Corporate Social Responsibility

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Sr 1 2 Introduction

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Why Corporate Social Responsibility is Necessary?

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Benefits of Corporate Social Responsibility Examples of Corporate Social Responsibility Corporate Social Responsibility at Deloitte Corporate Social Responsibility at CISCO Current Trends & Predictions in Corporate Social Responsibility CSR world Case Studies

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Introduction
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders. The term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Corporate social responsibility enables companies to create a positive impact in the community. Corporate Social Responsibility (CSR) pertains to the corporations interaction with society and its responsibilities to society in general. It demands that commercial success be gained through positive practices that aim to promote general welfare. Success, after all, is not only measured in monetary terms but also the corporations impact on the community, on its customers and on the environment.

Why Corporate Social Responsibility is Necessary?

Corporate social responsibility may come across as a highly idealistic endeavor but it actually produces highly favourable and observable results. Recent research studies reveal that companies that are perceived by the public to adopt more socially responsible business practices and ethics are more likely to perform financially better than those companies who dont. Studies also indicated that Corporate Social Responsibility allows companies to have lower operating expenses because they are able to make use of recycled materials. Consequently, waste-disposal costs are also effectively lowered.

Benefits of Corporate Social Responsibility

Practitioners of Corporate Social Responsibility also gain better reputation and brand image in the process. A better reputation in business often translates into better sales and more investors. Customer loyalty also increases in the process. In 2001, Hill & Knowlton/Harris Interactive conducted a poll and the findings showed that 79% of Americans take into consideration corporate citizenship practices in their decision to buy a product. More on this topic Socially Responsible Corporations: Business Ethics, Citizenship Effects of Bad Corporate Social Responsibility Framework for Corporate Social Responsibility Another positive outcome of CSR is that companies who consistently demonstrate compliance to regulatory requirements are given greater freedom by both national and local government. Investors also look for companies that practice socially responsible investing (SRI). Social Investment Forum reported that social investing account for $2.34 trillion of total investments. Corporate social responsibility should be made an essential part of the wealth creation process. It is the best way to make the environment sustainable and available for future generations. With responsible corporate citizenship, wealth begets more wealth in the process.
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Until now, legal requirements for corporations focused on one goal: profits. Today, benefit corporations add the legal duty of companies to achieve profits while also focusing on socially responsible activities also known as Corporate Social Responsibility (CSR). Start-up businesses and existing small businesses would be wellserved to adopt a benefit corporation structure. Companies that seek to establish sustainable principles as part of their business and marketing strategy and, more importantly, their corporate DNA, are positioned for long-term success. As former CEO of Patagonia and now a professor at Pepperdines Graziadio School of Business and Management, I know first-hand the benefits of integrating socially minded principles into the core of a business. Patagonia was the first company to sign up for benefit corporation status in California; a corporation in which passion and social responsibility have helped build a successful business. Patagonias success is predicated on ensuring that the core principles of environmental stewardship and corporate social responsibility are implemented into every product. With sustainability as clearly more than a trend, there are a few things businesses should keep in mind when looking to establish a company built for long-term success.

Register as a benefit corporation (CSR Initiative) from the beginning:

Establishing a company as a benefit corporation allows the business to embed socially minded goals in the company and maintain that foundation through efforts to raise capital. Creating brand loyalty must mean a loyal commitment to these goals. Historically, companies had opportunities to get a certificate to highlight their commitment to social benefits, but there was not legal protection from investors or executives that wanted to shift the companys direction. Now, with benefit corporations, investors will be investing in a company that has socially minded principles embedded through law.

Do not lose sight of standard business practices:

Establishing a goal to improve the environment or your community can be all encompassing. Businesses must make sure you establish solid business practices in your company to ensure success. This means ensuring that you produce a high-quality product or service. In order to maximize profits, socially minded goals must be carefully married with a high quality product or service to truly achieve brand loyalty.

Look to executive education programs:

These are valuable as talent sources for prospective employees with skills that can help you maximize profits while attaining your social and environmental goals. In fact this emphasises on Socially Environmentally Ethically Responsible (SEER) Business Strategy, aligns fully with the intent of the benefit corporation. CSR is one of four macro-values the organizations must embrace in order to achieve the aims that the benefit corporation classification is meant to aspire. By applying an integrated strategy encompassing a quality product or service, financial strength, corporate social responsibility and environmental stewardship, business can and will drive profitability and positively impact society. Research and real-life examples make it clear: Entrepreneurs looking to start a new business or an executive looking to maximize profits while doing good, have greater odds of achieving success through a benefit corporation designation. Having an emotional connection a heart-felt occurrence that organically evolves over time will provide concrete financial benefits that will help companies grow over the long-term.

