INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY

ISO 26000
Corporate social responsibility is not a new concept in India. However, what is new is the shift in
focus from making profits to meeting societal challenges. Giving a universal definition of corporate
social responsibility is bit difficult as there is no common definition as such. However, there are few
common threads that connect all the perspectives of CSR with each other the dedication to serve the
society being most important of them. !ost ideal definition of corporate social responsibility "CSR#
has been given by world business council for Sustained $evelopment which says, %Corporate Social
Responsibility is the continuing commitment by business to behave ethically and contribute to
economic development while improving the &uality of life of the workforce and their families as well
as of the local community and society at large '.(hus, the meaning of CSR is twofold. )n one hand,
it e*hibits the ethical behavior that an organi+ation e*hibits towards its internal and e*ternal
stakeholders "customers as well as employees#. )n the other hand, it denotes the responsibility of an
organi+ation towards the environment and society in which it operates. ",aukri hub -online., august
/001#.CSR is also referred to as23 4corporate5 or 4business responsibility53 4corporate5 or 4business
citi+enship53 4community relations53 4social responsibility5.
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ORIGIN OF CSR
%(he phrase Corporate Social Responsibility was coined in 6178 with the publication of 9owen:s
Social Responsibility of 9usinessmen' "Corporate watch report, /00;#. (he evolutionof CSR is as
old as trade and business for any of corporation. Industriali+ation and impact of business on the
society led to completely new vision. 9y <05s and 105s academic CSR was takeninto discussion. (he
first company to implement CSR was Shell in 611<. =lthough the term was not coined until 6178,
new research shows that corporate social responsibility "CSR# can trace its roots to the early years of
the /0th century and to the editor of one of =merica:s initial business maga+ines, (he >orld:s >ork.
?@rom its beginnings in ,ovember 6100, (he >orld:s >ork was devoted to social responsibility in
the public interest,? says $avid A. Remund, a Aegacy Scholar in the =rthur >. Bage Center for
Integrity in Bublic Communication at Benn State Cniversity. Remund is completing his doctoral
studies at the Cniversity of ,orth Carolina. (he editor of (he >orld:s >ork, =rthur >. Bage, later
became one of the nation:s pioneering and stillDrevered public relations practitioners. He was the first
to serve on the e*ecutive management team of a maEor corporation, =(F(. In 61/G, he took his
editorial views to =(F( and put them into action, laying the groundwork for the modern CSR
model.
Historians of corporate social responsibility generally agree that the concept emerged in the 6180s
and 61H0s. It became formali+ed in 6178 with the publication of Social Responsibilities of the
9usinessman, a book by Howard 9owen.
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WHY SHOULD BUSINESS BE SOCIALLY RESPONSIBLE
Social responsibility is a voluntary effort on the part of business to take various steps to
satisfy the e*pectation of the different interest groups. =s you have already learnt, the interest
groups may be owners, investors, employees, consumers, government and society or
community. 9ut the &uestion arises, why should the business come forward and be responsible
towards these interest groups. Aet us consider the following points2
i. Bublic Image D (he activities of business towards the welfare of the society earn goodwill
and reputation for the business. (he earnings of business also depend upon the public
image of its activities. Beople prefer to buy products of a company that engages itself
in various social welfare programmes. =gain, good public image also attracts honest
and competent employees to work with such employers.
ii. Government Regulation D (o avoid government regulations businessmen should
discharge their duties voluntarily. @or e*ample, if any business firm pollutes the
environment it will naturally come under strict government regulation, which may
ultimately force the firm to close down its business. Instead, the business firm should
engage itself in maintaining a pollution free environment.
iii. Survival and Growth DIvery business is a part of the society. So for its survival and
growth, support from the society is very much essential. 9usiness utili+es the available
resources like power, water, land, roads, etc. of the society. So it should be the
responsibility of every business to spend a part of its profit for the welfare of the
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society.
iv. Imployee satisfaction D 9esides getting good salary and working in a healthy atmosphere,
employees also e*pect other facilities like proper accommodation, transportation,
education and training. (he employers should try to fulfill all the e*pectation of the
employees because employee satisfaction is directly related to productivity and it is
also re&uired for the longDterm prosperity of the organisation. @or e*ample, if business
spends money on training of the employees, it will have more efficient people to work
and thus, earn more profit.
v. Consumer =wareness D ,owDaDdays consumers have become very conscious about
their rights. (hey protest against the supply of inferior and harmful products by forming
different groups. (his has made it obligatory for the business to protect the interest of
the consumers by providing &uality products at the most competitive price.
