Leadership & CSR

All You Need To Know

• University: Tehran University- Entrepreneurship
• Major: DBA
• Code: 10
• Course: Leadership
• Subject: leadership & CSR
• Creators:

Mahmood Oskooei Sajad Tamrabadi

Content
• Introduction
• History Of Leadership & CSR
• Why Corporate Leaders Need CSR
• Corporate Leaders & CSR Models
• Now A Days Leaders CSR Roles
• Cons & Pro
• Best Practices
Introduction
Introduction- Definitions
Definition of Leadership: Leadership is the art of motivating a group of people to act towards
achieving a common goal. It’s get formed by inherent, acquisitive and contingency.

Characteristics of a leader:
• Earn the Respect of Others
• Knowledgeable and Capable
• Fairness
• Excellent Communication Skills
• High Expectations
• Ambitious and energetic
• Intelligent
• Confident
Introduction- Definitions
What Is Social Responsibility
Social responsibility is an ethical framework and suggests that an entity, be it an organization or
individual, has an obligation to act for the benefit of society at large. Social responsibility is a
duty every individual has to perform so as to maintain a balance between the economy and the
ecosystems.

Quotes
“He who knows more is more responsible.” ― Alireza Salehi Nejad
“We're highly social animals - I' m told by scientists that what makes us different from other
animals is an acute social awareness , which is what has made us so successful.” ― Alan Alda
“ In a world of lies and liars, an honest work of art is always an act of social responsibility.”
― Robert Mckee
Introduction- Definitions
Traditional View of CSR Society
• The prime purpose of the business was
Consumers Health
profit maximization- Milton Friedman
“ the business of business is business.”
• It is argued that the profit earned by Business
business belongs exclusively to the Owners
Economy
shareholders of the business and these
profit cannot be diverted to any other Shareholders Employees
social purpose.-social obligation
Education

Government
Other
Stakeholders
Introduction- Definitions
What Is CSR (Now A Days) I Controlled and created by
Corporate Social Responsibility (CSR) is defined as the corporate leaders
voluntary activities undertaken by a company to
operate activities toward society benefits and
development in a sustainable manner. CSR is usually
part of PR and marketing activities now a days. It is
company ethical behavior. In other word Essentially, it
is about how business takes into account the economic,
social and environmental impact of the way in which it
operates.
It could be in different forms such as engaging directly
with local communities, identifying their basic needs,
and integrating their needs with business goals and
strategic intent.
Introduction- Definition
What Is CSR (Now A Days) II
Some definition of CSR by world leading entities are as the following:
• EU Definition of CSR: "A concept whereby companies integrate social and environmental
concerns in their business operations and in their interaction with their stakeholders on a
voluntary basis."

• Mallen Baker Definition: "CSR is about how companies manage the business processes
to produce an overall positive impact on society."

• The World Business Council for Sustainable Development (WBCSD): "Corporate Social
Responsibility is the continuing commitment by business 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"
History Of
Leadership & CSR
History- The evolution of responsibility & sustainability

Early 1990s Early 2000s

Environmental Triple
management bottom line
1970s Quality 1980s
management Health & safety Late 1990s Late 2000s
Health, safety, Sustainable
environment markets

Early 1990s Early 2000s

Corporate Corporate
Governance Accountability
1970s 1980s
Shareholders Philanthropy Late 1990s Late 2000s
Stakeholders Responsible
Engagement Competitiveness

1970 1980 1990 2000

Why Corporate
Leaders Need CSR
Why Corporate Leaders Need CSR- Leaders & CSR Core Characteristics

Characteristics of a leader

Ambitious Earn the

& High Excellent
Respect of Intelligent Fairness
Expectations
energetic Others Communication

Multiple Social &

Beyond Practices Managing
Voluntary Stakeholder Economic
Philanthropy & Values Externalities
Orientation Alignment

