CSR seems to be the latest buzzword in the Indian corporate world. This presentation tries to have a 360 degree view of the same.

1. Corporate Social Responsibility in India

2. PREVIEW
 Introduction- define CSR
 CSR and Business Ethics
 Why CSR
 Historical Backdrop of CSR - World and India
 Present Status of CSR in India
 CSR and Corporate Financial Performance
 Indian legal Backdrop - Companies Act 2013
 Future of CSR in India
 Examples
 Conclusion

3. INTRODUCTION

4. What is CSR?
World Business Council for
Sustainable Development:
“We define CSR as business'
commitment to contribute to
sustainable economic development,
working with employees, their
families, the local community, and
society at large to improve their
quality of life.”

5. What is CSR?
The Kennedy School of Government (Harvard
University), CSR Initiative:
“The term [CSR] is often used interchangeably with
others, including corporate responsibility,
corporate citizenship, social enterprise,
sustainability, sustainable development, triple-bottom
line, corporate ethics, and in some cases
corporate governance. Though these terms are
different, they all point in the same direction:
throughout the industrialized world and in many
developing countries there has been a sharp
escalation in the social roles corporations are
expected to play.”

6. What is CSR?
What do these definitions tell us about CSR?
What are some of the common understandings
that emerge?
How does CSR relate to other concepts?
What other issues arise?

7. What is CSR?
Common Understanding One:
CSR is an idea whereby companies
integrate economic, social and
environmental concerns in their
business operations

8. Common Understanding Two:
Stakeholders
Common Understanding Two: CSR relates to the idea whereby a
business addresses and balances the needs of stakeholders.
Who/what are stakeholders? “Individuals and groups who may
affect or be affected by the actions, decisions, policies, practices
or goals of an enterprise.”
Examples:
• Shareholders and other investors
• Employees
• Customers
• Governments
• Local communities
• NGOs
• Environment

9. CSR and Related Concepts: Sustainable
Development
Many definitions describe CSR as the business pursuit of
sustainable development.
Sustainable development: “development that meets the needs of
the present without compromising the ability of future generations
to meet their own needs.” (1987 Brundtland Report).
Like CSR, sustainable development is also recognised as having
three fundamental pillars: economic development, social
development and environmental protection.

10. CSR and Sustainable Development
2002 World Summit on Sustainable Development (Johannesburg)
confirmed link with CSR.
Paragraph 49 of the Johannesburg Plan of Implementation calls for action
at all levels to:
“Actively promote corporate responsibility and accountability, based on the
Rio principles, including through the full development and effective
implementation of intergovernmental agreements and measures,
international initiatives and public-private partnerships and appropriate
national regulations, and support continuous improvement in corporate
practices in all countries.”

11. CSR and Related Concepts:
Corporate Governance
Many definitions highlight the link between CSR and corporate
governance.
Is CSR a subset of corporate governance or is corporate
governance a subset of CSR?
In my view this is a pointless question. Both concepts are closely
related which ever way you look at it.

12. CSR and Corporate Governance
Related in definition:
1994 Report of the Toronto Stock Exchange Committee on Corporate
Governance in Canada:
“Corporate Governance means the process and structure used to direct
and manage the business and affairs of the corporation with the objective
of enhancing shareholder value…. The direction and management of the
business should take account the impact on other stakeholders such as
employees, customers, suppliers and communities.”
Principle 4 of The OECD Principles of Corporate Governance (2004)
underscores the need of a corporate governance framework to
“encourage active co-operation between corporations and stakeholders
in creating wealth, jobs, and the sustainability of financially sound
enterprises.

13. CSR and Corporate Governance
Related in Management:
Many companies are now using company codes of conduct to address
conduct issues that relate to both corporate governance issues (conflict of
interest, market disclosure, whistleblowing, corruption, fraud & accounting)
and CSR issues (human rights, environment & labour standards)
Related in Investment:
Mainstream investors now consider environmental, social and governance
issues (known collectively as ESG issues) in their investment decisions.
Example: United Nations Principles for Responsible Investment
Launched in April 2006, now has support of investors with combined worth
of $4 Trillion.

14. CSR and Other Related Concepts
The term CSR is often used interchangeably with the terms
corporate responsibility, corporate citizenship and triple bottom
line.
In my opinion, these terms describe the same concept to that of
CSR.
Companies choose the terminology they feel comfortable with.

