ALAGAPPA UNIVERSITY

[Accredited with ‘A+’ Grade by NAAC (CGPA:3.64) in the Third Cycle

and Graded as Category–I University by MHRD-UGC]
(A State University Established by the Government of Tamil Nadu)
KARAIKUDI – 630 003

Directorate of Distance Education

Master of Social Work

IV - Semester
349 42

CORPORATE SOCIAL
RESPONSIBILITY
Prof. Dr. P. Ninan John, Retired Professor, Department of Social Work, Madras Christian College, Tambaram, Chennai
 SYLLABI-BOOK MAPPING TABLE
Corporate Social Responsibility
Syllabi Mapping in Book

BLOCK - I: SOCIAL RESPONSIBILITIES, EVOLUTION OF CSR, Unit 1: Social Responsibilities: Corporate

SUPPLY CHAIN RESPONSIBILITIES, STAKEHOLDER Social Responsibilities – Meaning,
ENGAGEMENT, CAUSE AND SOCIAL MARKETING, Definition and Scope of CSR (Pages 1-9)
ENVIRONMENTAL RESPONSIBILITY Unit 2: Evolution of CSR - CSR, Sustainability,
Unit- I : Social responsibilities: Corporate social responsibilities - Public Private Partnership, Corporations
meaning, definition and scope of CSR. Role in Climate Change (Pages 10-20)
UNIT-II: Evolution of CSR - CSR, sustainability, public private Unit 3: Supply Chain Responsibility,
partnership, corporations role in climate change. Stakeholder Engagement, Cause and Social
Unit-III: Supply chain responsibility, stakeholder engagement, cause Marketing, Environmental Responsibility
and social marketing, environmental responsibility. (Pages 21-34)

BLOCK - II: CSR AS ECONOMIC DEVELOPMENT AND CSR IN Unit 4: Socially Responsible Investing,
CULTURAL CONTEXT, STAKEHOLDERS AND PERSPECTIVE Sustainability Reporting, Transparency and
AND DESIGNING A CSR POLICY Human Rights; CSR as Economic Development
Unit-IV: Socially responsible investing, sustainability reporting, and CSR in Cultural Context (Pages 35-48)
transparency and human rights; CSR as economic development Unit 5: Stakeholders and Perspectives -
and CSR in cultural context. Interest Groups Related to CSR - Tools of
Unit-V: Stakeholders and perspectives - interest groups related to CSR- Business Benefits of CSR (Pages 49-66)
CSR - tools of CSR- business benefits of CSR. Unit 6: Designing a CSR Policy - Factors
Unit-VI: Designing a CSR policy - factors influencing CSR policy - Influencing CSR Policy - Managing CSR in
managing CSR in an organisation - role of HR professionals in CSR. an Organisation - Role of HR
Unit-VII: Global recognitions of CSR - ISO 14000 - SA 8000 - AA Professionals in CSR (Pages 67-74)
1000 - codes formulated by UN global compact- UNDP, global Unit 7: Global Recognitions of CSR - ISO
reporting initiative. 14000 - SA 8000 - AA 1000 - Codes
Formulated by UN Global Compact - UNDP,
Global Reporting Initiative (Pages 75-88)

BLOCK - III: IMPLEMENTING CSR, CSR IN THE ECOLOGICAL Unit 8: Implementing CSR - CSR in the
ENVIRONMENT AND TATA POWER Marketplace - CSR in the Workplace - CSR
Unit-VIII: Implementing CSR- CSR in the marketplace- CSR in the in the Community (Pages 89-104)
workplace - CSR in the community. Unit 9: CSR in the Ecological Environment -
Unit-IX: CSR in the ecological environment - case studies: Lifebuoy Case Studies: Lifebuoy Soaps “Swasthya
soaps “Swasthya Chetna”, it’s e-choupal venture, titan industries Chetna”, It's E-Choupal Venture, Titan
limited. Industries Limited (Pages 105-123)
Unit-X: TATA power; tools for communicating CSR (Skill building): Unit 10: Tata Power; Tools for
social media, films and reports and development strategic Communicating CSR (Skill Building): Social
partnerships. Media, Films and Reports and Development
Strategic Partnerships (Pages 124-133)

BLOCK- IV: CSR IN INDIA, LEGAL PROVISIONS AND Unit 11: CSR in India: An Overview of
SPECIFICATIONS ON CSR CSR, Rules Under Companies Act 2013
Unit-XI: CSR in india : an overview of CSR, rules under companies (Pages 134-138)
Act 2013. Unit 12: Legal Provisions and Specifications
Unit-XII: Legal provision and specifications on CSR - TCCI (TATA on CSR - TCCI (Tata Council for Community
council for community initiatives). Initiatives) (Pages 139-147)

BLOCK-V: TATA MODEL ON CSR AND CSR AWARDS IN INDIA Unit 13: Tata Model on CSR - National CSR
Unit-XIII: TATA model on CSR - national CSR hub, TISS Mumbai - Hub, TISS Mumbai - Success and Failure
success and failure with CSR initiatives. with CSR Initiatives (Pages 148-158)
Unit-XIV: CSR awards in India - Role of Social Worker in CSR. Unit 14: CSR Awards in India - Role of
Social Worker in CSR (Pages 159-164)
 CONTENTS
BLOCK I: SOCIAL RESPONSIBILITIES, EVOLUTION OF CSR,
SUPPLY CHAIN RESPONSIBILITIES, STAKEHOLDER
ENGAGEMENT, CAUSE AND SOCIAL MARKETING,
ENVIRONMENTAL RESPONSIBILITY
UNIT 1 SOCIAL RESPONSIBILITIES: CORPORATE SOCIAL
RESPONSIBILITIES – MEANING, DEFINITION AND
SCOPE OF CSR 1-9
1.1 Introduction to Social Responsibilities
1.2 Corporate Social Responsibilities - Meaning, Definition
1.3 Principles of CSR
1.4 Scope of CSR
1.5 Let Us Sum Up
1.6 Answer to Check Your Progress
1.7 Unit End Questions
1.8 Suggested Readings

UNIT 2 EVOLUTION OF CSR - CSR, SUSTAINABILITY, PUBLIC

PRIVATE PARTNERSHIP, CORPORATIONS ROLE IN
CLIMATE CHANGE 10-20
2.1 Evolution of CSR
2.2 Sustainability
2.3 Public Private Partnership
2.4 Corporations Role in Climate Change
2.5 Let Us Sum Up
2.6 Answer to Check Your Progress
2.7 Unit End Questions
2.8 Suggested Readings

UNIT 3 SUPPLY CHAIN RESPONSIBILITY, STAKEHOLDER

ENGAGEMENT, CAUSE AND SOCIAL MARKETING,
ENVIRONMENTAL RESPONSIBILITY 21-34
3.1 Supply Chain Responsibility
3.2 Stakeholder’s Engagement
3.3 Social Marketing
3.4 Environmental Responsibility
3.5 Let Us Sum up
3.6 Answer to Check Your Progress
3.7 Unit End Questions
3.8 Suggested Readings
BLOCK II: CSR AS ECONOMIC DEVELOPMENT AND CSR IN
CULTURAL CONTEXT, STAKEHOLDERS AND PERSPECTIVE AND
DESIGNING A CSR POLICY
UNIT 4 SOCIALLY RESPONSIBLE INVESTING, SUSTAINABILITY
REPORTING, TRANSPARENCY AND HUMAN RIGHTS;
CSR AS ECONOMIC DEVELOPMENT AND CSR IN
CULTURAL CONTEXT 35-48
4.1 Socially Responsible Investing
4.2 Sustainability Reporting
4.3 Transparency
4.4 Human Rights
4.5 CSR as Economic Development
4.6 CSR in Cultural Context
4.7 Let Us Sum Up
4.8 Answer to Check Your Progress
4.9 Unit End Questions
4.10 Suggested Readings

UNIT 5 STAKEHOLDERS AND PERSPECTIVES - INTEREST GROUPS

RELATED TO CSR - TOOLS OF CSR- BUSINESS
BENEFITS OF CSR 49-66
5.1 Stakeholders and Perspectives: Meaning & Definition
5.2 Types of Stakeholders
5.3 Shareholder vs Stakeholder
5.4 Interest Groups Related to CSR
5.4.1 CSR Towards Employees
5.4.2 CSR Towards Shareholders
5.4.3 CSR Towards Community
5.4.4 CSR Towards Government
5.4.5 CSR Towards Environment
5.5 Tools of CSR
5.6 Business Benefits of CSR
5.7 Let Us Sum up
5.8 Answer to Check Your Progress
5.9 Unit and Exercise
5.10 Suggested Readings

UNIT 6 DESIGNING A CSR POLICY - FACTORS INFLUENCING CSR

POLICY - MANAGING CSR IN AN ORGANISATION -
ROLE OF HR PROFESSIONALS IN CSR 67-74
6.1 Designing a CSR Policy
6.2 Factors Influencing CSR Policy
6.3 Managing CSR in an Organisation
 6.4 Role of HR Professionals in CSR
6.5 Let Us Sum Up
6.6 Answer to Check Your Progress
6.7 Unit End Questions
6.8 Suggested Readings

UNIT 7 GLOBAL RECOGNITIONS OF CSR - ISO 14000 - SA 8000 - AA 1000 -

CODES FORMULATED BY UN GLOBAL COMPACT - UNDP,
GLOBAL REPORTING INITIATIVE 75-88
7.1 Global Recognitions of CSR
7.2 ISO 14000
7.3 SA 8000
7.4 AA 1000
7.5 Codes Formulated by UN Global Compact
7.6 UNDP
7.7 Global Reporting Initiative
7.8 Let Us Sum Up
7.9 Answer to Check Your Progress
7.10 Unit End Questions
7.11 Suggested Readings

BLOCK III: IMPLEMENTING CSR, CSR IN THE ECOLOGICAL

ENVIRONMENT AND TATA POWER
UNIT 8 IMPLEMENTING CSR - CSR IN THE MARKETPLACE - CSR
IN THE WORKPLACE - CSR IN THE COMMUNITY 89-104
8.1 Implementing CSR
8.2 CSR in Market Place
8.3 CSR in Work Place
8.4 CSR in Community
8.5 Check Your Progress
8.6 Let Us Sum up
8.7 Answer to Check Your Progress
8.8 Unit and Exercise
8.9 Suggested Readings

UNIT 9 CSR IN THE ECOLOGICAL ENVIRONMENT - CASE STUDIES:

LIFEBUOY SOAPS “SWASTHYA CHETNA”, IT'S E-CHOUPAL
VENTURE, TITAN INDUSTRIES LIMITED 105-123
9.1 CSR in the Ecological Environment
9.2 Case Studies
9.2.1 Lifebuoy Soaps “Swasthya Chetna”
9.2.2 E-Choupal Venture by ITC
9.2.3 Titan Industries Limited
9.2.4 Empowering Women- MEADOW Initiative
 9.3 Let Us Sum up
9.4 Answer to Check Your Progress
9.5 Unit and Exercise
9.6 Suggested Readings

UNIT 10 TATA POWER; TOOLS FOR COMMUNICATING CSR

(SKILL BUILDING): SOCIAL MEDIA, FILMS AND
REPORTS AND DEVELOPMENT STRATEGIC PARTNERSHIPS 124-133
10.1 TATA Power
10.2 Tools for Communicating CSR (Skill Building): Social Media, Films and Reports
10.3 Development Strategic Partnerships
10.4 Let Us Sum Up
10.5 Answer to Check Progress
10.6 Unit End Questions
10.7 Suggested Readings

BLOCK IV: CSR IN INDIA, LEGAL PROVISIONS AND SPECIFICATIONS

ON CSR
UNIT 11 CSR IN INDIA: AN OVERVIEW OF CSR, RULES UNDER
COMPANIES ACT 2013 134-138
11.1 Introduction
11.2 An Overview of CSR
11.3 Rules Under Companies Act 2013
11.4 Let Us Sum Up
11.5 Answer to Check Your Progress
11.6 Unit End Questions
11.7 Suggested Readings

UNIT 12 LEGAL PROVISIONS AND SPECIFICATIONS ON CSR -

TCCI (TATA COUNCIL FOR COMMUNITY INITIATIVES) 139-147
12.1 Legal Provisions and Specifications on CSR
12.2 TCCI (TATA Council for Community Initiatives)
12.3 Let Us Sum Up
12.4 Answer to Check Your Progress
12.5 Unit End Questions
12.6 Suggested Readings

BLOCK V: TATA MODEL ON CSR AND CSR AWARDS IN INDIA

UNIT 13 TATA MODEL ON CSR - NATIONAL CSR HUB, TISS MUMBAI -
SUCCESS AND FAILURE WITH CSR INITIATIVES 148-158
13.1 CSR - TATA Group
13.2 TQMS
13.3 CSR Activities of Tata Companies for Social Development
 13.4 National CSR Hub, TISS Mumbai
13.5 Success and failure with CSR initiatives
13.6 Issues Hindering the Corporate Social Responsibility
13.7 Let Us Sum Up
13.8 Answer to Check Your Progress
13.9 Unit End Exercise
13.10 Suggested Readings

UNIT 14 CSR AWARDS IN INDIA - ROLE OF SOCIAL WORKER IN CSR 159-164

14.1 CSR Awards in India
14.2 Role of Social Worker In CSR
14.3 Let Us Sum Up
14.4 Answer to Check Your Progress
14.5 Unit End Exercise
14.6 Suggested Readings
 Corporate Social
BLOCK – I Responsibility

SOCIAL RESPONSIBILITIES, NOTES

EVOLUTION OF CSR, SUPPLY CHAIN

RESPONSIBILITIES, STAKEHOLDER
ENGAGEMENT, CAUSE AND SOCIAL
MARKETING, ENVIRONMENTAL
RESPONSIBILITY

Unit-I SOCIAL RESPONSIBILITIES:

CORPORATE SOCIAL
RESPONSIBILITIES –
MEANING, DEFINITION
AND SCOPE OF CSR
Structure
1.1 Introduction to Social Responsibilities
1.2 Corporate Social Responsibilities – Meaning, Definition
1.3 Principles of CSR
1.4 Scope of CSR
1.5 Let Us Sum Up
1.6 Answer to Check Your Progress
1.7 Unit End Questions
1.8 Suggested Readings
1.1 INTRODUCTION TO SOCIAL RESPONSIBILITIES
Social responsibility is an ethical framework that suggests that an entity, be
it an organization or individual, has an obligation to act for the benefit of
society at large. From a business perspective, it can be defined as the
consistent commitment to behave in an ethical manner and contribute to
economic development while improving the quality of life of a company’s
employees and their families—as well as local communities, the
environment, and society as a whole.
Corporate social responsibility (CSR) is also often referred to as business
responsibility and an organisation's action on environmental, ethical, social
and economic issues. The terms in the area can seem confusing if you don't
know the jargon - but don't be put off by this. A well-run business is
transparent in its decision-making and processes and this makes for good
governance.
CSR can be described as an approach by which a company does the
following: Recognises that its activities have a wider impact on the society
in which it operates, and that developments in society in turn impact on its
ability to pursue its business sustainably. Actively manages the economic,
social, environmental and human rights impact of its activities both locally
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and across the world, basing these on principles which reflect both
international values and the organisations own values (ethics), reaping
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 Corporate Social benefits for both its own operations and reputation as well as the
Responsibility communities in which it operates. Seeks to achieve these benefits by
working closely with other groups and organisations – local communities,
NOTES
civil society groups, other businesses and home and host governments. The
new concept of Corporate Social Responsibility has been introduced
under section 135 of the Companies Act, 2013 and Companies (Corporate
Social Responsibility) rules, 2014. India is the first country in the world
to introduce statutory Corporate Social Responsibility (CSR) through
the new Companies Act, 2013.
1.2 CORPORATE SOCIAL RESPONSIBILITIES – MEANING,
DEFINITION
MEANING
Corporate Social Responsibility (CSR) refers to transparent business
practices that are based on ethical values, and respect for people,
communities, and the environment. While there is no universally accepted
definition of the term, United Nations Industrial Development
Organisation (UNIDO) defines CSR as a management concept whereby
companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders.
Corporate Social Responsibility (CSR) is when a company operates in
an ethical and sustainable way and deals with its environmental and social
impacts. This means a careful consideration of human rights, the
community, environment, and society in which it operates.
CSR strategies encourage the company to make a positive impact on the
environment and stakeholders—that is, all of the parties who have a stake
in the performance and output of the corporation. Stakeholders include the
company’s employees, unions, investors, suppliers, consumers, local and
national governments, and communities that may be affected by corporate
activities such as construction, manufacturing, and pollution.
Corporate Social Responsibility is a management concept whereby
companies integrate social and environmental concerns in their business
operations and interactions with their stakeholders. CSR is generally
understood as being the way through which a company achieves a balance
of economic, environmental and social imperatives (“Triple-Bottom-Line-
Approach”), while at the same time addressing the expectations of
shareholders and stakeholders. In this sense it is important to draw a
distinction between CSR, which can be a strategic business management
concept, and charity, sponsorships or philanthropy. Even though the latter
can also make a valuable contribution to poverty reduction, will directly
enhance the reputation of a company and strengthen its brand, the concept
of CSR clearly goes beyond that.
Promoting the uptake of CSR amongst SMEs requires approaches that fit
the respective needs and capacities of these businesses, and do not
adversely affect their economic viability. UNIDO based its CSR
programme on the Triple Bottom Line (TBL) Approach, which has proven
to be a successful tool for SMEs in the developing countries to assist them
in meeting social and environmental standards without compromising their
competitiveness. The TBL approach is used as a framework for measuring
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environmental performance. It is an attempt to align private enterprises to
2
the goal of sustainable global development by providing them with a more Corporate Social
Responsibility
comprehensive set of working objectives than just profit alone. The
perspective taken is that for an organization to be sustainable, it must be NOTES
financially secure, minimize (or ideally eliminate) its negative
environmental impacts and act in conformity with societal expectations.
DEFINITION:
• CSR refers to a company linking itself with ethical values,
transparency, employee relations, compliance with legal
requirements and overall respect for the communities in which they
operate. It goes beyond the occasional community service action,
however, as CSR is a corporate philosophy that drives strategic
decision making, partner selection, hiring practices and, ultimately,
brand development - South China Morning Post, 2002
• The social responsibility of business encompasses the economic,
legal, ethical, and discretionary expectations that society has of
organizations at a given point in time -Archie B. Carroll, 1979.
• CSR is about businesses and other organizations going beyond the
legal obligations to manage the impact they have on the
environment and society. In particular, this could include how
organizations interact with their employees, suppliers, customers
and the communities in which they operate, as well as the extent
they attempt to protect the environment - The Institute of
Directors, UK, 2002.
• Corporate social responsibility (CSR) can be simply and broadly
defined as the ethical role of the corporation in society. The aim of
CSR is to increase long-term profits and shareholder trust through
positive public relations and high ethical standards to reduce
business and legal risk by taking responsibility for corporate
actions. It isn’t enough for companies to generate a profit and
merely meet the letter of the law in their business operations.
Today, many U.S. citizens expect them to generate a
profit and conduct themselves in an ethical and socially responsible
manner.
• According to Bowen (1953), CSR is defined as ‘the obligation of
businessmen to pursue those policies, to make those decisions or to
follow those lines of action which are desirable in terms of
objectives and values of society’.
1.3 PRINCIPLES OF CSR
Basic Principles of CSR
Sustainability
The actions taken in the present affects the options available in the
future for everyone and sustainability refers to the actions which
help make the future better for future generations.
The resources available are limited and if they are all utilized in the
present, they will not be available for the future use.
So it is necessary to look for alternatives which would help
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replacing the function of currently used resources.

