

11. CSR: PEPSICO.
11

12. CSR: PEPSICO SHARES, 2010.
12

13. CSR: PEPSICO., PEPSI REFRESH PROJECT
13

14. CSR: PEPSICO., PEPSI REFRESH PROJECT
14

15. CSR: WHEN IT BACKFIRES
CSR efforts of various can also
backfire if not done properly.
• Companies need careful
moderation of its CSR practices.
• Conscious and public CSR efforts
need attainable and steadily
maintained standards. 15

16. CSR TROUBLE: VOLKSWAGEN
• No. 1 Diesel Car maker.
• Car with very low emission.
• Socially responsible advertising and
campaigns.
• Defeat device that cheated emission
readings in tests.
16

17. CSR TROUBLE: VOLKSWAGEN
17

18.  Availability of tax avoidance practice and
corporate crimes
 Capitalism
 Corporate freedom(economic freedom)
 Employment of economic instruments (debt,
equity or asset) 18
AREA OF DIFFERENTIATION.
BUSINESS IN FREE MARKET (WITH CSR AND
WITHOUT CSR)

19. AREA OF DIFFERENTIATION.
BUSINESS IN FREE MARKET (WITH CSR AND
WITHOUT CSR)
 Globalization effect
 Role of Government
 Role of Media in respect of ownership and
advertisement
 Neo-liberalism(an economic theory of
democracy that makes everything fair
marketization) 19

20. AREA OF DIFFERENTIATION.
BUSINESS IN FREE MARKET (WITH CSR AND
WITHOUT CSR)
 Philosophy
 Regulation to implement social and
environmental standard
 Value of sustainability reporting
20

21. THANK YOU ALL
21