You are on page 1of 85

A Seminar Report on

CORPORATIVE SOCIAL RESPONSIBILITY

Submitted towards the partial fulfillment of the requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION MBA Batch 2012 2014

Submitted to: dr. sandeep singh virdi Assistant Professor

submitted by: Daljit kaur MBA 1st Year Section F Roll No 120425710

SCHOOL OF MANAGEMENT STUDIES


PUNJABI UNIVERSITY, PATIALA
AUGUST 2012

Achnowlegement
I take this opportunity to acknowledge a deep sense of gratitude towards my teacher and mentor Dr. Sandeep Singh Virdi, whose invaluable co-operation and guidance resulted in successful completion of this dissertation. He not only encouraged me, but also took great pains in going through the manuscript carefully and made numerous suggestions and corrections which greatly improved the quality of my work.I would also like to thank my family without whose motivation I would have been able to complete this report.

TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

CSR meaning and definition Origin of CSR Reason for learning about CSR Types of CSR CSR- activities Issues and challenges for CSR Arguments for CSR Arguments against CSR Stratigic plan for CSR Scope of research Role of private sector in CSR Role of govt. in CSR Position of CSR today and its scope Emerging model of CSR in india Case study of kingfisher company Conclusion Bibliography

CSR- meaning and defination


meaning:
While there is no universal definition of corporate social responsibility, it generally refers to transparentbusiness practices that are based on ethical values,compliance with legal requirements, and respect for people,communities, and the environment. Thus, beyond beyondmaking profits, companies are responsible for the totalityof their impact on people and the planet.1 Peopleconstitute the companys stakeholders: its employees,customers, business partners, investors, suppliers and vendors, the government, and the community. Increasingly,stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. In the business community, CSR is alternatively referred to as corporate citizenship, whichessentially means that a company should be a good neighbor within its host community.

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, selfregulating 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 is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL), which is used as a framework for measuring and organisations performance against economic, social and environmental parameters

The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities.The key drivers for CSR are:

Enlightened

self-interest - creating a synergy of ethics, a cohesive society and a sustainable global economy where markets, labour and communities are able to function well together

Social

investment - contributing to physical infrastructure and social capital is increasingly seen as a necessary part of doing business

Transparency

and trust - business has low ratings of trust in public perception. There is increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance in social and environmental arenas

Increased

public expectations of business - globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment.

Definations:
1. The World Business Council for Sustainable Development defines the 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. Under this point of view, the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for sustainable development. 2. The Canadian Centre for Philanthropy: CSR is a set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impacts. Thisdefinition therefore provides the link between the decisions tied to the social responsibility and the business" derived from the respect of the lawyer instruments, the population, the communities, and the environment.

3.The Corporate Social Responsibility Newswire Service: the CSR is the integration of business operations and values whereby the interests of all stakeholders including customers, employees, investors and the environment are reflected in the companys policies and actions.

Origin of csr:
Although the term was not coined until 1953, new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of America's initial business magazines, The World's Work. "From its beginnings in November 1900, The World's Work was devoted to social responsibility in the public interest," says David L. Remund, a Legacy Scholar in the Arthur W. Page Center for Integrity in Public Communication at Penn State University. Remund is completing his doctoral studies at the University of North Carolina. The editor of The World's Work, Arthur W. Page, later became one of the nation's pioneering and stillrevered public relations practitioners. He was the first to serve on the executive management team of a major corporation, AT&T. In 1927, he took his editorial views to AT&T and put them into action, laying the groundwork for the modern CSR model. Remund's research paper, "The World's Work: Arthur W. Page and the Movement Toward Social Responsibility in Corporate Communications, 1913-1927," traces how Page's editorial vision reflected progress toward social responsibility in later corporate communications. The paper was presented at the International History of Public Relations Conference in Bournemouth, England in July. Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s. It became formalized in 1953 with the publication of Social Responsibilities of the Businessman, a book by Howard Bowen. Remund's scholarship, however, shows advocacy for CSR - in form if not name - from a major probusiness magazine much earlier than that. Further, he concludes that through Arthur W. Page, the

supportive words of The World's Work became deeds when Page moved from the editor's chair into the corporate executive office.

Remund examined nearly 180 issues of The World's Work. Page's personal correspondence, speeches and transcripts of oral interviews also were used. Some of the trends Remund found could leap from today's headlines. "Five themes of corporate and social responsibility emerged," he says. "They include environmental protection, labor rights, consumer protection and education, child welfare and corporate transparency." In the 1920s, social responsibility was not front-and-center in corporate management. It was a time when, as President Calvin Coolidge stated, "the chief business of the American people is business." Yet from his post as editor of The World's Work, Page was calling for sustainability in logging practices, labor rights for African-American cotton workers, better safety measures for underground miners, greater consumer education about investment banking, an end to child labor, and more corporate transparency.

This last topic was "perhaps the most prolific of the five social responsibility themes that emerged in The World's Work from 1913 to 1927," says Remund. "A dozen or more editorials addressed this theme."

Reasons for learning about csr and its importance:


Corporations are powerful institutions that can make a significant difference to society. That difference can be a positive contribution or it could equally be harmful. Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions. This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability. It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility. There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training.

1.Corporate Power:
Corporations are powerful institutions that influence many facets of society. They are private enterprises formed to pursue commercial purposes but their processes have a very public impact. Companies affect many lives through their actions and behaviors. It is important that they act and behave responsibly. Learning about corporate social responsibility (CSR) explains why these responsibilities arise, what they are and how they can be delivered.

2. Responsible Business Can Make a Worthwhile Contribution:


Responsible business can make a worthwhile contribution to society. Companies make products and deliver services. They create jobs. They generate investment. Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role. Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people both internal to their operations like managers and employees; and external to their operations like customers, suppliers, governments and local communities. Responsible business can help build sustainable lives and livelihoods for many.

3. Unethical Business Can be Harmful:


While responsible business can be positive in its impact, irresponsible business can be harmful in equal measure. Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worlds natural resources, to the lives of local communities and to the well-being of staff and managers. The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures.

4. Stakeholders Demand Accountability:


Tolerance of corporate impacts is changing and stakeholders, whose lives and livelihoods are impacted by irresponsible business activities, are demanding greater accountability. Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts. Stakeholders include the owners (shareholders/investors), employees, customers, suppliers, the community, competitors and government. Developments in communications technology allow stakeholders greater and quicker access to information, and to each other. Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly.

5. Corporate Decision-making:
Corporate Social Responsibility involves more complex decision-making. It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic, social and environmental facets of corporate impact). It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong. Knowledge of CSR is necessary for corporate managers to identify, understand, analyse and resolve the complexity of these multiple issues. It also assists other stakeholders to do the same.

6. Corporate Social Responsibility Management:


Learning about Corporate Social Responsibility also means learning how to manage CSR initiatives, engage with stakeholders and report on activities. CSR cannot be simply an idea that has no strategy or action to support it. So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation. It enables managers to bring CSR alive within the company.