3
 Corporate Social As the resources are depleted, their availability decreases and hence
Responsibility lead to increase in its price. So to keep the cost of organizations lower
in the future, it is necessary to use the current available resources
NOTES
optimally.
So implication of sustainability is that society must use no more of a
resource than can be regenerated.
If we take example of paper industry, the harvested trees should be
replaced by replanting trees which has the effect of retaining costs in
the present rather than temporally externalizing them.
Viewing an organization as part of a wider social and economic system
implies that these effects must be taken into account, not just for the
measurement of costs and value created in the present but also for the
future of the business itself.
Measures of sustainability can be the rate at which resources are
consumed by the organization in relation to the rate at which resources
can be regenerated.
Unsustainable operations can be accommodated for either by
developing sustainable operations or by planning for a future lacking
in resources currently required.
In practice organizations mostly tend to aim towards less
unsustainability by increasing efficiency in the way in which resources
are utilized.
Accountability
An organization should recognize that its actions affect the external
environment and therefore have to assume responsibility for the effects
of its actions.
This implies for quantification of the effects of actions taken, both
internal to the organization and externally and all the quantifications
should be reports to all the parties affected by those actions.
This concept recognizes that the organization is part of a wider societal
network and has responsibilities to all of that network rather than just
to the owners of the organization.
Accountability therefore necessitates the development of appropriate
measures of environmental performance and the reporting of the
actions of the firm.
This leads to more costs to the organization in developing, recording
and reporting such performance and to be of value the benefits must
exceed the costs. Benefits must be determined by the usefulness of the
measures selected to the decision-making process and by the way in
which they facilitate resource allocation, both within the organization
and between it and other stakeholders.
The characteristics of the reporting are as follows:
o Understandability to all parties concerned.
o Relevance to the users of the information provided.
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4
 o Reliability in terms of accuracy of measurement, representation of Corporate Social
Responsibility
impact and freedom from bias.
NOTES
o Comparability, which implies consistency, both over time and
between different organizations.
The report will also consists of qualitative facts which will inhibit
comparability over time and will tend to mean that such impacts are
assessed differently by different users of the information, reflecting
their individual values and priorities.
There is a lack of proper understanding of effects of the actions of the
organization along with the judgmental nature of relative impacts and
this leads to existence of only few standard measures for the
accountability.
This also then restricts the inter-organization comparison of such
reports.
Transparency
The external impact of the actions of the organization have to be
reported and the facts contained in the report should not be disguised.
Thus all the effects of the actions of the organization, including
external impacts, should be apparent to all from using the information
provided by the organization’s reporting mechanisms.
Transparency is of importance to external users of such information as
these users lack the background details and knowledge available to
internal users of such information.
Transparency therefore can be seen to follow from the other two
principles and equally can be seen to be a part of the process of
recognition of responsibility on the part of the organization for the
external effects of its actions and equally part of the process of
transferring power to external stakeholders.
1.4 SCOPE OF CSR
Corporate Social Responsibility is a significant term in today’s world of
growing industrialization, increasing privatisation and emergence of a
more socially conscious consumer class. It can be seen as a paradigm shift
in the roles and responsibilities of corporations from being mere profit-
making entities to directing their resources for the development and growth
of the society at large.
The gradual evolution of society, the emergence of social movements, the
influence of NGOs and change in the attitude of the government have led
to the growth of higher consumer consciousness and awareness, all over
the world. This, together with an increased inclination of corporations to
contribute to the process of development, led them to instigate the practice
of Corporate Social Responsibility.
The scope of Corporate Social Responsibility extends to a corporation’s
duties towards four social groups, namely, the shareholders or investors,
the employees or workers, the consumers or customers and the community
at large. These groups are the four domains of social responsibility of
business. The main concern of a corporate entity is to fulfil its obligations Self-Instructional Material
towards these four social groups.

5
 Corporate Social A corporation must see to the fact that the investors are rewarded with
Responsibility returns upon their investments. It also has a moral and legal obligation
towards its employees and workers. Corporations and organisations have
NOTES
specific responsibilities towards their customers in terms of production and
marketing of functional, safe and value for money products. An
organisation has an indirect duty towards local traders who may be
affected by its operations. According to several social scientists, a
corporation has a direct impact on the natural environment and may
significantly affect future generations. Thus, a corporation has a multi-
faceted effect on society.
Trademark Registration Online in India
India, at present, is booming with industries both national and multi-
national. But social evils like poverty, population explosion, illiteracy,
corruption, environmental pollution pose as real threats to the companies
which are looking forward to establishing an equitable partnership between
civil society and business. Hence, it is more mandatory for Indian
companies to be sensitized to the ideals of Corporate Social Responsibility.
The enactment of Section 135 of the Companies Act, 1956 (as amended
up-to-date) is a major step taken by the government to sow the seeds of
Corporate Social Responsibility.
The Ministry of Corporate Affairs, in India, has released a Circular on
Frequently Asked Questions (FAQs) to look after the proper
implementation of Corporate Social Responsibility. The Circular is with
regards to Section 135 of the Companies Act, 2013 and has come upon the
heels of a report submitted by the High-Level Committee which had been
set up by the Ministry to suggest measures for revamping the monitoring
of the Corporate Social Responsibility policies.
According to Section 135 of the Companies Act, 2013, every company
having a net worth of rupees five hundred crores or more, or turnover of
rupees one thousand crores or more or a net profit of rupees five crores or
more during any financial year, shall constitute a Corporate Social
Responsibility of the Board. The Circular emphasises the fact that the
government does not have an active role in monitoring activities related to
Corporate Social Responsibility.
It makes it obligatory on the Board to ensure the quality and effectiveness
of Corporate Social Responsibility projects. The Circular also clarifies that
neither does the government have a role in the appointment and removal of
appropriate authorities for approving and improving Corporate Social
Responsibility programmes nor can it recruit external experts to look into
the efficacy of Social Responsibility expenditures of corporations.
No particular tax exemptions are applicable to the Social Responsibility
expenditures of companies, though certain activities such as contribution to
the Prime Minister’s National Relief Fund, scientific research, rural and
skill development projects etc. pertaining to Schedule VII, already enjoy
exemptions under different provisions of the Income Tax Act, 1961. The
Finance Act, 2014 elucidates that an expenditure incurred by a company to
fulfil its social obligations does not fall under business expenditure.
Business houses today recognise the importance of being socially and
environmentally conscious and often advertise charitable initiatives such as
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6
etc. But, companies that incorporate social responsibility into their Corporate Social
Responsibility
business model prove a sense of dedication to these initiatives, both for the
cause and their reputation. NOTES

According to a recent study, many Indian companies or companies

incorporated in India have scaled up operations in Corporate Social
Responsibility and are considering it to be of utmost priority. Mahindra &
Mahindra leads the pack. Four Tata group companies have secured their
places in the top 10 list, and GAIL has replaced SAIL in the public sector.
Bharat Petroleum has also joined the list.
SCOPE OF CORPORATE SOCIAL RESPONSIBILITY:
Ernst and Ernst (1978) identified six areas in which corporate social
objectives may be found:
1. Environment: This area involves the environmental aspects of
production, covering pollution control in the conduct of business
operations, prevention or repair of damage to the environment resulting
from processing of natural resources and the conservation of natural
resources.
Corporate social objectives are to be found in the abatement of the
negative external social effects of industrial production, and adopting more
efficient technologies to minimize the use of irreplaceable resources and
the production of waste.
2. Energy: This area covers conservation of energy in the conduct of
business operations and increasing the energy efficiency of the company’s
products.
3. Fair Business Practices: This area concerns the relationship of the
company to special interest groups.
In particular it deals with:
Employment of minorities
Advancement of minorities
Employment of women
Employment of other special interest groups
Support for minority businesses
Socially responsible practices abroad.
4. Human Resources: This area concerns the impact of organizational
activities on the people who constitute the human resources of the
organization.
These activities include:
Recruiting practices
Training programs
Experience building-job rotation
Job enrichment
Wage and salary levels Self-Instructional Material

Fringe benefit plans

7
 Corporate Social Congruence of employee and organizational goals
Responsibility
Mutual trust and confidence
NOTES
Job security, stability of workforce, layoff and recall practices
Transfer and promotion policies
Occupational health
5. Community Development: This area involves community activities,
health-related activities, education and the arts and other community
activity disclosures.
6. Products: This area concerns the qualitative aspects of the products, for
example their utility, life-durability, safety and serviceability, as well as
their effect on pollution. Moreover, it includes customer satisfaction,
truthfulness in advertising, completeness and clarity of labelling and
packaging. Many of these considerations are important already from a
marketing point of view. It is clear, however, that the social responsibility
aspect of the product contribution extends beyond what is advantageous
from a marketing angle.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. Define CSR
2. What are the basic Principles of CSR?
3. What is the scope of CSR?

1.5 LET US SUM UP

To sum up this chapter gives the basic introduction to Social
responsibilities: Corporate social responsibilities – meaning, definition,
principles and the scope of CSR. The new concept of Corporate Social
Responsibility has been introduced under section 135 of the Companies
Act, 2013 and Companies (Corporate Social Responsibility) rules, 2014.
India is the first country in the world to introduce statutory Corporate
Social Responsibility (CSR) through the new Companies Act, 2013 is
also discussed in this chapter.
1.6 ANSWER TO CHECK YOUR PROGRESS
1. CSR refers to a company linking itself with ethical values,
transparency, employee relations, compliance with legal
requirements and overall respect for the communities in which they
operate. It goes beyond the occasional community service action,
however, as CSR is a corporate philosophy that drives strategic
decision making, partner selection, hiring practices and, ultimately,
brand development.
2. Sustainability, Accountability and Transparency.
3. The scope of Corporate Social Responsibility extends to a
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corporation’s duties towards four social groups, namely, the
8
 shareholders or investors, the employees or workers, the consumers Corporate Social
Responsibility
or customers and the community at large.
NOTES
1.7 UNIT END QUESTIONS
1. Write a note on CSR
2. Explain the basic principles of CSR.
3. What is scope of CSR?
1.8 SUGGESTED READINGS
CSR and Sustainability: From the Margins to the Mainstream: a Textbook.
Corporate Social Responsibility in India: Cases and Developments After
the Legal Mandate.

