What is CSR?

Corporate social responsibility is necessarily an evolving term that does not have a standard definition or a fully recognized set of specific criteria. With the understanding that businesses play a key role on job and wealth creation in society, CSR is generally understood to be the way a company achieves a balance or integration of economic, environmental, and social imperatives while at the same time addressing shareholder and stakeholder expectations. CSR is generally accepted as applying to firms wherever they operate in the domestic and global economy. The way businesses engage/involve the shareholders, employees, customers, suppliers, governments, non-governmental organizations, international organizations, and other stakeholders is usually a key feature of the concept. While business compliance with laws and regulations on social, environmental and economic objectives set the official level of CSR performance, CSR is often understood as involving the private sector commitments and activities that extend beyond this foundation of compliance with laws. From a progressive business perspective, CSR usually involves focusing on new opportunities as a way to respond to interrelated economic, societal and environmental demands in the marketplace. Many firms believe that this focus provides a clear competitive advantage and stimulates corporate innovation. CSR is generally seen as the business contribution to sustainable development which has been defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs", and is generally understood as focusing on how to achieve the integration of economic, environmental, and social imperatives. CSR also overlaps and often is synonymous with many features of other related concepts such as corporate sustainability, corporate accountability, corporate responsibility, corporate citizenship, corporate stewardship, etc.. CSR commitments and activities typically address aspects of a firm's behavior (including its policies and practices) with respect to such key elements as; health and safety, environmental protection, human rights, human resource management practices, corporate governance, community development, and consumer protection, labor protection, supplier relations, business ethics, and stakeholder rights. Corporations are motivated to involve stakeholders in their decision-making and to address societal challenges because today's stakeholders are increasingly aware of the importance and impact of corporate decisions upon society and the environment. The stakeholders can reward or punish corporations. Corporations can be motivated to change their corporate behavior in response to the business case which a CSR approach potentially promises. This includes: 1. tronger financial performance and profitability (e.g. through eco-efficiency),
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2. 3. 4. 5.

Improved accountability to and assessments from the investment community, Enhanced employee commitment, Decreased vulnerability through stronger relationships with communities, and Improved reputation and branding.

JUST TO MEANS:

REFRESH,

COPORATE

SOCIAL

RESPONSIBILITY

Conducting business in an ethical way and in the interests of the wider community. Responding positively to emerging social priorities and expectations. A willingness to act ahead of regulatory confrontation. Balancing shareholder interests against the interests of the wider community. Being a good citizen in the community

IS THIS NOT THE SAME AS GOOD BUSINESS ETHICS?

There is clearly an overlap between CSR and business ethics. Both concepts concern values, objectives and decisions based on something other Than the pure pursuit of profits Socially responsible firms must act ethically The difference is that ethics concern individual actions which can be assessed as right or wrong by reference to moral principles. CSR is about the organizations obligations to all stakeholders, not just shareholders.

Disadvantage of CSR
The only social responsibility of business is to create shareholder wealth. The efficient use of resources will be reduced if businesses are restricted in how they can conduct their affairs. The pursuit of social goals dilutes businesses primary purpose. Costs will be passed on to customers. It will reduce economic efficiency and profit. Directors have a legal obligation to manage the company in the interest of the Shareholders-and not for other stakeholders. CSR behavior imposes additional costs which reduce competitiveness.
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CSR places unwelcome responsibilities on businesses rather than on the government or individuals.

However the CSR view is somewhat different:

Businesses do not have an unquestioned right to operate in society. Those managing business should recognize that they depend on society. Business relies on inputs from society and socially created institutions. There is a social contract between business and society involving mutual obligations That society and business recognize that they each have to the other.

Advantages and reasons why to implement CSR:

It is the ethical thing to do. It improves the firms image. It is necessary to in order to avoid excessive regulations. Socially responsible actions can be profitable. An improved social environment will be beneficial to the firm. It will be attractive to some investors. It can increase employee motivation. It helps to correct social problems caused by the business.