7. Unethical Business Conduct is too Common:


Another reason for learning about CSR is that ethical misconduct in business is still far too common. Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrongdoing within the workplace. It helps customers and other external stakeholders to recognize misconduct when transacting with a company. Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct. It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people. Within a corporation, it is relevant to senior executives, to middle management and across all areas of staff. Knowledge of CSR provides greater momentum for its correct implementation. Outside the corporation, there are compelling reasons for customers, suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities. In learning about Corporate Social Responsibility, everyone can benefit.

Types of CSR:
Four types of CSR:As large corporations begin to dominate the world economy, it raises
questions about the importance of corporate social responsibility in business. A variety of types of corporate social responsibilities have emerged in public discussions, and understanding their implications is important.

1.Environmental Responsibility
People expect businesses to exhibit environmentally responsible behavior, as evidenced by a PricewaterhouseCoopers survey that found that the No. 1 issue for companies in the future, according to U.S. respondents, is carbon emissions reductions. Specific environmental issues that affect businesses include global warming, sustainable resources and pollution. Businesses are being urged by environmental groups and governments to reduce their carbon footprint, to obtain their materials from sustainable sources and to reduce their pollution.

2.Human Rights Responsibility:


The 21st-century marketplace is highly global. This means that when a product is purchased in the United States, for example, it may have been produced in China, or have components from South America. The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain. Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers. This has lead to a push for the use of strict labor standards to be applied to suppliers, and a demand for fair trade products such as chocolate and coffee.

3.Financial Responsibility:
Financial responsibility is an important issue in corporate social responsibility. In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff, businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials, as evidenced by the Sarbanes-Oxley Act. Employees are expected to act as whistle blowers in such situations, and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers.

4.Political Responsibility:
Trading with repressive regimes is a difficult issue in corporate social responsibility. Some businesses argue that working with these regimes will help to advance them and bring rights to the countries. People and governments have demanded that businesses stop trading with repressive regimes, which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s. Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists.

CSR activities :
In the report Catalogue of CSR Activities: A broad overview prepared by the Ashridge Centre for Business and Society (2005), they have made a convenient classification of the CSR activities.The report has clustered the CSR activities into seven main groups. The groups include;Leadership, vision and values, Marketplace activities, Workforce activities, Supply chain activities, Stakeholder engagement, Community activities and Environmental activities. These groups have been identified based on practical activities undertaken by the business community. The main groups are then divided into main classes of CSR activities within that group which are further divided into actual activities. For details regarding the groups and classes,

Issues and challenges for csr:


Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them. They imagine that the customer satisfaction is now only about price andservice, but they fail to point out on important changes that are taking place worldwide that could blow the business out of the water. The change is named as social responsibility which is an opportunity for the business.Some of the drivers pushing business towards CSR include:

The Shrinking Role of Government:


In the past, governments have relied on legislation and regulation to deliver social and environmental objectives in the business sector. Shrinking government resources, coupled with a distrust of regulations, has led to the exploration of voluntary and non-regulatory initiatives instead.

Demands for Greater Disclosure:


There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers,employees, communities, investors, and activist organizations.

Increased Customer Interest:


There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof customers. In a recent survey by Environics International, more than one in five consumers reported having either rewarded or punished companies based on their perceived social performance. Investors are changing the way they assess companies' performance, and are making decisions based on criteria that include ethical concerns. The Social Investment Forum reports that in the US in 1999, there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social responsibility. A separate survey by Environics International revealed that more than a quarter of share-owning Americans took into account ethical considerations when buying and selling stocks. (More on socially responsible investment can be found in the 'Banking and investment' section of the site).

Competitive Labour Markets:


Employees are increasingly looking beyond paychecks and benefits, and seeking out employers whose philosophies and operating practices match their own principles. In order to hire and retain skilled employees,companies are being forced to improve working conditions.

Supplier Relations:
As stakeholders are becoming increasingly interested in business affairs, many companies are taking steps toensure that their partners conduct themselves in a socially responsible manner. Some are introducing codes of conduct for their suppliers, to ensure that other companies' policies or practices do not tarnish their reputation.

Arguments for CSR:


Five main arguments for and against CSR:
For: - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits Against: - Cost - Some argue the sole role of business is to make profit and nothing else - Some companies may only treat it as a marketing exercise - dilution of economic productivity - lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are:
1) Public expectations: Social expectations of business have increased dramatically since the 1960s. Public opinion in support of business pursuing social as well as economic goals is now well solidified. 2) Long run profits: Socially responsible businesses tend to have more and secure long run profits. This is the normal result of the better community relations and improved business image that responsible. 3) Ethical obligation: A business firm can and should have a conscience. Business should be socially responsible because responsible actions are right for their own sake. 4) Public image: Firms seek to enhance their public image to gain more customers, better employees, access to money markets, and other benefits. Since the public considers social goals to be important, business can create a favorable public image by pursuing social goals. 5) Better environment: Involvement by business can solve difficult social problems, thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees. 6) Discouragement of further government regulation: Government regulation adds economic costs and restricts managements decision flexibility by becoming socially responsible, business can expect less government regulation. 7) Balance of responsibility and power: Business has a large amount of power in society. An equally large amount of responsibility is required to balance it. When power is significantly greater than responsibility, the imbalance encourages irresponsible behavior that works against the public good.

8) Stockholder interests: Social responsibility will improve the price of a businesss stock in the long run. The stock market will view the socially responsible company as less risky and open to public attack. Therefore, it will award its stock a higher price earning ratio. 9) Possession of resources: Business has the financial resources, technical experts, and managerial talent to provide support to public and charitable projects that need assistance.

10) Superiority of prevention over cures: Social problems must be dealt with at sometime. Business should act on them before they become serious and costly to correct and take managements energy away from accomplishing its goal of production goods and services.

The major arguments against the assumption of social responsibilities by business are:
1) Violation of profit maximization: This is the essence of the classical viewpoint. Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions.

2) Dilution of purpose: The pursuit of social goals dilutes businesss primary purpose: economic productivity. Society may suffer as both economic and social goals are poorly accomplished.

3) Costs: Many socially responsible activities do not pay their own way. Someone has to pay these costs. Business must absorb these costs or pass them on to consumers in higher prices. 4) Too much power: Business is already one of the most powerful institutions in our society. If it pursued social goals, it would have even more power. Society has given business enough power. 5) Lack of skills: The outlook and abilities of business leaders are oriented primarily toward economies. Business people are poorly qualified to cope with social issues. 6) Lack of accountability: Political representatives pursue social goals and ar6e held accountable for their actions. Such is not the case with business leaders. There are no direct lines of social accountability from the business sector to the public.

7) Lack of broad public support: There is no broad mandate from society for business to become involved in social issues. The public is divided on the issue. In fact, it is a topic that usually generates a heated debate. Actions taken under such divided support are likely to fail.

Stratigic plan for CSR:


The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principles,respect for people and for the environment The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined:

1. Minimise the environmental impact 2. Guarantee transparency with the investment community 3. Ensure that employees are motivated and involved in the continuous improvement of the company 4. Maintain a close relationship with the client to guarantee client satisfaction 5. Extend the commitment to Social Responsibility to suppliers and sub-contracted companies 6. Involvement with the community and the society as a whole 7. Encourage and systematise communication channels 8. Guarantee that the implementation of the Strategic Plan for Corporate Social Responsibility is controlled and monitored Each strategic line is developed through various actions, some being applied across all the companies in the group and others specific to different sectors of activity.