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BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility offers manifold benefits both internally and e*ternally to
thecompanies involved in various proEects.I*ternally, it creates a positive image amongst the people
for its company and earns a specialrespect amongst its peers. It creates short term employment
opportunities by taking various proEects like construction of parks, schools, etc. >orking with
keeping in view the interests of local community bring a wide range of business benefits. @or
e*ample, for many businesses,local customers are an important source of sales. 9y improving the
reputation, one may find iteasier to recruit employees and retain them. 9usinesses have a wider
impact on the environmentalso. Blantation and cultivation activities taken up by Intel India are a step
towards the same.Recycling used products also acts as a step towards minimi+ing wastes.Internally,
it cultivates a sense of loyalty and trust amongst the employees in the organi+ationalethics. It
improves operational efficiency of the company and is often accompanied by increasesin &uality and
productivity. !ore importantly, it serves as a soothing diversion from the routineworkplace practices
and gives a feeling of satisfaction and a meaning to their lives. Imployeesfeel more motivated and
thus, are more productive. =part from this, CSR helps ensure that theorgani+ation comply with
regulatory re&uirements. . ",aukrihub -online., august /001#
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CSR IMPORTANCE AND ITS RELEVANCE TODAY
(he amount of information available to customer about the company, product, brand globallythrough
easy accessible and available mode of information internet, communication, customer wants to buy
product from trusted brand, employee want to work for the company who respectthem, ,G)5s want
to work with company who work with the same vision for the benefit of the people. =s said by Beter
$uker %(he /6st century will be the century of the social sector organi+ation. (he more economy,
money, and information become global, the more communit=ccording to strategic corporate
social responsibility by >illiam 9. >erther, $avid Chandler there is three trends which are going to
have importance in future are
Increasing Aff!ence
2 Customer from elite level can afford to buy and pay more for premium brand but the poor customer
might not be willing to pay so much for brand, instead they would prefer to spend their money on
business which can take their business to much better level.
C"anging s#cia e$%ec&a&i#n
2 Its natural that customer e*pect more from the company whose product they buy but with recent
controversy and scandal of company has reduced the trust andconfidence in the regulatory body and
organi+ation which manage the corporation
G#'ai(a&i#n an) free f#* #f Inf#r+a&i#n
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>ith growing trend of media and easy access to information through mobile, (J even the minor
mistake of the company is brought in public in no time, this sometime fuels the activist group
and likeminded people to spread message which can lead to situation like boycott of the product.
CSR AND BRANDS
9rands are the way to success for a business. (he sales and revenue of the company arewidely
dependent on the brand they give to customer.@ew of the traits which affect the brand are
P#si&i,e Mar-e&ing. Bran) B!i)ing
D (imes of India "kalingatimes.com#%Aead India Campaign' by (ime of India is perfect e*ample for
brand building through CSR.(his was the brought by times of India to bring about change in society.
It was more of businessKbrand building strategy than CSR. Such activities knowingly or
unknowingly prepare animage in mind of viewers and hence building image.
Bran) ins!rance
D ,ILI "Corporate Social Responsibility, /008#,ILI has emerged as one of the most progressive
global corporations in terms of CSR because it has learned from its past mistakes and attacks by
,G)s. =s one of the firstcorporations to have a JiceDBresident for Corporate Responsibility and to
publish an annual CSR Report, the company has done a lot to mitigate public opinion, establish its
brand asrepresentative of a much more committed corporate citi+en, and 4insure5 itself against any
repeatof the consumer boycotts it faced in the midD6110s.
Crisis +anage+en&
D Bepsi "wikipedia.org#Crisis stated during the scandal about syringe being found in the diet Bepsi.
Bepsi, confidentthat tampering was not their fault and urged store not to remove any cans from
shelves. In themean time Bepsi released its first video about how Bepsi is processed making it clear
that suchfault cannot occur in the factory. Second video showed about the arrest of the man who
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hadcommitted the scam. 9asically corporation was completely transparent and open to public
whichmade them effective throughout the crisis.
TYPES OF CSR/
F#!r &0%es #f CSR
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12En,ir#n+en&a Res%#nsi'ii&0
Beople e*pect businesses to e*hibit environmentally responsible behavior, as evidenced by a
BricewaterhouseCoopers survey that found that the ,o. 6 issue for companies in the future,
according to C.S. respondents, is carbon emissions reductions. Specific environmental issues
that affect businesses include global warming, sustainable resources and pollution. 9usinesses
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.
32H!+an Rig"&s Res%#nsi'ii&0/
(he /6stDcentury marketplace is highly global. (his means that when a product is purchased in the
Cnited States, for e*ample, it may have been produced in China, or have components from
South =merica. (he ethical issue for corporations is ensuring that human rights are respected
throughout all levels of the supply chain. !aEor companies have received criticism for their use
of sweat shops and for sourcing resources that are harvested by unfairly treated workers. (his
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.
