CONTENT

Types and nature of social responsibilities

CSR principles and strategies
Models of CSR
Best practices of CSR
Need of CSR
Arguments for and against CSR
CSR in Indian perspective
Indian Examples

 Dr Govindappa Venkataswamy,
Founder of Aravind Eye Hospitals,
Is an example of a social entreprenur
Who works to provide the gift of
Sight to the poor.
In 1976, Dr Venketaswamy, after
retirement from government service,
decided to dedicate the rest of his life to
curing people from eye disease of
various types, most notably cataract. He
first set up a trust, which was later

 It takes 20 years to build a reputation

and only 5minutes to ruin it. (Warren
Buffet).
Business should not only be responsible
morally to the stakeholders but also to
the society, environment and towards a
sustainable planet at large

 Many other names are used to refer to CSR such

as socially responsible business, responsible
business conduct, responsible entrepreneurship,
corporate citizenship, corporate accountability
or corporate sustainability.
CSR is the continuing commitment by
businesses to behave ethically & contribute to
economic development while improving the
quality of life of the workforce & their families
,local communities and the society at large.
(World Business Council)

 According to Lord Holme & Richard Watts ,

CSR is the continuing commitment by business
to behave ethically & contribute to economic
development while improving the quality of
life of the workforce & their families as well
as of the local community & society at large.
The World Business Council for Sustainable
Development (WBCSD):"Corporate Social
Responsibility is the continuing commitment by
business to behave ethically & 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"

Meaning of CSR
A companys sense ofresponsibilitytowards
thecommunity
andenvironment(both ecological and social) in which
itoperates.Companiesexpress thiscitizenship
(1)through
theirwasteandpollutionreductionprocesses,
(2)by contributing educational and socialprograms,
and
(3)byearningadequatereturnson
theemployedresources. See alsocorporate
citizenship.

Scope of CSR
Corporate Social Responsibility (CSR) as under the Company's Act 2013 - YouTube[via torchbrowser.com].mp4

Environment
Community
Suppliers
Health and safety
Work force
Human rights
Standards of business conduct

NEED OF CSR
InnovationJust typing the word into Amazon
will bring up nearly 150,000 items. But in the
context of CSR, innovation is a huge benefit to
a company and society.
For example, Geoff McDonaldwho is
theUnileverGlobal VP for HR, Marketing,
Communications and Sustainability. Using the
lens of sustainability as McDonald described
it, Unilever was able to innovate new products
such as a hair conditioner that uses less water.
Without sustainability, the companys research
and development efforts possibly wouldnt have
led to such a product.

NEED OF CSR
Cost savings One of the easiest places for a
company to start engaging in sustainability is to
use it as a way to cut costs. Whether its using
less packaging or less energy, these savings
add up quickly.
For example,General Mills is on a path to
reduce its energy savings by 20% by 2015.
According to its 2011 CSR report, after installing
energy monitoring meters on several pieces of
equipment at its Covington, Ga. plant, the
company saved $600,000.
http://en.wikipedia.org/wiki/General_Mills

NEED OF CSR
Brand differentiation Companies such as Timberland
http://shop.timberland.com/home/index.jsp
Were able to find their voice and incorporate the companys values into
their business model. However, as CSR has become more
commonplace, using it to differentiate the brand is getting harder to
do.
For example, the Cola Wars is one of the longest running rivalries
in business. Coke and Pepsi are constantly looking to grab as much
market share as they can from each other. Yet they are both adopting
similar, although slightly different, approaches to CSR.
Both Pepsi and Coke are pursuing strategies of zero net water usage.
Both companies offer water bottles made from sustainable packaging
as well. In the end, although neither company is necessarily going to
see strong differentiation benefits, it seems the diminishing returns on
brand differentiation as a sign that CSR is taking hold and is not just a
fad.

NEED OF CSR
Long-term thinking The only reason were
doing sustainability is to drive the growth of
Unilever, McDonald said. Indeed, CSR is an
effort to look at the companys long-term
interest and ensuring that the companys future
is well sustainable.
It is a shift from worrying about the next fiscal
quarters financial results to the impact
business decisions today have on financial (and
social) results ten years from now.

NEED OF CSR
Customer engagement Whats the point of
doing CSR if no one knows about it? For the past
few years, Walmart has established itself as a
leader on environmental efforts. Yes, lets read
that correctly, Walmart is a leader in
environmentalism.
In 2008, Walmart ranan ad campaign designed to
raise awareness about the environment and the
product choices consumers could make. Using
CSR can help cos., engage with their customers
in new ways. Since the message is about
something good, it can often be an easier way
to talk to customers. This is an underused tool for
business-to-business company communication.