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9
 Corporate Social
Responsibility UNIT-II EVOLUTION OF CSR – CSR,
NOTES
SUSTAINABILITY, PUBLIC
PRIVATE PARTNERSHIP,
CORPORATIONS ROLE IN
CLIMATE CHANGE
Structure
2.1 Evolution of CSR
2.2 Sustainability
2.3 Public Private Partnership
2.4 Corporations Role in Climate Change
2.5 Let Us Sum Up
2.6 Answer to Check Your Progress
2.7 Unit End Questions
2.8 Suggested Readings
2.1 EVOLUTION OF CSR
India has a long tradition of paternalistic philanthropy, which has been
followed since ancient times, albeit informally. The concept of helping the
poor and disadvantaged is cited in several ancient texts, and philosophers
such as Kautilya preached and promoted the incorporation of ethical
principles in business. In the pre-industrialized period, religion and charity
were the key drivers of this philanthropic tendency. Industrial families of
the 19th century had a strong inclination towards social causes. For
example, they established temples, schools, higher education institutions,
and other public infrastructures. However, these contributions, monetary or
otherwise, were sporadic activities of personal charity, unrelated to
business interests.
However, the last decade of the 20th century witnessed the beginning of a
shift in focus from traditional charity and philanthropy towards a more
direct form of engagement by business in development and social issues.
There has been a growing realization that business cannot succeed in
isolation, and that wider social progress is necessary for sustainable growth
to be achieved. The term Corporate Social Responsibility (CSR) came into
common use in the early 1970s. Today, corporations across the globe
operate in highly complex and competitive environments. The risks they
face are not only financial, operational, or technological. The effects of
wider social problems and inequalities bear influence not only on how
business organize themselves but on their overall success in the long-term.
Therefore, corporate leadership is focused more than ever on social
responsibility.
CSR promotes a vision of business accountability towards a wider range of
stakeholders, beyond just shareholders and investors. It is defined as, “the
concept that an enterprise is accountable for its impact on all relevant
stakeholders. It entails a continuing commitment by business to behave
fairly and responsibly, in hopes of improving the quality of life of the
workforce, families, the local community, and society at large. The modern
notion of CSR in India entails a strategic focus on community
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development through various educational, research, and cultural projects. Corporate Social
Responsibility
Indian companies are now considering on a wide-scale their stakeholder
responsibilities and societal obligations, and not only shareholder profit. NOTES
CSR has many facets, and it’s important to note its interconnectedness
with corporate governance, social inclusion, and economic growth.
The economic growth of India in the last two decades (India witnessed a
whopping 2216% increase in GDP and 1,388% jump in per capita income
during this period)[iii] is impressive, but it continues to face several
challenges in health and sanitation, education, unemployment, the
environment, and other fields. The Indian government has taken proactive
steps with the 2013 Companies Act, which essentially mandates CSR. The
Act encourages companies to spend at least 2% of their average net profit
in the previous three years on CSR activities. Moreover, any surplus
arising out of CSR activities should be contributed back towards CSR
activities over and above the figure of 2%. Under the act, the provision and
clause of CSR is applicable to companies:
With an annual turnover of 10,000 Million or more INR.
A net worth of 5,000 Million or more INR.
A net profit of 50 Million or more INR.
The activities which can be undertaken by a company under CSR have
been specified under Schedule VII of the Act. The company can
implement its CSR activities through the following methods:
Directly on its own.
Through its own non-profit foundation, established to facilitate this
initiative.
Through independently registered non-profit organizations that
have a record of at least three years in related activities.
Collaborating or pooling resources with other companies.
The mandatory CSR reporting has unique advantages. It allows corporates
to demonstrate their commitment towards organizational transparency and
can be a communication tool to engage with different stakeholders,
including shareholders, regulators, communities, customers, and society at
large. CSR reporting also provides an opportunity for corporations to
reflect on internal processes, as well as compare their CSR performance
with competitors. While the Act provides an overall guiding framework for
the CSR initiatives of corporations, it also provides ample autonomy and
flexibility to design and implement programmes.
Today, nearly all leading corporations in India are involved in CSR
programmes, in areas like education, health, skill development, and social
empowerment. Large numbers of companies are actively reporting their
social activities to various stakeholders through their annual reports,
newsletter, CSR reports, and sustainability reports. Notable efforts have
come from the Tata Group, Infosys, Bharti Enterprises, Coca Cola India,
PepsiCo, and ITC Welcome group, among others. India is currently
experiencing a critical phase regarding how best to continue its impressive
growth, and Indian companies have increasingly focused on strategic CSR
initiatives as a means of contributing the development on a national level. Self-Instructional Material
Some of the other drivers pushing business towards this trend in CSR are
underlined below[i]:
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 Corporate Social The shrinking role of government: The emergence of a more
Responsibility capitalistic Indian economy from socialistic patterns has
NOTES
undermined the role of governments in the economy. Shrinking
government resources, distrust of regulations, and implementation
issues have led to the exploration of voluntary and private
initiatives.
Demands for greater disclosure and transparency: There is a
growing demand for disclosure and transparency of corporate
activities from various stakeholders, including customers,
suppliers, employees, and activist organizations.
Growing investor pressure: Investors are changing the way they
assess companies’ performance, and making decisions based on
ethical criteria. Investors are seeking to invest in companies that are
trying to solve social problems through innovative business
models.
Competitive labor markets: Employees now value more than
ever quality of work life and working conditions, and employers
are changing their thinking by treating employees as resources,
rather than mere commodities.
The practice of CSR is not new in India but has been given
strategic direction and pace by policy. Indian companies are now
prioritizing wider stakeholder responsibilities and societal
obligations, along with shareholder-wealth maximization. In the
future, it is vital to ensure that implementation of new regulations
and initiatives are done in a strategic, systematic, and thoughtful
manner so that social issues can be addressed in an effective way.
The evolution of CSR concept can be summarized as follows:
(a) The first approach originates in classical economic theory as expressed
in the hypothesis that the firm has one and only one objective, which is to
maximize profit. By extension, the objective of a corporation should be to
maximize shareholders’ wealth. It is asserted that in striving to attain this
objective, within the constraint of the existing legal and ethical framework,
business corporations are acting in the best interests of the society at large.
(b) The second approach developed in the 1970s, and recognizes the
significance of social objectives in relation to the maximization of profit.
In this view, corporate managers should make decisions which maintain an
equitable balance between the claims of shareholders, employees,
customers, suppliers and the general public. The corporation represents, a
coalition of interests, and the proper consideration of the various interests
of this coalition is the only way to ensure that the corporation will attain its
long-term profit maximization objective.
(c) The third view regards profit as a means to an end and not as an end in
itself. In this view, ‘the chief executive of a large corporation has the
problem of reconciling the demands of employees for more wages and
improved benefit plans, customers for lower prices and greater values,
shareholders for higher dividends and greater capital appreciation; all
within a frame work that will be constructive and acceptable to society’.
Accordingly, organizational decisions should be concerned with the
selection of socially responsible alternatives. Instead of seeking to
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profit which is compatible with the attainment of a range of social goals.
12
The change from the second to the third approach to social responsibility is Corporate Social
Responsibility
characterized as a move from a concept of the business corporation based
on shareholders’ interest to one which extends the definition of NOTES
‘stakeholder’.
The former concept views the business enterprise as being concerned with
making profits for its shareholders and treats the claims of other interested
groups, such as customers, employees and community, as constraints on
this objective. The latter concept acknowledges that the business enterprise
has responsibility to all stakeholders, that is, those who stand to gain or
lose as a result of the firm’s activities.
There are a number of common objectives which express the expectations
of a large company.
Some of these can be stated as follows:
(a) Rebuilding of public trust and confidence by increased transparency in
its financial as well as non- financial reporting and thereby increasing the
shareholder value.
(b) Establishing strong corporate governance practices to enhance the
brand reputation of the company.
(c) Giving adequate support to the health, safety and environment
protection policies of the company both within the manufacturing
operations as well as while dealing with outsiders.
(d) Making substantial improvement in its relationship with the labour
force thereby showing its concern for human rights and making it known
as an ideal employer.
(e) Contributing to the development of the region and the society around
its area of operation.
(f) Addressing the concerns of its various stakeholders in a balanced way
so as to maintaining a strong market position.
The corporate sector will have to integrate the concepts of CSR and
sustainability with their business strategy.
2.2 SUSTAINABILITY
Sustainability has become such an important concept that it is frequently
used interchangeably with CSR. Indeed, for some companies it seems that
CSR is sustainability. This is perhaps not surprising, given the growing
media attention on issues related to sustainability.
Sustainability conveys greater ambition because it focuses on what we
need to achieve, rather than where we are today.
Sustainability emphasizes a common agenda for all sectors of society.
Sustainability is a holistic concept that encompasses the full range of
environmental, social, and economic issues addressed by our work.
Sustainability is a concept derived from environmentalism; it originally
referred to the ability of a society or company to continue to operate
without compromising the planet’s environmental condition in the future.
In other words, a sustainable corporation is one that can sustain its current
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activities without adding to the world’s environmental problems.
Sustainability is therefore a very challenging goal, and many
13
 Corporate Social environmentalists maintain that no corporation today operates sustainably,
Responsibility since all use energy (leading to the gradual depletion of fossil fuels while
emitting greenhouse gases) and all produce waste products like garbage
NOTES
and industrial chemicals. Whether or not true sustainability will be
attainable anytime in the near future, the development and promotion of
sustainability strategies has become virtually an obsession of most large
corporations today, as their websites will attest in their inevitable reference
to the corporation’s sincere commitment to sustainability and responsible
environmental practices. No corporation or corporate executive today will
be heard to say that they do not really care about the environment.
Concept of sustainable development:
Sustainable development was defined by Brundtland Commission as
“development that meets the needs of the present without compromising
the ability of future generations to meet their own needs”
The Supreme Court in Vellore Citizen’s Welfare Forum V Union of India
and others held sustainable development is the balancing concept between
ecology and development.
In Indian council enviro. – Legal Action V Union of India, the court held
emphasized on sustainable development and held that development and
environment must go hand in hand. In N.D Jayal and anr V Union of India,
the supreme Court held that, Concept of Sustainable development is to
treated as an integral part of ‘life’ under Article 21.Public trust doctrine
and precautionary principle could be nurtured by ensuring sustainable
development.
International Perspective of CSR:
Johannesburg convention 2020:
In Johannesburg, States reaffirmed their commitment to the Rio
declaration principles, the full implementation of the Agenda 21 and
program for the implementation of agenda 21. One of the key commitment
of Johannesburg plan of implementation is to actively promote Corporate
responsibility and accountability through the full development and
effective implementation of inter –governmental agreements and measures,
international initiatives and public and private partnership and appropriate
national regulations. It was emphasized, that both large and small
companies, have a duty to contribute to evolution of equitable and
sustainable communities and societies and there is a need for private sector
corporations to enforce corporate accountability.
World Summit 2005: In this summit the importance of full respect for
existing labor, human rights and environmental commitments was
reiterated and encouraged responsible business practices, such as those
promoted by Global Compact. Global Compact, deals with ten principles,
which a company need to follow. Principle 7 to 10, deals about
environment measures that need to be undertaken by the company.
Danish Law: Various countries in the world have started formulating rules
and regulations for the implementation of corporate social responsibility.
Denmark has amended Danish financial Statement act 2008 that requires
mandatory reporting of corporate social responsibility in their companies’
policy.
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 Corporate Social
Responsibility
The report about CSR covers the following Information’s:
NOTES
• Implementation of CSR polices.
• Result of implementation of CSR policies.
• Management’s expectation for future with regard to CSR. India
CSR in India got the legal backing by virtue of section 135 of
companies Act 2013. Section 135 of companies Act 2013 came into
force from April 2014.
CSR having an ethical perspective should operate in line with the three
pillars of sustainable development i.e. economic development, social
equity and environmental justice. Sustainable development is the means to
satisfy the need of the present generations without compromising the
resources of future generations. CSR can play a vital role in containing the
perils of uncontrolled development. It serves to neutralize the negative
impact of business on society. Climate change being the byproduct of
mindless development trend propelled by the corporate sector is to be
mitigated by the ethical business practices. For sustainable business there
is a need for sustainable development of society and environment.
2.3 PUBLIC PRIVATE PARTNERSHIP
While companies do carry out CSR work independently, many also work
in collaboration with the government in Public Private Partnership (“PPP”)
mode. PPP is an effective tool for bringing private sector efficiencies in the
creation of economic and social infrastructure assets and for delivery of
quality public services. The extent of private sector participation in the
creation of infrastructure, especially through PPP, has shown a promising
increase in the recent years. The broad sectors encouraged under the PPP
framework are Highways, Railways, Ports, Airports, Power and Urban
Infrastructure etc.
Public Private Partnership in India:
Public Private Partnerships is an effective tool for bringing private sector
efficiencies in creation of economic and social infrastructure assets and for
delivery of quality public services. The extent of private sector
participation in creation of infrastructure, especially through PPP, has
shown a promising increase in the recent years. The broad sectors
encouraged under the PPP framework are Highways, Railways, Ports,
Airports, Power and Urban Infrastructure etc. The public sector actors take
care of the policy making and target areas according to the societal and
environmental needs whereas the private sector actors mainly engage in
financing and executing CSR initiatives. Planning and reporting are jointly
managed by the public and private sector actors of the partnership. The
development of the Corporate Social Responsibility focused, in its initial
phase, in involving corporate management and employees towards
identifying and pursuing socially acceptable behaviors compatible with
business performance. As a consequence, a variety of CSR strategies and
reporting systems have emerged focusing on the social and environmental
dimensions of the firm. Nowadays Public and Not for profit sectors are
entering in the debate and can contribute to strengthening socially
responsible corporate initiatives through different forms of partnership.
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 Corporate Social In the classical analysis of PPPs public and private sectors have clear and
Responsibility distinct institutional aims. The capacity to deal with issues related to
decisions and administrative behaviors in order to achieve the needs of
NOTES
long term economic equilibrium of the single units and the general
equilibrium of the economic system, represents the institutional
responsibility of the Public Sector and the functional responsibility of the
public administrations. As it concerns to private sector, the CSR concept
has an approach that consists in developing and strengthening a culture in
accordance to which companies, enterprises, corporations are considered
institutions and not only “systems of economic complex processes
activated to produce economic value richness”. Their immediate goal is to
increase economic value for a community but their ultimate goal remains,
anyway, to contribute not only to the “Wealth of Nations” but to the
“Wellbeing of people who live in Nations”. While general economic,
management and policy making theories in the past were based on the
clear separation and often on the contraposition between market and state,
between corporate objectives and the rationale of public choices, between
issues of production and allocation of wealth, between criteria of
efficiency and equity, the current theories are integrating and make the two
elements more compatible. While it is Public Sector’s main responsibility
to take and maintain control over the public interest through the definition
and control of public social, environmental and economic development
policies, we see an increasing “autonomous social role” of corporations
providing forms of pension systems, protecting the environment,
contributing at the local community development, etc.
It’s finally to be underlined how the development of different forms of
public/private partnership has significantly evolved in the last decades.
Whilst the last century has seen a prevailing contraposition between the
private and public sector, the globalization and socio-political integration
processes have seen a recent increase of forms of public/private
partnerships. Partnerships developed both at national/supranational level as
well as at regional and local levels.
Effective partnership management derives also by the communication
private and public sectors can establish. As such the constitution within the
public authorities of organizational units dedicated to CSR can contribute
private sector having a unique contact point. The few cases known in Italy
include CSR units within the Departments of Industry, Production
activities and Equal Opportunities. Personnel of such units should be able
to map the existing CSR needs in the territory, jointly plan the CSR
initiatives with private sector organizations and its association bodies and
effectively report to citizens and the public the results achieved. In spite of
the shifting roles and responsibilities of business and governments towards
societal problems, a need of increased governance of public/private
relationships arises considering the different range of interests of the
various actors emerging within a defined geographical area. Specific
interests can be firstly converged in a coordinated and integrated way into
policies, choices and solutions acceptable for the actors involved and at the
same time sustainable on the economic, social and environmental
dimensions. The actor responsible for the process of governance is
represented, considering its institutional nature, the public administration.

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PPP is advantageous and works well because of what each partner brings
to the table. While the government has the capacity to pump in
16
considerable financial resources and provide scale, the private sector, aside Corporate Social
Responsibility
from funds also provides expertise in management, delivery and
technology, and is responsible for day-to-day management and running of NOTES
the interventions. Private players are in a better position to do the ground
work and can mobilise personnel easily. The government on the other side
faces quite a few bureaucratic problems working on the ground and often
finds it difficult to manage interventions. When rightly executed, such
collaborations make any intervention very effective. In PPP the community
gets positively impacted, the nature and intensity of impact may, however,
be different. But, PPP is not always successful as well, there is some
scepticism that both partners have for each other. While there will be
teething issues as the public and private start working together these can be
overcome over time. Both the companies and the governments realize and
acknowledge the financial and non-financial resources and capabilities of
the other and also the potential of PPPs. They believe that working
together in the development sector would achieve the best results and have
the greatest impact. Therefore, it is suggested that all models of PPP,
especially those delivering a public service, should be created.
2.3 CLIMATE CHANGE AND CSR
Corporate Social Responsibility and Climate Change: CSR can be an
effective tool for mitigating climate change. It is the duty of corporations
to redress climate change through environment-friendly manufacturing
techniques, adoption of a green, transparent policy and environmental
disclosure
Facts: There is a scientific consensus that global warming and
climate change represent an enormous threat facing mankind.
The controversial aspect: Can corporate CSR really have a
significant impact on climate change, or is it just a public relations
vehicle for companies and a distraction from the need for stronger
government action, such as through a carbon tax?
In favor of global warming–related CSR: Corporations can have a
major impact in the battle against global warming by reducing their
large carbon footprints, by encouraging other corporations to follow
suit, and by helping discover and develop alternative sources of
energy.
Against global warming–related CSR: Companies spend a lot of
advertising money to boast about small measures against global
warming, but many of these companies are in industries—such as
fossil fuels or automobiles—that produce the most greenhouse gases
to begin with; self-serving claims of climate-change concern are
often simply greenwashing campaigns intended to distract us from
the need for society to take more effective measures through taxation
and regulation.
We know that due to climate change outcomes, many companies are
and will be in the future, greatly affected in many different ways. 10
actions that all companies can put in place to do their part in the fight
against global warming.
1. Measure and Analyze Greenhouse Gas Emissions : The first step for
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any company that wants to reduce its impact on the planet and the
environment, and therefore help to reduce climate change, is to
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 Corporate Social measure its greenhouse gas emissions (GHG). For this end, there are
Responsibility many private agencies that are carbon footprint certified and can help
companies measure their CO2 emissions. Once GHG emissions are
NOTES
known, they must be analyzed to see which of the company’s
activities the highest pollutants are. Once this analysis is done,
companies can then begin to consider solutions to reduce their
emissions.
2. Reducing Energy Consumption: Turning off the lights in the office in
the evening, slightly lowering the heating or the air conditioning or
taking devices off the plugs when it’s not needed are some good
actions companies can implement. Moreover, by paying more
attention to other daily routine actions, businesses can slightly reduce
their energy consumption and, thus, their impact on the climate.
3. Give Renewable Energies A Go: Today, more and more individuals
are choosing renewable energy and this is also an interesting solution
for companies. Suppliers such as ekWateur or Enercoop represent an
interesting solution for using only 100% renewable energy. Simply
put: avoiding fossil fuels significantly reduces the climate footprint.
4. Reduce Waste and Fight Obsolescence: Another way to reduce the
climate footprint of a business is to reduce the amount of waste
generated. Whether it is the industrial waste of a large company or the
paper waste of a SME of the tertiary sector, all companies produce
waste. Avoiding disposable cups, stirrers, and capsules for the coffee
machine and giving kitchen crockery instead, reducing the number of
prints, reusing papers as drafts, sort waste for recycling correctly…
There are plenty of possible solutions depending on the facilities
(office or factory) and an organization’s core business, and many
employees we’ll have plenty of good suggestions if they are motivated
to adopt an eco-entrepreneur mindset. It is also important to use
equipments and devices properly to avoid they get deteriorated faster
and to repair gadgets when they break down instead of replacing them
with new ones.
5. Optimize Employees’ Transportation: As we know, transportation is
one of the largest sectors of greenhouse gas emissions. By
encouraging employees to take public transit, to carpool with other
colleagues living close by or by giving them discounts on public
transportation, companies can significantly reduce their indirect CO2
emissions and therefore their impact on climate change.
6. Choose Greener Infrastructures and Equipment: It is also possible to
choose more environment-friendly infrastructures and equipments. In
this way, companies can set up a fleet of hybrid or even electric
vehicles to renovate their employees’ cars according to the latest
environmental standards. Or when the time comes to buy new printers,
air conditioners, laptops, screens, bulbs or office materials, if the old
ones can’t be fixed or more are needed, choose the most efficient
(energy-wise) and sustainable (regarding the origin or manpower ethic
standards) ones.
7. Choose Sustainable Suppliers: Each company also has a
responsibility regarding the partners it chooses. Choosing a supplier is
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also an environmentally-friendly choice (or not, depending on the
supplier). Therefore, companies should make the effort to choose
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 suppliers who demonstrate they have good environmental practices. In Corporate Social
Responsibility
fact, companies wanting to get sustainability and CSR certifications
such as GRI or B Corp often see their operations reviewed. And in the NOTES
process, suppliers’ operations might also be accounted to a company’s
own ecological footprint. Therefore, these companies aspiring
certification might even need to ask their suppliers to adopt more
sustainable practices (such as giving proof of not employing children
and paying fair wages or disposing waste properly), or even have to
change to more sustainable suppliers if the old ones refuse to change.
8. Raise Awareness Among Employees, Clients and Other
Stakeholders: As an economic agent, companies also play a role in
raising awareness on their employees, consumers, media and other
stakeholders. Organizing in-house contests, hackathons or campaigns
to raise and improve awareness on sustainability issues is a great idea.
Partner with outside organizations, do something original, unique,
powerful and that stays top of mind. These small gestures gradually
create the ground for best practices that individuals then reproduce at
home and transmit to their friends… the snowball effect, so to speak.
9. Promote Environmentally Friendly Ways of Working: Some ways
of working are more ecological than others: telecommuting, for
example, has many ecological advantages. One can also consider
video conferences that avoid employees traveling by car for meetings
with clients. Paper works also have a strong environmental impact, as
does computer work and the Internet because of servers. Sometimes,
avoid to copy an entire company in an e-mail that only concerns one
department can save a lot of CO2 emissions.
10. Mobilize For The Climate Change Challenge: Finally, the role of
companies is also political. In their territory, at the regional or national
level, companies that want to fight climate change must be militant.
By pushing politicians and public actors to act on global warming,
they can have a huge influence. If companies are active, this can lead
to new environmental regulations that can have a significant impact on
global warming.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the
unit.
1. What is sustainability?
2. What is PPP?
3. Explain how CSR can be an effective tool for climatic change?