Ultimately CSR implementation can benefit a firm in several ways:

It aids the attraction and retention of staff. It attracts green and ethical investment. It attracts ethically conscious customers. It can lead to a reduction in costs through re-cycling. It differentiates the company from its competitor and can be a source of competitive advantage. It can lead to increased profitability in the long run.

Corporate Social Responsibility Tools:

Companies interested in advancing corporate social responsibility and in improving their social and environmental performance as part of their business have a wide range of tools available for application. Tools can vary widely in terms of objectives, scope, costs, and level of formality, partnerships, extent of stakeholder involvement, and many other characteristics. Tools can be applied to one or more of the planning, implementation, checking, and improvement facets of corporate operations. For purposes of this site, CSR tools are clustered into the four following groups:

Principles, guidelines, codes of conduct Approaches for developing management systems Indicators, measuring, reporting, and benchmarking Other (e.g. training and education, awards of recognition, promotion and communication, facilitating forums etc.).

The Social Venture Network Standards of Corporate Social Responsibility

Origin. The Social Venture Network (SVN) was created in 1987 to develop an association of business and social entrepreneurs dedicated to the idea that business can be a potent force for solving social problems. The SVN began to develop a written set of standards for business responsibility in 1995. The Standards first appeared in 1999. Purpose. The Standards of Corporate Social Responsibility are intended to be a compendium that is, a short, but complete summary of strategies and techniques for improving organizational performance. They represent an effort to define the landscape of corporate social responsibility and provide tools for organizations to make continuous improvement that is in concert with their overall business strategy. Critical Content . The Standards identify nine foundational principles for corporate social responsibility:

Ethics The company develops and implements ethical standards and practices in dealings with all company stakeholders. The companys commitment to ethical behavior is widely communicated in an explicit statement and is rigorously upheld. Accountability The company acknowledges that many constituents have legitimate interests in its activities and discloses information in a timely matter so that stakeholders can make informed decisions. Stakeholder need-to-know takes precedence over inconvenience and cost to the corporation.

Governance The company balances the interests of employees, customers, investors, lenders, suppliers, affected communities, and other stakeholders in strategic objectives as well as day-to-day management and investment decisions. The company manages its resources conscientiously and effectively, seeking to enhance both financial and human capital. Financial Returns The company compensates providers of capital with an attractive and competitive rate of return while protecting company assets and sustainability of these returns. Company policies are established to enhance long-term growth and shareholder value. Employment Practices The company engages in human resource management practices that promote personal and professional employee development, diversity at all levels, empowerment, fair labor practices, competitive wages and benefits, and a safe, harassment-free, family-friendly work environment. Business Relationships The Company is fair and honest with suppliers, distributors, licensees, and agents. It promotes and monitors the corporate social responsibility of its partners. Products and Services The Company identifies and responds to the needs, desires, and rights of its customers and ultimate consumers. It strives to provide the highest levels of product and service value, including a strong commitment to integrity, customer satisfaction, and safety. Community Involvement The Company fosters an open relationship with the community in which it operates and plays a proactive, cooperative, and where appropriate, collaborative role in making the community a better place to live and conduct business. Environmental Protection The Company strives to protect and restore the environment and promote sustainable development with products, processes, services and other activities. It is committed to minimizing the use of energy and natural resources and decreasing waste and harmful emissions. The company integrates these considerations into day-to-day management decisions.

Implementation.
The SVN Standards include not only principles (i.e., brief value statements), but also practices (means by which an organization can improve its performance relative to a principle), measures (tangible indicators of performance), and resources (potential sources of additional information). Taken as a whole, the Standards are analogous to the Caux Round Table Self-Assessment and Improvement Process, another tool designed to help organizations improve their performance.

The Standards suggest behavior, but they do not set a level of performance that is considered adequate. While the Standards authors hold that their principles are universally valid, they recognize there is no such thing as a generic company or a generic prescription for social responsibility: factors such as economic sector, governance, geographic scope, etc. must be considered. Therefore, it is assumed that companies who wish to improve their social performance will implement those pieces of the Standards most useful to their situation.