NEED OF CSR
Employee engagement Along similar lines, if
your own employees dont know whats going on
within your organization, youre missing an
opportunity.
Companies likeSara Lee
http://en.wikipedia.org/wiki/Sara_Lee_Corporation
(American consumer-goods company)created a
cross-functional, global Sustainability Working Team
to help create a strategy for sustainability. At a
more grass roots level, theSolo Cup Company
http://en.wikipedia.org/wiki/Solo_Cup_Company
created the Sustainability Action Network to activate
employees in community service focused on the
companys CSR priorities.

TYPES AND NATURE OF CSR

Responsibility towards the customers

Social responsibility to prospects
Social responsibility to community
Responsibility towards human resources
Responsibility to society and ecological environment
Responsibility towards government
Social responsibility to global business environment

Responsibility towards
Society

Carrying on business with moral & ethical

standards.
Prevention of environmental pollution.
Minimizing ecological imbalance.
Contributing towards the development of social
health, education
Making use of appropriate technology.
Overall development of locality.

Responsibility towards
Government
Obey rules & regulations.
Regular payment of taxes.
Cooperating with the Govt
to promote social values.
Not to take advantage of
loopholes in business laws.
Cooperating with the Govt
for economic growth &
development.

Responsibility towards
Shareholders
To ensure a reasonable
rate of return over time.
To work for the survival &
the growth of the concern.
To build reputation &
goodwill of the company.
To remain transparent &
accountable.

Responsibility towards
Employee
To provide a healthy working
environment.
To grant regular & fair wages.
To provide welfare services.
To provide training & promotion facilities.
To provide reasonable working standard &
norms.
To provide efficient mechanism to redress
workers grievances.
Proper recognition of efficiency & hard
work.

Responsibility towards
consumers
Supplying socially harmless
products.
Supplying the quality,
standards, as promised.
Adopt fair pricing.
Provide after sales services.
Resisting black-marketing &
profiteering.
Maintaining consumers
grievances cell.
Fair competition.

Nature of social
responsibility

CSR is normative in nature.

CSR is a relative concept.
CSR may be started as a proactive or reactive.
All firms do not follow the same patterns of CSR.
Legal & socially responsible: Wipro, Infosys etc.
Legal but socially irresponsible: private, small scale
industries
Illegal but socially responsible: Coca cola. Satyam
computers.
Illegal & socially irresponsible: Liquor shops.

Principles and strategies

of corporate social
responsibilities

HUMAN RIGHTS

ANTICURRUPTION

CSR
PRINCIPL
ES
ENVIRONMENT

LABOUR

A. HUMAN RIGHTS
Principle 1: Business should support and
respect the protection of internationally
proclaimed human rights
Why human rights are important for
business
Promote the rule of law
Addressing consumer concerns
Value chain management
Increasing worker productivity and retention
Building good community relationships
Respecting human rights.

In the work place

By providing safe and healthy working conditions

By guaranteeing freedom of association,
By ensuring non-discrimination in personnel practices,
By ensuring that they do not use directly or indirectly
forced labour or child labour,
By providing access to basic health, education and
housing for the workers and their families if these are
not provided elsewhere,
By having an affirmative action programme to hire
victims of domestic violence

In the community
By preventing the forcible displacement of individuals,
groups or communities,
By working to protect the economic livelihood of local
communities
By fostering opportunities for girls to be educated to
empower them and also helps a company to have a
broader and more skilled pool of workers in the future
and so on
National Human Rights Commission of India - YouTube[via torchbrowser.com].mp4

A. HUMAN RIGHTS
Principle 2: Make sure that they are not
complicit in human rights abuses
contemporary issues
Globalization
Growth of civil society
Transparency and accountability
Crime
State-owned enterprises

B. LABOUR
Principle 3: Businesses should uphold the
freedom of association and the effective
recognition of the right to collective
bargaining
Freedom of association
Collective bargaining
Strategies for business
What companies can do : in the
workplace ; at the bargaining table & in
the community of operation.

Principle:4 the elimination of

all forms of forced and
compulsory labour

What does forced and compulsory

labour mean?
Why should companies be concerned
about Forced and compulsory labour?