2.5 LET US SUM UP

The Evolution of CSR – CSR along with the importance of sustainability
and the tools such as public private partnership and corporations role in
climate change in CSR is being discussed in detail in this chapter.
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 Corporate Social 2.6 ANSWER TO CHECK YOUR PROGRESS
Responsibility
1. Sustainability conveys greater ambition because it focuses on what
NOTES we need to achieve, rather than where we are today. Sustainability
emphasizes a common agenda for all sectors of society.
2. Public Private Partnerships is an effective tool for bringing private
sector efficiencies in creation of economic and social infrastructure
assets and for delivery of quality public services.
3. CSR can be an effective tool for mitigating climate change. It is the
duty of corporations to redress climate change through environment-
friendly manufacturing techniques, adoption of a green, transparent
policy and environmental disclosure
2.7 UNIT END QUESTIONS
1. Trace out the Evolution of CSR
2. Write a note on sustainability
3. Explain the importance of public private partnership
4. What is the role of CSR in climate change?
2.8 SUGGESTED READINGS
Corporate Social Responsibility: A Very Short Introduction (Very Short
Introductions) Paperback – 17 November 2014, by Jeremy Moon
Corporate Social Responsibility in India,Sanjay K. Agarwal, Publication
Year: 2008

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 Corporate Social
UNIT- III SUPPLY CHAIN Responsibility

RESPONSIBILITY, NOTES

STAKEHOLDER
ENGAGEMENT, CAUSE AND
SOCIAL MARKETING,
ENVIRONMENTAL
RESPONSIBILITY
Structure
3.1 Supply Chain Responsibility
3.2 Stakeholder’s Engagement
3.3 Social Marketing
3.4 Environmental Responsibility
3.5 Let Us Sum up
3.6 Answer to Check Your Progress
3.7 Unit End Questions
3.8 Suggested Readings
3.1 SUPPLY CHAIN RESPONSIBILITY
Supply Chain Management is a process comprised of several distinct but
interconnected functions and activities. Internal and external transportation
management, warehousing, inventory management, acquisition
management, logistics service providers management, resource
management, packaging and assembly, customer services are among the
most important ones. It is also possible to break down the supply chain
management process into two main flows; i.e. forward flow and reverse
flow. Taking into consideration those processes, main areas of social
responsibility in supply chains are:
Organizational practices
Ethical practices
Environmental practices
Practices of human rights and working conditions
Practices of occupational health and safety
Practices to establish relationship with society.

Green supply chain management

Green Supply Chain Management (GSCM) can be defined as reflecting a
company’s consideration and sensitivity about environmental issues to all
other supply chain processes. GSCM also assures that companies consider
not jeopardizing the environment in all supply chain functions. Companies
usually perceive the GSCM practices as factors that increase the cost in
general. However, research has yielded that GSCM practices help
companies to reduce general costs, increase productivity, foster innovation,
save resources and increase competitive advantage [9]. Besides those
tangible benefits, GSCM practices also play important roles in increasing
employees’ job satisfaction and commitment, promoting customer loyalty
and pleasure, enhancing their reputation in the eyes of the society. Self-Instructional Material

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 Corporate Social Main goal of GSCM is to assure that environmental practices are applied
Responsibility in the all phases of the process from procurement of raw material to the
delivery to the consumer; such as purchasing, production, packaging,
NOTES
warehousing, distribution, assembly. Long-term goal of GSCM is to keep
under control all the processes, reduce the chemical waste, lessen the gas
emissions and eliminate all the activities that may be hazardous to the
nature.
In the scope of GSCM, companies generally use three basic approaches
[10]:
Reactive approach
Proactive approach
Value seeking approach
Companies adapting reactive approach, usually apply procedures
compliant with rules and regulations in force, such as practices of human
rights, minimum resource usage, supply recycled products. Hence, reactive
companies have a low level of GSCM. On the other hand, companies
adapting proactive approach, apply procedures to prevent possible
problems that may arise in the future, instead of struggling with past
problems. Thus, proactive companies develop programs and policies on
how to implement and control green supply chain applications.
Companies adapting value seeking approach systematically integrate their
environmental policies into their long-term business strategies, reflect
those policies to their decisions and share this with all their stakeholders.
Besides, they establish a close communication with their suppliers and
stakeholders, and encourage them to integrate environmental policies to
their own business processes. From the systems management approach,
GSCM constitutes of a series of interconnected, not independent, activities
through a long process from the suppliers to the customers. Hence, GSCM
should be applied on the whole process in a holistic manner. Thus, to
achieve a successful GSCM, all activities and practices through the process
should consider GSCM principles. During the last decade, research on
GSCM has focused on the stages of the product life cycle and emphasized
the importance of greening approach in material selection and purchasing,
company’s supplier selection, waste management, packaging,
manufacturing and production, regulatory compliance.
In addition, some other important issues in GSCM include selection of
environmental performance criteria and indicators, relationship between
environmental and economic performance. To measure achievement of
GSCM, companies define success factors in accordance with their areas of
activity. Determining and measuring those success factors help companies
to understand the effectiveness of environmental policies and indicate how
well those policies are integrated into the business processes. In this
framework, some success factors that can be used to measure the
effectiveness of environmental policies are as follows:
Amount of energy and raw material spent
Amount of waste produced and exposed to the nature
Amount of hazardous material used in the production process of
goods and products
Amount of fuel usage and gas emission in the production, storage
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 Amount of recycled material through the processes Corporate Social
Responsibility
Number of partnerships with suppliers on the area of environmental
awareness NOTES
Level of reputation of the company in terms of environmental
sensitivity in front of the public eye
Companies adapting GSCM practices may evaluate the effectiveness of
their activities and processes in terms of environmental issues and may
alter their plans and strategies if necessary.
Social responsibility in the process of supply chains:
socially responsible applications and practices should be placed in all the
phases and steps throughout the supply chain process from procurement of
the raw materials to the delivery of products to the customer. In this
respect, this section will give specific examples of socially responsible
applications in each phase and function.
Social and Environmental Practices in Procurement and Purchasing
Social responsibility in procurement and purchasing can be defined as
performing all purchasing activities in accordance with the CSR principles
and taking into consideration CSR principles in the decision-making
process. If a company complies with the relevant standards on
environmental issues and involves its applications in the processes,
procurement and purchasing processes can be important activities to
spread the CSR concept to the suppliers.
One of the first CSR practices that can be integrated into the procurement
and purchasing is to prefer recycled and/or recyclable materials. In
addition to the purchasing of recyclable raw materials, giving precedence
to the procurement of technologies that consume less energy and produce
less waste is another important practice.
Besides, from a holistic perspective, choosing right suppliers that also
apply CSR concepts in their own processes and also comply with relevant
rules and regulations plays an important role in procurement process. In
this respect, before initiating the procurement processes with suppliers, it
should be verified that the suppliers also adapt CSR applications in their
own processes as required.
Social and environmental practices in production
Social responsibility in production process take place both in forward and
reverse supply chain management activities. In general terms, CSR in
production includes the design of the product taking into consideration
CSR principles and the production without giving any damage or hazard to
the environment.
Among the most important long-term goals in the environment-friendly
production process, to implement the systematic mechanism reducing the
amount of waste and to dispose the waste without giving any hazard to the
nature are considered the key practices.
Another important goal of CSR in production is to assess each phases of
the product life-cycle in order to determine the possibilities of re-
production, re-usage and re-cycling of the materials used in the production
process. If any possibility is determined, this should be integrated into the Self-Instructional Material
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23
 Corporate Social Social and environmental practices in distribution and
Responsibility transportation:
NOTES Social responsibility in distribution and transportation means developing
required transportation and distribution capability while maintaining and
enhancing environmental, economic and social sustainability.
CSR in transportation has been conceptualized during 1990s and has
focused on environmental and economic aspects of a sustainable
transportation process. Most important effects towards the environment
include emission of greenhouse gas, emission of gas which is hazardous
for the ozone layer, discharge of hazardous waste produced during
transportation.
Socially responsible practices in transportation area include giving
opportunities to local transportation companies, carefully monitoring that
the traffic rules and regulations are followed all the time, implementing
mechanisms increasing safety and security performance in transportation.
Social and environmental practices in packaging:
For more than 20 years, there is already a pressure on the companies to
lessen the negative effects of the packaging material on the environment.
Laws and regulations that have been put in effect lately increase the
importance of CSR in packaging function. Recently, influence of
packaging process on the environment is considered in the framework of
product life-cycle from a more holistic approach. Under the CSR concept
in packaging process, there are several activities to be considered, such as
storage, warehousing, protection of the product against deterioration.
Throughout those processes, CSR in packaging requires the usage of
recycled and non-hazardous material, reduction of waste, reduction of
energy consumption and design the process in such a way that does not
harm the ecosystem.
In packaging, size of the package is a usually neglected but an important
factor, since the size directly determines the amount of material used. By
having well-designed packages, companies may increase the efficiency in
resource usage. In addition, small size of a package helps companies to
formulate their loadings in the most optimum way and reduce their
transportation costs. Under the strong influence of increasing competition,
globalization, communication and information technologies, companies
trying to keep their positions in the market and to maintain a sustainable
growth are increasingly inclined to apply corporate social responsibility
activities and practices.
Supply chains are increasingly put under pressure mainly by customers and
stakeholders to implement CSR management systems across the chain. All
companies throughout the chain are obliged to implement practices and
initiate activities on economic, environmental, and social aspects to
maintain their sustainability. To transfer and share the CSR responsibility
across the chain, companies adapt several practices, such as establishing
written supplier requirements, monitoring supplier performance if they
meet the requirements and contributing suppliers’ awareness on social and
environmental issues.

