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M.S.

Ramaiah Institute of Technology (Autonomous Institute, Affiliated to VTU) Bangalore - 560054

Seminar on Corporate Social Responsibility-In Global Perspective Submitted by Amritraj D.Bangera - 1MS09MBA04

What is CSR?
The World Business Council for Sustainable Development (WBCSD) defines CSR as "The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large. Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society.

A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.

The Pyramid of CSR

CSR in Developing Country


Focus on nation building Socio-economic development Rural development Employment Education Health care Community support

CSR in Developed Country


Governance Business ethics Human rights Environment

CSR at Global Level

Pr of it +

pe op le

t o fi Pr

et lan p +

Planet + people

Profit Planet People

CSR at
First Indian company committed to national and global CSR principles Tata Steel believes that the primary purpose of a business is to improve the quality of life of people. Tata Steel will volunteer its resources, to the extent that it can reasonably afford, to sustain and improve a healthy and prosperous environment and to improve the quality of life of the people of the areas in which it operates.

Cont
Environment Employee Relations Stimulating Economic Growth Civic Amenities & Community Service Population Management Sports and Adventure Health for All Relief During Natural Calamities Education / Arts and Culture

CSR at
v v Solid Waste Management Programme PepsiCo India continues to strengthen its Solid Waste Management initiatives in partnership with Exnora, an environmental NGO. This award winning, income generating partnership provides a clean environment to more than 450000 people across Pammal, Chennai, Nagapattinam, Tenkasi and Cuddalore in Tamil Nadu, Sangareddy in Andhra Pradesh and Panipat, Haryana.

Cont
v Healthy Kids Designed and supported by the Pepsico Health & Wellness team, the programs have been implemented in schools in collaboration with prominent NGOs & Hriday, Swashrit and the Indian Medical Association. Get Active programs have a central objective: to raise awareness on the importance of balanced nutrition and regular physical activity for a healthy lifestyle among school children.

CSR at
v ITC e-Choupal Relevant & Real-time Information Customised Knowledge Supply Chain for Farm Inputs Direct Marketing Channel for Farm Produce Marketing Services Governance services Health with Private Health Service Providers Choupal Sagar services

CSR at
v Health The Reliance DOTS -TB HIV and AIDS therapy centre is a publicprivate partnership to combat TB, HIV and AIDS Pilot program started at Hazira in 2004 Expanded to Jamnagar in 2005 The centers offers financial assistance, counseling services, awareness programs, treatment, alternate therapies yoga and pranyama and also nutritional support to the underprivileged.

Cont.
v Education Education continues to be one of the major thrust areas of RIL's CSR interventions. A network of 10 schools caters to over 14,000 students spread across geographies in India. RIL's project for physically challenged children at Surat, near the Hazira Manufacturing Division, is fast emerging as a global model of public-private partnership, supporting physically challenged children's education with a local NGO.

CSR at
v GTL sets aside up to 1% of its profits towards CSR activities and encourages active employee participation Gyan IT (Spreading IT literacy among rural areas) Know (Mobile Computer lab) VKC (Village Knowledge Centre) GyanDeep (Train the trainer Teachers) Netra (Computer Lab for Blind) Talk 64 (Chess software for Blind) Swayam (Self Employment opportunities) Samman (Mobility for the disabled) Gyan Jyot (Scholarships for higher studies) Samrakshan (Financial assistance to bereaved families) Idaya (Assistance to Tsunami Victims) Pralay (Assistance in case of natural disasters)

CSR at
v IBM - Japans e-elder Initiative is a national program using training materials and other support from IBM Japan which will hire and train seniors as instructors for other seniors in an effort to help elder citizens (expected to make up one-fifth of Japans total population) more fully participate in a Webbased society.

Pros of CSR
Balances corporate power with responsibility. Discourages government regulation. Promotes long-term profits for business. Responds to changing stakeholders demands. Corrects social problems caused by business.

Cons of CSR
Lowers economic efficiency and profit. Imposes unequal costs among competitors. Imposes hidden costs passed on to stakeholders. Requires social skills which business may lack. Places responsibility on business rather than individuals.

Benefits of CSR
CSR behaviour can benefit the firm in several Ways: It aids the attraction and retention of staff It attracts green and ethical investment It attracts ethically conscious customers It can lead to a reduction in costs through recycling It differentiates the firm from its competitor and can be a source of competitive advantage It can lead to increased profitability in the long run

Conclusion
v According to a survey 79% want to work for a company heavily engaged in CSR 56% will refuse to work for a company who is not at all committed to and engaged in CSR. Over 80% customers will switch brands if no CSR.

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