Examples of Corporate Social Responsibility: Corporate social responsibility at Deloitte Motto: At Deloitte, we care
For Deloitte, sustainability involves ensuring that the social and environmental impacts of their business activities are reduced so as to be consistent with development in a finite planet.

Through their corporate strategy, which is led by their Corporate Social Responsibility Committee, we show their stakeholders continuous improvement in their environmental and social. Their motto: at Deloitte, we care. We care about their People We know that the best investment one can make is in a human being. We offer their people the right deployment opportunities, targeted training and critical one-to-one mentorship, while ensuring that their essential work-life balance is preserved, notably through an extensive programme aimed at supporting their safety and health. We have put in place a vast programme to help their people preserve and enhance their safety and health.

We care about their Planet We have but one home. Deloitte shoulders its environmental responsibility: we explore ways of reducing their environmental footprint, by lowering their material consumption, through their green mobility programme, but above all by promoting environmentally friendly behaviour.

We care about their Society Their organisation has a positive influence on its environment. Deloitte commits to extra-professional actions and initiatives: we encourage their employees to provide NGOs with their competencies and skills through their give and share platform and during their Impact Days; we also give a bit of ourselves back to the community through their blood donation days and by participating in charity events.

Achieving excellence in the way we care The awards Deloitte has received highlight both the quality and the relevance of their corporate social responsibility initiatives. Furthermore, they show that corporate social responsibility is a common responsibility. A single person can make a difference, so just imagine what thirteen hundred can achieve!

Corporate social responsibility at CISCO

ower By combining the p of human and technology networks, Cisco multiplies impact and helps accomplish extraordinary things, even under the most difficult circumstances

Society We use networks to help communities around the world thrive and to help innovators solve social problems.

Environment Our People Governance Supply and Ethics Chain We use our technologies to run our company responsibly-and help our customers do the same. We foster a work environment and culture that help our employees thrive. Our commitment to strong governance leads us to promote ethical practices at every level of our business. We work with suppliers to maintain high standards for ethics, labour rights, health, safety, and the environment.

Society We believe technology is good not just for business or socializing--we believe it is also a powerful way to improve lives and build thriving communities. This is why we use the same technology, expertise, and partners to help our customers as we use in our social investments. Our commitment to society extends from our employees, who give money and volunteer hours, to major corporate and Cisco Foundation-led programs and non-profit engagements around the world. Education => Technology is changing the way people everywhere learn and teach. At Cisco, we use our core expertise in networking technology to improve both the delivery and quality of education--better preparing students of all ages with the skills they need to succeed in a global, technology-driven society. Health-Care => We believe networks can help cultivate healthy communities. We build human and technology networks that promote better healthcare access, care, and patient outcomes, as well as scalable solutions that can be replicated across diverse geographies.These healthcare solutions multiply impact by integrating critical health information systems, reducing costs, and facilitating innovation through education and collaboration. Economic Improvement => Lack of economic growth and stability can pose challenges for communities around the world. We believe technology can help. In fact, weve seen it help--from boosting a countrys gross domestic product to improving quality of life for people in underserved communities by providing access to information, skills, and financial services.

Critical Human Needs => We make social investments that improve the lives of individuals and help communities thrive. This often starts with meeting critical human needs by providing access to food, potable water, shelter, and disaster relief. In partnership with non-profit organizations, we provide both immediate assistance and support long-term development strategies--helping multiply impact and improve quality of life for people around the world

Environment
We use technology and advocacy to multiply positive environmental impact for our business and our customers. We look carefully at energy and greenhouse gas (GHG) emissions in our operations and those of our supply chain partners. Waste reduction comes through robust recycling programs and innovative packaging design. And many of our buildings have attained Leadership in Energy and Design (LEED) certification.

Our People
By providing a highly connected workplace, an inclusive and diverse environment, comprehensive health and wellness programs, robust professional development opportunities, and competitive compensation and benefits, we help more than 70,000 Cisco employees worldwide multiply impact both on the job and in their personal lives.

Governance & Ethics

Drawing on the experience and expertise of employees across Cisco, we promote responsible business practices at every level of the company. We strive to conduct business ethically, honestly, and in accordance with our Code of Business Conduct and we expect all partners to meet our high ethical standards. The message for each employee is clear: any success that is not achieved ethically is no success at all.