Principle 5: the effective abolition of child labour

Abolition of child labour.
Minimum age for admission to
employment or work.
Why should companies be concerned
about Child Labour?
Strategies for business:
In the workforce
In the community of
operation

Minimum age for admission to employment

or work
DEVELOPED
COUNTRIES

DEVELOPING
COUNTRIES

Light Work

13 Years

Light Work

12 Years

Regular Work

15 Years

Regular Work

14 Years

Hazardous work

18 Years

Hazardous work 18 Years

Principle 6 Elimination of discrimination in

respect of employment and occupation

Principle 6 Elimination of discrimination in respect

of employment and occupation
What does Discrimination in Respect of Employment and
Occupation mean?
Why should companies be concerned about Discrimination?
Strategies for business:
In the workforce
In the community of
operation

C. Environment
Principle 7
Business should support a
precautionary approach to
environmental challenges

 Precautionary approach?
An systematic application of risk assessment
(hazard identification, hazard characterization,
appraisal of exposure and risk characterization),
risk management and risk communication.
Steps that the company could take in the
application of this approach include the
following:
Develop a code of conduct or practice
Develop a company guidelines
Establish two-way communication with
stakeholders, in a pro-active, early stage and
transparent manner

ENVIRIONMENT
Principle 8
Undertake initiatives to promote
greater environmental responsibility
Environmental responsibility- Business and
industry should increase self regulation,
guided by appropriate codes, charters and
initiatives integrated into all elements of
business planning and decision-making
and fostering openness and dialogue with
employees and the public.

 What steps that the company could take to

promote environmental responsibility would be
the following:
Re-define company vision, policies & strategies to
include the triple bottom line of sustainable
development-economic prosperity, environmental
quality and social equity.
Develop sustainability targets and indicators
(economic, environmental, social)
Work with suppliers to improve environmental
performance, extending responsibility up the
product chain and down the supply chain.
Ensure transparency and unbiased dialogue with
stakeholders.

 Principle 9
Encourage the development of
environmentally friendly technologies

 Environmentally sound technologies as defined

in Agenda 21, should protect the environment,
are less polluting, use all resources in a more
sustainable manner, recycle more of their
wastes and products and handle residual wastes
in a more acceptable manner than the
technologies for which they were substitutes.
Benefits of Environmentally friendly technologies :
It helps a company reduce the use of raw
materials leading to increased efficiency
Technology innovation creates new business
opportunities and helps increase the overall
competitiveness

D. ANTI -CORRUPTION
Principle 10
Business should work against
corruption in all its forms, including
extortion and bribery.

 Corruption is the abuse of entrusted power

for private gain.
Extortion : the solicitation of bribes is the act
of asking or enticing another to commit
bribery. It becomes extortion when this
demand is accompanied by threats and
endanger the personal integrity or the life of
the private actors involved.
Bribery: an offer or receipt of any gift, loan,
fee, reward or other advantage to or from any
person as an inducement to do something
which is dishonest, illegal or a breach of trust,
in the conduct of the enterprises business

Principle steps to fight

corruption
Internal- Introduce anti-corruption
policies
External : report on the work against
corruption in the annual communication
on Progress: and share experiences and
best practices through the submission
of examples and case stories.
Collective: Join force with industry peers
and with other stakeholders.

MODELS OF CSR

Traditional Conflict Model

In the traditional conflict model for corporate social
responsibility, social values and benefits are seen as in conflict
with shareholder profits. Under this model, corporations
opting to practice forms of social responsibility are likely to
see added costs for doing so. Proponents of this conceptual
model generally,
argue that the nature of business is one of trade-offs between
economic and moral values, and corporate managers will
inevitably be forced to decide between their social and
fiduciary responsibilities or their commitment to shareholder
equity value.

Added Value Model

A second model for conceptualizing corporate social
responsibility is to see social and environmental
commitments as a means to increase profit. While proponents
of this model tend to acknowledge that conflicts persist in
business decisions, they also believe that CSR investments
are also capable of generating new revenues.
This model tends to focus on issues like the value of CSR in
attracting socially conscious consumers, finding socially
conscious employees and managing the risks of negative
press.

Multiple Goals Model

Finally, a third model for corporate social responsibility posits
a role for social values in corporate decisions that are
untethered to economic values.
Under this model, corporations have goals beyond
shareholder value, including the enhancement of their
community without respect to monetary gain. According to
Redman, this model is thought to be relatively radical, though
some corporate officers have expressed support for it.
Proponents of this model emphasize quality of life as the basis
of economic activity.