15. IS CSR a Voluntary Concept?
Some definitions (e.g. European Union) describe CSR as a
voluntary concept.
Given the multitude of initiatives that promote CSR (e.g. Global
Compact, Global Reporting Initiative, OECD Guidelines) in a
voluntary fashion- not surprising CSR is perceived in this way
However, recent legal developments suggest CSR is no longer a
voluntary concept.
Two major areas of development: Reporting and Directors’ Duties

16. CSR & BUSINESS ETHICS

17. Definitions and Relationships
Corporate social responsibility (CSR) is
the process by which businesses negotiate
their role in society
In the business world, ethics is the study of
morally appropriate behaviors and
decisions, examining what "should be done”
Although the two are linked in most firms,
CSR activities are no guarantee of ethical
behavior

18. Recent Evidence of CSR Interest
An Internet search turns up 15,000
plus response to “corporate
citizenship”
Journals increasingly “rate”
businesses (and NGOs) on socially
responsive criteria:
◦ Best place to work
◦ Most admired
◦ Best (and worst) corporate reputation.
◦ www.csrhub.com
◦ www.karmayog.org

19. Reasons for CSR Activities
CSR activities are important to and
even expected by the public
◦ And they are easily monitored worldwide
CSR activities help organizations hire
and retain the people they want
CSR activities contribute to business
performance

20. Maximize
firm’s profits
to the
exclusion of
all else
Balance
profits and
social
objectives
Do what it
takes to
make a
profit; skirt
the law; fly
below
social
radar
Corporate Social Responsibility Continuum
Fight social
responsibility
initiatives
Comply;
do what
is legally
required
Integrate
social
objectives and
business goals
Lead the
industry
and other
businesses
with best
practices
Do more than
required; e.g.
engage in
philanthropic
giving
Articulate
social value
objectives

21. Business CSR Activities
Philanthropy
◦ give money or time or in kind to charity
◦ Integrative philanthropy—select beneficiaries
aligned with company interests
Philanthropy will not enhance corporate
reputation of a company
◦ fails to live up to its philanthropic image or
◦ if consumers perceive philanthropy to be
manipulative

22. Integrate CSR Globally
Incorporate values to make it part of
an articulated belief system
Act worldwide on those values
◦ Cause-related marketing
◦ Cause-based cross sector partnerships
Engage with stakeholders
◦ Primary stakeholders
◦ Secondary stakeholders

23. Business Ethics Development
The cultural context influences
organizational ethics
Top managers also influence ethics
The combined influence of culture and
top management influence
organizational ethics and ethical
behaviors

24. The Evolving Context for
Ethics
From domestic where ethics are
shared
To international where ethics are not
shared when companies:
◦ Make assumptions that ethics are the
same
◦ Ethical absolutism—they adapt to us
◦ Ethical relativism—we adapt to them
To global which requires an integrative
approach to ethics

25. Emergence of a Global Business
Ethic
Growing sense that responsibility for righting
social wrongs belongs to all organizations
Growing business’ need for integrative
mechanisms such as ethics
◦ Ethics reduce operating uncertainties
◦ Voluntary guidelines avoid government impositions
Ethical conduct is needed in an increasingly
interdependent world—everyone in the same
game
Companies wish to avoid problems and/or be
good public citizens

26. Ways Companies Integrate Ethics
Top management commitment in word
and deed
Company codes of ethics
Supply chain codes
Develop, monitor, enforce ethical
behavior
Seek external assistance

27. External Assistance with Ethics
Industry or professional codes
Certification programs, e.g., ISO 9000
Adopt/follow global codes
◦ Caux Round Table Principles

28. Reasons for Businesses to Engage in
Development of a Global Code of
Business Ethics
Create the same opportunity for all
businesses if there are common rules
Level the playing field
They are needed in an interconnected world
They reduce operating uncertainties
If businesses don’t collaborate, they may not
like what others develop

29. Four Challenges to a Global Ethic
◦ Global rules emerge from negotiations and
will reflect values of the strong
◦ Global rules may be viewed as an end
rather than a beginning
◦ Rules can depress innovation and creativity
◦ Rules are static but globalization is dynamic

30. WHY CSR

41. Historical Backdrop of CSR -
World and India

47. Present Status of CSR in India

50. CSR and Corporate Financial
Performance

53. Social—and Financial—Performance
Perspective 1: CSP Drives the Relationship
Good Corporate
Social Performance
Good Corporate
Financial
Performance
Good Corporate
Reputation
Perspective 2: CFP Drives the Relationship
Good Corporate
Financial
Performance
Good Corporate
Social
Performance
Good Corporate
Reputation
Perspective 3: Interactive Relationship Among CSP, CFP, and CR
Good Corporate
Social Performance
Good Corporate
Financial
Performance
Good Corporate
Reputation

54. Indian legal Backdrop - Companies
Act 2013

60. Future of CSR in India

61. Definition of Corporate Social
Responsibility
“CSR is about how companies manage
the business processes to produce an
overall positive impact on society.”