Strategic line 1: minimise environmental impact


Respect for the environment is a fundamental aspect of Social Responsibility. In fact, it is one of the three premises for sustainable development: economic prosperity, environmental quality and social equity. Companies aiming for sustainability need to perform not against a single, financial bottom line, but also against the triple bottom line (Elkington, 1997).

Any activity has an impact, to a greater or lesser degree, on the environment. To minimise this impact, a first step is to identify it and evaluate it, so as to thenestablish the necessary improvements. Both the identification and evaluation, as well as the subsequent implementation of improvements, are actions that this strategic line covers. Maintaining a register of environmental legislation that affects the activity, and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation. Specific actions are also proposed to improve environmental management in different sectors of activity.Some of these are already in placeand,therefore, it is necessary to broaden or strengthen their implementation; others represent new challenges to improve environmental management

Area of application: General:


1.1. Identify and evaluate the activitys main environmental impacts. 1.2. Establish improved objectives to reduce the activitys environmental impacts. 1.3. Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date. 1.4. Systematically control water and energy consumption and the production of residues. 1.5. Manage residues appropriately. 1.6. Optimise energy consumption.

Highways:
1.7. Manage the highways forestry diversity. 1.8. Build awareness amongst users of the forestry and scenic value. 1.9. Expand the Teletac service. 1.10. Expand the waste water collection service for buses and caravans. 1.11. Ensure that waste waters generated by activities are correctly managed. 1.12. Carry out diagnosis and audit of energy usage in different installations. 1.13. Prepare a map of the impact of traffic noise on the highways.

Car parks:
1.14. Ensure optimum levels of interior air quality. 1.15. Collaborate in Car Sharing projects. 1.16. Facilitate parking for bicycles. 1.17. Carry out diagnosis and audit of energy usage in different installations.

Telecommunication:
Follow the measures established by Tradia in its environmental management system in line with ISO 14001.

Logistic services:
Given the characteristics of this area of activity, focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2: guarantee transparency with the investment Community


This strategic line is applicable to the Corporation, given that as a publicly traded company it has a relationship with the investment community. Includes all the aspects related to corporate governance stipulated in the new law of transparency, as well as the recommendations made in the Olivencia Code and the Aldama Report, even though these are not binding. Reference is also made to dialogue, with the objective of finding the ideal channels to guarantee feedback from the investment community.

Area of application:
Corporation:
2.1. Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report.

2.2. Guarantee two-way communication with the investment community. 2.3. Have a system for the evaluation, application and monitoring of opinions and demands from the investment community. Strategic line 3: ensure that employees are motivated and involved in the continuous improvement of the company
The objective of abertis is to provide a workplace for the professional team of almost 6,000 people between the Corporation and its subsidiary companies for professional and personal development. For this reason, issues covered in this point include no discrimination; continuous training; participative management; balance between work, family and leisure;health and safety in the workplace, and business ethics. The international standard SA 8000 has been taken as a reference, which adopts a system of accountable management to focus specifically on the relationship with the employee.

Area of application:
General:
3.1. Increase the representation of women. 3.2. Ensure employment of disabled personnel. 3.3. Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the training sessions. 3.4. Provide training to new employees on the commitments to Corporate Social Responsibility. 3.5. Develop a system of management by objectives. 3.6. Develop a system to encourage employee participation through suggestions. 3.7. Adopt measures to balance work-family-leisure.

3.8. Guarantee coherence, equal opportunities and no discrimination. 3.9. Protect the stability of the workforce. 3.10. Evaluate the level of employee satisfaction. 3.11. Adopt the necessary measures (ergonomics in space, material, equipment, etc.) to guarantee a good work environment. 3.12. Ensure basic health, safety and accident prevention measures are taken. 3.13. Encourage good environmental practices at home amongst employees. 3.14. Prepare an employees code of ethics. 3.15. Work to comply with the requirements stipulated in the SA 8000 standard.

Strategic line 4: maintain a close relationship with the client to guarantee client satisfaction
Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis. Accordingly, one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue, transparency and client satisfaction.

Area of application:
General:
4.1. Evaluate the level of client satisfaction. 4.2. Communicate all information about a product or service offered clearly and transparently. 4.3. Encourage good environmental practices amongst clients.

Highways and parks:

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web, radio service, highway ,message panels).

Telecommunication:
The same actions detailed above of General application.

Logistic services:
Establish environmental and social requirements of clients and monitor compliance.

Strategic line 5:extend the commitment to Social Responsibility to suppliers and subcontracted companies
If the commitment to Social Responsibility is to be effective suppliers and subcontracted companies need to be involved, as they undertake significant part of the activity for companies in the group. For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chain. To do this, environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given priority,based on established requirements, both in the area of environmental management and in the employee relationship.

Area of application: General:


5.1. Homologate product supplies based on established environmental and social criteria. 5.2. Include requisites, based on established criteria, in the contractual agreement. 5.3. Establish a system for evaluating suppliers and subcontracted companies, based on criteria established in the previous point.

Strategic line 6: involvement with the community and society as a whole

This line includes what is known as social action, which refers to a wide range of actions, from dialogue with the community to the investment of money or in kind

(time, services), donations, sponsorship and patronage. Social action has been practised widely across different companies in the group.The drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation, although some sponsorship & social action by subsidiary companies will be maintained at alocal level.

Area of application: General:


6.1. Develop a system of communication to improve dialogue with the local community. 6.2. Be an active member of associations and groups with a close relationship. 6.3. Prepare a Sponsorship and Social Action Plan and a Sponsorship manual.

Strategic line 7: encourage and systematise communication Channels


Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2. The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community, employees,clients, suppliers and sub-contracted companies, community). But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement.

It is important to emphasise the connotations of the word dialoguewhich expresses two-way communication. Therefore, the final objective is to establish the channels that dont just enable information to be provided, but also, and essentially, to receive information and obtain feedback from the different stakeholders.

Area of application:
General:
7.1. Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate Social Responsibility, so as to contribute to its implementation. 7.2. Ensure that subsidiary and associated companies have a spokesperson. 7.3. Systematise internal structure of communications. 7.4. Increase contents of information on Social Responsibility in the existing communication channels.

7.5. Create, within each company, two-way communication channels with employees. 7.6. Establish a program of social activities for employees. 7.7. Create a working group to encourage dialogue with employees. 7.8. Ensure that each company has a formally established system to collect queries and suggestions from clients, as well as mechanisms to respond, monitor and record them. 7.9. Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies. 7.10. Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees, clients, local community).

Strategic line 8: guarantee that the implementation of the Strategic Plan for Corporate Social Responsibility is controlled and monitored
This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself, guaranteeing continuous improvement. In this respect, the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibility;a manager-leader for each company of the group is appointed. Work is controlled and monitored regularly using the indicators selected for each of the actions,which will be used to prepare the annual sustainability reports and to monitor progress of the Plans implementation.