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42Financia Res%#nsi'ii&0/
@inancial responsibility is an important issue in corporate social responsibility. In the wake of the
accounting fraud perpetrated by Inron and =rthur =ndersen and Bon+i schemes orchestrated by
the likes of 9ernie !adoff, businesses are &uestioned about the accuracy of their financial
reporting by increasingly skeptical shareholders and government officials, as evidenced by the
SarbanesD)*ley =ct. Imployees are e*pected to act as whistle blowers in such situations, and
white collar crime is seeing highDprofile prosecutions like that of !artha Stewart or former
>orldcom CI) 9ernie Ibbers.
52P#i&ica Res%#nsi'ii&0/
(rading 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. Beople 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 =partheid government in South =frica during the 61<0s. Shell
)il received considerable consumer backlash during the 6110s for its complicit involvement
with the ,igerian government that murdered antiDoil activists.
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CSR ACTIVITIES /
In the report Catalogue of CSR Activities: A broad overview prepared by the =shridge Centre
for9usiness and Society "/007#, they have made a convenient classification of the CSR
activities.(he report has clustered the CSR activities into seven main groups. (he groups
includeAeadership, vision and values, !arketplace activities, >orkforce activities, Supply chain
activities, Stakeholder engagement, Community activities and Invironmental activities. (hese groups
have been identified based on practical activities undertaken by the business
community. (he main groups are then divided into main classes of CSR activities within that
group which are further divided into actual activities. @or details regarding the groups and
classes
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ISSUES AND CHALLENGES FOR CSR/
!any companies think that corporate social responsibility is a peripheral issue for their business and
customer satisfaction more important for them. (hey 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. (he change is named as social
responsibility which is an opportunity for the business.Some of the drivers pushing business
towards CSR include2
(he Shrinking Role of Government2
In the past, governments have relied on legislation and regulation to deliver social and environmental
obEectivesin the business sector. Shrinking government resources, coupled with a distrust of
regulations, has led to the e*ploration of voluntary and nonDregulatory initiatives instead.
$emands for Greater $isclosure2
(here is a growing demand for corporate disclosure from stakeholders, including customers,
suppliers,employees, communities, investors, and activist organi+ations.
Increased Customer Interest2
(here is evidence that the ethical conduct of companies e*erts a growing influence on the purchasing
decisionsof customers. In a recent survey by Invironics International, more than one in five
consumers reported having either rewarded or punished companies based on their perceived
social performance.
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Investors are changing the way they assess companies: performance, and are making decisions based
on criteria that include ethical concerns. (he Social Investment @orum reports that in the CS in
6111, there was more thanM/ trillion worth of assets invested in portfolios that used screens
linked to the environment and social responsibility. = separate survey by Invironics
International revealed that more than a &uarter of shareDowning =mericans took into account
ethical considerations when buying and selling stocks. "!ore on socially responsible investment
can be found in the :9anking and investment: section of the site#.
Competitive Aabour !arkets2
Imployees 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 Relations2
=s 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
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RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS6
=fter getting some idea about the concept and importance of social responsibility of business
let us look into the various responsibilities that a business has towards different groups with
whom it interacts. (he business generally interacts with owners, investors, employees,
suppliers, customers, competitors, government and society. (hey are called as interest groups
because by each and every activity of business
Responsibility of 9usiness (owards $ifferent Interest Groups.
Res%#nsi'ii&0 T#*ar)s O*ners
)wners are the persons who own the business. (hey contribute capital and bear the business
risks. (he primary responsibilities of business towards its owners are to2
a. Run the business efficiently.
b. Broper utilisation of capital and other resources.
c. Growth and appreciation of capital.
d. Regular and fair return on capital invested.
ii2 Res%#nsi'ii&0 &#*ar)s in,es&#rs
Investors are those who provide finance by way of investment in debentures, bonds, deposits
etc. 9anks, financial institutions, and investing public are all included in this category. (he
responsibilities of business towards its investors are 2
a. Insuring safety of their investment,
b. Regular payment of interest,
c. (imely repayment of principal amount.
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iii2 Res%#nsi'ii&0 &#*ar)s e+%#0ees
9usiness needs employees or workers to work for it. (hese employees put their best effort
for the benefit of the business. So it is the prime responsibility of every business to take care
of the interest of their employees. If the employees are satisfied and efficient, then the only
business can be successful. (he responsibilities of business towards its employees include2
a. (imely and regular payment of wages and salaries.
b. Broper working conditions and welfare amenities.
d. )pportunity for better career prospects.
e. Nob security as well as social security like facilities of provident fund, group
insurance, pension, retirement benefits, etc.
f. 9etter living conditions like housing, transport, canteen, crOches etc.
g. (imely training and development.
i,2 Res%#nsi'ii&0 &#*ar)s s!%%iers
Suppliers are businessmen who supply raw materials and other items re&uired by
manufacturers and traders. Certain suppliers, called distributors, supply finished products
to the consumers. (he responsibilities of business towards these suppliers are2
a. Giving regular orders for purchase of goods.
b. $ealing on fair terms and conditions.
c. =vailing reasonable credit period.
d. (imely payment of dues.
