Professional Documents
Culture Documents
simplistic to the complex, and a range of associated terms and ideas (some used
investment, the triple bottom line, socially responsible investment, business sustainability and
performance so much that the concept becomes morally vacuous, conceptually meaningless,
and utterly unrecognizable (Orlitzky 2005); or CSR may be regarded as the panacea which
will solve the global poverty gap, social exclusion and environmental degradation (Van
Marrewijk 2003).
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large.
The study aims to detail the various corporate social responsibilities undertaken by Dr.
Reddys lab for the welfare of public. The concept of social license is an abstract one, the
varying degrees of success with a range of concepts such as CSR, triple bottom line, and
embrace this relationship with the broader society in which they operate.
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A popular explanation of the term CSR is the continuing commitment by businesses to
behave ethically and contribute to economic development, while improving the quality of life
of the workforce and their families as well as of the local community and society at large.
Over the last years an increasing number of companies worldwide started promoting their
business through Corporate Social Responsibility strategies because the customers, the public
and the investors expect them to act sustainable as well as responsible. In some cases, CSR is
a result of a variety of social, environmental and economic pressures while some other cases
many large corporations, it is primarily a strategy to divert attention away from the negative
social and environmental impacts of their lives. It enables the company to leverage its
products, employee strength, networks and profits and up to some extent to create a
MEANING
assess and take responsibility for the company's effects on environmental and social
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wellbeing. The term generally applies to efforts that go beyond what may be required by
CSR may also be referred to as "corporate citizenship" and can involve incurring short-
term costs that do not provide an immediate financial benefit to the company, but instead
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CHARACTERISTICS OF CORPORATE SOCIAL RESPONSIBILITY
The Public
CSR argues that corporations bear responsibility for the effect they have on other sectors of
society. The activities of corporations have an impact on individuals who don't work for them
and don't buy their products, though, for example, secondary economic impacts and
degradation of the natural environment. CSR acknowledges this, and attempts to make the
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interactions between corporations and society positive and productive. This can be done by
consulting with neighbors and citizens who are affected by corporate activities and by
striving for transparency in corporate pursuits so that the public knows what is going on.
The Environment
Increased knowledge on the part of the public about declining resources, toxic waste and
benign. The traditional view that the natural world is merely a source of materials and an
equally convenient dump for waste is being challenged from many quarters, and CSR is an
attempt by corporations to respond to these concerns. The sincerity of changes being made on
the part of corporations includes some serious efforts to achieve sustainability and other
efforts that are essentially "greenwashing," activities in which corporations put more effort
Clients
CSR challenges the traditional wisdom that the interests and needs of the clients of a
corporation will be adequately protected by the market itself. Because the free market has
marketing practices, CSR attempts to remedy this situation by installing practices into
corporate life that will monitor the interaction between corporations and their clients in an
attempt to ensure that nobody is being exploited or cheated. Consumer protection can be
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enforced by the government or voluntarily pursued by companies, the latter course has clear
Staff
Staff and employees of corporations have a right to expect fair pay, safe working conditions
and meaningful work. CSR is one aspect of a transformation in the corporate world that
attempts to overcome archaic views of workers as mere means to an end on the part of
shareholders. Particularly in less developed countries that are often the sites of intensive
promote the rights of all workers and to ensure that corporations respect these rights and
make whatever changes are required to prevent the exploitation and mistreatment of labor.
ADVANTAGE OF CSR
study has found that stakeholder balanced companies showed four times
the growth rate and eight times employment growth when compared to
responsible can benefit -both by its enhanced reputation with the public, as
a large and growing market for the products and services of companies
costs. Tight labor markets as well the trend toward multiple jobs for shorter
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return on the consideration resources invested in recruiting, hiring, and
training.
requirements are being given less scrutiny and freer region by both national
and local government entities. In many cases, such companies are subject to
Easier access to capital: The Social Investment Forum reports that, in the
portfolios that use screens linked to ethics, the environment, and corporate
DISADVANTAGES OF CSR
Corporate Social Responsibility calls for organizations to consider the companys impact on
society and the environment as they conduct business. Though noble in principle and
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profitable in some industries, CSR has a number of detractors who point out the
Shareholder Interests
increased reporting. In many cases, businesses hire additional personnel to manage CSR
initiatives. These actions come at a cost, and opponents point out that the money spent on
CSR comes directly from shareholders pockets. Former investment banker and current
Tulane University professor Elaine Sternberg, one of the most vocal opponents of the effects
of CSR on shareholder profits, points out that CSR initiatives incur great cost with little
measurable return.