Area of application: General:


8.1. Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility, acting as interlocutor between subsidiary and associated companies and the Corporation. 8.2. Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies. 8.3. Update the data for the indicators with the frequency established in each case.

8.4. Report the results of the indicators for each company to the Social Responsibility Unit, so that they can prepare the triple bottom line. 8.5. Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility. 8.6. Create a platform for the Strategic Plan for Corporate Social Responsibility.

Research :
Research Question:
This policy initiative first came to my notice in the middle of October, about a month after the announcements regarding the same were made. I decided to look into this policy and formulate my thesis on a research question based on this policy. The preliminary research question had two parts: How will environmental benefit be achieved through the public and private sector contributions to CSR, which was being enforced by the Government of Gujarat? and How will social entrepreneurship be involved in the implementation of this policy? Given my research interest an effort was made to seek information, academic knowledge and understanding about the issues and also personal opinions of people directly related to the policy and its implementation. But, as has been explained in the limitations of this research, it was not possible to gain almost any information or personal opinions about the topic at hand. This created a situation where in a change in research question and focus of the research was necessary. Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat. The principal research question is as follows:

Purpose and Justification for Research: Gujarat is my home state. I have been
brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government. Such a policy was extremely interesting for a variety of reasons. 1. Gujarat has been traditionally an industrialization oriented and capitalistic economy. The fact that the present government, which has been stimulating greater investments and image building of the state, should choose to take such a major policy decision build up an interest in me. 2. Corporate Social Responsibility at both a theoretical and at a practical is an interesting topic given the variation of opinions and ideas of academics, corporations and the government. Social Entrepreneurship (SE) has been traditionally linked to CSR activities and I wanted to look at the various ways in which the two issues connect and relate. 3. To improve my understanding on CSR and SE issues and how they are related, I did my ARPEA (Applied Research in Preventive Environmental Approaches) paper on Synergy between Corporate Social Responsibility and Social Entrepreneurship A

theoretical study of potential avenues. Even though CSR is a topic almost half a century old, the issue (as discussed above) has had its share of discussion and still remains a rather contentious issue. The possibility that the benefits of CSR activities could be enhanced by collaboration with social entrepreneurs was very too alluring and I wanted to work on these two issues. The policy of the Govt. of Gujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy, CSR activities, environmental improvement and related SE issues.

Scope of the Research: In the ARPEA paper the focus had been on the synergy. The thesis
was intended to be based on that study, with theoretical understanding being drawn from the research for the ARPEA paper. The scope of the thesis was fairly limited. Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy. The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented.

Limitations of the Study: The research focussed on governmental and corporate policy
making whilst dealing with CSR issues and issues related to the environment. This resulted in some expected and some unexpected inadequacies affecting the research. Some of the issues are: 1. The policy decision in the draft industrial policy (September 2008) regarding mandatory CSR for private companies was taken back in the final industrial policy released in January 2009. Instead a voluntary approach was put forward. So the focus of the study shifted from private sector to public sector enterprises only (Govt. of Gujarat, 2009a) 2. The policy for 30% profit before tax received a lot of criticism from the company management, media, investors and experts. Hence the policy although adhered to by the companies was wrought with controversy (Express News Service, 2008). This caused unwillingness on the part of the industry to divulge information. 3. The suggestion for 30% PBT for the GSEDS had come from the Industries Commissionerate. This suggestion was based on an internal discussion regarding which no official public documentation was available. 4. The GSEDS which came into existence for the implementation of this policy is yet to have fully functioning staff. It is essentially still an organization only on paper and no further steps have been taken to proceed with the implementation of the policy. Any information regarding the way in which the implementation is to be done is not available. 5. The national elections in India were scheduled for April and May. This led to the stalling of some initiatives of the government due to shift of focus of work towards organization of the elections and related activities.

6. Most of the government officers involved in this policy making were shifted to election duty before and during the national elections. This led to them to be continuously busy or unavailable. 7. The topic of mandatory CSR being rather sensitive, the corresponding officers in the Public Sector Undertakings either refused to meet or avoided meeting me, even after repeated attempts to contact them. 8. Three countries, UK, Denmark and Sweden were looked at in the thesis to analyse their CSR promotion policies so as to provide recommendations to a province, Gujarat. Not all aspects and issues are relevant to both of the concerned political entities. Whereas the analysed entities are countries, the recommendations are for a province.

Role of private sector in csr:


The role of private have mentioned on the next page in the list Building inclusive business model- in this we need co-creation of business and poor. Implementing complementary strategy- For example training programs local business NGOs

Role of government in supporting CSR:


One main proposal of this publication is that the contemporary CSR agenda is founded on the premise that businesses are part of society, their relationship with society is interdependent, and they have the potential to make a positive contribution to societal goals and aspirations. This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development. At the national level, the role of CSR has been put forward as both a mechanism to address welfare deficits, and a means of promoting national competitiveness. At the international level, CSR is understood as the mechanism for companies to contribute to sustainable development. For example, CSR is considered to be the strategic solution for socioenvironmental challenges in developed economies and was officially adopted by member governments at the European Commission.87 Recently, the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010.
There are at least four essential reasons why governments should take a CSR agenda seriously, along with implementing the necessary measures to support companies in practicing responsible conduct.

Firstly, as firstly detailed in, citizen groups, civil society organizations, as well as international development agencies have all advocated for inclusive and sustainable development; and governments are expected to play a key role in promoting the economic, social and environmental conditions that favour more inclusive and sustainable development. Governments are under pressure with the challenge of facilitating the transition to a more efficient economy, in conjunction with a fairer and more sustainable society. CSR is widely accepted by many governments around the world as the business sectors contribution to inclusive and sustainable development. Thus, government can utilize a CSR agenda in pursuit of this goal. Secondly, CSR is considered to play an important role in contributing to the competitiveness of a country. The European Commission stresses the need to link CSR with the competitiveness of companies and national and regional economies, which in turn has been described as fundamental for a nations sustainability.89 Responsible competitiveness can be attained when an economys productivity and overall competitiveness is enhanced by businesses taking a holistic account of their social, economic and environmental performance. According to analysis presented in the State of Responsible Competitiveness 200790 which assessed 108 countries across the world, the correlation between the Responsible Competitiveness Index and the World Economic Forums Growth Competitiveness Index indicates a strong relationship (R2 = 0.85) between responsibility and the most authoritative measure of country competitiveness (see Figure 4). This highlights that responsible business practice can and does reinforce competitiveness for countries at all levels of development. It also presents a challenge for governments, which need to find ways of designing and implementing policies that encourage CSR practices throughout the business community to promote competitiveness at the national level. Thirdly, financial crises and fiscal deficit have forced many governments around the world to look for a new approach for developing and funding collective action to deal with social demands that cannot be met by the government alone. The collaborative actions between governments and other sectors (in both the business and civil sectors) are a response to the limitations of government. In addition, business taking an active role in addressing some social causes is seen as a solution to current government financial crises. This allows CSR to present a new governance framework which government can use to create an enabling environment wherein the private sector is encouraged to be more engaged in social mission. CSR therefore becomes a way of promoting good company practices complementing other public efforts for societal progress.