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Their Commitment
We take our expertise--in building networks, partnerships, and a successful business--and use it to multiply social impact around the world. We call this Corporate Social Responsibility (CSR). Our commitment begins with our employees and extends to the dollars, time, and technology we give as a company to build and support programs in more than 150 countries. Because we approach CSR the same way we approach our business, we build more impactful, more sustainable programs that also support our company goals.

What Do You Add to the Equation?

These are the issues we believe in and work on every day. What is your expertise, your passion, your innovation? How can you build human networks that help you make an impact? And how can technology help multiply that impact? We have seen this formula come to life around the world as human and technology networks combine to do good: you + networks = impact multiplied.

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Current Trends and Predictions in Corporate Social Responsibility Six months ago, I highlighted the following five trends that were predicted by researchers; would be prominent in corporate social responsibility in 2011 and 2012 (Five Trends to Watch in CSR, July 28, 2011). They were: Responsibility as a company value (more companies including "responsibility," "sustainability," "respect" and "citizenship" in their mission statements). Growing integration between corporate philanthropy, volunteerism and sustainability (more companies integrating these functions into one office or program) Growing recognition that CSR can build skills in the workplace (more companies focused on volunteerism and community service as ways of building leadership and operational skills) More and better communications about CSR (more CSR reports and the use of social media to engage various stakeholders) Increasing call for more accountability, measurement and transparency (more and better communications about the impact of corporate practices and programs) Recently, other writers have weighed in with their predictions for CSR in 2012. For example, Susan McPherson, a senior vice president at Fenton who writes frequently about corporate responsibility, shared the following four trends in a posting on the Harvard Business Review Blog entitled, "Why CSR's Future Matters to Your Company" (January 6, 2012): Employee engagement -Citing a recent sustainability study by Green Research, which found that 80% of major corporations are planning to invest significantly in employee engagement in 2012, McPherson predicts a continued growth in employee volunteer programs. Cause marketing -According to a PR Week/Barkely PR Cause Survey in 2010, two-thirds of brands now engage in cause marketing, up from 58% in 2009. McPherson predicts that these cause marketing programs will multiply.
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The skeptical consumer -Consumers now have a variety of on-line tools to help them interact directly with various watchdog organizations to track corporate practices. McPherson suggests that companies that invest in engaging with such consumers will reap benefits. Board-level involvement -In 2011, the National Association of Corporate Directors Public Company Governance Survey asked about the highest priorities for boards of directors. The highest priority was strategic planning and oversight at 72% and the lowest priority was CSR at 2%. McPherson suggests that boards will be playing catch up in 2012. In order to be effective and profitable in today's global and connected world, companies need a global vision of who they are and what they want to be, globally responsible products and practices, the right communications strategy, and committed employees and customers who are engaged and supportive (even if they're skeptical). CSR programs can, and do, provide some of the glue to hold these various piece parts together.

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CSR world Case Studies CSR initiatives of Forbes Marshall

Over the years, Forbes Marshall has believed in the philosophy of contributing and giving back to the community it operates in. Thus when the factory was originally set up in Pune in 1958, Darius Forbes felt it was insufficient to merely purchase land from the farmers who were the original owners of the land, it was necessary to now actively and positively contribute to the community the company would be operating in. So the first jobs in the company were offered to relatives of the farmers who were then trained for operation and machining skills. Within the suburb of Kasarwadi lighting was provided on lanes leading to homes as well as basic sanitation facilities were looked into. The company also assisted in providing good housing facilities as well, to those who moved into this area. CSR initiatives of Zensar Technologies

An essential component of our corporate social responsibility is to care for the community. We endeavor to make a positive contribution to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives. Many of the community projects and programs are driven by active participation from our employees. Our commitment to address important societal needs extends throughout our philanthropic outreach programs driven by the Zensar Foundation.
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CSR initiatives of Thermax

Thermax believes that corporate organisations should think beyond profit and reach out for the well-being of the larger society. Guided by the vision of its founder Chairman Rohinton Aga - 'profit is not just a set of figure but of values' - over the years, Thermax has worked on a modest CSR agenda to fulfill its obligations to its wider circle of stakeholders including the communities in which it operates.