Corporate Reputation
While many businesses undertake CSR initiatives with the intent of bolstering their public
images, these initiatives can sometimes require a company to release information that has an
opposite effect. In 2003, for example, Coca-Cola released a damaging report about chemicals
found in its products as part of its CSR initiative. This report had an immediate short-term
the Utrecht Law Review, with sales dropping 40 percent in the two-week period following the
report.
Customer Cynicism
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Some businesses recognize that socially responsible behaviour has a positive effect on their
customers opinions of the organization. After years of hearing how their favourite businesses
care about society and the environment, but seeing little obvious involvement from these
organizations, many customers have grown cynical of CSR reports. According to business
more than PR initiatives. For this reason, businesses often face a considerable obstacle
convincing their customers that their actions match their stated intentions.
Competitive Disadvantages
Corporate social responsibility projects and initiatives require a shift in thinking for many
businesses, and some CSR processes can make the business more cumbersome to operate.
Wal-Mart subjects its suppliers to strict regulations on product quality and employee working
conditions, for example, which add production time and increase overhead for the suppliers.
Their competitors, meanwhile, can operate at lower costs and turn out products more quickly.
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Chapter2
More recently CSR has become focused on corporate behavior and policies and values. CSR
Opening and
sensitiveness
to
government
Community Value
sense Creation
5 Basis of
CSR
Long-term
Innovation
consideration
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Corporate social responsibility of any company is based on the five elements. From the
products and services from time to time in the market to service the customers which
Value creation is one of the primary targets for any company, because to create trust
worthiness in the market and in the minds of the shareholders, customers and investors
Today companies are not working for profit motive. To survive in the competitive
market every company need to focus in service rather than profit. That is profit through
service motive.
Community sense is, a company should be liable to the community and respects the
community needs and requirements and provides some good in terms of economic,
Every company has to run on corporate governance, corporate governance is the frame
work of all the set of principles and procedures to protect the company from frauds and
other issues. For this the company need to abide the rules, laws and regulations framed
by the government.
Business is a process, its not a contract, and if it wants to survive in the market it
should consider the needs and wants of the various interest groups.
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CSR: PYRAMID
Philanthropic
Responsibility
Legal
Responsibility
Ethical Economic
Responsibility Responsibility
Economic responsibilities
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Business organizations are formed as economic entitys to provide quality goods and better
services to societal members. The profit motive was established as primary incentive for
entrepreneurship. Business organizations were treated as the basic economic unit in our
society. Thus its major role was to produce goods and services that consumers needed and
wanted and to make an acceptable profit in the process. At some point the motive of getting
profits are transformed into a notion of maximum profits, and it has been an enduring value
ever since. All other business responsibilities are predicated upon the economic responsibility
Legal responsibilities
Business should not be only for profit motive while serving the society. At the same time
business is expected to comply and should abide with the laws and regulations promulgated
by federal, state and local governments as the ground rules under which business must
operate. As partial fulfilment of the social contract between business and society, firms are
expected to pursue their economic missions with the framework of law. Legal responsivities
made businesses are having codified ethics and they co-exist with economic responsibilities
Ethical responsibilities
Al though the economic and legal responsibilities have ethical base about fair practice and
justice, ethical responsibilities embrace those activities and practices that are prohibited by
members of the society even though they are not codified in to law. Ethical responsibilities
frame those standards, norms, or expectations that reflect a concern for what consumers,
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employees, shareholders, and the community regard as fair just or in keeping with the respect
or protection of stakeholders moral rights. In other sense, ethical responsibilities rare viewed
as newly emerging values and norms society expects business to meet, even though such
values and norms may reflect a higher standard of performance than that currently required
by law.
Philanthropic responsibilities
Philanthropy encompasses those corporate actions that are in response to the society
expectation that businesses to be good corporate citizens. That is actively engaged in various
the arts, education, or the community. Therefore, philanthropy is more discretionary on the
businesses part even though there is always the societal expectation that businesses provide it.
