Corporate Social

Responsibility
Dr. Sikharini Majumdar
Definitions of CSR
Ranging from simplistic to the complex
A range of associated terms and ideas (some
used interchangeably), including corporate
sustainability, corporate citizenship, corporate
social investment, the triple bottom line, socially
responsible investment, business sustainability
and corporate governance
According to Van Marrewijk (2003) the panacea
which will solve the global poverty gap, social
exclusion and environmental degradation.
The term CSR may appear to be relatively new to
the corporate world, but the literature reveals
that the evolution of the concept has taken place
over several decades.
will continue to evolve in tune with business,
political and social developments.
The impact of globalisation and mass
communication also means that while definitions
will reflect local situations, they will also be
strongly influenced by global trends and changes
in international law.
Conceptualizing CSR
In 1953, Bowen conceptualised CSR as social
obligation the obligation to pursue those
policies, to make those decisions, or to follow
those lines of action which are desirable in terms
of the objectives and values of our society
(Bowen in Maignan & Ferrell 2004, p. 4).
A broad approach to business responsibilities,
including responsiveness, stewardship, social
audit, corporate citizenship and rudimentary
stakeholder theory
Davis expressed that The substance of social
responsibility arises from concern for the ethical
consequence of ones acts as they might affect the
interests of others and introduces the notion of
business ethics to CSR.
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, which is to say, engage in open
and free competition, without deception or fraud.
(Friedman in Turner 2006, p. 7)
CSR -
An obligation of business to account for the
interests of several groups that constitute society
beyond the consideration of profit.
An integral part of the wealth-creation process.
A paradigm shift from economic quality of life
to social quality.
Business is a creation of society anticipating aid
to society and vice versa
An economic institution and society provides
infrastructure for its smooth running

Relationship of Institutions and Society
Institutions are originally centres of community
culture
A means to achieve economic and social ends
Functional agents of society
Society develops complex connections and so its
need to institutionalise function and purpose
becomes more and more prominent
Business is created by society
Success of business is dependent on society as
consumer
Society expects qualitative improvement of
products
Business an integral part of society and social
system in which it functions; a sub-system of
social system each influencing and affecting the
other
An economic activity which is strongly affected
by economical, social and legal environments
Legal system, political and governmental
regulations, consumer attitudes and public
opinion, can exert both positive and negative
influences
Forces of social change science, technology,
rivalry among nations influence
Psychographic/demographic diversity, religious
and ethnic movements influence

Economic decisions and policies of
business exerts influence
Positive - Provides jobs, creates income, provides
goods and services, invests capital in plants,
equipments and new product development.
Negative environmental pollution, hazardous
working condition, unsafe and unreliable
consumer products, various discriminating
practices, illegal and unethical actions, excessive
political influence on societys political and
governmental systems

Bowen (1952)
It is becoming increasingly obvious that a
freedom of choice and delegation of power such
as businessmen exercise would hardly be
permitted to continue without assumption of
social responsibility
Social responsibility implies
Commitment and answerability to society
Difficult:
1. The concept involves a series of subjective
judgments which are extremely difficult to
quantify.
2. Complex because it involves many sets of
relationships.
One precise single definition cannot be
formulated.
For survival business must take the
following steps:
1. Accommodate to the social changes
2. Enlightened view of self-interest and help
solve problems to create better environment
3. Gain better public image by being socially
responsible
4. Meeting the changing expectations of society
before the issues are politicised. Enable
businessmen not to be saddled with all govt.
regualtions
5. Using the enormous resources to solve
social problems
6. Turn social problems into profitable
business opportunities
7. Be morally obliges to solve social problems
that it had created
Myths & Reality of CSR
Myths
CSR is costly. CSR can be
done by big companies -
Tata, Birla, Wipro etc.
It is for CEOs.
It is (PR) as a large
number of programmes
are associated with
sponsorships, topical
supports resulting in
corporate visibility.
Reality
Understanding CSR as
Business Process in all
activities and processes.
Looking at the non-
financial contribution to
the community.
Placing the sole
responsibility on CEOs is
sarcasmof its potential
and seriousness.
It must be an important
character of a company
Carrolls Pyramid