Corporate Social Responsibility (CSR) is about how companies manage their business processes to produce an overall positive impact on society. It covers sustainability, social impact and ethics on business interests and objectives. This presentation also gives a balancing view of the commercial interests of businesses and social & environmental obligations of a business enterprise.
The ISO 26000 standard defines CSR as:
an organization's responsibility for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that:
- contributes to Sustainable Development, including health and the welfare of society;
- takes into account the expectations of stakeholders;
- is in compliance with applicable law and consistent with international norms of behavior;
- and is integrated throughout the organization and implemented in its relations.
The 6 core subjects listed by ISO 26000 are:
1. Human rights
2. Labor practices
3. The environment
4. Fair operating practices
5. Consumer issues
6. Community involvement and development
The presentation covers all aspects of CSR and provide adequate guidance on the principles and practices of CSR.
4. 5
Reporting on CSR
Activities and Outcomes
of CSR Reporting
Relationship of CSR with
Sustainable Development and
the Concept of Corporate
Citizenship
Drafting a CSR Policy, Monitoring
and Controlling CSR activities,
Cost & Benefit Analysis and
Implementation
Examples, Benefits,
Framework and Triple
Bottom-line for CSR
Examples of CSR
Compliance and Stakeholder
Influence on CSR Compliance
Purpose, Scope,
Definitions, Brief History
and Importance of CSR
Drivers for CSR, Areas of
CSR Application and
Reducing Carbon Foot-Prints
1
2
3
4
6
7
4
5. The purpose of CSR is to return benefits to
the society, participate in philanthropic
causes, protect the environment from
various kinds of harmful effects of industrial
activity and demonstrate positive social
values.
The term CSR refers to the company's
practices and policies aimed at having a
positive impact on the world.
The key idea behind CSR is that in addition
to pursuing profit maximization, companies
must also pursue social and environmental
goals.
Purpose of CSR
5
6. Scope of CSR
âș CSR has three pillars: economic, social, and
environmental. These three pillars are connected
with profit, people, and planet respectively
âș At first, CSR focused on the social behavior of
businesses only. Later, it included in its scope, the
behavior of suppliers and the purpose of a product, as
well as how to dispose it off after it loses the utility or
value
6
7. CSR Definitions
Corporate Social Responsibility (CSR) is a management concept whereby
companies integrate social and environmental concerns in their business operations
and interactions with their stakeholders.
- United Nations, Industrial Development Organization
The European Commission defines CSR as, âthe responsibility of
an entity for their impact on society.â
Continuing commitment by a 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.
- World Business Council for Sustainable Development
7
8. Brief History of CSR
1. The term was officially introduced by an American economist, Howard Bowen, in 1953.
2. 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.â
3. In 1971, the concept of âsocial contractâ was introduced between businesses and society by the
Committee of Economic Development in USA.
4. In 1980s, CSR evolved as more and more organizations started accepting social interest in their
business practices.
5. In 1990s, CSR was approved widely across the industries.
6. In 1991, a professor at University of Pittsburgh, Donna J. Wood, wrote an article entitled as,
âCorporate Social Performance Revisited.â He provided a framework for assessing the impacts and
outcomes of CSR programs.
7. By early 2000s, CSR, became an essential strategy for companies such as, Wells Fargo, Coca-
Cola, Walt Disney and Pfizer.
8. Today, CSR has become an essential part of company reporting and has a legal acceptance all over
the world.
8
9. Importance of CSR
It is becoming increasingly important to have a socially conscious image of a
business organization.
Consumers, employees and other stakeholders prioritize CSR when choosing
a brand or a company. They are holding corporations accountable for effecting
social change with their business ideas, beliefs, norms, standards and
practices.
"A robust CSR program is an opportunity for companies to demonstrate their
good corporate citizenship and protect the company from outsized risk by
looking at the whole social and environmental sphere that surrounds the
company."
- Jen Boynton, CEO of B Targeted Marketing Co.