Finally, although CSR is widely viewed as voluntary actions that companies take above and beyond regulatory requirements to improve their ethical, socio-environmental and economic performance, there is growing recognition that governments can and should contribute to shaping enabling conditions in order to see CSR more widely conducted. As Pascal Lamy, Director General of the WTO and former European Commissioner for Trade, has observed, The societal benefits of corporate responsibility practices will remain limited unless they can be incorporated into broader strategies, and public policies certainly have

a role to play in this respect.91 Government therefore plays an essential role in policy development to promote CSR practice. There are a variety of public policy instruments that governments can use to promote this agenda. The following two sections introduce the roles that governments can play and some broad areas of focus where governments can take action to promote the CSR agenda in their respective countries.

What role can government play?


No doubt, government actions are essential to creating an enabling environment for private sector development that diminishes risks, lowers costs and barriers of operation, and raises rewards and opportunities for competitive and responsible private enterprises. The challenge for governmental agencies in promoting a CSR agenda is to identify priorities, raise awareness, create incentives and support, and mobilize resources from cross-sectoral cooperation that are meaningful in the national context, as well as building on existing initiatives and capacities. For many developing countries, especially in Asia, there is a significant opportunity for governments to harness current enthusiasm for CSR among enterprises and assist businesses in taking on a bigger role in social development, particularly under the global demands for responsible business practice. Some key roles which a government can actively choose to engage to support a CSR agenda, include (but are not limited to) the following: regulating, facilitating, brokering, and warranting.
Regulating:

While CSR is normally seen as voluntarily going beyond local requirements, governments can raise the bar through stricter regulation. This can come in the form of laws, regulations, penalties, and associated measures to control aspects of business investment or operations. Governments at different levels can regulate the behaviour or practice of business by defining minimum standards for business performance embedded within the legal framework; establishing targets for business to achieve; setting up enforcers and inspectorates to oversee business conduct; promulgating codes or laws to confine undesirable business conduct; or imposing license of operation or mandatory environmental friendly industrial systems. Examples of this include establishing a minimum age for labour forces, emission limit values for particular categories of industrial productions, or requirements for companies to publicize corporate social responsibility reports.
Facilitating:

Through facilitation, governments enable or incentivize companies to engage in CSR to drive social and environmental improvements. In many of the approaches reflected under this role, government plays a catalytic, secondary, or supporting role. For example, government may provide tax incentives and penalties to promote responsible business; ensure business can access information needed; facilitate understanding of minimum legal requirements for issues relating to responsible business practice; include CSR elements in related policy areas (such as industrial policy, trade policy, environmental policy, and labour policy); offer capacity building, business advisory services and technical assistance to business when needed; or, support supply chain initiatives and voluntary certification.

Brokering:

Governments can combine public resources with those of business and other actors to leverage complementary skills and resources to address issues within a CSR agenda. Government can act as a broker in partnering public sector agencies, businesses, civil society organizations and other stakeholder groups in tackling complex social and environmental challenges. Government can do this by initiating dialogue in multi-stakeholder processes; supporting joint government-industry collaboration in capacity building and developing sectoral CSR guidelines; engaging stakeholders in standards-setting processes; promoting public-private partnerships for community development; and mobilizing resources. In this role as broker, government can also stimulate the engagement of key actors in a CSR agenda by, for example, providing funding for research or leading campaigns, information collaboration and dissemination, training, or raising awareness.
Warranting:

Lastly, government can provide political support and public warrant of a CSR concept. In particular, this can be done for specific types of CSR-related initiatives in the marketplace. Warranting can take various forms, including commitment to implement international principles; education or awareness raising programmes; official policy documents; publicity of good CSR practice conducted by other leading companies; specific CSRrelated award schemes (such as a National Green Business Award); or, endorse specific pro-CSR indicators, guidelines, systems and standards. Government can also lead by example, through things like public procurement or public sector management practices, or direct recognition of the efforts of individual enterprises through CSR award schemes. There are often no clear-cut boundaries separating these roles. For example, there may be cases where government acts as broker, but the incentive for partnership derives from the possibility (explicit or implied) that legislation may follow if a partnership is unsuccessful. Equally, the lines between facilitating, brokering, and warranting are not always clear. Governments may choose to address different CSR themes through actions which utilise a variety of roles. For example, it is quite feasible for a government to seek to increase and improve the level of corporate sustainability reporting by using any one or a combination of various mandatory (legislative), facilitating (guidelines on content), brokering (engagement with multi-stakeholder processes), and warranting (publicity) effort. The next section introduces some initiatives which combine some of the different roles that government may undertake to raise the CSR profile of a country.

Creating an enabling environment: There is substantial evidence that governments around the world have begun to take on a CSR agenda. Some studies emphasize the influence of public policy as a critical factor in establishing a context within which CSR practice can flourish. Public policymakers can thus initiate policies and measures enabling CSR to flourish using several means. Some key means used to introduce an enabling environment for CSR in a country include the following initiatives:

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises, but can only be promoted together with them under involvement of their stakeholders. The first step to promote CSR in a country is necessarily to fill the knowledge gaps about the significance and contribution of CSR to business success and sustainability, as well to increase awareness and acceptance among relevant actors. The government can play a crucial role in establishing CSR value and knowledge among the business and the general public through recognition for CSR achievement and spreading CSR information to attain a better understanding of CSR among the public. Initiative can come in the form of publicity, awarding success, campaigning for awareness, networking opportunities, and funding. In the Philippines, a presidential decree promulgated in 2002 designated the first week of July as CSR week for the country. The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listed public companies since 2006. SET also set up a CSR day on 19 March each year to present awards to successful companies, recognize achievement, and promote the practice and publicize examples of innovative and good models of CSR implementation. Government leaders also play a vital role in educating the public, private and non-profit sectors on how to tackle social problems from the CSR perspective. The former Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron of the Prime Ministers CSR Awards launched in 2007 in Malaysia aimed at recognizing companies that have made a difference to the communities in which they operate through their CSR programmes.
Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompass human rights, labour, the environment, anti-corruption issues, a single agency within a Ministry working in a traditional silo fashion would be incapable of effectively managing a CSR agenda. Governments in many countries have thus decided to set up specific agencies with a specific mission to promote CSR practice in their respective countries. In Thailand, the CSR Institute (CSRI) was established in 2007 under the SET to promote CSR practices among its listed public company members. CSRI aims to become a focal point for the public companies in promotion of the CSR undertaking. Later, the CSR Centre was launched under Thailands Ministry of Social Development and Human Security in 2008. While there is no explicit CSR public policy in Viet Nam, the government of Viet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet Nam Agenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legal foundation for national sustainable development in Viet Nam. VA 21 covers many CSRrelated components such as labour practice, gender equality, environmental protection and the development of local and regional communities. The Viet Nam 21 Agenda Office was set up as a national authority to deploy VA 21 and help the country to reach its goal of sustainable development. The VA 21 Agenda Office organizes sustainable development activities nationwide, cooperates with concerned ministries, and coordinates with national and international institutions. Support for business provided by the CSR specialist agency can focus on specific activities (information, advisory services, counselling and training, funding, as for instance) within a particular issue (for example, human rights, child care, youth work, labour, environment, or customer protection).