ITC Limited Corporate Citizenship

ITC Limited (ITC) is one of India's foremost private sector companies having a diverse portfolio of businesses. The company has been undertaking several CSR initiatives over the years and been appreciated for them globally. The case discusses ITC's CSR initiatives and focuses on its approach. The company's innovative ways and heavy investments to achieve the 'triple bottom line' are discussed. The question to be look forward "Is it taking the right initiatives and setting standards to follow?"

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Cognizant CSR

Cognizant Technology Solutions (Cognizant) is a U. S. - based multinational provider of business, technology and consulting services headquartered in Teaneck, New Jersey, United States. Cognizant has been named to the 2010 Fortune 100 FastestGrowing Companies List for the eighth consecutive year. [2] Cognizant has also been named to the Fortune 1000 and Forbes Global 2000 lists. It has consistently ranked among the fastest growing companies including the 2010 Business Week 50 list of the top-performing U.S. companies, the Business Week Hottest Tech Companies 2010, and the Forbes Fast Tech 2010 list of 25 Fastest Growing Technology Companies In America.

CSR Activities of Indian Oil Corporation Limited

Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 271,074cr and profit of Rs. 10,221cr for the year 2009-10. Indian Oil is the highest ranked Indian company in the latest Fortune 'Global 500' listings, ranked at the 125th position. Indian Oil's vision is driven by a group of dynamic leaders who have made it a name to reckon with.

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ONGC Corporate Social Responsibility

Oil and Natural Gas Corporation Limited (ONGC) is state owned Oil and Natural Gas company founded on 14 Aug 1956. It is a Fortune Global 500 company ranked 413, and contributes 77% of India's crude oil production and 81% of India's natural gas production. It is the second highest profit making corporation in India. Indian government holds 74.14% equity stake in this company.

Pepsico-Corporate Social Responsibility

PepsiCo entered India in 1989 and has grown to become the country's largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

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Stanchart's Project Burjwadi

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. The Chartered Bank opened its first overseas branch in India, at Kolkata, on 12 April 1858.

Tata Steel Corporate Citizenship

The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the most effective route to growth. Tata Steel has not limited its operations and businesses within India but has built an imposing presence around the globe as well. With the acquisition of Corus in 2007 leading to commencement of Tata Steel's European operations, the Company today is the tenth largest steel producer in the world with employee strength of above 81,000 across five continents.

Report on Business Ethics Levi Strauss Levi Strauss is one of the world's largest brand-name clothes manufacturers and also one of the first international companies to adopt a corporate code of conduct to apply to all contractors who manufacture and finish its products.

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Tata's gift Rs.220 crore to Harvard In one of the biggest corporate contributions by an Indian business house to education, Ratan Tata, chairman of the Tata group has donated $50 million (Rs.220 crore) to the Harvard Business School to fund a new building that would support a wide range of executive education programs.The school acknowledged that the funds, which would come from a clutch of Tata -controlled charitable trusts & firms, are the "largest international donation in its 102-year history".

Rajkot Peoples Co-operative Bank - Don't bank here if you smoke... If you are like your cigarette or gutkha, the Rajkot People's Cooperative Bank has no job for you. The bank does not hire anyone who smokes or chews tobacco. And, customers with these habits have to pay higher interest if availing a loan. "It is my belief that a person not addicted to smoking or chewing pan, gutkha or tobacco performs his/her duties in a far more..

FOUNTAIN VALLEY - Hope on wheels FOUNTAIN VALLEY: Hyundai Hope on Wheels, a partnership of Hyundai dealers across the U.S. and Hyundai Motor America, today announced a new nationwide initiative to raise funds to fight childhood cancer. Hyundai dealers have pledged to donate a total of $3 million dollars to Hope on Wheels based on vehicles sold during the month of September (National Childhood Cancer Awareness Month).

Seven food majors vow responsible advertising ...... Shubham Mukherjee Mumbai: Seven major food and beverage companies have signed a unique pledge committing themselves to responsible advertising and marketing to children. This is the first such self-regulatory
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pledge in India on the lines of the one in the European Union. According to people familiar with the development, firms that have become signatories to the pledge are Indian subsidiaries of global majors such as Coca-Cola, PepsiCo, Nestle, Kellogg, Mars International, General Mills and Hindustan Unilever. While more are expected to join in, Cadbury India is the only notable exception. VIPs to Volunteers Corporates have been rewriting their social responsibility curricula to allow their employees to pitch in with their own philanthropy. Instead of conveniently outsourcing altruism to sponsored nonprofits, companies are getting into the very act via the workforce. And they've found the returns coming home to roost.

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