Six Core Characteristics Of CSR

Why Corporate Leaders Need CSR- CSR Benefits For Leaders
Winning new
Businesses &
profits
Enhanced
Increase in
Relationship with
customer retention
Stakeholders &
& prevention
Government

Saving money
on energy and
Benefits Attracting and
Maintaining a
enhanced workforce
operating cost
of CSR
Enhancing your Media interest,
influence in the improve public image &
industry critic management

Differentiating
yourself from the
competitor
Corporate Leaders
& CSR Models
CSR Models- List Of Models
Social Responsibility Models
• Ackerman Model
• Carroll Model
• Redman Model
• Corporate Citizenship Model
• Friedman model
• Stockholders & Stakeholders Model.
CSR Models- Ackerman Model (1976)
• The model has emphasized on the internal policy goals & their relation to the CSR.
• Four stages involved in this model of CSR.
1) Corporate leader get to know the most common social problem
& then express a willingness to take a particular project which Evaluate
will solve some social problems.
Work on it
2) Intensive study of the problem by hiring experts
& getting their suggestions to make it operational. Study problem
3) Managers take up the project actively & work hard.
Find the social problem
4) Evaluating of the project by addressing the issues.
CSR Models- Ackerman Model (1976) Conted
Six Strategies in the adoption of CSR
• Rejection strategy
• Adversary strategy
• Resistance strategy
• Compliance strategy
• Accommodation strategy
• Proactive strategy
CSR Models- Carroll Model(1991)
CSR Models- Carroll Model(1991) Conted
• Philanthropic requirements:
Donation, gifts, helping the poor. It
ensure goodwill & social welfare.
• Ethical responsibility: Follow moral & Philanthropic
ethical values to deal with all the
stakeholders.
• Economic responsibility: Maximize Ethical
Legal
the shareholders value by paying
good return.
• Legal responsibility: Abiding the laws
of the land. Economic
CSR Models- Redman Model
Environmental Integrity & Community Health Model
• This model developed by Redman.
• Many corporate in US adopted this model.
• Corporate contribution towards environmental integrity & human health, there will be greater
expansion opportunities.
• Healthy people can work more & earn more.
• CSR is beneficial for the corporate sector.
• CSR in a particular form is welcome.
CSR Models- Corporate Citizenship Model
• To be a corporate citizen, a corporate firm has to satisfy
four conditions:
1. Consistently satisfactory
Behavior
2. Sustainable economic performance
3. Ethical actions Ethical
4. Behavior. Action
• A particular firm’s commitment to corporate Economic
citizenship requires the fulfillment of certain Performance
social responsibility.

Consistently
CSR Models- Friedman’s model
Friedman’s Social Responsibility Model
a corporation’s responsibility is to make as much
money for the stockholders as possible.” At first blush
this sounds uncivil, severe, potentially even cruel.
What about worker safety? Pollution? Child labor in
less-developed countries? Are issues like these to be
ignored by corporations? This indeed sounds like an
uncivil, potentially unpleasant society. In [a free
economy] there is one and only one social
responsibility of business―to use its resources and
engage in activities designed to increase its profits so
long as it stays within the rules of the game. It is the
responsibility of the rest of us to establish a
framework of law such that an individual in pursuing
his own interest is, led by an invisible hand to promote
an end which was no part of his intention.
CSR Models- Stockholders & Stakeholders Model Conted

• Productvists believe that the only ORIENTATION

mission of a firm is to maximize the
profit.
• Philanthropists who entertain the Self 1 2 Interest
stockholders. CSR is dominated by
moral obligations & not self-interest. Productivism Progressivism
• Progressivists believes the corporate

MOTIVES

MOTIVES
behavior basically motivated by self
interest & should have ability to 3 4
transform the society for good.
• Ethical Idealism concern with sharing of Philanthropy Ethical Idealism Duty
Moral
corporate profits for humanitarian
activities.
CSR Models- CSR Concepts