Reforming regulatory frameworks to meet CSR-related standards:

Government plays an important role in setting standards that reflect a minimum standard of good CSR practice or performance requirements. The government is thus in a position to determine if any legal requirement is needed to ensure compliance with these minimum social and environmental standards. It also can make necessary changes to regulatory frameworks in cases where laws, tax and administrative compliance may hinder the development of responsible business practice. Legislation that supports pro-CSR industrial investment within businesses for example, pollution charges associated with implementation of the polluter-pays principle can also contribute to pro-CSR production processes. It should be noted that the government role of defining minimum legal requirements on environmental or social issues can be accompanied by access to justice for individuals who are affected by the misconduct of business. From 2003 to date, a number of CSR-related laws and regulations in the area of environment, labour, and CSR reporting have been passed in China, and others are currently under consideration. For example, the Corporate Act was promulgated in 2006 to set general principles on social responsibility for companies to comply with business ethics and regulation. In the Philippines, a bill requiring companies to observe CSR through community projects has been filed in the Philippiness House of Representatives and the Corporate Social Responsibility Act of 2009 was recently released. It mandates corporations to consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. In late 2008, the government of Bangladesh has approved the long-awaited proposal for a tax exemption facility at the rate of 10 per cent on a part of the corporate income to be spent on complying with CSR practices. The exemption facility is aimed at encouraging private companies to be involved more in CSR conduct.Although CSR agendas are giving rise to new demands for a level playing field of minimum environmental and social standards to protect free and fair competition, the minimum mandatory standards cannot create a level playing field that allows the market to reward higher standards without penalties for failure to comply. Lack of capacity to enforce minimum standards may lead to the collapse of these types of attempts. Government needs to pay attention to this concern. Furthermore, international collaboration may be needed to avoid distortion of competition between enterprises of different countries through different standards.
Fostering interaction with businesses, NGOs and other key stakeholders

Government is in a unique position to convene necessary stakeholders in order to address social problems through a CSR agenda. In one way or another, governments can partner with foundations and corporations to support business responsibility initiatives. It plays a key role in facilitating meaningful stakeholder dialogue with the business community (for example, by building the capacity of civil society actors or by directly facilitating dialogue and multi-stakeholder processes). In India, two dialogue forums directly relevant to CSR policy development were initiated.102 First, the Coordination Committee to Promote Affirmative Action in the Indian Industry comprises the relevant government ministry offices (mainly the Ministry of Commerce and Industry), Associated Chambers of Commerce and

Industry of India, Federation of Indian Chambers of Commerce and Industry, as well as senior representatives of industry. The aim of the partnership is to finalize a Code of Conduct on Affirmative Action and to set up an ombudsman with regional benches to monitor the compliance of the voluntary code of conduct by its members. Another forum is the India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogue forum. IPF has a more CSR-focused brief and addresses issues other than affirmative action, its areas of interest being the adoption and operationalization of a social code for business, the formulation of CSR, providing support to public policy measures on CSR, ensuring the mainstreaming of CSR education in business schools, capacity building for community development, capacity building for sustainable reporting processes and indices, building a CSR knowledge base, and providing communication and advocacy on CSR. In some cases, governments require companies to enter into stakeholder engagement through mandatory legislation. In many cases, governments can harness the community development potential of corporate philanthropy and social investment through dialogue to optimize their alignment with community needs. In certain cases, they can mandate corporate contributions in return for a license to operate. Such partnerships also aid in raising awareness of specific social problems and link to the engagement of business, as well as the expertise of stakeholders in other sectors. Furthermore, a business-NGO partnership can provide leverage for the availability of private resources to be directly channelled to meet social and environmental solutions.

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business, technical and advisory services, and research. This can be achieved though a variety of means. Governments may choose to include CSR-related requirements in public procurement practices; that is, linking their actions as consumers to promotion of pro-CSR production. Two United Kingdom government departments, the Department for International Development and the Foreign and Commonwealth Office, have switched to Fairtrade products in their staff restaurants.The Building and Construction Authority of Singapore (BCA) launched its BCA Green Mark Scheme in January 2005 which is an initiative to drive Singapores construction industry towards more environment-friendly buildings. It is intended to promote sustainability in the built environment while raising environmental awareness among developers, designers and builders when beginning to conceptualize and design a project, as well as during construction. On the consumption side, support for environmental and social labelling schemes designed to stimulate consumer demand for environmentally or socially preferable goods and services can be found in developing as well as industrial countries. The Fairtrade label can be used here as well. Many of the examples associated with an initiative through pro-CSR production and consumption reflect the role of certification, beyond-compliance standards, and environmental or social management systems in CSR agendas. Some labelling and certification schemes, like the product-based Indian Ecomark Scheme , have been initiated by public sector bodies. This voluntary product labelling scheme was initiated by the Indian Parliament in 1991. The Ministry of Environment and Forests, the Central Pollution

Control Board, and the Bureau of Indian Standards are all involved in its administration. Assessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishers is designed to take into account the full life cycle of a product (materials, production, and disposal).
Providing support to increase capacity and effectiveness for business in CSR initiatives

Other interventions by governmental agencies in some developing countries have included capacity building activities designed to help domestic producers meet CSR standards. Outlines of a broadly complementary initiative in India serve as a good example.106 The Indian Textiles Committee, part of the Ministry of Textiles, has taken up a national campaign to sensitize the textile and clothing industry, particularly in the SME sector, to address emerging challenges resulting from the forthcoming liberalization of the Indian textile and clothing industry. The Committee is working with the Ministry of Commerce, state governments, and local industry and trade associations on the campaign. Approximately 7,500 company representatives will have taken part in 25 workshops. The aim is to disseminate information on various standards and compliance mechanisms including ISO 9000 QMS, ISO 14000 EMS, and Social Accountability (SA8000) standards, as well as offer technical assistance to encourage implementation. Regarding the international trade-related aspect of implementing a CSR agenda, governments in many countries now are recognizing the potential for a CSR agenda to open up new market access opportunities for exports of sustainably produced goods and services and to tackle potential exclusion from existing markets as CSR conditions are introduced. Government-led export promotion of green goods and services can build international market access opportunities for domestic enterprises and encourage a more pro-CSR goods and services. In this case, government can provide knowledge and technical support, including capacity building for domestic producers to enable them to meet CSR standards, and engagement in CSR standard-setting initiatives to ensure they do not create unfair market access barriers.

Position of CSR today and its scope :


In many Asian societies, Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices. Most of such projects, like constructing schools and health care centres, have been effectively hegemonic, providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many countries. A further implication of CSR is that it makes people think that it is the companys obligation to meet peoples rights to a better education system, clean water, health care, etc., instead of the State or government. At the same time, this has allowed the State to escape from its obligations towards society.

