CORPORATE SOCIAL RESPONSIBILITY

Presented By
Anshu Sharma Dixita Manali Hanmante Nikita Kale Tarit Registrar Taina Beri Vikram Vijay Mundra

Introduction

What is CSR?

Trusteeship Model

Socio-economic philosophy Propounded by Mahatma Gandhi Wealthy need to help the society Difference between trusteeship model & Agency Model
Duty of the trustees to sustain corporations assets Balance the conflicting interest of current & future stakeholders They also ask for changes in corporate governance

Eg. SVKM

Multiple Stakeholder Theory

Also called as pluralistic model Supports the idea of multiple interest of stakeholder rather than a stakeholder interest Societal framework Characteristics

Work towards a common goal Objective focus to bring change Involvement of all stakeholders in a learning process

Eg. NGOs

London Group Benchmarking Model

Measures and communicate programs benefiting the community Main Reasons:

Sense of Moral & Social Responsibility long-term interest in promoting the development of a healthy society Being involved in the community may result in direct benefits for the company Donations Investment in the community Commercial initiatives

3 Categories of community initiatives

Eg. P&G

BIE Index

Management (45% of overall score) Score

Q1 Board member + Q2 Policy Q3 Objectives + Q4 Targets Q5 Employee Communication + Q6 Stakeholder Communication Q7 EMS + Q8 Audit Q9 Supplier programme Q10 Stewardship Q11 Global Warming OR Q12 Energy AND Q13 Transport Q14 Solid Waste Q15 Selected Impact Area 1 Q16 Selected Impact Area 2 or Q17 Biodiversity 10 10 10 10 10 10 20 10 10 10 10 10 10

Performance (45% of overall score)

Assurance (10% of overall score)

Q18 Assurance

Dow Jones Sustainability Group Index

SAM and S&P Dow Jones Indices Tracks the performance of companies on the following criteria:

Economic Environmental Social

Index is for investors who want sustainability considerations in their portfolios

Tomorrow Index
Sustainable Homes Index for Tomorrow SHIFT members are recognized as environmental leaders. SHIFT can help with:

Independent accreditation and recognized sustainability benchmark against peers A robust and established framework to improve Best practice expert and peer learning Publicity and leadership.

Common Example: Percentile

Ackermans Model

Robert Ackerman was among the theorists who emphasized on the Micro level analysis, tried to show that how individual companies can be more socially responsible. He described three phases through which companies commonly tend to pass in developing a response to social issues.

Organisational level

Phase I Issue: Corporate Obligation Action: Write and Communicate Policy Outcome: Enriched purpose, increased awareness

Phase II

Phase III

Chief Executive

Issue: Technical Problem Action: Design Data System and Interpret environment Outcome: Technical and Informational groundwork

Staff Specialists

Issue: Management Problem Action: Commit Resources and Modify Procedures Outcome: Increased Responsiveness

Division Management

Ackermans Model (Cont)

Phase I: Chief Executive will identify the social problem. Phase II: Company hires the staff to study the problem and suggest the solution. Phase III: Division managers implement the solution. Where the enlightened companies can make best information available. Being responsive may well be the only responsible course of action.

Carrolls Four-Part Model:

Economic Responsibilities Legal Responsibility Ethical Responsibility Discretionary Responsibility

This Model suggests: Firm must produce the goods and/or services that society wants and must sell them at a profit. Legal responsibilities are also basic. Firms should operate within the law.

Carrolls Four-Part Model: (Cont)

Ethical responsibility refers to behavior by the firm that is expected by society but not codified into law. These responsibilities are not well defined, where in specific situations they are clear. Discretionary responsibilities encompass voluntary activities undertaken for the public good. It refers to the voluntary contribution of the business to the social cause like involvement in community development or other social programmes.

Arguments for Social Responsibility:

Changed Public Expectations of Business. Better Environment for Business. Public Image. Avoidance of Government Regulations. Balance of Responsibility with Power. Business has the Resources. Prevention is Better than Cure. Moral Responsibility. Citizenship Arguments. Duty of Gratitude.

Arguments against Social Responsibility

Profit Maximization. Society has to pay the Cost. Lack of Social Skills. Business has enough Power. Social overhead Cost.

Thank You!