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,2 Res%#nsi'ii&0 &#*ar)s c!s&#+ers
,o business can survive without the support of customers. =s a part of the responsibility of
business towards them the business should provide the following facilities2
a. Broducts and services must be able to take care of the needs of the customers.
b. Broducts and services must be &ualitative
c. (here must be regularity in supply of goods and services
d. Brice of the goods and services should be reasonable and affordable.
e. =ll the advantages and disadvantages of the product as well as procedure to use
the products must be informed do the customers.
f. (here must be proper afterDsales service.
g. Grievances of the consumers, if any, must be settled &uickly.
h. Cnfair means like under weighing the product, adulteration, etc. must be avoided
,i2 Res%#nsi'ii&0 &#*ar)s c#+%e&i&#rs
Competitors are the other businessmen or organi+ations involved in a similar type of business.
I*istence of competition helps the business in becoming more dynamic and innovative so as
to make itself better than its competitors. It also sometimes encourages the business to
indulge in negative activities like resorting to unfair trade practices. (he responsibilities of
business towards its competitors are
i. not to offer e*ceptionally high sales commission to distributers, agents etc.
ii. not to offer to customers heavy discounts and Kor free products in every sale.
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iii. not to defame competitors through false or ambiguous advertisements.
,ii2 Res%#nsi'ii&0 &#*ar)s g#,ern+en&
9usiness activities are governed by the rules and regulations framed by the government. (he
various responsibilities of business towards government are2
a. Setting up units as per guidelines of government
b. Bayment of fees, duties and ta*es regularly as well as honestly.
c. ,ot to indulge in monopolistic and restrictive trade practices.
d. Conforming to pollution control norms set up by government.
h. ,ot to indulge in corruption through bribing and other unlawful activities.
,iii2 Res%#nsi'ii&0 &#*ar)s s#cie&0
= society consists of individuals, groups, organi+ations, families etc. (hey all are the members
of the society. (hey interact with each other and are also dependent on each other in almost
all activities. (here e*ists a relationship among them, which may be direct or indirect. 9usiness,
being a part of the society, also maintains its relationship with all other members of the
society. (hus, it has certain responsibilities towards society, which may be as follows2
a. to help the weaker and backward sections of the society
b. to preserve and promote social and cultural values
c. to generate employment
d. to protect the environment
e. to conserve natural resources and wildlife
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f. to promote sports and culture
g. to provide assistance in the field of developmental research on education, medical
science, technology etc.
SOCIAL VALUES AND BUSINESS ETHICS
Ivery society generally views certain activities, conduct and behaviour of its members to be
undesirable or harmful to others. Similarly, desirable acts and conduct of people are recognised
and appreciated in society. Social values refer to the general recognition in society about
which acts are good and desirable on the part of people and which acts are not. In relation
to business, social values of business may indicate2
a. the characteristics of good business
b. obEectives which are desirable for business to follow and
c. the manner in which business activities should be conducted in the interest of
society.
@or e*ample, we consider it bad, if any business indulges itself in selling adulterated goods
or charging higher price or polluting the environment. (hus, social values of the business
form the base for social responsibilities.
Ithics refers to conduct and activities of people based on moral principles. Honesty,
truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.
9usiness can also be guided by certain moral principles say, running the business without
adopting unfair practices, being honest and truthful about &uality of goods, charging fair
prices, abiding to laws, paying ta*es, duties and fees to the government honestly. Indeed
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business ethics suggest certain principles to conduct business so as to be morally Eustified. Nust like
social values,
business ethics also play a maEor role while fulfulling social responsibilities.
ENVIRONMENTAL POLLUTION AND ROLE OF BUSINESS
(o preserve the society it is important to protect the environment. =nd, therefore, every
business must take measures to protect the environment rather than damaging it. In this
section let us learn more about different types of environmental pollution and role of business.
,ature has given us air, land including mountains, hills, forests etc. and water in the form of
rivers, lakes, sea etc., which create an environment in which we live. )ur health and well
being largely depend on the &uality of such environment. However, it is observed that the
&uality of this environment is deteriorating day by day. >e are getting neither pure water to
drink nor clean air to breathe. >e are having untimely rains, storms, cyclones, floods, e*tended
summer, etc. >e are also suffering from various diseases because of such lower &uality of
environment. >hen the &uality of environment deteriorates, it is said that the environment is
getting polluted. (hus, environmental pollution refers to contamination of environment by
various substances that have adverse effects on living and nonDliving matters.
Invironmental pollution is of three types2
i# =ir pollution,
ii# >ater pollution, and
iii# Aand Bollution.
Aet us have a brief discussion about these three types of pollution.