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor. It is also a status-enhancing way for them to acquire an excellent and clean image in the public. For many corporations, the implementation of CSR can increase the sales of their products and market share. CSR can also help the brand attain a good reputation and promote workers productivity. It can reduce production costs, attract more investment, and achieve more favourable credit and ratings. In this respect, there is no doubt that CSR is a vehicle for increased corporate power in society There are many actors involved in CSR activities: NGOs, government, and international institutions, which eventually make CSR an emerging industry itself, valued at US$ 31.7 billion in 2007. CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact on core labour issues such as freedom of association and collective bargaining. However, the reality has proven that CSR has more harm than good. In the labour movement, CSR has transformed itself into a mechanism called Code of Conduct. The Code of Conduct is a fundamental manifestation of the CSR, which corporations consider as part of their business public relations in response to accusations made by activists. Certainly, corporations by nature do not see CSR as their obligation, but as a business strategy to achieve greater profit by fulfilling its social responsibility. By promoting Codes of Conduct, employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance. Codes of Conduct are aimed at making people feel good and pacifying labour, consumer, and civil society movements. It has the mission of protecting Multinational Corporations interests in international subcontracting. The way that Codes of Conduct domesticate the movements is that it serves as the basis for NGOs, and even labour unions, to be engaged in the supervision work of the manufacturing process of Multinational Corporations. In the end, many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring, taskforces, stakeholders roundtables, etc., forsaking their core work at the grass-roots. Codes of Conduct create the privatization of labour law and promote self-regulation in the factories. By promoting Codes of Conduct, employers divert the focus of labour and consumer movement into setting up localised regulation, but at the same time neglect the national constitution and the labour law. Employers try to convince us that voluntary standards are better than the existing labour law, which suffers from a lack of implementation. Thus, the Code of Conduct logically has an inherent contradiction in itself: as the rootproblem is the defect of labour law, Code of Conduct then has a similar limitation of its functioning. For that reason, we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence. Moreover, Codes of Conduct and other types of CSR have the divide and rule effect. At the workplace level, CSR hampers the development of genuine, free and independent unions, which are further stigmatised as trouble-makers in society. At the community level, CSR affects the loss of harmony within society, as a number of people get benefits through jobs, gifts or trade opportunities, while others get none; some people are even deprived, such as when they have to give up their land. At the national level, the impact of CSR is obviously seen as the rupture between

the proponents and opponents of CSR is ever widening. Meanwhile, in the global level, Northern and Southern workers become less and less likely to reach out each other, as they get co-opted by multi-stakeholder initiatives and become more invested in them, rather than in seeking the solidarity of other workers. In a nutshell, CSR undermines solidarity between workers. At the moment, CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector. To respond to the facts, we are challenged to face it in several ways. First, we have to demystify CSR. Many experiences show that CSR fails to produce concrete improvement in working conditions, but also diverts movements attention away from real issues. Second, we have to strengthen solidarity between workers, to have better communication with one another, and a united front against extensive promotion of CSR. Third, we have to establish more effective international solidarity. On this occasion, we are calling everyone who shares the above-stated perspective about CSR and its impacts on society, to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment; and that labour groups must focus on increasing the collective power of workers to assert their labour rights, not relying on what is granted voluntarily by corporations.

Emerging model of CSR in India:


Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India. Looking across the current practices of leading Indian corporations, a number of core elements emerge. # P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment, notably in health, education, and agriculture. # P Environmental management Environmental policies and programmes are now standard, and many companies have implemented the ISO 14 001 system throughout their businesses. # P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being.

Table 1 presents a selected list of CSR innovations from some of Indias leading companies.

Issue

company

action
Asian CSR Award for its Integrated Rural

Community development Hindalco Poverty Alleviation Programme Corporate giving Indian Oil Corporation

Dedicating 0.75% of net profit to community development initiatives One of first corporates to launch an HIV/AIDS programme First company in India to be certified to the SA8000 social accountability standard for its Chirala facility Pioneering evaluation of human capital using an education index for its employees

Health

Larsen and Toubro

Labour standards

ITC

Human capital

Infosys

Environmental management BHEL

All BHEL units are certified to the ISO14 001 environmental management System Energy conservation measures are saving the company 1150 million rupees per annum First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Energy conservation

Reliance

Disclosure

Tata I ron and Steel

Comparing the CSR progress of India Inc. with the other emerging economies is difficult to achieve, not least because there are no global benchmarks. However, some proxy indicators are available. In September 2004, the International Organisation of Standardisation published its latest survey of the adoption of the ISO 14 001 environmental management system. At the end of 2003, over 66 000 certificates had been issued worldwide, up 16% on the year before. Of these, India had 879 certificates, a substantial growth from the 600 certificates in 2002. Yet,

India lagged far behind China, which had over 5000 ISO 14 001 certificates in 2003, making it the country with the third highest number of ISO 14 001 registrations after Japan and the UK.1 Another broader measure of corporate commitment to social responsibility is the UN Global Compact, a set of 10 principles launched by UN Secretary-General, Kofi Annan. Currently, 95 Indian companies have backed the Global Compact, slightly less than in Brazil, but on this occasion, considerably more than in China.

Scope:
How to find a job in a csr compny:
Even though its only March, graduation season is just around the corner. Before you know it, across the country, hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work. Its the start of a new life and a new career. So whats a graduate to do if he or she is interested in a career in corporate social responsibility (CSR)? Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR. First and foremost, the two most important skills for a CSR professional are:
Communication. Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets. In fact, I believe as our society leans more towards communicating Twitter-style, in 140 characters or less, the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional, but especially a CSR professional. As I mentioned in a previous post, companies routinely fail to tell their own story effectively. If you know how to write and how to give a presentation, you will have a leg up in your career. Leadership. In my experience, there are very few large CSR departments out there even within big companies. If you really want to excel in this field, you need to understand the power dynamics of an organization. Because resources are tight in most companies, you have to learn how to influence people in your organization, often without formal authority such as a fancy title. What do employers look for to see if youve got what it takes to work in CSR? Theyre looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior. You will need to work with departments such as operations, marketing, legal, and human resources, to name only a few.

Here are some additional ideas:


Get the basics done. To score a job in nearly any field, you have to cover the basics. Know how to write a cover letter, how to make your resume stand out, and how to interview well. There are plenty of resources online that offer tips on each of these, but its impossible to overstate how important it is to master the basics during any job search. Companies are bombarded with applications these days and theyre looking for

reasons to narrow down the large pile of applications as quickly as possible. Dont let simple mistakes undermine your four years of effort to get your degree. Check yourself. If youre looking for a job in corporate social responsibility, you ought to know what CSR means. I cant count how many times people have asked me for advice, only to discover that they think CSR is a synonym for philanthropy. Its not. Yes, philanthropy is a part of a broader effort for companies to look at the business impact of their business operations. But if youre interviewing with a company that has experience in CSR, you will likely undermine your chances if youre unaware of the many other subjects that make up a full CSR strategy. Know how to define the field before you sit down across the table from the hiring manager.