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 Corporate Social
3.2 STAKEHOLDER’S ENGAGEMENT
Responsibility
Stakeholder: Stakeholders can be split into two groups – internal and NOTES
external:
Internal stakeholders: This covers anyone who is on the pay roll. This
includes staff, owners, shareholders and board members.
External stakeholders: This covers that is not directly part of your
business but still affects/is affected by its activities. This includes
suppliers, Customers, partners, government, email lists, social media
followers and even the local/wider community.
Stakeholder Engagement: Stakeholder engagement is the practice of
interacting with, and influencing project stakeholders to the overall benefit
of the project and its advocates. Stakeholder Engagement is the practice of
influencing a variety of outcomes through consultation, communication,
negotiation, compromise, and relationship building.
The successful completion of a project usually depends on how the
stakeholders view it. Their requirements, expectations, perceptions,
personal agendas and concerns will influence the project, shape what
success looks like, and impact the outcomes that can be achieved.
Successful stakeholder engagement is an essential part of professional
project management. It’s the process where we generate buy-in from the
business stakeholders and get them more interested in the business.
Stakeholder engagement involves a company being responsible to all its
stakeholders by ensuring they are involved with the goings-on of the
business.
Stakeholder engagement is vital in today’s working world. It’s driven by a
need for ethical and diverse leadership with input from lots of different
areas.
The benefits of stakeholder engagement
If you want your organisation to be a success, then you need buy-in at all
levels and from all angles. By working on strategies to boost stakeholder
engagement you will see huge business improvement:
Increased opportunities for learning.
More effective risk management.
A better understanding of people’s needs at different levels and across
different areas.
More informed decision making.
Everyone involved in the business has a voice… meaning more insight
and innovation.
A shared vision amongst key influencers.
People/groups can share their varying experience, expertise and
knowledge.
Easily identify strategies to gain a competitive edge.
To engage stakeholders:
Engagement with all stakeholders there is a checklist of things that must be
considered. But before we delve into that, it’s key to first identify who
your stakeholders are:
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 Corporate Social Baby steps are key in this area. First, you should make a list of all
Responsibility your stakeholders. if you’re struggling then it’s advisable to break
NOTES
it up into internal and external stakeholders.
Internal stakeholders should be easy. The external list will require
you to think more broadly. Consider anyone who could be affected
by the success or failure of your business. It’s also wise to consider
future stakeholders. Are you considering moving abroad or
currently pitching for new business? If so, add these people to your
list and start building relationships now.
Your lists should not only include names but also who is
responsible for managing the relationships with the stakeholder.
Failure to do this from the outset will make the whole process very
difficult to manage.
Key principles of stakeholder engagement
#1 Understand
Before aiming to engage and influence stakeholders, it’s crucial to seek to
understand the people you will be working with and relying on throughout
the phases of the project lifecycle. Sharing information with stakeholders
is important, but it is equally important to first gather information about
your stakeholders. One technique that can help with this is Stakeholder
Mapping.
#2 Communicate
There have been numerous studies into why projects fail, with ‘bad
communication’ often pointed to as the most common reason. Across all
sectors and sizes of project, ineffective or insufficient communication is at
the root of project problems such as unclear objectives, misunderstanding
the problem, poorly coordinated teamwork and ineffective risk
management. The fundamental challenge of effective communication is
based on the clear evidence that ‘what you say is not the same as what they
hear’, even with people you know very well. It is therefore easy for
communications to be misinterpreted. Good communication requires
relentless and time-consuming effort to ensure the intended message is
understood and the desired response achieved, which, especially on large
projects, sometimes justifies the assistance of communication
professionals.
#3 Consult, early and often
The rewards of early and efficient stakeholder consultation should be clear
to anyone that has worked on a project where this has not been done well.
If you have ever felt ‘I wish I’d known that at the start of the project,’ then
consider that even just a few, well-timed questions can be very valuable.
Questions about who the relevant stakeholders are (e.g. ‘Who else’s views
should we be considering?’), and, once these have been identified,
questions about the stakeholders’ objectives, success criteria, constraints,
key concerns, their stakeholders (e.g. customers), etc., usually provide
information that easily justifies the time spent investigating.
#4 They are human too
Accept that humans do not always behave in a rational, reasonable,
consistent or predictable way and operate with an awareness of human
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26
of stakeholder behaviour, you can assess if there is a better way to work Corporate Social
Responsibility
together to maintain a productive relationship.
NOTES
#5 Plan it!
A more conscientious and measured approach to stakeholder engagement
is essential and therefore encouraged. Investment in careful planning
before engaging stakeholders can bring significant benefits. What kind of
regular meetings have value? How are they structured? Formal meetings
with meeting minutes, or informal ones? This is what Stakeholder
Management is.
#6 Relationships are key
Developing relationships result in increased trust. And where there is trust,
people work together more easily and effectively. Investing effort in
identifying and building stakeholder relationships can increase confidence
across the project environment, minimize uncertainty, and increase the
speed of problem-solving and decision-making.
#7 Just part of managing risk
Stakeholders are important influential resources and should be treated as
potential sources of risk and opportunity within the project. Over and
above conventional planning, using foresight to anticipate hazards, and
taking simple and timely actions with stakeholders can significantly
improve project delivery.
#8 Compromise
The initial step is to establish the most acceptable baseline across a set of
stakeholders' diverging expectations and priorities. Assess the relative
importance of all stakeholders to establish a weighted hierarchy of the
project requirements and outcomes. Having ranked the stakeholders in
order of importance, their differing interests can then be weighed
accordingly with the best compromise solution being at the ‘centre of
gravity’. As the leader of the project, it is your judgment as to what this
solution is with the rationale and decision being communicated to all
parties where appropriate.
#9 Understand what success is
Project success means different things to different people and you need to
establish what your stakeholders perceive as a success for them in the
context of project delivery.
#10 Take responsibility
Stakeholder engagement is not the job of one member of the project team.
It’s the responsibility of everyone to understand their role and to follow the
right approach to communication and engagement. Good project teams
have clarity about stakeholder engagement roles and responsibilities and
what is expected of people involved in the project.
3.3 SOCIAL MARKETING
Definition: According to Dann S (2009), “the adaptation and adoption of
commercial marketing activities, institutions and processes as a means to
induce behavioural change in a targeted audience on a temporary or
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 Corporate Social Social Marketing is a planned process for influencing change. Social
Responsibility Marketing is a modified term of conventional Product and Service
Marketing. With its components of marketing and consumer research,
NOTES
advertising and promotion (including positioning, segmentation, creative
strategy, message design and testing, media strategy and planning, and
effective tracking), Social Marketing can play a central role in topics like
health, environment, and other important issues.
In its most general sense, Social Marketing is a new way of thinking about
some very old human endeavours. As long as there have been social
systems, there have been attempts to inform, persuade, influence, motivate,
to gain acceptance for new adherents to certain sets of ideas, to promote
causes and to win over particular groups, to reinforce behaviour or to
change it -- whether by favour, argument or force. Social Marketing has
deep roots in religion, in politics, in education, and even, to a degree, in
military strategy. It also has intellectual roots in disciplines such as
psychology, sociology, political science, communication theory and
anthropology. Its practical roots stem from disciplines such as advertising,
public relations and market research, as well as to the work and experience
of social activists, advocacy groups and community organizers.
As Phil Kotler points out in his book Social Marketing - Strategies for
Changing Public Behaviour, campaigns for social change are not a new
phenomenon. They have been waged from time immemorial. In Ancient
Greece and Rome, campaigns were launched to free slaves. In England
during the Industrial Revolution, campaigns were mounted to abolish
debtor prisons, grant voting rights to women, and to do away with child
labour. Notable social reform campaigns in nineteenth-century America
included the abolition, temperance, prohibition and suffragette movements,
as well as a consumer movement to have governments regulate the quality
of foods and drugs.
In recent times, campaigns have been launched in areas such as health
promotion (e.g., anti-smoking, safety, drug abuse, drinking and driving,
AIDS, nutrition, physical fitness, immunization, breast cancer screening,
mental health, breast feeding, family planning), environment (e.g., safer
water, clean air, energy conservation, preservation of national parks and
forests), education (e.g., literacy, stay in school ), economy (e.g., boost job
skills and training, attract investors, revitalize older cities), and other issues
like family violence, human rights, and racism.
There are three major advantages, however, which suggest that social
marketing is worthy of your consideration:
It helps you reach the target audience you want to reach.
It helps you customize your message to those targeted audiences:
and by doing so,
It helps you create greater and longer-lasting behavior change in
those audiences.
Social Marketing combines the best elements of the traditional approaches
to social change in an integrated planning and action framework, and
utilizes advances in communication technology and marketing skills. It
uses marketing techniques to generate discussion and promote information,
attitudes, values and behaviours. By doing so, it helps to create a climate
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The 4Ps Model Corporate Social
Responsibility
The 4Ps were created by marketing professor E. Jerome McCarthy in
NOTES
1960, seven years after Borden’s speech. They are a framework that
marketers and businesses can use when designing strategies and campaigns
to promote their products and services.
Instead of leaving it up to chance and hoping that people will do what you
want, you can increase your conversions by using a framework. Each P
stands for a different element that influences a consumer’s decision-
making process.
#1 Product: Product refers to the physical goods or the intangible services
that you offer, but there’s more to it than that. It’s also about the
experience that users and customers have with your product.
What makes customers choose your product over others?
What problem does it solve?
What attracts people to your products or services?
They may be attracted to the product packaging, features, ease-of-use,
name, quality, design or support. The transaction may be for the physical
product. But the purchase is influenced by the entire buying experience.
All of the four elements are centred around the customer. It is important to
know who your audience is and what they care about. Learn as much about
your current or potential customer base as you can. This will help you
make decisions that are more likely to resonate and appeal to your target
audiences.
#2 Price: It is critical to choose the right price for your product or service.
If your product is under-priced, consumers may question its effectiveness
or think that it’s “too good to be true”. On the other hand, if you price your
product too high, consumers may see it as overpriced and unnecessary.
Unless you are an established luxury brand like Coach or Chanel, you’ll
find it hard to make a sell. There are a number of pricing strategies that
businesses employ. Some models are: bundle, subscription, competitive,
economy, discount, and psychological pricing. The strategy that you
choose should be based on the value of your product, the production and
distribution costs, consumer demand and competitive landscape. Price is
also heavily influenced by your consumers. Of course, you need to price to
make a profit.
Promotion: Promotion covers all of the communication tactics that you
will use to spread the word. Note that promotion isn’t synonymous with
marketing. Promotion focuses on how you will communicate your product
to people. It doesn’t only encompass the entire marketing function. It also
addresses the sales process and other areas such as public relations and
advertising.
Also, the purpose of promotion isn’t to simply sell your products and
services. (Yes, that would be an ideal result.) Before you can jump to the
transaction part, you need to let people know what your products and
services are, what they offer customers, and why they are worth buying.
Promotion lets people know that your product solves a specific need. In the
promotion stage, your message should be clear and geared towards your
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 Corporate Social What makes your business different from the competitors?
Responsibility Is it a lower-price?
NOTES Higher quality?
Faster service?
More flexibility?
Identify what sets you apart from everyone else. It is key to include those
differentiators into your promotional messages. When selecting which
channels to use for promotion, remember that your audience is the focus.
What types of content do they consume on a daily basis? Where are they
located? What times are the most actively consuming content? Some
channels that you may use for promotion are: word-of-mouth, podcasts,
radio, social media, email, press releases, public relations, print, television
ads, and pay-per-click (PPC) ads.
#4 Place: Place refers to the distribution of your product. How will
customers find and purchase what you’re trying to sell? Will it be sold in
retail stores or exclusively online? Two of the most common distribution
channels are: direct sales and wholesalers.
If you run a local retail business, you will likely use direct sales at your
location. You may also offer certain items through an online store.
Whether in-store or online, you are the primary contact managing and
shaping the customer experience.
Another option for businesses is to sell through an intermediary a
wholesaler or reseller. If you sell through Walmart or Amazon, you would
fit into this category. The advantage of working with a wholesaler is that
they tend to have a wider distribution network and larger customer-base.
Although it makes it possible to reach more customers, you lose some of
that customer connection that is associated with direct sales. It can also be
extremely difficult and lengthy process to land a deal with big name
wholesalers like Walmart.
Importance of social marketing:
Social Marketing is very important to society, the environment, and
businesses. This concept was developed in order to tackle the consumerism
and profit only the motive of business.
The Social marketing concept helps to maximize profits for the
organization and creates a long-term relationship with customers. It
encourages developing products that benefit society in the long run and
satisfies consumers. In addition, as an important component of economic
society, enterprises are required by the public to assume environmental
responsibility. However, conclusions on the impact of CER on corporate
interests have not been consistent. Is corporate environmental
responsibility a win–win situation or at the expense of corporate value?
According to stakeholder theory, it is in line with stakeholders’ expectation
for enterprises to undertake environmental responsibility to obtain their
support and improve financial performance, which may lead to good
investment efficiency. On the other hand, the trade-off and management
opportunism hypothesis hold that CSR (including CER) will occupy the
company’s resources, thus putting it in a disadvantaged competitive
position. In addition, managers may obtain more private support through
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environmentally responsible investment, which may lead to an improper
30
use of corporate resources and cause corporate profit losses. Therefore, the Corporate Social
Responsibility
impact of corporate environmental responsibility (CER) on corporate
economic benefits has become a research hotspot. At present, similar NOTES
studies focus mainly on the impact of CER on business performance or
income direction or the impact of CSR on investment efficiency CER can
not only improve the natural environment and form positive externalities to
benefit enterprises but also provide better access to external financing,
improving corporate financial transparency to some extent and reducing
the abuse of corporate free cash flow. Compared with non-environmentally
friendly enterprises, enterprises with environmental risk management have
easier access to project financing. Companies that commit to
environmental investment programs can gain more profit from
competition. Although studies have proven that CSR can effectively
improve the efficiency of enterprise investment, CSR as a general concept
is not completely the same as CER. The research results of Agua do and
Holl, who compared the environmental responsibility of SMEs in Spain
and Norway, show that in the market environment with effective
environmental regulation and strong environmental protection advocacy,
enterprises will voluntarily assume higher environmental responsibility. In
other words, regions with better institutional environments have less
corruption, less excessive government intervention (for example, officials
interfere in the allocation of corporate resources for their own benefit), and
more developed financial markets, all of which are conducive to improving
the environmental performance of enterprises and giving full play to the
effect of CER. In addition, the increase in consumers’ environmental
awareness makes environmentally friendly enterprises more favoured by
consumers Therefore, this paper focuses on the impact of CER on
investment efficiency and the moderating role of the institutional
environment and consumer environmental awareness in this impact. As far
as we know, there is little research on this field. Our results help
enterprises and government regulators better understand the effects and
working conditions of CER and contribute to policy formulation and
corporate managers’ investment decisions in environmental responsibility
activities.
3.4 ENVIRONMENTAL RESPONSIBILITY
Best Corporate Environment Responsibility
When companies go above and beyond what’s expected environmentally
or socially, they’re engaging in corporate social responsibility. Did you
catch that? It’s pretty important.
Government regulations already limit pollution and ensure that companies
practice certain human rights standards. So, companies can’t toot their own
horn if they’re just following the law. However, brands that go the extra
mile are employing exemplary CSR initiatives.
Socially responsible companies and business leaders care about more than
the financial bottom line. They adjust their business strategies to positively
impact society and the environment.
These are the most common examples of corporate social responsibility:
Reduce carbon footprints to mitigate climate change
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 Corporate Social Engage in charitable giving and volunteer efforts within your
Responsibility community
Change corporate policies to benefit the environment
NOTES
Make socially and environmentally conscious investments
Let’s dive into some of the most impactful corporate social responsibility
initiatives.
How?
Here are some ways socially responsible companies can help the
environment:
Hold an annual tree-planting event.
Set up recycling bins throughout your facilities
Minimize your amount of paper waste
Permit remote work to reduce the negative impact of commuter
traffic
Switch from incandescent light bulbs to energy-saving LED bulbs.
Make socially and environmentally conscious investments.
The notion of Environmental Corporate Social Responsibility has emerged
because of the progressive increase of environmental concerns at
international, European and national levels such as the challenge of climate
change. Green initiatives are not seen as a “cost”, but as a new opportunity
to make more profits and transform a polluting activity into a greener one.
The European Commission has included the environment in its definition
of corporate social responsibility, stating that CSR means “actions by
companies over and above their legal obligations towards society and the
environment”.
Now, private companies are compelled to act more responsibly and
Environmental CSR creates an “environmental responsibility” for private
companies to be more environmentally friendly.
Corporate Environmental Responsibility
Corporate Environmental Responsibility concerns the environmental
aspects of Corporate Social Responsibility (CSR). It is commonly defined
as is the way in which organizations can incorporate environmental issues
into their operations in order to eliminate waste and emissions, maximize
the efficiency and productivity of its resources and minimize practices that
badly affect the country’s natural resources. It takes all its meaning in the
current context (global warming, destruction of biodiversity, etc.) and
becomes a pillar of development for some organizations that voluntarily
engage. Corporate Environmental Responsibility is about managing the
use natural resources in the most effective and efficient manner in order to
reduce environmental impacts and financial costs.
Areas of Focus:
Energy Efficiency and Savings
Waste Management
Travel and Transportation
Sustainable Procurement
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 Sustainable Events Corporate Social
Responsibility
Environmental Management Systems
NOTES
Nowadays, environmental risk management is essential for the good
development of organizations. It allows them to carry out their activities in
a sustainable way regarding environment.
Reasons why Corporate Environmental Responsibility is important:
There are many drivers which explain why companies should incorporate
environmental concerns into their own strategic decision making. Reasons
are a mix of incentives and risks directed to companies in order to improve
standards. One of the most prominent and influential factors of
environmental companies’ concerns is regulation and government
policies. States are often influenced by Civil Society Organizations (CSOs)
and Environmental Non-Governmental Organization (ENGOs) activism.
The implementation of these policies is facilitated by subsidies, tariffs and
taxes. Besides, in a context of information revolution, business practices
are brought to light around the world which affect company’s reputation.
Thus, companies are more frequently judged on their environmental
stewardship. Consumers, shareholders, employees and partners
increasingly require organizations to become more environmentally aware
and socially responsible. They also want more transparency from
companies, which means that companies benefit from corporate social
responsibility & environmental management. All of these drivers have
encouraged or compelled companies to integrate environmental concerns
in business strategy.
Benefits of Corporate Environmental Responsibility
Brand image: standing out as a green corporate can improve your
reputation.
Customer loyalty: people prefer brands who have environmental
concerns and they are more inclined to buy from them in the future.
Differentiation: face to increasingly demanding customers and aware of
environmental issues, gaining a green reputation can help you
differentiate.
However, there is no specific definition, and the concept remains broad.
Essentially, corporate social responsibility aims to create a new social
conscience in the business world compatible with the profit maximization
strategies. Private companies increasingly regulate their activities by
taking into account factors than the traditional ones, most notably the
continual increase of profits.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. What does ‘Supply Chain Responsibility’ refers to?
2. What is Social Marketing?
3. Who is a stakeholder and how do we engage?
4. ‘4 P’ Model of social marketing, what does it stands for? Self-Instructional Material

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 Corporate Social 3.5 LET US SUM UP
Responsibility

NOTES
This chapter gives us an explanation what supply chain responsibility is
and how is it important in maintaining the recourses and promoting
sustainable environment for all. How and why engagement with the
stakeholders are important and how they contribute environmental and
social wellbeing. How social marketing be benefitable in the processing
for developing practices of socially responsible practices by institution’s
and companies, as a way forward.

3.6 ANSWER TO CHECK YOUR PROGRESS

1. Responsible supply chain aims in minimizing our environmental

impact and improving the lives of all people who make our products.
We expect the highest ethical standards throughout our supply chain
and promote meaningful social change at supplier sites and nearby
communities.
2. Social Marketing is a planned process for influencing change. Social
Marketing is a modified term of conventional Product and Service
Marketing.Social Marketing plays a central role in topics like health,
environment, and other important issues.
3. Engaging with stakeholders is crucial to the success of any
organization. To succeed, an organization must have a clear vision
derived from a robust strategic planning process, and an effective
strategic plan or marketing plan can only come from stakeholder
engagement.
4. Product, Price, Promotion and Place.
3.7 UNIT END QUESTIONS
1. What Green Supply Chain Management?
2. Write down principals of stakeholder engagement?
3. Explain 4 P Model with suitable examples.
4. Corporate environmental responsibility practices, ways to
implement
5. Social and environmental practices in production and packaging.
3.8 SUGGESTED READINGS
https://www.reputationmanagement.com/blog/corporate-social-
responsibility-examples/
https://www.intechopen.com/books/applications-of-contemporary-
management-approaches-in-supply-chains/corporate-social-responsibility-
in-supply-chains
https://www.henricodolfing.com/2018/03/10-principles-of-stakeholder-
engagement.html

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 Corporate Social
BLOCK- II Responsibility

CSR AS ECONOMIC DEVELOPMENT NOTES

AND CSR IN CULTURAL CONTEXT,

STAKEHOLDERS AND PERSPECTIVE
AND DESIGNING A CSR POLICY
Unit-IV SOCIALLY RESPONSIBLE
INVESTING, SUSTAINABILITY
REPORTING, TRANSPARENCY
AND HUMAN RIGHTS; CSR AS
ECONOMIC DEVELOPMENT
AND CSR IN CULTURAL
CONTEXT
Structure
4.1 Socially Responsible Investing
4.2 Sustainability Reporting
4.3 Transparency
4.4 Human Rights
4.5 CSR as Economic Development
4.6 CSR in Cultural Context
4.7 Let Us Sum Up
4.8 Answer to Check Your Progress
4.9 Unit End Questions
4.10 Suggested Readings
4.1 SOCIALLY RESPONSIBLE INVESTING

Socially responsible investing, also known as ethical and green investing,

means avoiding industries that negatively affect the environment and its
people. This includes companies that produce or invest in alcohol, tobacco,
gambling and weapons. Instead, SRI involves investing in companies
engaged in ethical and socially conscious themes, like environmental
sustainability and social justice. Some investors also consider SRI to stand
for sustainable, responsible and impact investing. Regardless of your
preferred definition, socially responsible investing works toward both
positive change and financial gain.
Socially Responsible Investing Works
Socially responsible investing considers environmental, social and
corporate governance, also known as ESG criteria. These criteria help
many socially responsible investors decide which companies or funds to
invest in. This includes companies that respect the environment, treat their
employees and suppliers fairly and promote ethical policies. Some
investors believe that companies that practice good citizenship can yield
greater returns than those that don’t. Self-Instructional Material

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 Corporate Social SRI works the same way as any other style of investing. But SRI adds
Responsibility company ethics and social responsibility into the equation, instead of
simply putting your money into securities for growth. SRI tends to follow
NOTES
political and social trends. This means they’ve been dedicated to women’s
rights, civil rights and anti-war efforts in the past. Now, socially
responsible investors’ focus has shifted to mostly sustainable solutions to
21st century challenges. This includes climate change and ethical business
practices.
Invest Responsibly: You have several options available to you if you
want to invest in good causes. For starters, you can make socially
responsible investments individually or through socially
conscious mutual funds, exchange-traded funds and index funds.
You can use a robo-advisor, invest directly or participate in crowd or
community investing. There is also a wide range of SRI products and
asset classes, like public equity investments (stocks), cash and fixed
income investments, like private equity or venture capital.
Start by identifying the level of risk you’re willing to take on. Consider
your income and any current investments you have, including corporate-
sponsored retirement plans. Then, define what “socially responsible,”
“sustainable” and “impact” mean to you. Think about your moral, ethical,
religious and social values. You’ll also have to evaluate individual
companies and investments by looking beyond financial statements.
Measure their potential to impact a specific cause or movement. You
should still seek competitive financial returns when looking for socially
responsible investments. It’s important to recognize that while SRI may
feel better than other money-making tactics, it still comes with risks. As
with any investment, returns aren’t guaranteed. Assess the financial
outlook of socially responsible investments as you would any others.
Investment Firms Practice SRI: It isn’t always easy to determine
which investments are strictly socially responsible. For instance, a
company could practice ethical manufacturing processes, only to
dispose of waste in an irresponsible way. Some companies boast that
they support female empowerment, but don’t have any women on
their board. It’s important to do your homework to be sure you’re
investing in actually socially responsible institutions. If you need
some help figuring out which companies to invest in, an investment
firm can come in handy. When you work with an investment firm,
they’ll manage your portfolio for you, investing in truly ethical
companies. Some names to start your investment firm search
include Calvert Research and Management, Parnassus
Investments, Oakmark Funds and SRI Investing. You may also want
to check out the robo-advisor Swell Investing which focuses solely
on impact investing. Each firm has different impact strategies to find
its clients financially healthy and rewarding investments. They pride
themselves in contributing to the world while turning a profit. You
could also turn to a financial advisor to help you get started or scale
up your SRI investing. It helps to do some digging to find out which
advisors will be the best fit for your financial goals, risk profile and
principles.
The Bottom Line: For many investors, socially responsible investing
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 personal philosophies. Everyone can choose their own assets to buy Corporate Social
Responsibility
shares in, but it’s good to know that socially responsible investing in
an option. Before you make your next investment, consider what a NOTES
company stands for in addition to what they might earn and how
risky backing it may be.
Investing Tips
A financial advisor can be extremely helpful when it comes to
investing. Finding the right financial advisor that fits your needs
doesn’t have to be hard. SmartAsset’s free tool matches you with
financial advisors in your area in 5 minutes. If you’re ready to be
matched with local advisors that will help you achieve your
financial goals, get started now.
Investing isn’t always easy, especially when you want to maximize
your earnings but don’t quite know how. In that case, it could make
sense to sign up with a robo-advisor. The best robo-
advisors manage your investments according to your preferences
and finances with a focus on getting you the best returns. Plus, it’s
all online which makes it convenient for those always on the go.
4.2 SUSTAINABILITY REPORTING
Sustainability reporting enables organizations to consider their impacts
of wide range of sustainability issues, enabling them to be more
transparent about the risks and opportunities they face. Sustainability
reporting is the disclosure and communication of environmental, social,
and governance (ESG) goals—as well as a company’s progress towards
them. The benefits of sustainability reporting include improved corporate
reputation, building consumer confidence, increased innovation, and even
improvement of risk management. There are many ways to build
sustainability reporting into your corporate social responsibility programs,
whether by making use of established sustainability reporting frameworks
such as GRI or CDP, including sustainability performance as part of your
overall performance disclosures, by using guidelines such as those created
by the International Integrated Reporting Committee (IIRC), or making use
of ranking tools such as the Dow Jones Sustainability Index (DJSI).
In many markets, both in developed and developing countries, the call for
increased transparency and accountability of the private sector is growing.
Potential health and environmental risks posed by companies, and the
goods and services they produce, are increasing pressure on them to
generate, assess, and make information on their sustainability performance
and impacts publicly available. In this sense Corporate Sustainability
Reporting represents a potential mechanism to generate data and measure
progress and the contribution of companies towards global sustainable
development objectives as it can help companies and organizations
measure their performance in all dimensions of sustainable development,
set goals, and support the transition towards a low carbon, resource
efficient, and inclusive green economy.
The Corporate Sustainability Reporting portfolio of work is embedded in
UN Environment’s Resources and Markets Branch and more particularly
within the Consumption and Production Unit which main goal is the
promotion of sustainable production and consumption policies, practices Self-Instructional Material
and initiatives through the engagement of governments, the businesses
community and civil society organizations. As part of the Corporate
37
 Corporate Social Sustainability Reporting agenda, the Consumption and Production Unit
Responsibility hosts the Secretariat of the Group of Friends of Paragraph 47 (GoF47), a
government-led initiative formed in 2012 during the United Nations
NOTES
Conference on Sustainable Development (Rio +20) to advance
recommendations put forward under paragraph 47 of the outcome
document ‘The Future We Want’. In addition, the Unit implements a
number of activities including regional projects to facilitate the integration
of sustainable practices by companies (SDG 12.6) in alignment with the
Sustainable Development Goals and to facilitate governments’ task of
follow-up and review of the SDGs through higher quality and comparable
information emerging from corporate reports.
A sustainability report is a report published by a company or organization
about the economic, environmental and social impacts caused by its
everyday activities. A sustainability report also presents the organization's
values and governance model, and demonstrates the link between its
strategy and its commitment to a sustainable global economy.
Sustainability reporting can help organizations to measure, understand and
communicate their economic, environmental, social and governance
performance, and then set goals, and manage change more effectively. A
sustainability report is the key platform for communicating sustainability
performance and impacts – whether positive or negative.
Sustainability reporting can be considered as synonymous with other terms
for non-financial reporting; triple bottom line reporting, corporate social
responsibility (CSR) reporting, and more. It is also an intrinsic element
of integrated reporting; a more recent development that combines the
analysis of financial and non-financial performance.
Building and maintaining trust in businesses and governments is
fundamental to achieving a sustainable economy and world. Every day,
decisions are made by businesses and governments which have direct
impacts on their stakeholders, such as financial institutions, labor
organizations, civil society and citizens, and the level of trust they have
with them. These decisions are rarely based on financial information alone.
They are based on an assessment of risk and opportunity using information
on a wide variety of immediate and future issues.
The value of the sustainability reporting process is that it ensures
organizations consider their impacts on these sustainability issues, and
enables them to be transparent about the risks and opportunities they face.
Stakeholders also play a crucial role in identifying these risks and
opportunities for organizations, particularly those that are non-financial.
This increased transparency leads to better decision making, which helps
build and maintain trust in businesses and governments. Sustainability
reports are released by companies and organizations of all types, sizes and
sectors, from every corner of the world. Thousands of companies across all
sectors have published reports that reference the GRI Standards. Public
authorities and non-profits are also big reporters. GRI’s Sustainability
Disclosure Database features all sustainability reports known to GRI.
Major providers of sustainability reporting guidance include:
GRI (GRI's Sustainability Reporting Standards)