62. Definition
“Achieving commercial success in
ways that honour ethical values and
respect people, communities, and the
natural environment”

63. Definitions: Practice
WBCSD (World Business Council for
Sustainable Development)
“The continuing commitment by
business to
behave ethically and contribute to
sustainable economic development
while
improving the quality of life of the
workforce
and their families as well as of the local

64. Definitions: Concept
Philip Kotler & Nancy Lee (2005)
“a commitment to improve community
well-being through discretionary
business
practices and contributions of corporate
resources”.

65. Corporate Social Responsibility
(CSR)
CSR in Equation Form Is the
Sum of:
Economic Responsibilities (Make a
profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good
corporate citizen)
CSR

66. Historical Perspective
From the 1950’s to the present the
concept of CSR has gained
considerable acceptance and the
meaning has been broadened to
include additional components

67. Corporate Social Responsibility
(CSR)
Evolving Viewpoints
CSR considers the impact of the
company’s actions on society (Bauer)
CSR requires decision makers to take
actions that protect and improve the
welfare of society as a whole along
with their own interests (Davis and
Blomstrom

68. Phases of Corporate Social
Responsibility
Frederick provides expanded framework
for
understanding the evolution of CSR
concept
Divided into 4 phases:
Corporate social stewardship, 1950s –
1960s
Corporate social responsiveness, 1960s
– 1970s
Corporate/business ethics, 1980s –
1990s
Corporate/global citizenship, 1990s –

69. Drivers of CSR
The shrinking role of government
Demands for greater disclosure
Growing investor pressure
Competitive markets

70. Benefits of CSR…
Strengthened brand positioning.
Enhanced corporate image.
Increased ability to attract, motivate, and retain
employees.
Increased sales and market share.
Increased appeal to investors and financial
analysts.

71. CSR also known as
Sustainable Development
Corporate Citizenship
Triple Bottom Line
Business Ethics
Sustainable Business Practices

73. Examples

74. CSR EXAMPLES
IBM UK - Reinventing Education Partnership
programme Interactions and sharing of knowledge
through a web-based technology - the “Learning
Village” software. Culture of openness and sharing
of good practice
AVON - a partnership with Breakthrough Breast
Cancer, and its Breast Cancer Crusade has raised
over 10 million pounds since its launch 12 years
ago
TOI’s Lead India campaign, campaign for
contribution towards educating the poor

75. Companies in trouble
Dasani mineral water (part of Coca-Cola).
Coke’s sale was banned as the result of tests,
including those by the Indian government,
which found high concentrations of pesticides.
Communities in India , around Coca-Cola's
bottling operations are facing severe shortages
of water as a result of the cola major sucking
huge amounts of water from the common
groundwater source.

76. Issues at NIKE
Nike Inc producer of footwear, clothing, equipment and
accessory products for the sports and athletic market.
Selling to approximately 19,000 retail accounts in the US,
and approximately 140 countries around the world.
Manufactures in China, Taiwan, Korea, Indonesia ,
Mexico as well as in the US and in Italy.
People working - 58% young adults between 20 and 24
years old, 83% - women.
 Few have work-related skills when they arrive at the
factory.
Issue- unhealthy work environment – debates heated
arguments, verbal abuse , 7.8% of workers reported
receiving unwelcome sexual comments, and 3.3%
reported being physically abused. In addition, sexual
trade practices in recruitment and promotion were
reported

77. Private Sector Perspective
“Corporate Social Responsibility is not a
cosmetic; it must be rooted in our
values. It must make a difference to
the way we do our business.”

78. CSR – A New Paradigm
To think comprehensively and systematically about
The role of business in development
The manner in which the business is conducted
Corporate Governance
Poverty alleviation
Corporate contribution to peace and war against
terror
Business, government and civil society
partnership- common ground and collective action

79. Conclusion