Be a champion outside of the CSR department. As I mentioned, most CSR departments arent heavy on the headcount. Naturally, this means that there are fewer opportunities to work in a companys CSR department than, say, operations or finance. In fact, this is precisely where the opportunities are. For CSR professionals, one of the most useful things to have is a champion in another department someone who gets it. These champions can help by being another voice outside of the usual suspects in a CSR department who can advocate for change in their organization. Paradoxically, its quite possible to have a larger impact on a company adopting CSR if youre outside of a large companys formal CSR department. It just depends on your level of engagement and your ability to influence others (sound familiar?). So when it comes to job seeking, expand your search beyond jobs that have social responsibility or sustainability in their titles. This is especially important because CSR departments dont have a lot of entry-level positions available. Instead, for example, you could look for a position in a companys supply chain department and get involved in logistics to reduce miles driven, fuel consumption, and carbon emissions. Environment, environment, environment. When I look into my crystal ball, its all about the environment. Climate change adaptation, carbon emissions, energy conservation, waste diversion, life-cycle analysis of products these are all issues that are going to become even more important (its just a partial list, too). You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues Get involved. Lets say that you just need a job, any job, after graduating. If you really want to do CSR, start creating a track record of involvement. As mentioned previously, you can start by reaching out to your companys CSR department and finding out how you can help. What if your company doesnt have an entire department devoted to CSR? Get involved in other ways, such as by joining and/or taking a leadership role in phenomenal organizations like Net Impact. With chapters across the country, you can really roll up your sleeves. When interviewing, employers will likely see sustained

involvement in organizations like Net Impact as a sign that you are truly interested in CSR. In addition, many larger cities are stepping up their interest in social responsibility or sustainability. The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as volunteers through two organizations. Denver, Portland, New York, and Atlanta just as a few examples all have plans and programs related to sustainability. So do some research and get involved.

Scope of csr in India:


NEW DELHI: Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010, even as they have come under the government scanner for pushing alien agendas in the country. Overall hiring activities in the social sector, which includes NGOs, sustainability arm of big corporates and micro finance companies, increased by 30-40 per cent in 2011. The addition of manpower in the sector happened, even as the overall hiring activities in some of the corporate verticals like transport, media and government had gone down last year. The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent. Of all the sectors, NGOs/social services sector hiring exhibited the highest annual growth, according to the data from job search firm Monster India. A dipstick survey of around 1,000 firms, including non-profit organisations, by MyHiringClub, shows that the sector had added 11,459 workers in 2011, compared to 6,459 in 2010. In case of NGOs, MFIs and other non-profit organisations, hiring in 2011 was 4,984 compared to 2,968 in 2010. It has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements, unlike other sectors. The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects. During the beginning of the year, funds are allocated to social firms which they have to deploy in defined time lines. For example, two years, three years or five years, and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sector, Sunil Goel, director of executive search firm, Globalhunt, said. The corporate responsibility initiatives of companies have also triggered social sector hiring. For instance, in the Vedanta Group, the number of employees working on community programmes has increased by around 12 per cent from 2010 till now. The increase from 2005 till the current year is close to 70 per cent. The Vedanta Group has been involved in various community initiatives for several years now. We continue to add more projects and geographies and have therefore been hiring people who are trained in community development, environment, health and sustainability. We work very closely with over 160 partner organisations, including 82 NGOs, a Vedanta spokesperson said. Even for companies like auto giant, Maruti, and beer maker, SabMiller, which have very small corporate social responsibility (CSR) teams, the tie-ups with NGOs and other social activities have gone up

considerably. Other firms, which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI), Sahayata MFI, CRY, Smile Foundation, Tata Steel (CSR Division), Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others. A higher number of companies are hiring social sector professionals, thanks to increased corporate philanthropy, higher CSR activities, focus on rural consumers and more partnerships with government. There has been an average increase of 30 to 40 per cent every year in social sector hiring activity. Hiring in social sector is mostly in tier II and III cities. This year also we are expecting a 25 per cent increase in hiring activity in this sector, Rajesh Kumar, CEO, MyHiringClub.com and NriJobPortal.com said.

Case study of kingfisher company: Kingfisher is Europe's largest home improvement retailer, with 1,300 stores and 9,000
employees in 16 countries. Its operating companies include BCC (The Netherlands), Promarkt (Germany), Vanden Borre (Belgium), Darty (France), Comet (UK), B&Q (UK), Kotas (Turkey) and Rno-Dpt (Canada). In 2001 the group achieved a turnover of 12.1 billion ($17.5 billion) and a pre-tax profit of 606 million ($878 million). At the end of 2001, Kingfisher unveiled a group-wide initiative to monitor, improve and report on corporate social responsibility issues at the level of individual companies. The group has identified six ways in which it believes CSR can help its business:

1. Being ready for the future: identifying and managing issues which have the potential to affect the bottom line, either positively or negatively; 2. Respect for people: making Kingfisher companies attractive places to work, and thereby retaining skilled staff; 3. Stores that communities welcome: maximizing customer loyalty and improving morale among the workforce; 4. Product innovation: identifying 'green' products that consumers will want to buy; 5. Saving costs: recognizing that many CSR initiatives are largely good housekeeping, such as reducing waste and retaining staff more effectively; 6. Brand: using innovation and excellence within individual operating companies to enhance the reputation of the group as a whole.

Kingfisher has devised a 'ladder' model to simplify the assessment of CSR within operating companies. The ladder has four rungs. The bottom rung is 'Managing the risk', and the next rung up is 'Managing the issues', followed by 'Creating an opportunity' and finally 'Leadership' at the top. Company managers will have to decide where their businesses currently stand on each of 12 separate 'ladders', each representing a key issue such as waste, climate change or community relations (see below). They are also asked to identify where they would like eventually to be on the ladder, and to propose a realistic timescale.

These action plans are due for completion by the end of April 2002, and a group-wide CSR report will be published in the spring of 2003. The CSR initiative will be co-ordinated by a nine-person 'social responsibility committee', which now includes include six members of the main board of directors as well as Kingfisher's head of social responsibility, Dr Alan Knight. A' social responsibility team', working closely with the committee, will provide coaching and advice to managers within individual operating companies, and will also be responsible for reporting progress both internally and to the outside world. One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision. Kingfisher's definition of social responsibility entails 'making sure that in helping our customers improve their quality of life we do not destroy someone else's'. It adds: 'That might mean improving the working conditions in the factories that make the products we sell, using renewable energy sources, or making sure our equal opportunities policies are robust Group chief executive Sir Geoff Mulcahy says several of Kingfisher's subsidiaries have been active in CSR for some years already, particularly in terms of environmental stewardship. 'We believe it is now time to co-ordinate these activities more rigorously, at group level.' The 12 key issues identified by Kingfisher:

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood, but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion:
In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business . major issue has become how much social involement is desirable.In case study of csr we can analyse that how much important it is,its study and implementation of csr and its affects on business organizations. So here we conclude that in modern age, csr is essential part of organization to exist and develop and to cop up with other organization.An open minded & balanced attitude toward the Issue is best position to assume.

Bibliography
Books refered
1. Writer-william c.frederick Publication-Mcgraw-hill international editions Ist printing 1988 Book name-bussiness and society 6th edition printed and bounded in singapore page no. 26-48

Websites refered
1. http://www.google.com 2. http://www.wikipedia.com 3. http://wiki.answer.com 4. http://ehow.com 5. http://kingfishercasestudy.com