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The Organisation for Economic Co-operation and Development
(OECD Guidelines for Multinational Enterprises)
38
 The United Nations Global Compact (the Communication on Corporate Social
Responsibility
Progress)
NOTES
The International Organization for Standardization (ISO 26000,
International Standard for social responsibility)
4.3 TRANSPARENCY
Transparency is a crucial condition to implement a CSR policy based on
the reputation mechanism. The central question of this contribution is how
a transparency policy ought to be organised in order to enhance the CSR
behaviour of companies. Governments endorsing CSR as a new means of
governance have different strategies to foster CSR transparency. In this
paper we discuss the advantages and disadvantages of two conventional
policy strategies: the facilitation policy and the command and control
strategy. Using three criteria (efficiency, freedom and virtue) we conclude
that both strategies are defective. Most attention is paid to the facilitation
strategy since governments nowadays mainly use this. In evaluating this
strategy we analyze the Dutch case. As an alternative we introduce a third
government policy: the development of a self-regulating sub-system. By
construing an analogy with the historical development of corporate
financial disclosure, we point out that the vital step in the creation of a
self-regulating subsystem is the creation of strong informational
intermediate organizations.
Advantages of transparency The literature provides several economic and
moral arguments why transparency is important in relation to CSR. First,
transparency enhances allocative efficiency, at least if consumers attach
value to the social and ecological consequences of the products that they
buy. Transparency may also enhance dynamic efficiency and innovation.
Without transparency, companies performing well in CSR cannot
distinguish themselves from companies that perform badly. This will limit
the incentive to and necessity of process and product innovation to
increase value creation in the social and ecological dimension (see
Kaptein, 2003 and Graafland et. al., 2004 and 2006). Transparency can
also be defended from the moral point of view. First, consumer freedom
increases when more information about the characteristics of various
products is available. This information should also include the CSR
relevant information of these products. Ethically speaking, informing
transaction partners is an 5 important aspect of showing respect to others.
Stakeholders have a reasonable right to information concerning the
reporting company when its activities impinge on their interests (Deegan
and Rankin, 1996; Gray, 2001). Transparency is also morally important
because it enhances an attitude of honesty, openness and a commitment to
truth that is implicit in thinking on CSR. Thus, it has been argued that
transparency enhances a sense of accountability and responsibility
(Kaptein, 2003), again virtues relevant for CSR. The argument here is that
transparency makes it much easier for stakeholders to confront a company
with its actions, thereby stimulating a sense of responsibility in the
company. Moreover, more and better information could have a stimulating
effect on the attitude of consumers vis-à-vis CSR. Currently consumers
often are too passive in this respect. More transparency, for example by
labelling products, will confront consumers directly with the moral
consequences of their choice and thus increase their willingness to pay for
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CSR products (Auger et al, 2003; see also Curlo, 1999). Disadvantages of
transparency All these advantages, however, do not imply that pushing
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 Corporate Social transparency to its limits is necessarily a good thing. There are
Responsibility disadvantages attached to striving at full transparency. From an economic
point of view complete transparency may be costly to society. Although
NOTES
communication technology has diminished information costs, the
stakeholders’ right to information can be very costly to individual firms.ii
This is further complicated by the fact that many aspects of CSR cannot be
measured very accurately. Another problem is the bounded rationality of
stakeholders. Because of the limited cognitive powers and restricted time
for absorbing information, an 6 overload of information may cause the user
to overlook the most important information or even to refrain from
inspecting the information (Conlisk, 1996; Rabin, 1998; Fung et al, 2004).
KPMG finds that stakeholders do not derive a direct measurable value
from the voluminous environmental reports of large companies.iii A moral
consideration against full transparency concerns company freedom.
Although entrepreneurs and managers should inform their stakeholders,
complete transparency and the resulting burden of compiling the necessary
information may come into conflict with company freedom. Full
transparency may come into conflict with other moral principles, such as
the right to privacy of workers or other parties. Transparency must also not
disproportionately endanger the interests of the company that provides the
information (Council for the Annual Reports, 2003). This actually involves
more than company secrets. If many companies in a sector conceal
information that is sensitive and harmful for them, the fully transparent
firm may suffer a disproportionate amount of damage. As a result, its
effectiveness in realizing either allocative efficiency or long run dynamic
efficiency through innovation may be limited. Yet another consideration is
that full transparency may in fact turn companies against taking moral
responsibility and thus CSR. Demanding full transparency may hinder the
enhancement of virtues like honesty, openness and integrity. Although
modest external pressure certainly can stimulate the internalisation of these
virtues, beyond a certain level external pressure may also have a negative
effect. It may feed an attitude of minimal compliance and distrust. This
negative effect is particularly strong when companies are not able to
deliver reliable information or lack the best practices of CSR (KPMG,
2006).
Transparency Establishes Trust
Transparency builds trust, and makes employees feel that they’re working
for a company with higher ethical standards. According to a 2014
American Psychological Association Survey, 25% of employees do not
trust their employer. Half of them believe their employer is not upfront
with them and open to the overall vision of the company.
When transparency is added to the corporate culture, employees will be
more engaged and committed to the vision of the company. The reason is
they fully understand the mission and feel vested to share ideas, display
their creativity, and bring about innovation to achieve the desired
objective. People are always going to be first and best choice for operating
within the solution before automation since when committed will add more
continuous value to the process.
So how does a company being about the full value of transparency to the
workplace? The answer is communication. Please note not just any
Self-Instructional Material communication but direct and clear communication that comes from the

40
highest level of honesty and integrity. It is important that communication Corporate Social
Responsibility
be a two way street both coming from top down and down up. Employees
are most engaged and committed to the process when senior leadership NOTES
continually updates and communicates company strategy, value, and the
truth about their current situation. Companies that adopt the concept of
transparent leadership see a stronger bond of trust and commitment from
their employees to strive for efforts not achievable the other way around.
Transparency Expands Relationships
You have probably heard that people do not leave the job itself but leave
the managers associated with it. Solid relationships with strong
foundations are built from being transparent. A 2014 CareerBuilder
survey showed that 37% of the 3,008 employees surveyed were likely to
leave their jobs due to poor relationships and lack of confidence with their
boss’s performance.
So how do we improve relationships in the workplace? The best advice
would be to have an open environment that encourages transparency and
sharing of ideas without judgement. While this is not easy, there are
training programs to improve workplace communications and teach people
from all backgrounds to relate to one another without judgement. Keeping
an open office is to keep the flow of communication steady to prevent
bottlenecks or issues from arising. This means for senior management to
engaged employees and relate to them as people. They should go out there
and have meaningful conversations that build not only trust but a
foundation of confidence for everyone to succeed as one. Once you
establish this open line of communication you will see a shift in the mood
and even your company culture.
Transparency Increases Productivity
Most employees over the years when asked felt their employers were not
straight forward with the company vision and not providing the right
information to be truly successful in their jobs. This creates lack of trust
and a huge drop off with level of commitment to apply their full potential
toward the job.
Senior Management has to be fully transparent about their organization’s
vision, mission, and values with employees. Transparent leadership starts
with the CEO or President. This critical information depicted above must
be communicated clearly to gain trust and commitment from employees to
be fully vested and for them to apply themselves as a team to achieve
company goals. Companies have to put together training programs
holding everyone accountable to have alignment with the values, vision,
and mission of the company. Investing in your core people will be less
expensive and a far better investment than constant onboarding of new
people.
Transparency Strengthens Innovation
The difference between companies like Amazon and Apple to others is
how together a company can solve problems beforehand and come up with
new ideas to disrupt the marketplace in a good way. A transparent leader
main goal should be to identify each of their employee’s strengths and
leverage them together to handle bigger and more complex problems.
Your best solutions and innovations come from truly understanding what Self-Instructional Material

makes your people tick and leveraging their strengths. It is important for
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 Corporate Social people to be out of their comfort zones but not dwelling on their
Responsibility weaknesses. Situations that allow them to leverage their strengths foster
innovation and more creativity to succeed.
NOTES
When employees feel micro-managed or not trusted by their manager, the
result is less effort, less productivity, and most likely to leave the
organization. On the other hand, employees who are empowered by their
managers and feel trusted will be better performers, exert more effort, and
always go above and beyond role expectations. They feel part of
something big and often get tasks done on time and have greater
confidence in the workplace to perform at their highest level.
So what else is important to communicate to them to strengthen
innovation? It is important to let your employees in on company problems
they will either have a solution for you or help you work on one. In
addition, you will get a solution a lot faster than if you, alone, spent all that
time trying to come up with one just because you did not want to let others
know there is a major problem. Being transparent is not a weakness but
actually strength at the core level. Sharing ideas and information will
allow companies to get a new perspective, new opinions and better insight.
Problems will be solved faster and more efficiently if you learn to be open
and honest. Below is a list of suggestions to improve innovation and trust
in your organization.
1. Invest in your people first and ongoing for maximum development
2. Make sure your current policies and procedures are truthful and
establish trust
3. Give up full control and leverage strategically people’s strengths as a
team. Empower coming from trust and manage together as a team.
4. Share information upfront and always be honest with every situation
no matter how bad it may be. Be proactive and not reactive.
These reasons provided will not only benefit you personally but everyone
in your organization. Being transparent does not cost much to implement
within your organizations. You will see major improvements in your
business when you are open, honest, and communicate effectively with
your team. A team effort always prevails in the long run. Establish an
open environment by keeping your people in the loop and work together as
one to come up with solutions rather than manage the problem. Your
business is ready to reach the next level when transparency is part of the
process every step of the way.
4.4 HUMAN RIGHTS
CSR is a container concept which encompasses many different ecological,
social and economic issues. Human Rights as a CSR concept took
prominence during 1990s as oil, gas and mining companies expanded into
increasingly difficult areas. In 2005 UN Secretary General Kofi Annan
appointed Harvard Professor John Ruggie to present a report on the issue
of human rights and transnational corporations and other business
enterprises. Ruggie presented his Guiding Principles, popularly known as
‘Ruggie Framework’ (Protect, Respect and Remedy) which was endorsed
by UN Human Rights Council. The basic approach of Ruggie Framework
Self-Instructional Material is that “the corporate responsibility to respect human rights cannot be met
by words alone; it requires specific measures by means of which
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companies can ‘know and show’ that they respect rights”. The Corporate Social
Responsibility
responsibility of the corporation to respect human rights forms one of the
three pillars of Ruggie Framework, the other two being, the duty of the NOTES
State to protect against human rights abuses and the shared duty to remedy.
OECD Guidelines for Multinational Enterprises (2011) also advocates for
respect for human rights.
It may be noted here that the term “responsibility” rather than “duty” is
meant to indicate that respecting rights is not currently an obligation that
international human rights law generally imposes directly on companies,
although elements of it may be reflected in domestic laws. A company’s
responsibility to respect applies across its business activities and through
its relationships with third parties connected with those activities – such as
business partners, entities in its value chain, and other non-State actors and
State agents. In India, over the last two-three years there has been debate
over the compulsory CSR initiatives and in fact the Draft Companies Bill
2011 provides for a constitution of a CSR Committee for companies
having net worth of Rs. 500 crore or more or turnover of Rs. 1000 crore or
more or a net profit of Rs. 5 core or more (Clause 135). Ministry of
Corporate Affairs came up with the Corporate Social Responsibility
Voluntary Guidelines in 2009 which has been developed further as
“National Voluntary Guidelines on Social, Environmental and Economic
Responsibilities of Business (2011)” which has nine principles, one of
which is “Business should respect and promote human rights”. There is a
development from one line to a page on human rights in the guidelines
On 26 June 2014, the government made a commitment at the United
Nations Human Rights Council (UNHRC), when it voted in favour of a
resolution to establish an open-ended inter-governmental working group to
negotiate a legally binding international treaty to impose human rights
obligations on transnational corporations (TNCs) and other business
enterprises.
Even as the second anniversary of the date approaches, India is yet to put
in place a human rights framework for businesses at home.
This, despite the UNHRC adopting the UN Guiding Principles on Business
and Human Rights on 16 June 2011.
While there is no arguing that the involvement of business in social
development is a win-win for business and the community as a whole, and
the premise forms the basis of the Corporate Social Responsibility (CSR)
Rules, 2014, the ground reality is very different from boardroom analysis
of the impact of business operations.
According to the India Responsible Business Index, 2015, developed by
Oxfam India, Corporate Responsibility Watch, Praxis and Partners in
Change and based on self-reported information of the top 100 BSE
companies by market capitalization, it was found that companies rarely
recognize or have mechanisms in place to act on human rights violations
extending beyond their own employees.
For instance, the index found that of the companies surveyed, 57 do not
recognize human rights violations in the supply chain, 42 recognize it as an
issue but none of the 100 companies has a mechanism to both recognize
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 Corporate Social “Human rights abuses by business is an almost universal phenomenon,
Responsibility though the nature and extent of violations do vary from country to country.
India is no exception. In fact, the Bhopal gas disaster of December 1984 is
NOTES
a living reminder of how the private sector could undermine human
rights," said Surya Deva, associate professor at the School of Law, City
University of Hong Kong.
In 2015, he authored a background paper titled ‘India National Framework
on Business and Human Rights’ and in March 2016 he was appointed
UNHRC’s Asia-Pacific representative of the UN working group on human
rights and TNCs.
According to Deva, India has a vast body of legislation for human, labour,
environmental and consumer rights as well as for the protection of the
rights of women, children, Scheduled Castes and Scheduled Tribes, but
“the current regulatory framework is patchy, outdated or cumbersome". He
believes that the existing judicial and non-judicial mechanisms suffer from
multiple inadequacies and are unable to provide effective access to justice
to communities adversely by corporate activities.
“Rather than doing piecemeal revisions of laws (such as in the areas of
labour laws or land acquisition), the Indian government should conduct a
holistic assessment of the legal-cum-policy framework to identify what is
working and what is not in ensuring that companies respect human rights.
Doing so would allow India to come up with a model of economic
development that is both sustainable and inclusive," Deva added.
Joseph pointed out that while the Companies Act, 2013, does provide a
forward-looking statute for aspects such as oversight of boards, directors,
auditors and class action suits, and the judiciary has stepped in fairly
regularly to liberally interpret rights, “there needs to be a more stringent
focus on corporate accountability".
Voicing similar concerns, Rohan Preece, project manager at Partners in
Change, a non-profit working on issues of awareness regarding CSR, said
that some existing laws actually permit human rights violations, for
example, the law allowing children to work.
“The law permits children as young as 14 to work in a wide range of
occupations (except certain occupations that are deemed to be hazardous).
This jeopardizes their right to education. And following an astonishingly
regressive amendment in 2014, children below the age of 14 can now work
in certain settings (such as family businesses). The law pays lip service to
the child’s right to education by allowing this only after school hours or
during holidays; but this misses the point entirely,"
Human rights are relevant to the economic, social and environmental
aspects of corporate activity. For example, labour rights requiring
companies to pay fair wages affect the economic aspect. Human rights
such as the right to non-discrimination are relevant to the social aspect.
And the environmental aspects of corporate activity might affect a range of
human rights, such as the right to clean drinking water. So, while the
primary responsibility for the enforcement of international human rights
standards lies with national governments, there is a growing acceptance
that corporations also have an important role to play.
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 Corporate Social
4.5 CSR AS ECONOMIC DEVELOPMENT Responsibility

