What is Corporate Social
Corporate Social Responsibility is the
continuing commitment by business
to behave ethically and contribute to
economic development, improving
the quality of life of :
• The workforce and their families,
• The local community and,
• The society at large.
DEVELOPMENT OF CORPORATE SOCIAL
• In the 1950s the primary focus was on businesses'
responsibilities towards the society.
• In the 1960s, the term "corporate social responsibility"
became popular due to some key events, people and their
• In the 1980s, business and social interest came closer and
firms became more responsive to their stakeholders.
• During the 1990s the idea of CSR became almost universally
• Finally in the 2000s, CSR became definitively an important
Types of Corporate Social
1. Economic Responsibilities - A company needs to be primarily concerned with
earning profit. This is for the simple fact that if a company does not make
money, it won't last long to contribute.
2. Legal Responsibilities - A company's most legal responsibility is, ensuring that
it obeys all type of laws. Legal responsibilities can range from securities
regulations to labour law, environmental law and even criminal law.
CSR can encompass a wide variety of tactics, from giving non-profit
organisations a portion of a company's profits, to giving away a product or
service to a worthy recipient. Few broad categories of social responsibility
3. Ethical Responsibilities - Ethical
responsibilities are responsibilities
that a company puts on itself
because its owners believe it's the
right thing to do, not because they
have an obligation to do so. Ethical
responsibilities could include being
environmentally friendly, paying fair
wages or refusing to do business
with oppressive countries.
4. Philanthropic Responsibilities -.
They involve making an effort to
benefit society -- for example, by
donating services to community
organizations, engaging in projects
to aid the environment or donating
money for charitable causes.
BENEFITS OF CORPORATE
• Innovation – In the context of CSR, innovation is
a huge benefit to a company and society. For
example, Unilever was able to innovate new
products such as a hair conditioner that uses
less water to save the precious natural source.
• Cost savings – One of the easiest places for a
company to start engaging in sustainability is to
use it as a way to cut costs. Whether it’s using
less packaging or less energy, these savings add
• Customer engagement – Using CSR can help
companies engage with their customers in new
• New business opportunities - A CSR program
requires an open, outside oriented approach.
Because of continuous interaction with other
parties, the company will be first to know about
new business opportunities.
• Employee engagement - Employees want to feel proud of the organization they
work for. Because of the high positive impact of CSR on employee wellbeing and
motivation, the role of HR in managing CSR projects is significant.
• Long-term thinking – CSR is an
effort to look at the company’s
long-term interest and ensuring
that the company’s future is
• Positive PR - CSR provides the
opportunity to share positive
stories online and through
List of Top 25 CSR ranking companies
(2010) in the USA
CSR in India
•Among other countries India has one of the
most richest traditions of CSR. Much has been
done in recent years to make
Indian entrepreneurs aware of social
responsibility as an important segment of their
business activity but CSR in India has yet to
receive widespread recognition.
•CSR is not a new concept in India. Ever since
their inception, corporate like Tata Group,
Aditya Birla Group and Indian Oil Corporation
to name a few, have been involved in serving
the community. Through donations and charity
events, many other organizations have been
doing their part for the society.
•The Indian corporate sector spent around
US$6.31 billion on social expenditure in the year
of 2007-08, up from US$3.68 billion from the
Limitations of CSR
The results of CSR compliance are generally viewed as a good thing by most
companies. Disadvantages lie in allocating time and resources necessary to
develop a CSR approach that meets governmental and social standards and
achieves compliance with informal CSR guidelines related to social and
environmental responsibility. Following are its limitations:
1. Role of Profit - CSR requires companies to
recognize responsibilities to stakeholders
outside of shareholders. While
proponents of CSR point out the long-
term benefits of taking care of these core
relationships, shareholders often rebel at
the notion that companies will invest in
anything that does not create
immediately obvious financial gain.
2. Competitive Disadvantage - One of the
most common arguments companies
make against CSR policies is the
disadvantage it causes as compared to
companies that do not participate.
3. Lasting Impact - CSR has existed for
decades, but its prominence as a major
business consideration has increased due
to heightened awareness of ethical issues
in business and environmental
The term Corporate Social
Responsibility has earned
prominence from all avenues.
Organizations or companies must
realize that government cannot uplift
the society alone. They have to
contribute something and help the
government and take advantage from
government in several issues. Due to
this the companies can increase their
brand image in the society and think
for the future planning. The
competitor risks also reduced for
those companies which are doing
these activities. Hence, Corporate
Social Responsibility is the harbinger
of social change.