MODELS OF CSR
There are various models to describe the CSR
complexity. These can be divided in accordance
to time as follows
Pre-modern
Minimalist
Self Interested
Modern
The social contract
Postmodern
Stakeholder (management and stewardship)

MODELS OF CSR

NEED OF CSR

ARGUMENTS FOR SOCIAL RESPONSIBILITY

Changing social values:- customer care, empowerment of
the weak and sharing benefits are created in modern days.
Long-run benefits:- profit is for short run but CSR gives
long run benefits.
Image of company:- CSR promote the public image
Welfare state:- CSR can supplement the activities of the
govt., in the promotion of welfare to the state.
Solution to social problems:- poverty, unemployment and
illiteracy can be solved.

ARGUMENTS FOR SOCIAL RESPONSIBILITY

Benefit for society
Stockholders delight
Stakeholders happiness
Better environment
Overall growth

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY

Difficult to measure: social action with regard to its
benefits. For ex: the effects of bio-diversity promoted by a
corporation
Against profit maximization principle: business is meant
for making profit and satisfy the shareholders.
High cost: cost of CSR increases along with population and
inflation
Lack of social skills: in delegating task to society and the
sustained interest may decline (co., possess business skill)
Lack of public support: In India public feel that business
firms are playing some tricks to capture public attention
Not supported by Board of Directors
Lack of accountability, Dilution of purpose

Companies and Activities Regarding

Corporate Social Responsibility.

MAHINDRA AND MAHINDRA Mahindra groups define

Corporate Social Responsibility making socially
responsible products , engaging in socially employee
relation and making commitment to the community
around us .

It was formed with intention / objective to promote

education , through mainly with scholarship .

It reaches to the unprivileged children especially in

rural area . it works to the vision to transforms the
lives in people in India , through education financial
assistance and recognition to then , across age
groups and across income strata.

Activities of
mahindra and mahindra education
financial support.
Recognition to rural people.
Empowerment of children.
Satyam computer service ltd.
It aims at transforming and supporting and strengthen
the vulnerable and unprivileged sections in urban
India. Activities of satyam computer service ltd
Empowerment of women and unprivileged
Problem of illiteracy.

Anand corporate service ltd.

Aims : Anand co. Services is a firm that view
corporate goals must be aligned with a larger
societal goals. It aims at community development.
The long term goals of Anands towards
corporate social responsibility is to implement
concepts of zero tolerance zone for child labor.
Activities of Anand company :
Health
Education
Natural resource management and life skills
well being of humans.

 Aptech limited aims: Aptech ltd. , Is a leading

education player with a global presence . it plays role
in encouraging and fastening education though out
the country .
It is in association with NGOs which provide training
and awareness camps for unprivileged. The Aptech
company strongly believes , and support social
fabric , basic education among underprivileged.
Activities of Aptech ltd.
Promoting child education.
Awareness training camps.
Supporting social fabric.
Environmental protection.

 Avon cycle limited aims : the Avon came up with

the idea of hope gives way to despair. Recently the
hospital has took the social responsibility in removing
the concept of sons only to end by bringing the
concept of celebrate female child.
Activities of Avon cycle ltd: Hospitals: Environmental
protection.
Cisco system limited aims : Cisco is about strong
building and productive global communities in which
every individuals has means to live , opprtunity to
learn , chance to give back . education is the top
priority as they believe it is a key of prosperity and
opportunity..
Activities of Cisco ltd : it promote a culture of
charitable giving. Provide schools , education.
Community development.

 ICICI bank limited mission. It work with a

mission to build the capacities of the poorest of
poor to participate in the larger economy ICICI
bank believes that it can build the capacities of
Indias poor to participate in larger social
economic processes , which would thereby spur
the development of country.
Activities of icici bank : it breaks the
intergenerational cycle of poor health, nutrition.
Ensure
essential
childhood
education,
schooling. Financial services.

 Infosys technologies limited aims : infosys

actively involved in community development
programmes . they have set up and example in the
area of corporate citizenship and involved itself in key
national bodies.
Activities of infosys ltd : research and education. Welfare activities. Healthcare. Education. Art and culture.
Itc limited it has partnered the Indian farmer since a
century it has elevated its partenership to new
paradigm by leveraging information technology. It has
embraced a host in significantly widening be farmer
by giving awareness.
Activities of itc ltd. : Helping tribals; Irrigation
development; Empowering rural women infrastructure
development. Building schools.