The Asian Pacific Economic Cooperation Forum Business Code of Conduct

Origin. The Asia Pacific Economic Cooperation (APEC) forum Business Code of Conduct resulted from a process initiated at the 1999 APEC CEO Summit in Auckland, New Zealand. Purpose: The APEC Business Code draws explicitly upon other sources for example, the Caux Round Table Principles for Business and the OECD Guidelines for Corporate Governance to create a model code a company can use to supplement or strengthen its own code of conduct. The Business Code is intended to (1) encourage corporate transparency and predictability, (2) challenge APEC governments to maintain their commitment to enhanced transparency and predictability within the public sector, and (3) develop a better match between business practice and public expectations. Critical Content. The Business Code articulates seven standards for corporate conduct:
1. International and Local Communities A company must recognize its responsibilities

2. 3.

4.

5. 6.

toward the international and local communities within which it operates and the individuals that make up those communities; Respect for Laws A company must respect international and domestic rules and recognize that some behavior, although legal, may still have adverse consequences; Stakeholder Responsibility A company must recognize the rights of stakeholders as established by laws and encourage active co-operation between companies and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises; Responsibility for the Environment A company must protect and, where possible, improve the environment within which it operates, promote sustainable development and prevent the wasteful use of natural resources; Free and Fair Competition - A company must support free and fair competition in our industries and avoid anti-competitive actions; Company Governance - A company should implement a company governance framework that ensures timely and accurate disclosure on all material matters regarding the company;

7. Illicit Actions - A company must not participate in or condone extortion, bribery,

money laundering, or other corrupt practices.

Implementation While intended to supplement company codes of conduct, it is expected that the CEO of any enterprise using the APEC Business Code would sign the Code and formally agree to uphold the moral obligations it expresses.

Corporate Social Responsibility and the Crisis of Globalization

Three trends related to globalization are driving the rise of "corporate social responsibility": the rising protest movement against economic globalization, the "war on terrorism" that began on September 11, and recent corporate scandals. The concept of "globalization" has multiple meanings. Corporations and their PR firms view globalization primarily in terms of the economic opportunities associated with opening local markets to international trade and investment. However, the "anti-globalization" movements which have arisen in response to corporate globalization are themselves global in scope. Activists from throughout the world shared information via the Internet during the "Battle of Seattle" in 1999, in which a broad range of environmental, labor and social activists challenged the World Trade Organization. The issues addressed by the topic of corporate social responsibility are also global. In March 2002, Sustainability, a British corporation which encourages activists to dialogue with companies embroiled in environmental and human rights controversies, issued a report titled "Good News and Bad: The Media, Corporate Social Responsibility and Sustainable Development." The report, produced in cooperation with the Ketchum PR firm and the United Nations Environment Program, covered issues including "biodiversity, child labor, climate change, corporate social responsibility, endocrine disruptors, genetically modified foods, globalization, green politics, the growth of megacities, ozone depletion, recycling, renewable resources, socially responsible investing, sustainable forestry, and urban air quality." From the point of view of "anti-globalization" protestors, these issues demonstrate why corporations cannot be trusted to oversee the emerging new global order. From the point of view of corporate leaders, however, corporate social responsibility is important precisely as a vehicle for reassuring the public that corporate globalization is a good thing. According to
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Ketchum CEO Ray Kotcher, in fact, the lesson to take away from "Good News and Bad" is that the media needs to be "more socially responsible" by taking "a more active role in communicating the benefits of globalization."

CORPORATE SOCIAL RESPONSIBILITY (CSR) principles Corporate Social Responsibility (CSR) is an evolving process and its manifestation Varies between countries and between cultures. However, the broad definition of Corporate Social Responsibility highlights a voluntary role of business in Contributing to a better society and a cleaner environment beyond its financial and capital commitments. Other definitions of CSR include: 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. Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders. Operating a business in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business. Clearly, the concept of CSR goes beyond firms legal obligations, it is a voluntary measure, but it also assumes that businesses are expected to fulfill their legal obligations first before they are credited with CSR principles. Similar to CSR principles, the concept of Global Compact that has been propagated by H.E. Kofi Annan, the Secretary General of UN. This concept includes ten basic principles for business operations and a firm adopting these principles is recognized under Global Compact. Global compacts ten principles are divided in three broad headings:

