Professional Documents
Culture Documents
Sr No Topics Page no
1 Introduction to CSR
2 Need and importance of CSR
3 Benefits of CSR
4 Legal Aspects of CSR
5 Introduction of ACC
6 Vision and mission of ACC
7 CSR Activities of ACC
8 Conclusion
INTRODUCTION TO CSR
Definition of CSR
The broadest definition of corporate social responsibility is concerned with what
is – or should be – the relationship between global corporations, governments of
countries and individual citizens. More locally the definition is concerned with
the relationship between a corporation and the local society in which it resides or
operates. Another definition is concerned with the relationship between a
corporation and its stakeholders.
For us all of these definitions are pertinent and each represents a dimension of the
issue. A parallel debate is taking place in the arena of ethics – should corporations
be controlled through increased regulation or has the ethical base of citizenship
been lost and needs replacing before socially responsible behaviour will ensue?
However this debate is represented it seems that it is concerned with some sort of
social contract between corporations and society.
This social contract implies some form of altruistic behaviour – the converse of
selfishness – whereas self-interest connotes selfishness. Self-interest is central to
the Utilitarian perspective championed by such people as Bentham, Locke and J.
S. Mill. The latter, for example, is generally considered to have advocated as
morally right the pursuit of the greatest happiness for the greatest number –
although the Utilitarian philosophy is actually much more based on selfishness
than this – something to which we will return later. Similarly Adam Smith’s free-
market economics, is predicated on competing self-interest.
These influential ideas put interest of the individual above interest of the
collective. The central tenet of social responsibility however is the social contract
between all the stakeholders to society, which is an essential requirement of civil
society. This is alternatively described as citizenship but for either term it is
important to remember that the social responsibility needs to extend beyond
present members of society. Social responsibility also requires a responsibility
towards the future and towards future members of society. Subsumed within this
is of course a responsibility towards the environment – which we will also return
to later – because of implications for other members of society both now and in
the future.
There is however no agreed definition of CSR so this raises the question as to
what exactly can be considered to be corporate social responsibility.
Consumer perspective
Most consumers agree that while achieving business targets, companies should
do CSR at the same time. Most consumers believe companies doing charity work
will receive a positive response. Omerville also found that consumers are loyal
and willing to spend more on retailers that support charity. Consumers also
believe that retailers selling local products will gain loyalty. Smith (2013) shares
the belief that marketing local products will gain consumer trust. However,
environmental efforts are receiving negative views given the belief that this
would affect customer service. Oppewal et al. (2006) found that not all CSR
activities are attractive to consumers. They recommended that retailers focus on
one activity Becker-Olsen (2006) found that if the social initiative done by the
company is not aligned with other company goals it will have a negative impact.
Mohr et al. (2001) and Groza et al. (2011) also emphasise the importance of
reaching the consumer.
And more recently the greatest concern has been with climate
change and the way in which the emission of greenhouse gases
are exacerbating this.
It can be seen therefore from these examples that an organisation can have a very
significant effect upon its external environment and can actually change that
environment through its activities. It can also be seen that these different effects
can in some circumstances be viewed as beneficial and in other circumstances be
viewed as detrimental to the environment. Indeed the same actions can be viewed
as beneficial by some people and detrimental by others.
The principles of CSR Because of the uncertainty surrounding the nature of CSR
activity it is difficult to define CSR and to be certain about any such activity. It is
therefore imperative to be able to identify such activity and we take the view that
there are three basic principles which together comprise all CSR activity. These
are:
Sustainability
Accountability
Transparency
Sustainability
This is concerned with the effect which action taken in the present has upon the
options available in the future. If resources are utilised in the present then they
are no longer available for use in the future, and this is of particular concern if the
resources are finite in quantity Thus raw materials of an extractive nature, such
as coal, iron or oil, are finite in quantity and once used are not available for future
use. At some point in the future therefore alternatives will be needed to fulfil the
functions currently provided by these resources. This may be at some point in the
relatively distant future but of more immediate concern is the fact that as
resources become depleted then the cost of acquiring the remaining resources
tends to increase, and hence the operational costs of organisations tend to increase
Sustainability therefore implies that society must use no more of a resource than
can be regenerated. This can be defined in terms of the carrying capacity of the
ecosystem (Hawken 1993) and described with input – output models of resource
consumption. Thus the paper industry for example has a policy of replanting trees
to replace those harvested and this has the effect of retaining costs in the present
rather than temporally externalising them.