NOTES
Economic development can be just, equitable and sustainable only when it
is inclusive. The distinction between inclusive growth and inclusive
development that most scholars agree on is that the former is limited to
income while the latter includes non-income dimensions as well.
Underlining its significance, inclusive growth has been incorporated as one
of the sustainable development goals. India, asth the world’s fourth fastest
growing economy, ranks 60 among the 79 developing economies in
‘Inclusive Development Index’ developed by World Economic Forum.
This shows that India is far from leading an inclusive development path in
the country. India’s performance in improving education and health
indicators paints a dismal picture and validates that there is a long way to
go to ensure that the country is following an inclusive development
model.It needs innovative policy solutions to realise inclusive
development. In 2013, India became the first country in the world to make
spending under Corporate Social Responsibility (CSR) mandatory by law.
This legislation has created an important opportunity to mobilise resources
and build mechanisms to promote inclusive development in the country.
This article presents the case of the important role of mandated corporate
social responsibility in a plural and fragmented society like India.
Today, ‘inclusive development’ has become an important concept in the
international development literature, but at the ground level, the situation
tells a different story. In this regard, the Stockholm Statement by the
world’s thirteen leading economists comments that today, global forces
hold out both promise and peril. It rightly observes that the expansion of
global trade and investment have boosted growth. As a result, several low-
income countries have moved to middle-income status. However, at the
same time, many social groups in these societies have been left behind in
the path of growth and development. If some social groups are not
benefitting from the economic growth, then that is not an inclusive growth
and inclusive development “If some social groups are not benefitting from
the economic growth, then that is not an inclusive growth and inclusive
development. It becomes instead socially exclusive development. The
economic and the social are interconnected spheres and one impacts on the
other”
It becomes instead a socially-exclusive development. The economic and
the social are interconnected spheres and one impacts on the other. It is
important to note that there has been a worldwide consensus on the need
for an inclusive approach toward economic growth and development over
the past several years. Underscoring its significance, inclusive development
is incorporated into the Sustainable Development Goals (SDGs) 2030 of
the United Nations. But as noted earlier, World Economic Forum’s (WEF)
report reiterates that inclusive growth and development remain primarily
anaspiration. No systemic framework has emerged to guide policy and
practice. Hence, the CSR mandate in India is indeed an unique case in the
world today if seen in the context of the current economic and social
context of one of the world’s most populous and fastest growing
economies.
“Promoting inclusive development needs innovative policy solutions.
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Government and free market do have a role to play in promoting inclusive

45
 Corporate Social development in a country. However, it is important to note that apart from
Responsibility government and market, civil society is also an important stakeholder in
promoting inclusive development”
NOTES
The term inclusive development became centre stage only in the 21st
century though it was used for the first time in academic literature at the
end of the 20th century. Asian Development Bank (ADB) literature
recognises inclusive development as “ growth coupled with
equal opportunities”. It is about creating opportunities and making them
accessible to all, not just to the poor. Oxfam defines inclusive development
as “a pro-poor approach that equally values and incorporates the
contributions of all stakeholders” including marginalised groups in
addressing development issues. It promotes transparency and
accountability, and enhances development cooperation outcomes through
collaboration between civil society, governments, and private sector actors.
In India, inclusive development appeared as a policy objective during the
Eleventh Five Year Plan in 2007. The document explicitly said that “the
Eleventh Plan addresses itself to the challenge of making growth both
faster and more inclusive.” It further acknowledged that “the rapid growth
achieved in the past several years demonstrates that we have learnt how to
bring about growth, but we have yet to achieve comparable success in
inclusiveness”. It is evident that the policy objective to promote inclusive
development is pursued by the Government of India after the Eleventh
Five Year Plan. In 2015, the Government of India reiterated its
commitment to securing inclusive growth, leading to sustainable
development in Geneva at the Plenary of the 104 Session of United
Nations International Law Commission (ILC). The NITI Aayog also came
up with an initiative named ‘Samavesh’ to achieve sustainable and more
inclusive development in line with Sustainable Development Goals.
“CSR is about working with government, civil society, and the community
to improve the lives of people by making growth more inclusive”
Corporate Social Responsibility (CSR) initiative in India has the potential
to become this innovative policy solution to promote inclusive
development. The CSR mandated by law compelled companies in India to
shell out more than INR 18,625 crores towards social welfare activities in
the FYs 2014-15 and 15-16. This money was spent in areas like education,
healthcare, sanitation, environmental sustainability, poverty alleviation and
skill development. In FY 2015-16, the top three sectors on which the most
number of projects were funded and the largest amounts were spent were
Health, Eradicating Hunger, Poverty and Malnutrition, Safe Drinking
Water, Sanitation (3117 crore), Education, Differently abled, Livelihood
(3073 crore) and Rural Development (1051 crore). This trend in CSR
spending suggests that the discourse on CSR in India is increasingly about
the important role corporates can play in bringing about positive change in
the area of human development and social inclusion. It also recognises that
CSR is about working with government, civil society, and the community
to improve the lives of people by making growth more inclusive. Civil
society in India is vibrant with many NGOs and foundations working with
a variety of issues that are aligned with suggested areas in CSR law.
Companies in India will need the support of NGOs to implement their CSR
activities. CSR as mandated by the law, partnership between companies,
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governments and civil society is supposed to be boosted which will further
lead to policy and programme innovations to accelerate inclusive
46
development. Not all NGOs and CSOs are credible and meet the standards, Corporate Social
Responsibility
but the listing down of the those who meet the standards have already
started. Universities and research organisations/consultancy firms with a NOTES
rich pool of knowledge and expertise can also be leveraged to develop
innovative solutions through corporate social responsibility.
4.6 CSR IN CULTURAL CONTEXT
The term corporate social responsibility (CSR) might have originated from
Western discourses but prior to it the idea of philanthropy in India has
evolved from its own ethos and cultural values. Philanthropic activities
undertaken by rich business titans and the Gandhian trusteeship model are
prominent distinctions of Indian CSR. But with the advent of liberalisation,
privatisation and globalisation, the popularly called LPG policy during the
early 1990s led to a fundamental shift from the philanthropy-based model
to a multi-stakeholder perspective. During this phase, companies changed
their approach and became responsible for all the stakeholders. The
stakeholders include environment, community, customers, shareholders,
suppliers and employees. In contemporary time, CSR has undergone a
drastic change but some of the traditional features are still prevalent.

Check Your Progress

Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. Write about bottom line?
2. What are the Sustainability reporting guidance?
3. Suggest few ways to improve innovation and trust in your
organisation.

4.7 LET US SUM UP

To sum up this chapter gives us an input in the Building and
maintaining trust in businesses and governments is fundamental to
achieving a sustainable economy and world with the need and important in
Socially responsible investing, sustainability reporting, transparency and
human rights; CSR as economic development and CSR in cultural context.
4.8 ANSWER TO CHECK YOUR PROGRESS
1. The Bottom Line: For many investors, socially responsible investing
is a powerful way to align their investment portfolios with their
personal philosophies. Everyone can choose their own assets to buy
shares in, but it’s good to know that socially responsible investing in
an option.
2. Sustainability reporting guidance include:
• GRI (GRI's Sustainability Reporting Standards)
• The Organisation for Economic Co-operation and Development
(OECD Guidelines for Multinational Enterprises)
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47
 Corporate Social • The United Nations Global Compact (the Communication on
Responsibility Progress)
NOTES • The International Organization for Standardization (ISO 26000,
International Standard for social responsibility)
3. To improve innovation and trust in your organization.: Invest in your
people first and ongoing for maximum development, make sure your
current policies and procedures are truthful and establish trust, give
up full control and leverage strategically people’s strengths as a
team. Empower coming from trust and manage together as a team.
Share information upfront and always be honest with every situation
no matter how bad it may be. Be proactive and not reactive
4.9 UNIT END QUESTIONS
1. Write a note on Socially responsible investing
2. What is sustainability reporting
3. State the importance of transparency
4. CSR as economic development – Justify
5. Explain CSR in cultural context.
4.10 SUGGESTED READINGS
CSR and Sustainability: From the Margins to the Mainstream: a Textbook
The Sustainability Advantage: Seven Business Case Benefits of a Triple
Bottom Line, Book by Bob Willard
Corporate Social Responsibility in India: Cases and Developments After
the Legal Mandate

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48
 Corporate Social
UNIT- V STAKEHOLDERS AND Responsibility

PERSPECTIVES – INTEREST NOTES

GROUPS RELATED TO CSR –

TOOLS OF CSR- BUSINESS
BENEFITS OF CSR
Structure
5.1 Stakeholders and Perspectives: Meaning & Definition
5.2 Types of Stakeholders
5.3 Shareholder vs Stakeholder
5.4 Interest Groups Related to CSR
5.4.1 CSR Towards Employees
5.4.2 CSR Towards Shareholders
5.4.3 CSR Towards Community
5.4.4 CSR Towards Government
5.4.5 CSR Towards Environment
5.5 Tools of CSR
5.6 Business Benefits of CSR
5.7 Let Us Sum up
5.8 Answer to Check Your Progress
5.9 Unit and Exercise
5.10 Suggested Readings
5.1 STAKEHOLDERS AND PERSPECTIVES: MEANING &
DEFINITION
Stakeholders in a process are actors (persons or organizations) with a
vested interest in the policy being promoted. These stakeholders, or
“interested parties,” can usually be grouped into the following categories:
international/donors, national political (legislators, governors), public
(ministry of health [MOH], social security agency, ministry of finance),
labor (unions, medical associations), commercial/private for-profit,
nonprofit (nongovernmental organizations [NGOs], foundations), civil
society, and users/consumers.
In business, a stakeholder is any individual, group, or party that has an
interest in an organization and the outcomes of its actions. Common
examples of stakeholders include employees, customers, shareholders,
suppliers, communities, and governments. Different stakeholders have
different interests, and companies often face trade-offs in trying to please
all of them.
Many nonprofit organizations and research teams tend to collect this
information informally. They often rely on a single, well-connected
individual to develop relationships with partners. This informal style
makes the institution vulnerable should that person leave the organization
or not be available at a critical moment. It could also limit the diversity of
the stakeholders that might be identified. You can avoid that pitfall by
acting as a team. Act as a group when you identify whom to contact,
document the results of contacts, and have mechanisms to share successes,
challenges and lessons learned. Learning what you can about your
stakeholders will also help you to develop relationships with them. Begin Self-Instructional Material
this work early and continue it throughout the project. Taking the time to

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 Corporate Social identify and describe stakeholders will also provide an important
Responsibility foundation when translating findings into intervention programs.
NOTES The Stakeholder benefits Drives Innovation - By engaging stakeholders,
organizations are able to identify new business opportunities as
information flow is improved and Builds Social Capital - Social capital is
defined by the Office for Economic Co-operation and Development as
“networks together with shared norms, values and understandings that
facilitate co-operation within or among groups”. In today’s world, social
capital should be considered at least as important as fixed assets as benefits
include greater access to information, improved influence and the benefit
of support rather than scrutiny should unexpected problems arise.
Good corporate governance helps… to ensure that corporations take into
account the interests that corporations take into account the interests of a
wide range of constituencies, as well as of a wide range of constituencies,
as well as of the communities within which they operate, and the
communities within which they operate, and that their boards are
accountable to the company that their boards are accountable to the
company and the shareholders. This, in turn, helps to and the shareholders.
This, in turn, helps to assure that corporations operate for the benefit assure
that corporations operate for the benefit of society as a whole.

Governme
nts

Customers Suppliers

Communiti
Investors
es

Definition: As Bryson states this is a somewhat restrictive definition

because it excludes those who are affected, but who don't any power to
respond to or negotiate with an organisation. Bryson prefers a more
inclusive definition which extends to all stakeholders who are affected by a
change, this wider definition is more compatible with notions of
democracy and social justice stakeholder management.
A stakeholder is any person or entity that has an interest in a business or
project. Stakeholders can have a significant impact on decisions regarding
the operations and finances of an organization. Examples of stakeholders
are investors, creditors, employees, and even the local community. Here is
more information about the various categories of stakeholder.

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 Corporate Social
5.2 TYPES OF STAKEHOLDERS
Responsibility
This guide will analyze the most common types of stakeholders and look at NOTES
the unique needs that each of them typically has. The goal is to put
yourself in the shoes of each type of stakeholder and see things from their
point of view.
Customers: Many would argue that businesses exist to serve their
customers. Customers are actually stakeholders of a business, in that they
are impacted by the quality of service/products and their value. For
example, passengers traveling on an airplane literally have their lives in the
company’s hands when flying with the airline.
Stake: Product/service quality and value
Employees: Employees have a direct stake in the company in that they
earn an income to support themselves, along with other benefits (both
monetary and non-monetary). Depending on the nature of the business,
employees may also have a health and safety interest (for example, in the
industries of transportation, mining, oil and gas, construction, etc.).
Stake: Employment income and safety
Investors Investors include both shareholders and debtholders.
Shareholders invest capital in the business and expect to earn a certain rate
of return on that invested capital. Investors are commonly concerned with
the concept of shareholder value. Lumped in with this group are all other
providers of capital, such as leaders and potential acquirers. All
shareholders are inherently stakeholders, but stakeholders are not
inherently shareholders.
Stake: Financial returns
Suppliers and Vendors: Suppliers and vendors sell goods and/or services
to a business and rely on it for revenue generation and on-going income. In
many industries, suppliers also have their health and safety on the line, as
they may be directly involved in the company’s operations.
Stake: Revenues and safety
Communities: Communities are major stakeholders in large businesses
located in them. They are impacted by a wide range of things, including
job creation, economic development, health, and safety. When a big
company enters or exits a small community, there is an immediate and
significant impact on employment, incomes, and spending in the area.
With some industries, there is a potential health impact, too, as companies
may alter the environment.
Stake: Health, safety, economic development
Governments: Governments can also be considered a major stakeholder in
a business, as they collect taxes from the company (corporate income
taxes), as well as from all the people it employs (payroll taxes) and from
other spending the company incurs (sales taxes). Governments benefit
from the overall Gross Domestic Product (GDP) that companies contribute
to
Stake: Taxes and GDP
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 Corporate Social Ranking/Prioritizing Stakeholders
Responsibility
Companies often struggle to prioritize stakeholders and their competing
NOTES interests. Where stakeholders are aligned, the process is easy. However, in
many cases, they do not have the same interests. For example, if the
company is pressured by shareholders to cut costs, it may lay off
employees or reduce their wages, which presents a difficult tradeoff.
Jack Ma, the CEO of Alibaba, has famously said that, in his company, they
rank stakeholders in the following priority sequence:
Customers
Employees
Investors
Many other CEOs tout shareholder primacy as their number one interest.
Much of the prioritization will be based on the stage a company is in. For
example, if it’s a startup or an early-stage business, then customers and
employees are more likely to be the stakeholders considered foremost. If
it’s a mature, publicly-traded company, then shareholders are likely to be
front and center. At the end of the day, it’s up to a company, the CEO, and
the board of directors to determine the appropriate ranking of stakeholders
when competing interests arise.
5.3 STAKE HOLDER VS SHAREHOLDER
This is an important distinction to make. A stakeholder is anyone who
has any type of stake in a business, while a shareholder is someone who
owns shares (stock) in a business and thereby has an equity interest.
Although the most basic of definition CSR describes it as a social
obligation for an organization, which is conceptually and operationally
diverse.
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.
Stakeholders are described broadly by Freeman and Reed (1983) as any
identifiable group or individual who can affect the achievement of an
organization’s objectives or who is affected by the achievement of an
organization’s objectives.
In other words, a person, group, or organization that has direct or indirect
stake in an organization because it can affect or be affected by
the organization’s actions, objectives, and policies. Key stakeholders in a
business organisation include creditors, customers, directors, employees,
government (and its agencies), owners (shareholders), suppliers, unions,
and the community from which the business draws its resources.
Although stake-holding is usually self-legitimizing (those who judge
themselves to be stakeholders are stakeholder), all stakeholders are not
equal and different stakeholders are entitled to different considerations. For
example, a company’s customers are entitled to fair trading practices, but
they are not entitled to the same consideration as the company’s
employees.
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 Corporate Social
5.4 INTEREST GROUPS RELATED TO CSR
Responsibility
The prevalence of stakeholder theory is grounded in the belief that CSR- NOTES
stakeholder relationships are the essential assets that corporates must
manage. While CSR aims to define what responsibilities business ought to
fulfil, the stakeholder concept addresses the issue of whom business is or
should be accountable to. Both concepts are closely inter-related.
However, while the CSR concept still suffers from a level of abstraction,
the stakeholder approach offers a practical alternative for assessing the
performance of firms as well as the key stakeholder groups.