The CSR of business entails the fulfilment of the firms economic, legal ethical and
philanthropic responsibilities. The CSR firm should strive to make a profitable value, obey
CSR: DIMENSIONS
Owners and shareholder s is the key people for success of any business organization, they are
the one who invest for an organization so it is essential to work together for the benefit of an
organization. Employees are the one who works for an organization so, maintaining a sound
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environment in an organization is very much essential therefore they can work hard for the
benefit of their clients. Consumers are the key people for the success of any business
organization; organization should take some necessary feedback from them. It would help
them in the future for better performance. Organization cannot go beyond the rule of the
government so they should cooperate with government to follow the rules and perform their
activities.
Corporate social responsibility plays an important role to enhance the brand image and
reputation of the business firm. It (CSR) helps to improve sales and customer loyalty. It also
enables to attract and retain employees. The corporate social responsibility is deliberate to
provide each business with a far greater ability to create sustainable development. Corporate
social responsibility is linked with sustainability. The attraction towards corporate social
responsibility for many businesses is that it can help to increase sustainability without
creating any negative effects. In the present era corporate social responsibility has occupied
very important place in the plans and strategies of the business organizations.
Each business entity should formulate a CSR policy to guide its strategic planning and
provide a roadmap for its CSR initiatives, which should be an integral part of overall
business policy and aligned with its business goals. The policy should be framed with the
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Core Elements:
The companies should respect the interests of, and be responsive towards all
people, society at large etc. and create value for all of them. They should develop
mechanism to actively engage with all stakeholders, inform them of inherent risks and
2. Ethical functioning:
Accountability. They should not engage in business practices that are abusive, unfair, corrupt
or anti-competitive.
Companies should provide a workplace environment that is safe, hygienic and humane and
which upholds the dignity of employees. They should provide all employees with access to
training and development of necessary skills for career advancement, on an equal and non-
discriminatory basis. They should uphold the freedom of association and the effective
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recognition of the right to collective bargaining of labour, have an effective grievance
redressal system, should not employ child or forced labour and provide and maintain equality
employment.
Companies should respect human rights for all and avoid complicity with human rights
Companies should take measures to check and prevent pollution; recycle, manage and
reduce waste, should manage natural resources in a sustainable manner and ensure optimal
use of resources like land and water, should proactively respond to the challenges of climate
change by adopting cleaner production methods, promoting efficient use of energy and
Depending upon their core competency and business interest, companies should
geographical areas, particularly in the vicinity of their operations. These could include:
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education, skill building for livelihood of people, health, cultural and social welfare etc.,
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Implementation Guidance:
Responsibility (CSR) for CPSEs in April, 2010 which have been issued formally to the
under their administrative control. Following are the salient features of guidelines on CSR
& Sustainability:
(ii) In the revised guidelines, CSR and Sustainability agenda is perceived to be equally
and a companys corporate social responsibility is expected to cover even its routine
business operations and activities. CPSEs are expected to formulate their policies with a
balanced emphasis on all aspects of CSR and Sustainability - equally with regard to
externalities.
(iii) In the revised guidelines CSR and Sustainable Development have been clubbed
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together in one set of guidelines for CSR and Sustainability because of close
(iv) Public Sector enterprises are required to have a CSR and Sustainability policy
activities undertaken by them under such a policy should also have the
(v) The financial component/budgetary spend on CSR and Sustainability will be based
on the profitability of the company and shall be determined by the Profit After Tax
All CPSEs shall strive to maximize their spending on CSR and Sustainability
activities and move towards the higher end of their slabs of budget allocation.
(vi) Loss making companies are not mandated to earmark specific funding for CSR and
Sustainability activities. However, they must pursue CSR and Sustainability policies by
integrating them with their business plans, strategies and processes, which do not
involve any financial expenditure. They may also collaborate with the profit making
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CPSEs and assist them in ingenious ways without financial support in CSR and
Sustainability activities.
spirit will be covered under CSR and Sustainability activity. However, expenditure on
such activities would not be covered by CSRs financial component and would be
(viii) The unutilized budget for CSR activities planned for a year will not lapse and will,
instead, be carried forward to the next year. However, the CPSEs will have to disclose
the reasons for not fully utilizing the budget allocated for CSR and Sustainability
activities planned for each year. The unspent amount will have to be spend within the
next two financial years, failing which, it would be transferred to a Sustainability Fund
(ix) From amongst these beneficiaries of CSR and Sustainability spend (financial
activities can rightfully stake a claim for attention before others. Such stakeholders are
social responsibility of a company towards these stakeholders extends beyond its legal
obligation to compensate for, and ameliorate the impact of its commercial activities. For
stakeholders and undertake CSR and Sustainability projects in the periphery of its
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commercial operations on priority.
