Presentation on corporate social responsibility

1. CORPORATE SOCIAL
RESPONSIBILITY

3. • Person going from one side of the canyon to the
other… a lot of clouds like fog. The point is going
from one way of doing business to another is very
tough. There’s a lot uncertainty. It takes a lot of
skill, but we have to lift ourselves beyond that,
above the fog, and that’s not going to be a simple
exercise. CSR is about seeing the forest, the fog,
and seeing how we can get on the other side, and
how we can be well-equipped for doing that. So
probably we need to develop additional skills,
knowledge, and understanding.”

4. DEFINITION OF CORPORATE
SOCIAL
RESPONSIBILITY

5. DEFINITION
CSR is about how companies manage the business
processes to produce an overall positive impact on
Society.
“Achieving commercial success in ways that
honour ethical values and respect people,
communities, and the natural environment”

6. DEFINITIONS: CONCEPT AND
PRACTICE
• Philip Kotler & Nancy Lee (2005)
“A commitment to improve community well-being through
discretionary business practices and contributions of corporate
resources”.
• World Business Council for Sustainable Development
(WBCSD)
“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 community and society.”

7. 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)
= Corporate Social Responsibility

8. 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.

9. CORPORATE SOCIAL
RESPONSIBILITY (CSR)
Evolving Viewpoints
• CSR considers the impact of the company’s actions
on society.
• CSR requires decision makers to take actions that
protect and improve the welfare of society as a
whole along with their own interests.

10. DRIVERS OF CSR
• The shrinking role of government
• Demands for greater disclosure
• Growing investor pressure
• Competitive markets

11. OTHER NAME’S FOR CSR
• Sustainable Development
• Corporate Citizenship
• Triple Bottom Line
• Business Ethics
• Sustainable Business Practices

12. 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 – 2000s

13. BENEFITS OF CSR
• Strengthened brand positioning.
• Enhanced corporate image.
• Increased ability to attract, motivate, and retain
employees i.e. less employee turnover.
• Increased sales and market share.
• Increased appeal to investors and financial
analysts.

14. CRITISISMS OF CSR
• Nature of business
• Motive
• Ethical consumerism
• Social awareness and education
• Globalization and market forces
• Ethics training
• Laws
• Stakeholder priorities

15. Corporate Social Responsibility Practices in India
sets a realistic agenda of grassroots development
through alliances and partnerships with sustainable
development approaches. At the heart of solution
lies intrinsic coming together of all stakeholders in
shaping up a distinct route for an equitable and just
social order.
Corporate Social Responsibility Practices in
India

16. CSR EXAMPLES IN INDIA
TATA GROUP
Tata Group in India has a range of CSR projects, most of which
are community improvement programs.
For example :-
•A leading provider of maternal and child health services.
•Co. also endorses sports as a way of life.
•It has also organized relief program in case of natural disasters,
including long-term treatment and rebuilding efforts.
•It also supports education and also is a benefactor of the arts and
culture

17. Infosys is aggressively involved in a variety of community growth
programs. In 1996, the company created the Infosys Foundation as a
not-for-profit trust to which it contributes up to 1 percent of profits
after tax every year. Moreover, the Education and Research
Department at Infosys also works with employee volunteers on
community development projects.
The management team at Infosys continues to set examples in the
area of corporate citizenship and has involved itself vigorously in key
national bodies. They have taken initiatives to work in the areas of
research and education, community service, rural outreach
programs, employment, healthcare for the poor, education, arts and
culture, and welfare activities undertaken by the Infosys Foundation.
Infosys

18. At Mahindra & Mahindra, The K. C. Mahindra Education Trust was
established in 1953 with the purpose of promoting education. Its
vision is to renovate the lives of people in India through education
and financial assistance across age groups and across income
strata. The K. C. Mahindra Education Trust undertakes a number of
education plans, which make a difference to the lives of worthy
students. The Trust has provided more than Rs. 7.5 crore in the form
of grants, scholarships and loans. It promotes education mostly by
the way of scholarships. The Nanhi Kali (children) project has over
3,300 children under it and the company aims to increase the
number to 10,000 in the next two years by reaching out to the
underprivileged children, especially in rural areas.
Mahindra & Mahindra

19. 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.

20. NEW CSR LAW
The new companies bill, passed by one of the two
houses of Parliament, prescribes the following CSR
rules for companies:
Who: every company with a net worth of Rs. 500
crore or more, or turnover of Rs.1000 crore or more, or
a net profit of Rs.5 crore or more during any financial
year
How much: al least 2% of its average net profit in the
last three years

21. Where: the bill lists nine broad areas, which
encompasses much that results in social goods.
Companies have to disclose how much they spend
and where
How: a CSR committee comprising three directors
from the board, with at least one independent
director, shall formulate a policy, recommend a
budget and monitor it

22. POSITIVES
• Growth in the CSR field – need for professionals
etc.
• Forcing legislation can bring about innovative
ideas in CSR
• A more structured approach to social initiatives
• Gives a roadmap for companies that would join
the circle in future

23. NEGATIVES
• Can be seen as a mere tick mark exercise
• Forcing legislation can be a put-off for
companies that are already doing their part
in the CSR area
• Increased Green washing – Tainted
companies can make themselves can
come clean and look good

24. MOVING TOWARDS CSV
CSV stands for creating shared value
-First appeared in HBR article “strategy and society” written by Michael
Porter and Mark Kramer.
-The central premise behind creating shared value is that the
competitiveness of a company and the health of the communities
around it are mutually dependent
-CSR pit businesses against society, emphasizing the costs and
limitations of compliance with externally imposed social and
environmental standards whereas CSV acknowledges tradeoffs
between short-term profitability and social goals, while focusing more
on the opportunities for competitive advantage from building a
social value proposition into corporate strategy.

25. CSV
CSV, does not force companies to spend their profits
but it points that :-
•A company’s goals must be in aligned with those of society
•A company must be viewed as a Capital factory (not just
goods & services one)
•A company’s role as a community and
•A company as an institute of learning

26. If companies of all sizes – irrespective of their profits,
start to weave these 4 strands into the fabric of their
business models, some real tangible long lasting
sustainable changes will happen – which are good
for the businesses as well as environment and the
society at large.