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i2 Air P#!&i#n
=s we know the air we breathe contains several gases, dust particles etc. )ur body mechanism
helps us in filtering the unwanted ones and retaining those re&uired for our survival. However,
if there is an imbalance in the proportion of gases and dust particles in air, beyond a certain
point, our body mechanism fails to filter them and we face problem. (his is also true in care
of other natural things like forests, river etc. (hus, air pollution refers to the presence of any
unwanted gases, dust particles etc. in the air, that can cause damage to people as well as
nature.
Ca!ses #f Air P#!&i#n
Aet us know how air gets polluted. Some of the common causes of air pollution are
Imission of fumes from vehicles .Bollution simply means presence of any unwanted substance that
creates inconvenience in the natural behavior of living and nonDliving matter.
ii. Imission of smoke dust and chemicals from manufacturing plants.
iii. Imission of gases and dust arising from atomic plants
iv. Imission of smoke from oil refineries, burning of trees and plants in forests,
buring of coal, etc.
I+%ac& #f Air P#!&i#n
=ir pollution has a lot of impact on our surroundings and on us. Some of them areD
PQBresence of gases in air, which are not re&uired by human beings, animals and birds,
creates serious health problems. It can create diseases like asthma, cough and cold,
blindness, hearing loss, skin disease etc. It also causes genetic disorders. In the long
run and in e*treme cases it can also be fatal.
PQ=ir Bollution creates smog in the winter, which is caused by smoke and dust when
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they mi* with fog. It reduces natural visibility and irritates the eyes and respiratory
tract.
PQ)+one layer is a protective layer of gases around our earth, which protects us from
harmful ultraviolet rays that come from the sun. It gets depleted because of air pollution
and thereby causes gene mutation, genetic defects and skin cancer.
PQ(he temperature of the earth increases due to air pollution. (his is because whatever
heat our earth receives from the sun is not radiated to the atmosphere due to the
e*cessive presence of gases like carbon dio*ide, methane, nitrous o*ide, etc.
PQ=ir pollution causes acid rain which means e*cessive presence of various poisonous
gases like sulphur dio*ide, nitrogen o*ide etc. in the rainwater. (his causes lot of
damage to vegetation, trees and marine life, buildings and monuments etc.
Invironment is also polluted through e*cessive noise, known as N#ise P#!&i#n. ,oise
simply means an unwanted sound that causes irritation. It is caused by modern machines
and gadgets such as rail engines, loud speakers, generators, aeroplanes, vehicles,
machineries, telephones, televisions etc. It initially distorts communication process, but
prolonged e*posure to noise pollution can cause loss of hearing, headache, irritation, high
blood pressure, neurological or psychological disorders, etc.
'2 Wa&er P#!&i#n
Have you seen river Ramuna near $elhiS =re you aware about the clean Ganga proEectS
(hese two &uestions almost immediately remind us about the e*tent to which the water of
our rivers has been polluted. >ater pollution refers to contamination of water due to presence
of unwanted and harmful substances thus, making water unfit for use.
Ca!ses #f Wa&er P#!&i#n
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(he various reasons of water pollution arei.
$rainage of human e*creta into rivers, canals etc.
ii. Improper sanitation and sewage system.
iii. $umping of wastes and effluents by various industrial units into the rivers and
canals.
iv. $rainage of to*ic substances like chemicals and fertili+ers used in cultivation, into
streams and rivers.
9usiness Studies
v. $umping of garbage, dead bodies and almost every thing used in rituals to the
nearby water source by households.
Effec&s #f Wa&er P#!&i#n
(he effects of water pollution are2
a. It can create health ha+ards among human beings, animals and birds. $iseases
like typhoid, Eaundice, cholera, gastroentytis etc. are common.
b. It can endanger lives of various a&uatic species.
c. It can lead to scarcity of drinking water as the water of rivers and canals as well
as underground water get polluted.
c2 Lan) P#!&i#n
Aand Bollution refers to dumping of useless, unwanted as well as ha+ardous substances on
the land that degrades the &uality of soil we use. )ur land gets polluted because of the
human carelessness towards the soil.
Ca!ses #f Lan) P#!&i#n
(he main causes of land pollution are2
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"i# I*cessive use of fertili+ers, chemicals and pesticides in cultivation.
"ii# $isposal of solid waste of industries, mines and &uarries.
"iii# $isposal of solid waste from construction of roads, buildings etc.
Social Responsibilities of 9usiness
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"v# Iffluents of some plants like paper, sugar etc. which are not absorbed by soil.
"vi# I*cessive use of plastic bags, which are nonDbiodegradable.
"vii# $umping of nonDcomposable wastes from households, hotels and hospitals as well as
from industries. (hese may include combustible items like plastic, cloth, wood etc.,
and nonDcombustible items like metal, glass, ceramics, cement etc.
Effec&s #f Lan) P#!&i#n
Aand Bollution has the following harmful effectsa.