9
10. Benefits
of CSR
4. Increasing access to funding
opportunities
5. Attracting, retaining & maintaining a
talented workforce
3. Better brand recognition &
positive business reputation
2. Saving money on energy &
operating cost
1. Increasing customer retention
6. Enhancing working relationship with
all stakeholders
7. Attracting new and retaining
existing business
8. Increasing influence in the
industry through meeting CSR
9. Increasing sales through greater
customer loyalty
10. Boosting morale of employees
10
12. 12
Carrollâs Pyramid of CSR
Philanthropic
Responsibilities
Be a Good
Corporate Citizen
(Desired by
Society)
Ethical Responsibilities
Follow Ethics in doing
Business
(Expected by Business
Partners & Society)
Legal Responsibilities
Obey Laws & Regulations
(Required by Law Enforcement
Agencies & Society)
Economic Responsibilities
Be profitable â basic requirement of a business
enterprise
(Required by Stakeholders)
Archie B. Carroll developed in 1991,
the pyramid of CSR, which explains
what CSR is and why companies
participate in CSR.
This pyramid is useful in explaining the
motives for CSR, which are shown in the
pyramid. The four levels of the pyramid
reflect a companyâs reason to engage in
CSR.
The purpose of the pyramid is to point
out the defining aspects of CSR and
explain the basic components of the
four-part framework.
13. Formulate
Environm
ent
conservat
ion
Philant
hropy
Evaluate
Monitor
Analysis &
Reporting
Explain
Areas of
CSR
Compliance
âą Donations & charities
âą Recycling production and industrial wastes
âą Conserving energy through use of latest
technology
âą Organizing re-forestation campaigns
âą Using environment-friendly technologies
âą Separate Codes of conduct for both
company and its employees
Environment
Conservation
Philanthropy
Ethical
Concerns &
Practices
Volunteerism
âą Sponsorships
CSR means that the protection of the
environment and the promotion of
social welfare should be prioritized
like the legal requirements in the
course of conducting business.
13
14. A good corporate citizen refers to a company that is guided by strict ethics and ethical
standards in the execution of daily business.
It includes balancing all stakeholdersâ needs and interests (like wealth maximization,
profits, returns, share price increase) with those of society and the environment. It is fully
aware of the environmental impact of its business operations.
Good corporate citizenship establishes a positive brand image â people want to do
business with companies that are respected for fulfilling their social and environmental
responsibilities. In addition, they want to be part of a company that is willing to voluntarily
lend a hand and help our society face difficult social and environmental issues.
In companies that invest time and money in ethical and socially responsible behaviors,
employee morale tends to be higher, and these behaviors directly affect employee
performance and loyalty.
Good Corporate Citizenship
14
15. Examples of CSR Compliance
1. Reducing carbon footprints
2. Controlling emissions to soil, water and air
3. Not allowing child and bonded labor
4. Helping people during a massive and devastative earthquake
5. Helping flood victims by sending food, blankets, medicines, camps, etc.
6. Improving labor policies and working standards
7. Ensuring ethical compliance by all employees through a code of conduct
8. Minimizing industrial effluents and disposing them properly
9. Allowing the fair trade practices
10. Charitable giving
11. Giving scholarships to needy students
12. Making the production of a company environment friendly
13. Recycling industrial wastes and eliminating their harmful effects
14. Volunteering in the community welfare projects
15. Sponsoring a game event for promoting games
16. Devising corporate policies that benefit the environment
17. Participating in go-green drives by planting trees
18. Holding seminars and events for promoting environment protection
19. Making socially and environmentally conscious investments
15
16. Sustainable Development
16
PLANET PROSPERITY PARTNERSHIP
PEOPLE PEACE
Sustainability and corporate social responsibility are closely related business concepts that have greatly
affected corporate governance. Sustainable business development involves the use of socially and
environmentally responsible and efficient operating practices along with achieving the target profitability.