(x) CPSEs are expected to take initiative to promote welfare of employees and labour
(xi) Although CPSEs may select their CSR and Sustainability projects from a vast range
growth of society, with special attention to the development of weaker sections of society
and the backward districts of the country, and (ii) environment sustainability. CSR and
infrastructural development for the benefit of the marginalized and under privileged
sections of the local communities and also in the backward regions so that avenues are
created for their employment and income generation, and they also experience
empowerment and inclusion in the economic mainstream. Weaker sections would include
SC, ST, OBC, minorities, women and children, BPL families, old and aged, physically
challenged, etc.
(xii) It is mandatory for CPSEs to take up at least one major project for development of a
backward district as identified by the Planning Commission for its Backward Region
Grand Fund (BRGF) Scheme, and one major project for environment sustainability. For
Maharatna CPSEs, it is mandatory to take up one more major project in either of the two
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categories.
(xiii) A Board level committee headed by either the Chairman and / or Managing
CSR and Sustainability policies and oversee the implementation of CSR and
(xiv) There is emphasis on internalizing the philosophy and spirit of CSR and
Sustainability within the organizational culture and ethos. The philosophy and spirit of
corporate social responsibility and sustainability should get embedded in the core values of
all the CPSEs, be imbibed by the employees at all levels and it should permeate into all
enterprises professing to behave responsibly are expected to produce goods and services
that are safe and healthy for the consumers and the environment, with reduced cost to the
(xv) 5 per cent of the annual budget for CSR and Sustainability activities has to be
earmarked for Emergency needs, which would include relief work undertaken during
Relief Funds.
(xvi) Ethical conduct of business lies at the core of responsible business. To promote
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organizational integrity it is essential that premium is placed on individual probity of
returns and marginal gains in business through questionable means is resisted; and,
position and situations that give rise to possible conflict of interest are avoided.
(xvii) Sustainability reporting and disclosure of all CSR and Sustainability activities
public sector companies can gain and reinforce the thrust of the stakeholders. This, in
turn, would provide a powerful stimulus to their CSR and Sustainability policies and
Enterprises (DPE) in April, 2010, all profit making Central Public Sector Enterprises
(CPSEs), including Maharatna CPSEs are required to select CSR activities which are
aligned with their Business strategy and to undertake them in a project mode. CPSEs are
mandated to spend their funds on CSR projects selected by them with the approval of their
respective Boards. All profit making CPSEs are required to allocate budget mandatorily
Loss making CPSEs are not mandated to earmark specific funding for CSR
activities. CSR Budget is fixed for each financial year and this fund does not lapse. It is
Maharatna CPSEs and the number of persons benefited therefrom, is not maintained
Navratna CPSEs on total funds allocated for CSR and the funds utilized for the year 2010-
11 and 2011-12 is given in the Annexure-II. CPSEs are free to take up CSR Projects for
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Chapter 3
TOYOTA CORPORATION
Toyota Company was founded in the year 1867 to create automobiles, head quartered in
Aichi, Japan. The company is famous for its quality and customer satisfaction.
sustainable development of society and the earth through all business activities that
we carry out in each country and region based on our guiding principles.
Toyota comply with local, national and international laws and regulations as well as
the spirit there of and the company conducts its business operations with honesty
and integrity.
importance, and the company will endeavor to build and maintain sound
relationships with its stakeholders through open and fair communication. Toyota
expects its business partners to support this initiative and act in accordance with it.
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CSR policy towards customers
innovative, safe and outstanding high quality product and services that meet a wide
variety of customers demands to enrich the lives of people around the world.
else where the company is engaged in business with, in accordance with the letter
Company respects its employees and believe that the success of its business is led
by each individual creativity and good teamwork. The company stimulates the
Company supports equal employment opportunities, diversity and inclusion for all
Company strive to provide fair working conditions and to maintain a safe and
Company respect and honor the human rights of people involved in business and in
Through communication and dialogue with employees, the company build and share
the value mutual trust and mutual responsibility and work together for the success
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associate, or not to associate, complain with the laws of the countries in which it
operate.
Company respect its business partners such as suppliers and dealers and work with
them through long term relationships to realize mutual growth based on mutual
trust.
Whenever company seek a new business partner, it is open to any and all
overall strength.