Reduces the &uantum of cultivable land area.
b. Causes health ha+ards as it contaminates the sources of food.
c. Causes damage to the landscape.
d. Aeads to water and air pollution.
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ROLE OF BUSINESS IN ENVIRONMENTAL POLLUTION
@rom the above discussion on environmental pollution, one thing can clearly be seen that, it
is business that mainly contributes to all sorts of pollution Dair, noise, water and land.
9usiness causes pollution in the following ways2
D Imission of gas and smoke from manufacturing plants
D Cse of machines, vehicles etc. contributing to noise pollution
D $eforestation due to ac&uisition of forest lands for setting up plants
D Growth of urbani+ation and industriali+ation
D $isposal of wastes and effluents into rivers and canals
D $isposal of solid wastes in the open space
D !ining and &uarrying activities and
D Increasing use of transport.
Government has taken a maEor step in protecting the environment by passing the Invironment
Brotection =ct, 61<; in addition to having >ater "Brevention and Control of Bollution# =ct,
61GH, =ir "Brevention and Control of Bollution# =ct, 61<6 and several other =cts. 9usiness
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can e&ually be instrumental in fighting pollution and protecting the environment. 9usiness
can have three types of role D preventive, curative and awareness.
i2 Pre,en&i,e R#e
It means business should take all steps so that no further damage is done to the environment.
@or this, business must follow the regulations laid down by government to control pollution.
@or e*ample, more and more environmental friendly products can be produced, filters can
be used in chimneys silencers can be fitted in generators instead of dumping industrial
wastes into river and land it can be treated properly for further productive use etc.
9usinessmen should come forward to play a maEor role in preventing further damage done
to the environment by human beings. Sulabh International is the leading e*ample of how to
provide proper sanitation facilities to the public.
ii2 C!ra&i,e R#e
It means business should rectify whatever damage has been done to the environment. In
addition, if it is not possible to prevent pollution then simultaneous curative measures can be
taken. @or e*ample, planting of trees "afforestation programmes# can substantially reduce
air pollution near the industrial area.
iii2 A*areness R#e
It means making people "both the employees as well as the general public# aware about the
causes and conse&uences of environmental pollution so that they voluntarily try to protect
rather than damage the environment. @or e*ample, business can undertake public awareness
programmes. ,owDaDdays, we find that some business houses have taken the responsibilities
to develop and maintain parks and gardens in cities and towns, which shows that they care
for the environment.
/7

POSITION OF CSR TODAY AND ITS SCOPE /
In many =sian societies, Corporate Social Responsibility "CSR# is generally understood as being no
more than corporateDrun community development proEects to compensate for social and economic
inEustices. !ost of such proEects, like constructing schools and health care centres, have been
effectively hegemonic, providing strong legitimacy and e*tensive license tocorporations to sustain
the e*ploitation of the human and natural resources in many countries. = further implication of
CSR is that it makes people think that it is the company5s obligation to meet people5s rights to a
better education system, clean water, health care, etc., instead of the State or government. =t 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 statusDenhancing way for them to ac&uire an e*cellent and clean image in the public.
@or 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 workers5
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
(here are many actors involved in CSR activities2 ,G)s, government, and international institutions,
which eventually make CSR an emerging industry itself, valued at CSM 86.G billion in /00G. CSRD
driven initiatives such as !ultiDStakeholders Initiatives "!SI# 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. (he
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.
9y 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 !ultinational Corporations5 interests in
international subDcontracting. (he way that Codes of Conduct
/G

domesticate the movements is that it serves as the basis for ,G)s, and even labour unions, to be
engaged in the supervision work of the manufacturing process of !ultinational Corporations. In the
end, many ,G)s and labour unions participate in the band wagon of Code of Conduct monitoring,
taskforces, stakeholders5 roundtables, etc., forsaking their core work at the grassDroots.
Codes of Conduct create the privati+ation of labour law and promote selfDregulation in the factories.
9y 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. Imployers try to convince us that
voluntary standards are better than the e*isting labour law, which suffers from a lack of
implementation. (hus, the Code of Conduct logically has an inherent contradiction in itself2 as the
rootDproblem is the defect of labour law, Code of Conduct then has a similar limitation of its
functioning. @or that reason, we are very doubtful that local labour laws will be improved and
properly enforced under the Code of Conduct influence.
!oreover, Codes of Conduct and other types of CSR have the 4divide and rule5 effect. =t the
workplace level, CSR hampers the development of genuine, free and independent unions, which
are further stigmatised as troubleDmakers in society. =t the community level,
CSR affects the loss of harmony within society, as a number of people get benefits through Eobs, gifts
or trade opportunities, while others get none some people are even deprived, such as when they have
to give up their land. =t the national level, the impact of CSR is obviously seen as
the rupture between the proponents and opponents of CSR is ever widening. !eanwhile, in the
global level, ,orthern and Southern workers become less and less likely to reach out each
/<

other, as they get coDopted by multiDstakeholder initiatives and become more invested in them, rather
than in seeking the solidarity of other workers. In a nutshell, CSR undermines solidarity between
worker.