Sustainable business development depends on strong partnerships with all groups concerned with
social and environmental issues
17. 17
Agenda 2030 for Sustainable Development
United Nations Department of Economic and Social Affairs
Courtesy: DESA, UN
18. Five Factors that
Promote Sustainable
Business Growth
3
1
2
4
5
The ability of a
business enterprise to
generate and build its
positive image and
reputation in a society
Maintaining a
consistent customer
appeal through social
works and
environment friendly
measures along with
making profits
Retaining highly
skilled workforce
through their
satisfaction and
following high ethics
Maximizing returns of
the shareholders
through a better
financial performance.
More investors will be
attracted on seeing a
healthy bottom-line
Promoting strong
customer and social
relationships.
Community-based
service events, give
a business greater
recognition and
positive associations
with its potential
customers.
Sustainable
Business Growth
Through CSR
18
19. Effective
Discharge
of CSR
Management
of Brand
Image &
Corporate
Reputation
Good
Corporate
Citizenship
Benefits,
Practices &
Principles
Environmental
Stewardship
Diversity
&
Inclusivity
Governance
related to
Social &
Environmental
Issues
19
20. "The way a corporation achieves
a balance among its
economic, social, and
environmental responsibilities in
its operations so as to address
shareholder and other
stakeholder expectations.â
- International Standardization Organization
20
The triple bottom line (3B/L or TB/L) is a report on the impact of a business performance on the
economy, society, and environment. Furthermore, it is used to describe the integration of social and
environmental issues and concerns into a businessâs decisions, goals, and operations.
Economic responsibility is to maximize shareholdersâ wealth through increasing profits and protecting
the rights of all stakeholders, social responsibility is to obey the laws and follow ethical standards in the
conduct of the business, and environmental responsibility is to protect the environment in which a
business enterprise operates.
21. Top 10 Companies with the Best CSR Reputation
1. Rolex
2. Lego
3. Disney
4. Adidas Group
5. Microsoft
6. Sony
7. Cannon
8. Michelin
9. Netflix
10. Bosch Report 2018-19
https://youmatter.world
21
22. The
Pressure
of Social
Groups
The Potential
for a
Competitive
Advantage
The
Threat of
Media
Groups
Customer
Requirements
The Extent
of Costs &
Investment
Involved
Legal &
Ethical
Requirements
Drivers for CSR Compliance
22
23. Carbon footprint is the amount of carbon dioxide released into the atmosphere as a result of the
activities of an individual, an organization or a community.
Reducing the Carbon Footprints
Sources of Carbon Emissions
23
24. CSR Analysis
24
Sustainable
Development
Stakeholdersâ
Role in the
Implentation of
CSR
Business Social
Responsibility
Responsible
Business
It pertains to people and organizations
behaving and
conducting business ethically and with
the sensitivity towards social, cultural,
economic, and environmental issues.
Businesses that
practise CSR and sustainable
development need to operate in ways
that are respectful to the general
population and their surrounding
environment.
A responsible business is
essentially one that benefits
society by eliminating the negative
impacts it might have on society,
people and planet.
Stakeholders play a key role in
the decision making process
when businesses decide to
engage in CSR projects.
CSR is about a business approach to sustainable development by delivering economic,
social and environmental benefits. It encapsulates the initiatives by which a company
takes responsibility for its effect on social and environmental well-being.
25. Business Social Responsibility
25
Local Community General Public Employees or Workers Government and
Administrative Bodies
Environment Shareholders or Investors Consumers or
Customers
26. Stakeholders Influence on CSR Activity
26
Government bodies looking after CSR activities
and ensuring compliance with the laws related with
it.
Customers have policies to buy from companies
that fulfill their CSR efficiently and effectively.
Suppliers may be more interested to sell their
goods to a company that has robust system for
CSR compliance
Investors would be more inclined towards a
company that enjoys better reputation with all
internal and external stakeholders and have fulfilled
its CSR.
1 3 4
2
1
2
3
4
27. 27
Soil management, enteric fermentation,
and manure management from livestock
are the largest sources.