1. Human Rights: (includes Principles 1 and 2) Principle 1. Businesses are asked to support and respect the protection of international human rights with in their sphere of influence. Principle 2. Ensure that their own corporations are not complicit in human right abuses.With respect to the principles related to human rights; companies can undertake the following types of actions: Develop human rights criteria for market entry (and exit) related to specific countries Develop explicit policies that protect the human rights of workers in direct employment and throughout the supply chain. Perform human rights impact assessments of business activities especially where new operations, facilities and investments are planned.
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 Engage in dialogues with government, labor, NGOs, and other stakeholders to raise awareness of human rights issues Establish programs to promote the general health and welfare of employees-e.g. HIV/AIDS awareness and treatment Establish a policy to ensure that security arrangement do not contribute to human rights violations.

2. Labor Rights: (Includes Principles 3, 4, 5 and 6) Principle 3. Businesses are asked to uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4. The elimination of all forms of forced and compulsory labor. Principle 5. The effective abolition of child labor. Principle 6. The elimination of discrimination in respect of employment and occupation. With respect to the principles related to labor, companies can undertake the following types of actions: Adopt policies that allow workers to freely choose whether or not they wish to setup or join trade unions and a collective bargaining process. Enable workers representatives to carry out their functions by allowing them to meet on company premises; post union notices, etc. Conduct an audit to determine if forced labor is used anywhere in the supply chain. Utilize adequate and verifiable mechanisms for age verification in recruitment. Work with supply chain partners to remove any child below the legal working age and provide variable alternatives for both the children and the families. Develop an understanding of the different types of discrimination and adopt policies to progressively eliminate any forms of discrimination in selection, recruitment, contract and wage conditions, training and career development. 3. Environment: (Includes Principles 7, 8, and 9) Principle 7. Businesses are asked to support a precautionary approach to environmental challenges. Principle 8. Undertake initiatives to promote greater environmental responsibility. Principle 9. Encourage the development and diffusion of environmentally friendly technology. With respect to the principles related to environment, companies can undertake the following types of actions: Explore opportunities for more environmentally benign inputs and outputs in product development Conduct regular environmental impact assessment with transparency Formalize commitment through an environmental management system approach such as ISO 14001
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 Refocus research and development towards environmentally sound technology(EST). Use life cycle assessment (LCA) in the development of new technologies and products. Cooperate with industry partners to disseminate best available technologies other countries. In addition to the above three broad categories a tenth principle was recently added to the Global Compact. Principle 10. Business should work against corruption in all its forms including extortion and bribery.

Bangladeshi Enterprises and CSR a different look

Despite the gap that exists between the voluntary participation in CSR activities and the weakness in enforcement of legal requirements, it has been observed in the FGD (Based on this initial conceptualization, the Bangladesh Enterprise Institute (BEI) research team organized two FGDs, the first with multiple stakeholders and the second only with industry representatives, to try and understand CSR from their perspective) stats many Bangladeshi enterprises are involved in CSR activities. Some of them areforced into it due to consumer pressure (from foreign countries) but a large majorityof them have adopted CSR as an integral part of their social entity either to promotetheir name in the domestic market or as a pure philanthropic gesture. Some have argued that given the weakness in our enforcement ability, payment of taxes, repayment of loans, payment of public utility bills, etc., can be considered an integral part of CSR activities because they are voluntary in nature. Companies could have avoided paying them because of either the weak enforcement characteristics or the existence of high level of corruption in the society. In addition, CSR activities include voluntary donations at the community levels during floods, draughts, cyclones, etc., or helping weaker section of the society by patronizing social activities or institutions. Activities like supporting cholera research centre, hospitals, schools, etc. falls in the category of social responsibilities of the companies. In terms of CSR activities related to human rights and labor rights, FGDs noted that companies are engaged in activities like providing education for the children of their workers, scholarships, medical facilities, and other workers welfare scheme are primarily voluntary in nature in Bangladesh. These are CSR activities in Bangladesh but in many western countries they are obligatory in nature. Similarly, healthy environment within the factory premises is also part of CSR in Bangladesh. These are legally required but are never enforced in Bangladesh. Precautionary activities safeguard health of the workers and also customers are sometimes CSR activities in Bangladesh. In the environmental front, companies following the 3Rs (reduce, recycle and reuse) during waste disposals are engaged in CSR activities and it is still voluntary for majority of companies in Bangladesh. Similarly, companies who have established treatment plants within their premises are doing so voluntarily and hence could be considered as a CSR activity.