/1

STRATEGIC PLAN FOR CSR/
(he principal goal of the Strategic Blan for Corporate Social Responsibility is to establish some
management directives to guarantee certain ethical principles,respect for people and for the
environment (he specific obEectives that have been established in the Strategic Blan for
Corporate Social Responsibility coincide with the strategic lines defined2
6. !inimise the environmental impact
/. Guarantee transparency with the investment community
8. Insure that employees are motivated and involved in the
continuous improvement of the company
H. !aintain a close relationship with the client to guarantee client
satisfaction
7. I*tend the commitment to Social Responsibility to suppliers
and subDcontracted companies
;. Involvement with the community and the society as a whole
G. Incourage and systematise communication channels
<. Guarantee that the implementation of the Strategic Blan for
Corporate Social Responsibility is controlled and monitored
Iach 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.
S&ra&egic ine 1/ +ini+ise en,ir#n+en&a i+%ac&
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Respect for the environment is a fundamental aspect of Social Responsibility .In fact, it is one of the
three premises for sustainable development2 %Teconomic prosperity, environmental &uality and
social e&uity. Companies aiming for sustainability need to perform not against a single,
financial bottom line, but also against the triple
=ny activity has an impact, to a greater or lesser degree, on the environment. (o minimise this
impact, a first step is to identify it and evaluate it, so as to then establish the necessary
improvements
9oth the identification and evaluation, as well as the subse&uent implementation of improvements,
are actions that this strategic line covers. !aintaining 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.
=rea of application2
General2
6.6. Identify and evaluate the activity5s main environmental impacts.
6./. Istablish improved obEectives to reduce the activity5s environmental impacts.
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6.8. !aintain a register of environmental legislation that affects the activity and guarantee that it is
complied with and kept up to date.
6.H. Systematically control water and energy consumption and the production of residues.
6.7. !anage residues appropriately.
6.;. )ptimise energy consumption.
Highways2
6.G. !anage the highways5 forestry diversity.
6.<. 9uild awareness amongst users of the forestry and scenic value.
6.1. I*pand the (eletac service.
6.60. I*pand the waste water collection service for buses and caravans.
6.66. Insure that waste waters generated by activities are correctly managed.
6.6/. Carry out diagnosis and audit of energy usage in different installations.
6.68. Brepare a map of the impact of traffic noise on the highways.
Car parks2
6.6H. Insure optimum levels of interior air &uality.
6.67. Collaborate in Car Sharing proEects.
6.6;. @acilitate parking for bicycles.
6.6G. Carry out diagnosis and audit of energy usage in
different installations.
(elecommunication2
@ollow the measures established by (radia in its environmentalmanagement system in line with IS)
6H006.
8/

Aogistic services2
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
(his 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 )livencia Code and the =ldama Report, even though these are not binding.
Reference is also made to dialogue, with the obEective of finding the ideal
channels to guarantee feedback from the investment community.
=rea of application2
Corporation2
/.6. Comply with the rules on transparency and adopt the recommendations from the )livencia Code
and =ldama Report.
/./. Guarantee twoDway communication with the investment community.
/.8. Have a system for the evaluation, application and monitoring of opinions and demands from the
investment community.
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Strategic line 82 ensure that employees are motivated andinvolved in the continuous improvement of
the company(he obEective of abertisis to provide a workplace for the professional team of
almost ;,000 people U between the Corporation and its subsidiary companies for professional
and personal development.@or this reason, issues covered in this point include no discrimination
continuous training participative management balance between work, family and leisurehealth
and safety in the workplace, and business ethics.(he international standard S= <000 has been
taken as a reference, which adopts a system of accountable management to focus specifically on
the relationship with the employee.
=rea of application2
General2
8.6. Increase the representation of women.
8./. Insure employment of disabled personnel.
8.8. Jalue the training needs of all personnel and prepare an annual training program that includes
issues of Corporate Social Responsibility in the training sessions.
8.H. Brovide training to new employees on the commitments to Corporate Social Responsibility.
8.7. $evelop a system of management by obEectives.
8.;. $evelop a system to encourage employee participation through suggestions.
8.G. =dopt measures to balance workDfamilyDleisure.
8.<. Guarantee coherence, e&ual opportunities and no discrimination
8.1. Brotect the stability of the workforce.
8.60. Ivaluate the level of employee satisfaction.
8H

8.66. =dopt the necessary measures "ergonomics in space, material, e&uipment, etc.# to guarantee a
good work environment.
8.6/. Insure basic health, safety and accident prevention measures are taken.