Agriculture
11%
According to a report, the five industry categories
of paper, food, petroleum refineries, chemicals
and metal/mineral products are responsible for
contributing the most greenhouse gases.
Industrial Processes
6%
Agriculture, livestock-raising, deforestation
and the conversion of forest lands all
contribute to substantial carbon emissions..
Land Change & Forestry
6%
Energy production and consumption of all
types accounts for 72 percent of all
emissions. Hence, it is the biggest source
of carbon emissions into the atmosphere.
Energy Production & Consumption
72%
Carbon Emissions Report, 2017
According to a 2017 report by the World Resources
Institute (https://www.c2es.org), energy production and
consumption are the largest sources of carbon emissions
into the atmosphere. It is 72% of the total emissions from
all sources. The breakdown of energy-related carbon
emissions is as follows.
âą Electricity and heat 31%
âą Transportation 15%
âą Manufacturing and construction 12.4%
âą Other fuel consumption 8.4%
âą Fugitive emissions 5.2%
28. An Example of a CSR Policy
Our companyâs CSR policy outlines our efforts to give back to the world.
Scope
This policy applies to our all group companies. It can also refer to suppliers and partners.
Policy Elements
We want to be a responsible business that meets the highest standards of ethics and professionalism in the conduct of the business. Our
companyâs social responsibility falls under two categories: compliance and pro-activeness. Compliance refers to our companyâs
commitment to legality and willingness to observe community values. Whereas pro-activeness refers to the participation of our company in
every event that promotes human rights, helps communities and protects our natural environment.
Compliance
A: Legal
Our company will:
1. Respect the law
2. Honor its internal policies
3. Ensure that all its business operations are legitimate
4. Keep every partnership and collaboration open and transparent
B: Business Ethics
Weâll always conduct business with integrity and respect to human rights. Weâll promote:
1. Safety and fair dealing
2. Respect toward the consumer
3. Anti-bribery and anti-corruption practices
28
29. Monitoring CSR
The following is the step-by-step approach for monitoring a CSR program:
ï± Break down the CSR goals into categories. Some classes include philanthropy,
labor practices, social practices and environmental efforts. It is easy to track how
much time and money is invested into each of these categories.
ï± Track the success of these investments, look for measurable KPIs. How much has
the carbon footprint of the company changed? How many people were reached by
a charitable effort? While doing these things, continue to check the changes
related to each class, and keep an eye on public perception of which issues are
most important?
ï± Take public feedback through surveys about the effectiveness of CSR policies,
practices and goals. Examine reports of the environmental reporting agencies
about the common violations of environmental laws in the area it operates.
ï± Recommend corrective actions based on the results of the feedback from public.
29
30. 30
CSR Report
Purpose
Reporting to the internal
stakeholders
Reporting to external
stakeholders
Reporting to potential
investors
Feedback surveys &
reports
Contents of a CSR report.
Standardized vs
personalized CSR report
Is CSR report mandatory?.
Benefits of a CSR report.
1
3
2
8
9
5
4
7
6
31. 31
Monitoring & Evaluation
of a CSR Project
A CSR assessment is the monitoring and evaluation of
how well a company has integrated the principles
of CSR into its business. The aim of the assessment is to
get a clear picture of the CSR practices (i.e., environment,
social, ethics, supply chain).
Needs an
Initial
Assessment
Monitoring
& Evaluation
Midterm
Assessment
How a CSR program fits to
the needs of a business
enterprise?
01
The operational design of a
project, its CSR objectives and
means of monitoring &
evaluation.
02
The assessment of initial conditions
before the start of a CSR project.
04
The assessment of indicators during
implementation of a CSR project.
05
Steps for monitoring &
evaluation of CSR activities.
03
Measuring indicators upon
completion of a CSR project and
sharing the results of such
implementation with the
stakeholders. .
06
Indicators
Basic
Assessment
Final
Evaluation
& Sharing
of results