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Few examples of companies that are making CSR investments in Bangladesh are as follows:
British American Tobacco Bangladesh: Concentrating on:

o Environmental Management o Youth Smoking Prevention o Eliminating Child Labour

GlaxoSmithKline (GSK): In Bangladesh, GSK is continuing its support to a hospital

ward & play corner for children afflicted with Leukemia in Chittagong medical college hospital. It also runs awareness program for common people about Hepatitis B.
Lafarge Surma Cement Ltd.: A comprehensive action plan to support the people &

local communities under a Resettlement Action Plan & through a Community Development centre.
Nestle: Dengue Prevention March & communicating nutritional facts about baby

food to the masses.

Standard Chartered Bank: Community development in areas of health, education &

youth; involvement in Islamia Eye Hospital & Sight Savers scheme.

Berger Paints: Partnership programs with NGOs helping to rehabilitate disabled

people.
Grameen Phone: Promoting information technology as integral part of poverty

alleviation agenda.
Unilever Bangladesh: Lifebuoy Friendship Hospital; Fair & Lovely Foundation

Ethics training
The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behavior and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. Tullberg believes that humans are built with the capacity to cheat and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning normative values and rules in human behavior (Tullberg 1996). The most direct benefit is reducing the likelihood of "dirty hands" (Grace and Cohen 2005), fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps

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One relevant documentary is The Corporation, the history of organizations and their growth in power is discussed. Corporate social responsibility, what a company does to in trying to benefit society, versus corporate moral responsibility (CMR), what a company should morally do, are both important topics to consider when looking at ethics in CSR. For example, Ray Anderson, in The Corporation, takes a CMR perspective in order to do what is moral and he begins to shift his company's focus towards the biosphere by utilizing carpets in sections so that they will sustain for longer periods. This is Anderson thinking in terms of Garret Hardin's "The Tragedy of the Commons," where if people do not pay attention to the private ways in which we use public resources, people will eventually lose those public resources.

Findings
From the whole discussion one fact is comes out that the modern concept of Corporate Social Responsibility is evolving gradually in Bangladesh which is, to a certain extent, a positive sign. Although because of the global competitiveness & demand, the CSR practices & demand are implemented in Bangladesh, the companies have also started to realize that a good reputation is the best form of advertisement in the modern world. The more companies realize that fact that CSR is a business essential, the better it is for the companies themselves & for Bangladesh on a whole. Increasingly, companies are becoming interested in processes that can add visibility to their CSR policies and activities. One method that is gaining increasing popularity is the use of well-grounded training programs, where CSR is a major issue, and business simulations can play a part in this.

Conclusion
Corporate Social Responsibility (CSR) states that businesses manage the economic, social and environmental impacts of their operations to maximize the benefits and minimize the risk. It is the strategic planning process of many multinational organizations. The reasons behind CSR activities towards human and environmental responsibility are driven by hidden motives, enlightened self-interest, or interests beyond the enterprise. Corporations are fundamentally entities responsible for generating a product and/or service to gain profits to satisfy shareholders. CSR is basically a win-win situation for the companies and for the society at large. And also the current practice of CSR in Bangladesh is interpreted in terms of largely cosmetic response, Marketing strategy & response to pressure from international markets; more & more local companies & MNCs operating in Bangladesh are placing greater emphasis on the role that they can play as responsible corporate citizens.

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