8.68. Incourage good environmental practices at home amongst employees.
8.6H. Brepare an employee5s code of ethics.
8.67. >ork to comply with the re&uirements stipulated in the S= <000 standard.
NOTABLE WOR7 BY SOME COMPANIES
As"#- Le0an)
)perates a @un9us in Chennai and ,ew $elhi. (his bus, e&uipped with a hydraulic lift, takes
differently abled children and those from orphanages and corporation primary schools on a day s
picnic. (he company also runs =I$S awareness and prevention programmes in its Hosur factories for
about 8.7 lakh drivers.
A$is Ban-
(he =*is 9ank @oundation runs 9alwadis which are learning places for children living in large urban
slum clusters. It also conducts skill development programmes "BRI!= and Ruva Barivartan# in
motor driving, welding, mobile repairing, tailoring etc, for the youth in backward districts.
B"ara& Pe&r#e!+ C#r%#ra&i#n
Its rain water harvesting proEect 9oond, in association with the )il Industries $evelopment 9oard,
selects draughtDstricken villages to turn them from VwaterDscarce to waterDpositive . Some of
87

9BCA s other social programmes include adoption of villages, prevention and care for HIJK=I$S
and rural health care.
Hin)ac# In)!s&ries
Its CSR activities are concentrated in ;1/ villages and 6/ urban slums, where it reaches out to about
/; lakh people. It has constructed check dams, ponds and bore wells to provide safe drinking water.
In education, it awards scholarships to students from the rural schools it support. Its other interests
include women s empowerment and health care, in which it treats patients in hospitals, runs medical
camps and operates rural mobile medical van services.
8;

Inf#s0s
(he Infosys Science @oundation, set up in /001, gives away the annual Infosys Bri+e to honour
outstanding achievements in the fields of science and engineering. (he company supports causes in
health care, culture and rural development. In an interesting initiative undertaken by it, 600 school
teachers in Larnataka, who were suffering from arthritis, underwent free surgery as a part of a weekD
long programme.
Ma"in)ra 8 Ma"in)ra
,anhi Lali, a programme run by the LC !ahindra Iducation (rust, supports education of over
G7,000 underprivileged girls. (he trust has awarded grants and scholarships to <8,/H7 students so far.
In vocational training, the !ahindra Bride School provides livelihood training to youth from socially
and economically disadvantaged communities. !F! also works for causes related to environment,
health care, sports and culture.
Oi 8 Na&!ra Gas C#r%#ra&i#n
It offers communityDbased health care services in rural areas through 80 !obile !edicare Cnits
"!!Cs#. (he ),GCDIastern Swamp $eer Conservation BroEect works to protect the rare species of
Iaster Swamp $eer at the La+iranga ,ational Bark in =ssam. ),GC also supports education and
women empowerment.

Ta&a C#ns!&anc0 Ser,ices
Its Computer 9ased @unctional Aiteracy "C9@A# initiative for providing adult literacy has already
benefitted 6./ lakh people. (he programme is available in nine Indian languages. 9esides adult
education, (CS also works in the areas of skill development, health care and agriculture
8G

Case s&!)0/ TATA GROUP 8 CSR
In&r#)!c&i#n Ranging from steel, automobiles and software to consumer goods and
telecommunications the (ata Group operates more than <0 companies . It has around /00,000
employees across India and thus has the pride to be nation4s largest private employer. !r. Ratan ,.
(ata has led the eminent (ata Group successfully. He was trained as an architect at ,ew Rork:s
Cornell Cniversity but he chose to enter the family business .He assumed the Chairmanship of the
Group in 6116. ,amed 9usiness !an of the Rear for =sia by @orbes in /00H, !r. Ratan (ata serves
on the board of the @ord @oundation and the program board of the 9ill F !elinda Gates @oundation:s
India =I$S initiative. (ata Group chairman Ratan ,aval (ata has stepped down to pass on the entire
responsibility to Cyrus !istry . Cnder (ata, the group went through maEor organisational phases W
rationalisation, globalisation, and now innovation, as it attempts to reach a reported M700 billion in
revenues by /0/0D/6, roughly the si+e of what >almart is today. 14 =ppro*imately two third of the
e&uity of the parent firm, (ata Sons Atd., is held by philanthropic trusts endowed by Sir $orabEi (ata
and Sir Ratan (ata, sons of NamsetEi (ata, the founder of todays (ata empire in the 6<;0s. (hrough
these trusts, (ata Sons Atd. utili+es on average between < to 6H percent of its net profit every year for
various social causes. Iven when economic conditions were adverse, as in the late 6110s, the
financial commitment of the group towards social activities kept on increasing, from Rs ;G0 million
in 611GD1< to Rs 6.8; billion in 6111D/000. In the fiscal year /00H (ata Steel alone spent Rs H7 crore
on social services.
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