Inevitably however such reporting will involve qualitative facts and judgements
as well as quantifications. This qualitativeness will inhibit comparability over
time and will tend to mean that such impacts are assessed differently by different
users of the information, reflecting their individual values and priorities.
Corporate social responsibility focusses on the idea that a business has social
obligation above and beyond making a profit. It requires a management to be
accountable to the full range of stakeholders. Corporate social responsibility is
the continuing commitment by the business to behave ethically and contribute to
the economic development of the country while improving the quality of life of
the workforce and their families and local community and society at large. CSR
is achieving commercial success in the ways that honour ethical values and
respect people, communities and the natural environment. CSR is a combination
of policies, education and practices which extent throughout a corporation’s
operations and into the communities in which they operate. CSR is the
commitment of businesses to behave ethically and to contribute to the sustainable
economic development by working with all stakeholders to improve their lives in
the ways that are good for business and the society at large.
Scope
It is a way of integrating the economic, social and environmental imperatives of
business activities.
Why There Is A Need For Corporate Social Responsibility?
1. Better Public Image:
Each firm must enhance its public image to secure more customers, better
employees and higher profit. Acceptance of social responsibility goals lead to
improve public image.
2. Conversion of Resistances into Resources:
If the innovative ability of business is turned to social problems, many resistances
can be transformed into resources and the functional capacity of resources can be
increased many times.
3. Long Term Business Interest:
A better society would produce a better environment in which the business may
gain long term maximization of profit. A firm which is sensitive to community
needs would in its own self-interest like to have a better community to conduct
its business. To achieve this it would implement social programmes for social
welfare.
4. Avoiding Government Intervention:
Regulation and control are costly to business both in terms of money and energy
and restrict its flexibility of decision making. Failure of businessmen to assume
social responsibilities invites government to intervene and regulate or control
their activities. The prudent course for business is to understand the limit of its
power and how to use that power carefully and responsibly thereby avoiding
government intervention.
Education
ACC has established schools at most of its locations that provide high quality
education to children of employees and those from the host communities. In
addition, the company also supports schools in the vicinity. Technology aided
education initiatives such as Smart Classes and interactive kiosks have been
implemented at several ACC locations for enhancing the quality of learning.
ACC continues to support Government run ITIs under the Public Private
Partnership scheme to upgrade the quality of education which in turn
improves the skills and employability of students.
Women’s Empowerment
ACC recognizes Women’s empowerment as a priority. The company
encourages women to form Self Help Groups (SHGs) in the communities
around its plant locations. Members of the SHGs are trained in capacity-
building, various individual crafts, marketing skills, accounts, teamwork and
other relevant aspects. ACC AHEAD (Association of Health, Education And
Development), a voluntary group constituted of ACC employees’ spouses,
takes active part in this vocational training.
Livelihoods
ACC promotes skill development among the rural youth. Industry needs skilled
persons while a large part of the rural youth is unskilled and unemployed. Our
CSR programmes connect the youth to high standard skills training institutions,
providing partial financial support, wherever necessary as well as extending
help in enrolment and in obtaining placement.
Our livelihood and income generation initiatives helped in training and placing
youth with various employers. Some of these young men have been provided
technical skill training on construction and subsequently placed in suitable jobs.
HIV/AIDS
ACC plays a meaningful role in the nationwide effort to eradicate HIV/AIDS. In
close consultation with the Confederation of Indian Industry (CII), the company
stepped forward to support the government in battling this important public
health issue by adopting a Workplace policy for HIV/AIDS that protects the
fundamental human rights of employees who may unfortunately become
affected by HIV/AIDS, while also ensuring that these affected persons get
proper care and treatment.
The company also set up two Anti Retroviral Treatment Centres for HIV/AIDS
treatment – one outside ACC’s Wadi plant in Karnataka and the second at
Vellore, Tamil Nadu in partnership with the reputed Christian Medical College.
Both ART Centres are run as state-of- the-art treatment centres with all the
basic physical infrastructure, medical equipment, laboratory facilities and
trained medical and support personnel as prescribed by NACO ART guidelines.
They include Voluntary Counselling and Testing centres and are sought to be
operated world-class facilities.