Education Government

Health
Employee Environment Consumers
& Pollution
 &
Cons Pros
CSR Cons
• Violation of profit maximization in short term.
• Dilution of purpose.
• Costs.
• Too much power.
• Social actions can not be measured.
• Lack of skills because large scope problems.
• Lack of accountability.
• Increase in the prices of the products or services.
• Who would identify the social issue or problem.
• Conflict of interests.
• How do CEOs decide what is in the best interest of
society?
CSR Pro
• Public expectations.
• Long-run profits.
• Ethical obligation.
• Public image.
• Better environment.
• Harmonious and healthy relations with the society.
• Win-win-win situation.
• And much more.
Best Practices
Best Practices of CSR- Corporate Leader Requirements & Infra
• To identify social problems and issues properly.
• To select social problems and issues which are aligned with corporate principals.
• Study the social problem deep enough including its possible side effects.
• To set a feasible, Viable & measureable goal.
• To use social human resources and engaged them through right interaction on
problem solving.
• Build a long lasting relationship with the community through the activity.
• Retain the community core values.
• The impact of the CSR needs to be assessed.
• Reporting the impact.
• Create community and media awareness.
Best Practices of CSR- Example of CSR
• IBM UK - Reinventing Education Partnership programe Interactions
and sharing of knowledge through a web-based technology - the
“Learning Village” software. Culture of openness and sharing of good
practice

• AVON - a partnership with Breakthrough Breast Cancer, and its Breast

Cancer Crusade has raised over 10 million pounds since its launch 12
years ago

• TOI’s Lead India campaign, campaign for contribution towards

educating the poor
Best Practices of CSR- Nike Case

Company introduction:
• Created in 1972
• Named for the Greek goddess of victory
• Just Do It!
• Employs 33,000 people worldwide
• 1st Sports Brand on the list
Best Practices of CSR- Nike Child Labour Scandal Case

So What Happened?
• Child Labour in Pakistan
• 12 year olds were paid 60c/day to make
footballs
• Company had factories in South Korea,
Indonesia & Thailand
• Children worked 12 hour a day in sub-standard
conditions

June 1996
Best Practices of CSR- Nike Child Labour Scandal CSR Solution

The Solution Nike Has Applied

• Code of Conduct: all suppliers must
agree to do it
• Overtime: creation of an Excessive
Overtime Task Force
• Wages: Nike, Other Brands, NGOs to
effect change
• Short-term results poor, hope for
success in the Long-Term
• Nike’s CSR website: nikebiz.com

Pro active CSR results better and

that’s corporate leaders duty
Best Practices of CSR- Nike Child Labour Scandal CSR Critique

Critique
“The CSR cost for Nike is about $10 million to
$12 million a year, just for the CSR staff
and expenses, to go to these sustainability
meetings all over the world. They have two
or three Nike people at every meeting.
That’s part of the CSR game.
“I figure 75 cents per pair of shoes to the
worker would fix the problem. If Nike
instead paid workers 75 cents more per
pair of shoes, do you know what that
would cost Nike compared to the CSR cost?
That would cost them $210 million a year.”
Jeffrey Ballinger, Anti-sweatshop activist
Best Practices of CSR- Nike Child Labour Scandal Crisis Managment

CSR as Crisis Management?

“The CSR cost for Nike is about $10 million
to $12 In June 2007, Nike apparently
renounced its use of CSR as "a risk and
reputation management tool“
It was to become a core "business
objective.“