Company practice and maintains fair and free competition in accordance with the
Company strive to enhance corporate value while achieving a stable and long term
Company provide its shareholders and investors with timely and fair disclosure of
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Environment- Company aim for growth that is in harmony with the environment by
working to reduce the effect of its vehicles and operations on climate change and
bio diversity. Toyota strives to develop, establish and promote technologies enabling
the environment and economy to co exists harmoniously, and to build close and
honoring the culture, customs, history and laws of each country and it constantly
search for safer, cleaner and superior technology that satisfy the evolving needs of
society for sustainable mobility and company do not tolerate bribery of or by any
business partner, government agency or public authority and maintain honest and
Social contribution- Toyota actively promote and engage, both individually and
with partners, in social contribution activities that help strengthen communities and
Company has established 4 committees as sub committees under the main CSR
committee, which deliberates and handle important issues. Those committees are
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Corporate ethics committee: internal governance, observation of regulation, constructing
The committee is deliberating and issuing reports on the issues listed below:
issues.
TOYOTA CORPORATION
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MID TERM POLICY,
COMPANY MANAGEMENT
FISCAL
PLAN
YEAR
BASIC
DAILY POLICY,
MAP
BUSINESS
DEPARTMENTAL POLICY
CSR department to promote Toyota CSR initiatives
In June 2010, the risk management committee was formed under the CSR committee in
response to quality issues, and will be chaired by a CSR committee member responsible
for risk management at vice president level. Originally organised under the CSR and
environmental affairs division, the CSR office was transferred to the corporate planning
Toyota established the Corporate Planning Meeting and Corporate Governance Meeting as
the bodies responsible for raising corporate value, and implements activities from a long-
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Corporate Planning Meeting and Corporate Governance Meeting
Committee to coordinate and promote CSR activities. Through the CSR Committee, we
have ensured legal compliance, conducted social contribution activities and promoted
Since April 2015, organizational changes were made intended to incorporate CSR into
management and to raise corporate value. Discussions previously held by the CSR
Committee have been transferred to the Corporate Planning Meeting and Corporate
Governance Meeting. With oversight of the Board of Directors, the Corporate Planning
Meeting discusses growth strategies that incorporate the value that Toyota provides with
regard to a variety of social issues, and promotes companywide CSR and corporate value
governance structures for realizing those strategies and supervises business operations.
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Corporate Governance Meeting
SUMMARY
Corporate social responsibility is todays trending topic in corporate world. Since business
and society have been interdependent. This relationship between business and society is
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appreciated like: corporate should work like a honeybee, which take the nectar of a
flower without the flower being losing its shape and fragrance and provides honey for the
wellbeing of the society. The business history is replete with evidences to believe that
business grows and develops only where society thrives. On the contrary, business dies
when the society condemns and rejects it. No business can survive without societal
Business can help by defining itself by explaining what it is and what it isnt. From this
stand point:
The boundaries to corporate social responsibility are conceptual. A companys
primary responsibility is to its shareholders, to its owners.
The boundaries are practical. A company has limited resources, limited expertise
and limited reach. A company is not a panacea, a cure at all.
The boundaries are influenced by self-interest. Business thrives if the society in which it
operates thrives. To neglect this is to put at risk the interests of shareholders of the
company.
Conclusion
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Corporate social responsibility is todays trending topic in corporate world. Since business
and society have been interdependent. This relationship between business and society is
appreciated like: corporate should work like a honeybee, which take the nectar of a
flower without the flower being losing its shape and fragrance and provides honey for the
wellbeing of the society. The business history is replete with evidences to believe that
business grows and develops only where society thrives. On the contrary, business dies
when the society condemns and rejects it. No business can survive without societal
Toyota clearly understands that the future of any organization is based on three sub
systems of complex global system nature, socio political and global economy for their
development and sustainability. Its global warming prevention initiative which reduces
co2 emission and prevents global warming is highly prioritized, by restricting energy
consumption in all areas of business activities, in all stages of vehicle development and in
environmentally considered way of driving that reduces the amount of co2 emissions. The
company is taking care of all parties like shareholders by providing them value, for
employees by providing them healthy and safe work environment and economic benefits,
for society by providing quality and innovative products for government by abiding the
rules and regulations. Because of its CSR activities Toyota has been selected as a
constituent of the Dow Jones Sustainability Indexes (DJSI) Asia pacific. And Toyota
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Bibliography
www.toyota-global.com
One4allcsr.com
Business ethics and corporate social responsibility.
http://www.enterweb.org/ethics.htm
Scribd.com
Strategic management-manan prakashan
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