Source: “Nike back in responsibility rehab”

by Steve Bruin The Oregonian, 3rd June
Best Practices of CSR- Coca Cola Case

Company introduction:
• Created in 1886
• Number 3 brand with 71.3 B USD value
• Taste The Feeling (and many others)!
• Employs 146,200 people worldwide
• World number of soft drink
Best Practices of CSR- Coca Cola India Case
What Happened:
• Coca-Cola India was established as the Indian
subsidiary of the US-based Coca-Cola Company in
1993
• Keeping in mind the fact that it was one of the largest
beverage companies in India, Coca-Cola India said it
had made CSR an integral part of its corporate agenda
• The company used large amounts of water and energy
in its beverage production and tons of packaging
material for its products, it had taken up several
initiatives to act as a responsible company and reduce
its environmental impact
• In addition to water, energy, and sustainable
packaging, Coca-Cola India also focused on several
community initiatives in India as part of its social
responsibility initiatives
Best Practices of CSR- Coca Cola India CSR
Applied CSR:
PEOPLE : To commit to the fair and dignified treatment of all people who work for The Coca-
Cola Company. 90 percent of more production by local people with local resources.
PARTNERS: The Company strives to engage effectively and cooperatively with our partners and
stakeholders.
PORTFOLIO: Offer the highest quality beverages starting with, Coca cola and more than 2,600
beverage products.
PLANET: Working to be leaders in responsible water use, growing our business but not our
carbon footprint.
Best Practices of CSR- Coca Cola India CSR
Applied CSR:
WATER:
• Conserve Water
• Watershed protection, rainwater harvesting
projects
• 110 recharge shafts that collected rainwater.
Reverse filter system.
ENERGY:
• Reducing energy consumption and emission of
GHGs by such as refrigeration
• ecofreshment cooler that used technologies
devoid of hydrofluorocarbons
• GHG emission reduced by three-fourths
• increase the energy efficiency of its equipment
by 40 to 50%
Best Practices of CSR- Coca Cola India CSR
Applied CSR:
PACKAGING AND RECYCLING:
• Packaging framework that aimed at recycling
• A PET recycling project in Mumbai in partnership wit Brihan Mumbai Municipal Corporation
• Collected the company’s packaging material consisting of glass bottles, cans, etc. after they
were disposed
HEALTH:
• Provided health checkups, medicine, and education to rural communities on health-related
topics
• Also funded polio eradication camps
• Company conducted blood donation camps and supported a 24-hour emergency service for
children
• In a few districts of Andhra Pradesh, conducted camps for Hepatitis B vaccinations, eye
checkups, and malaria eradication
Best Practices of CSR- Coca Cola India CSR
Applied CSR:
ECONOMIC RESPONSIBILITIES:
• Played an active role in providing employment and giving the community opportunities to expand and
grow
• For every job in the Coca-Cola system, 10 more jobs were created indirectly
• In 2007, launched an initiative called Parivartan (Change) for training small retailers in India.
COMMUNITIES:
• A commitment to the community was part of Coca-Cola India’s CSR
• In 2003,launched Jagriti Learning Centers to provide education to more than 1,800 children residing
near its bottling facilities in Pune
• The initiative aimed to curb waterborne diseases
• It set up around 2,000 schools for children
Best Practices of CSR- Coca Cola India CSR
Obstacles:
• The groundwater levels had dropped in the firsts even
years of the company’s operations, from 1999 to 2006.
• Even in 2008, the company continued to face mass
demonstrations from local communities who demanded
that the company shut down its bottling operations.
• There were also allegations that the company had seized
land from farmers and that it had discharged hazardous
material.
• A few critics came down heavily on Coca-Cola’s much
acclaimed TCCC standards for waste management
Best Practices of CSR- Coca Cola India CSR
Initiatives:
• Coca-Cola opened an exclusive website,
www.cokefacts.org, which addressed the
allegations related to India and other
countries.
• The National Geophysical
ResearchInstitute78 (NGRI), which had
concluded that there was no field evidence
of overexploitation of the groundwater
reserves in the area surrounding the plant.
• Coca-Cola stated that the technology used
for waste water treatment at the plant was
among the most advanced in the world.
• Coca-Cola India had carried out its CSR
activities across 45 bottling plants at an
annual spend of Rs. 70 to 80 million.
Thank You! Happy Corporate
Leaders CSR