General
Group

Environ Employ
ment ees

Govern Shareh
ment older

Stakeholder theory has accordingly witnessed a new revival and

dominance in the context of CSR. Brenner and Chochran suggested as
early as 1991 that stakeholder theory holds the promise of becoming the
theoretical center-piece in a field that is searching for workable paradigms.
Doh and Guay (2006) similarly find the adoption of a stakeholder model as
a potentially appropriate and insightful theoretical lens, given its ability to
systematically identify social stakeholder issues, and establish specific
measures of performance. An organization’s stakeholder management data
can thus be gathered and compared to other firms within and across
industries, making social auditing for internal and external use both
practical and possible.
Corporate now has spent decades to promote not only a firm’s economic
but also a social responsibility. This challenged a discussion in
corporations what corporate responsibility should be. In the past, the CSR
approach was useful to foster these important discussions and thus it is
important to analyze it from different perspectives, for what CSRs should
be responsible. It seems that the CSR responsibilities are not very
promising to understand real-world situations for three main reasons. First,
the concept of CSR itself is not distinguishable as most decisions of
businesses are not purely economic, legal, ethical, or philanthropic.
Consequently and by agreeing with Freeman (1994), the separation of
economic and social responsibilities to which the CSR approach
contributes is rejected. Second, another argument raised by Freeman
(2004) against the CSR concept comes in the form of a risk that business
could treat their CSR activities as moral substitutes to compensate for
other irresponsible activities. And third, we argue that the general
responsibilities implied by the CSR approach can’t neither account for the Self-Instructional Material
specificity of an individual firm nor for the specific stakeholder network
where it is embedded in.
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 Corporate Social A. CSR TOWARDS EMPLOYEES:
Responsibility
An effective strategy that many companies have been using in order to
NOTES realize their goals and at the same time encourage the employees to
participate in meeting the needs of the society is through employee
volunteer programs.
Employee engagement has been increasingly popular to most businesses to
cater to enhancing the bottom line while making socially responsible
working individuals. Many successful businesses owe a part of their
success to the development and application of employee volunteer
programs which are now used to monitor and assess their impact on the
society.
In encouraging the employees to get involved in philanthropic activities
and other volunteering programs, the company must identify its best
practices. One of which is to engage the employees in all levels to play the
role as decision makers and leaders in the CSR activities of the
organization. Their feedback on the overall impact of a certain CSR
program may help the company achieve its corporate goals. Another best
practice is to empower the skills and abilities of the employees in order to
contribute positive outcomes to the community.
Offering opportunities for the employees in developing their skills is part
of good CSR practice. Employees learn new skills that they can share and
contribute to the company when they are tasked to take on roles that are
different from their work scope and function in a CSR activity.
CSR enhances teamwork among employees through corporate
volunteering. Apart from building a better relationship in the workplace,
they strengthen the bond by working hand in hand in matters of projects
and activities outside the office. They are able to appreciate each other
better especially on talents that are not displayed in the workplace.
Engaging the employees in CSR activities boosts an employee’s work
ethics and performance. Corporate social responsibility creates an impact
on employee attitude and level of awareness. It enhances their sense of
direction, integrity, and cultivates positive perception about their employer
and about themselves.
Commitment to the job is also strengthened as they are getting a deeper
sense of dedication to working for the community. When employees
realize the value of what they do, they tend to adopt similar values. Job
satisfaction can now be achieved with active involvement in CSR. So,
companies have to ascertain that the perception of employees towards CSR
must remain positive.
CSR programs reflect the values of an organization and make the business
more humanitarian instead of being viewed as merely profit-generating.
According to a research, employees of the new generation would prefer to
work for a company that cares for its people apart from the economic
gains. They would like to be part of an organization that demonstrates its
core values through participation and involvement to its employees and the
community. This is the essence of corporate citizenship.
B. CSR TOWARDS SHAREHOLDERS:
Ongoing dialogue between company and its shareholders is a critical factor
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for maintaining effective relations and it should be realized by means of
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standardized processes and mechanisms. The remuneration policy can be Corporate Social
Responsibility
an effective tool to align the interests of company with the investors ones
towards the creation of value in the long term. The orientation of the board NOTES
for long-term can raise when the executive’s remuneration is based on
long-term performance. At the same way, also institutional investors
should assure that performance measures and compensation policies for
their executives and investment managers emphasize long-term value
creation, considering this last a relevant factor for the investment risk
reduction.
Companies’ relationships with investors also entail social responsibility.
Although a company’s economic responsibility to make a profit might
seem to be its main obligation to its shareholders, some investors
increasingly are putting more emphasis on other aspects of social
responsibility.
Some investors are limiting their investments to securities (e.g., stocks and
bonds) that coincide with their beliefs about ethical and social
responsibility. This is called social investing. For example, a social
investment fund might eliminate from consideration the securities of all
companies that make tobacco products or liquor, manufacture weapons, or
have a history of being environmentally irresponsible. Not all social
investment strategies are alike. Some ethical mutual funds will not invest
in government securities because they help to fund the military; others
freely buy government securities, with managers noting that federal funds
also support the arts and pay for AIDS research. Today, assets invested
using socially responsible strategies total more than $7 trillion.
Many corporate managers cater to the preference of institutional
shareholders for short-term stock price performance, even though this is
widely understood to threaten the sustainability of American business. For
these investors, the focus is on quarterly earnings rather than longrun value
that may not be reflected in the current share price. Corporate executives
respond by managing the business with an emphasis on meeting quarterly
earnings targets. Often this can mean avoidance of expenditures that
reduce current earnings and generate payoffs only in the future.
Corporate law does not require managerial short-termism. Rather, it
accords management broad discretion to use its authority in the long-run
best interests of “the corporate enterprise.”17 Only in one narrowly
defined set of circumstances is maximization of share value required,18
and corporate management can readily avoid this requirement by choosing
not to enter into transactions that trigger it. The primary cause of
managerial short-termism is not the law, but instead the demands from
shareholders and the effects of other incentives.
Short-term-oriented investors can put pressure on corporate managers to
produce short-term results in a number of ways. The specter of large-scale
sell-offs in response to failures to meet quarterly performance benchmarks
is especially important. Most major corporations provide “earnings
guidance” to stock analysts on a regular basis.19 From this information,
analysts construct estimates of quarterly earnings performance. If, at the
end of a quarter, a corporation fails to meet the analysts’ consensus
estimate, institutional shareholders may sell, and share prices fall as a
result.20 Managers generally cannot afford the risk of these share price Self-Instructional Material
declines. Some institutional shareholders may put pressure on boards of

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 Corporate Social directors to remove senior executives who fail to produce acceptable
Responsibility quarterly results.
NOTES C. CSR TOWARDS COMMUNITY
Corporate social responsibility is a mutual way for companies to benefit
the society while benefiting them in the process. We cannot expect CSR to
eliminate the world’s problem at once because practically that’s too much
to expect but it can definitely do countless good to the community in
which the company is operating. What are Benefits of Corporate Social
Responsibility (CSR) towards Society.
When a company is adopting CSR, it is important to let its consumers
know about it. CSR initiatives become pointless if you don’t get consumer
acknowledgement. In this case Walmart has done it all right. Walmart has
established itself as a leader on environmental efforts and for the past few
years it has successfully maintained its leadership role in this particular
field. Walmart was careful to inform the consumers about its CSR efforts.
In 2008 Walmart ran an ad campaign designed to raise awareness about the
environment.
CSR is the best way to connect with the consumers and keep them engaged
with your brand because through CSR campaigns you are talking about
something good which will benefit everyone.
CSR is the way to show the human face of your business. Businesses deal
with humans, so you can only connect with them through human language
by showing some humanity. For most businesses, it makes sense to get
involved in progression of the community solely, depending on CSR
initiatives related to your product or service.
CSR initiatives can be the best way to contribute to the society and its
people. Through local or national charitable contributions businesses can
help the society. Businesses can get involved in the society and help it to
progress by taking social initiatives on behalf of the company such as
investing in education programs for the poor and street children and
homeless care activities for homeless people or refugees. They can support
a local charity making financial contributions in effective charitable
projects. If you are a restaurant owner, you may provide food to local
homeless groups or to orphanages free of cost.
Businesses can pay attention to material recyclability, develop better
product durability and functionality and use more renewable resources at
lesser costs to keep the environment as clean as possible and contribute to
the ecology of the country.
When businesses decide to make positive contributions to the society they
are actually benefitting the company in the process. The companies benefit
through lower operating costs, increased sales and customer loyalty,
greater productivity, gaining ability to attract and keep skilled employees,
getting access to more capital through more willing investors etc.
Corporate social responsibility refers to strategies corporations or firms
conduct their business in a way that is ethical, society friendly and
beneficial to community in terms of development. The present-day
Corporate Social Responsibility (also called corporate responsibility,
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corporate citizenship, responsible business and corporate social
opportunity) is a concept whereby business organizations consider the
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interest of society by taking responsibility for the impact of their activities Corporate Social
Responsibility
on customers, suppliers, employees, shareholders, communities and other
stakeholders as well as their environment.1 This obligation shows that the NOTES
organizations have to comply with legislation and voluntarily take
initiatives to improve the well-being of their employees and their families
as well as for the local community and society at large. Corporate Social
Responsibility simply refers to strategies corporations or firms conduct
their business in a way that is ethical and society friendly. CSR can involve
a range of activities such as working in partnership with local
communities, socially sensitive investment, developing relationships with
employees, customers and their families and involving in activities for
environmental conservation and sustainability.
Corporate Social Responsibility calls forth management to another role,
that of good citizen. And as the role of corporate fiduciary is primarily
characterized by the generalized duties of loyalty, good faith, and due care,
the role of corporate good citizen is marked by the generalized duty of
socially responsible action.22 A corporation has three groups which have
interests in its activities. The first group is of the shareholders who are
investing in the same in order to get a return on their investments to the
maximum possible benefit. The second group comprises the people
involved in running the corporation. The third group consists of the
consumers and the general public at large. This is the group which is
usually neglected without compromising on the focus on consumerism
which is streamlined to serve the interest of the first group and no further.
The responsibility can be in terms of the loss that corporations cause in
terms of negative social and environmental conditions in furtherance of
economic pursuits.
D. CSR TOWARDS GOVERNMENT
In any country the government tries to preserve the community and
improve its conditions. In that respect the business has to extend its co-
operation to the government. If the business discharges its responsibilities
the government sincerely and effectively, the government can function
more efficiently. This is in the interest of the whole community and
indirectly in the interest of the business. The prospects of the business
depend upon the status of the community. The development of business
depends upon the development of the community; hence business has got
to be very particular about discharging its obligations towards the
government.
The prominent responsibilities of the business towards the government can
be described as follows:
To obey the Laws
The laws reflect the wishes of the community, they show what the
community wants the member to do and what the community wants the
member to avoid. The laws control the behavior of the individuals with
each other and with the community.
If business obeys laws the society can function smoothly, and business
can prosper only when the society is functioning smoothly but if laws are
oppressive or obstructing the path of business, they can be opposed in
constitutional manner. The business can take the help of constitution or the Self-Instructional Material
judiciary to oppose the laws and get them repealed. The Maharashtra
government banned the sale of gutkha in Maharashtra state. The producers
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 Corporate Social of gutkha approached the court which repealed the order of the
Responsibility government of Maharashtra on the ground that tobacco is in the
jurisdiction of the central government.
NOTES
Payment of taxes: The expenditure of a modern government is heavy and
is fast increasing. The main source of income for the government is the
different type of taxes imposed by it. The business pays taxes on goods
produced by them, taxes on goods imported by them, taxes on own income
and taxes on the incomes of the employees. The bulk of the tax revenue is
collected from business. If business pays the taxes honestly and on time
the government can fulfill its responsibilities efficiently. If taxes are
evaded by one group, the burden of taxation increases on some other
group. Nonpayment of a tax is a political offence and also a social
dishonesty.
Social Responsibility : In addition to the legal and political responsibilities,
the business has to take up several moral responsibilities towards the
society. Thus, the business has to provide training facilities for the
unemployed persons so that they can get absorbed in some occupation or
can setup self-employment units. Several business houses established
educational institutions, hospitals, libraries, recreation halls, playgrounds
etc. for the community. This is helpful in winning them sympathy from the
community. It is like an investment made by the business.
Providing inputs to the government: Often the government requires inputs
of technical economic financial or political importance for framing
appropriate policies. The business has contacts in different sections of the
community. They can be used for collecting the required information and
providing it to the government. Any action based upon accurate inputs has
greater chances of achieving a higher success. For eg: before imposing a
tax on commodity the government likes to know the elasticity of demand
for that commodity.
Other things remaining the same the government prefers to impose a tax on
a commodity which enjoys relatively less elastic demand.
Government Contracts: The government has to take up several works such
as construction of roads, bridges, flyovers, airports etc. Sometimes these
works are undertaken by the government departments but a more common
method of undertaking that work is to invite tenders and give contracts to
business. It is the responsibility of the business to complete the work in
time and maintain a high level of quality of the work.
Government Services: The business offers services of its leaders to the
government to work on different committees. The business leaders have
practical experience of a particular type of business. A committee
appointed for doing something in respect of that business is highly
benefited if some prominent person from that field is appointed as the
chairman of that committee or commission.
Active participation in politics: Sometimes the businessmen try to
participate actively in politics. A member of the TATA family contested
election to the Lok sabha. Sometimes the leaders of the business are
nominated to the Rajya Sabha so that the government gets the benefit of
their practical experience of that field, but often the businessmen try to
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keep themselves away from active politics.

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 Corporate Social
Responsibility
E. CSR TOWARDS ENVIRONMENT
NOTES
Corporate social responsibility is a concept whereby companies integrate
social and environmental concerns in their business operations and in their
interaction with the stakeholders on a voluntary basis. Social responsibility
of companies was defined as responsibility to consumers, workers,
stakeholders and the community. The aim of social responsibility is to
create higher standards of living, while preserving the profitability of the
corporation. Companies while creating profit should also be aware that
they can contribute to sustainable managing their operations in such a way
as to enhance economic growth and increase competitiveness whilst
ensuring environmental protection and promoting social responsibility,
including consumer interest. Corporate Social Responsibility and
Environmental Management provides a practical resource for the ever-
increasing number of organizations concerned about social and
environmental responsibilities in the context of sustainable development.
India has a history of having a compassionate attitude towards
environment. But with the passage of time the ethical values towards
society have degraded as a result of which judiciary intervened so as to
protect the environment. A concept known as corporate social
responsibility emerged in the light of right to pollution free environment
and the constitutional duty to protect and improve the environment. In
order to realize the constitutional objective of protecting environment the
concept of Corporate Social Responsibility was recognized in the
legislative enactments. The paper introduces the concept of Corporate
Social Responsibility and the Constitutional commitment towards
environment protection. Judicial decisions bring into light the conception
of Corporate by stream lining the defaulting institutions.

India is a welfare state. But with the passage of time Indian government
has adopted liberalization, privatization and globalization. Public sector
has slowly shifted to private one. Therefore, the new concept of Corporate
Social Responsibility [CSR] means a corporate sector shall perform such
welfare function towards society which is necessary for maintaining the
social interest of the society. In the words of ‘Carroll’ and ‘Buchholtz’, the
corporate social responsibility encompasses the economic, legal, ethical,
and philanthropic expectations placed on the organizations by the society
at a given point of time. According to Browin H.R., social responsibility is
defined as, “the obligation of a businessman to pursue those policies, to
make those decisions or to follow those lines of action which are desirable
in terms of objectives and values of the society. Some scholars have
defined CSR as a social commitment of a businessman or a social
obligation or moral or ethical responsibility or a corporate social
philanthropy. In the words of Mahatma Gandhi, business entrepreneurs are
trustees and not the owners of the social wealth and they have to spend a
part of it for social causes. To describe the principle of trusteeship he
quoted, enjoy the wealth, take the minimum which you need, leave the rest
to the welfare of community.” It cannot be considered as charity. A robust
and thriving development sector is central to India’s quest for equitable,
inclusive and sustainable growth. India’s development sector has evolved
substantially over the last few decades and is now witnessing Self-Instructional Material
unprecedented interest and investments across the value chain.

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 Corporate Social 5.5 TOOLS OF CSR
Responsibility
Companies have believed for years that their only responsibility was a
NOTES financial one---maximizing value for shareholders. Corporate social
responsibility (CSR) is a new idea, one in which the corporate sector
incorporates social and environmental concerns in its strategies and plays a
more responsible role in the world.Over the past few years, we have been
witnessing to a proliferation of codes of conduct and initiatives of social
responsibility. It is important that we list these initiatives and dwell on the
most important in order to determine what remains to be done in matters of
social responsibility.
Over the past few years, we have been witnessing to a proliferation of
codes of conduct andinitiatives of social responsibility. It is important that
we list these initiatives and dwell on themost important in order to
determine what remains to be done in matters of social responsibilityand
how. Firstly, identity the different corporate social responsibility tools i.e.
label,codes or certifications; in order to subsequently be able to classify
them into two main sections,that is, in terms of substantive and procedural
standards. Lastly, introduce elevencorporate social responsibility
initiatives: The Declaration of the ILO, the Guiding Principles ofthe
OECD, the ISO and the Copolco reports, the EMAS system, the Global
Reporting Initiative(GRI), Global Compact, SA 8000 standard, AA1000
standard, ECS 2000 standard, the Belgianlabel and the SD 21000 Guide of
the French Industrial Standards Authority.
Tools of social responsibility:
Labels
codes
certifications
Three types of initiative can be identified under this new proposal qualified
as ethical or socially responsible: labels, certifications and codes of
conduct. These initiatives often interconnect in a system where they refer
to each other, complement each other or where they compete with each
other even though they may be of a different nature.
Labels, codes and certifications:

Labels Codes
Product Organisation

Label Certification Code non

noncertified
certified

Codes of conduct are commitments made by organisations or imposed by

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them on their economic partners.
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Labels are signs that aim to identify a product or a service according to Corporate Social
Responsibility
certain criteria, whether it is ecological, biological or social. They are
based on the product’s intrinsic qualities or the manufacturing process and NOTES
can in this way be associated with codes of conduct.
Certification is conferred on a product or a body when it complies with a
certain standard, and when this compliance has been verified. Many codes
of conduct and labels are the object of certification, but many of these are
simple declarations that are not subject to a verification process. Moreover,
the verification process can vary from one certification to another and
while some permit self-declaration others require verification in
partnership with NGOs.
Classifying initiatives: procedural standards and substantive standards
1) Product or organisation
2) Substantive-procedural
The first identifies the social responsibility initiatives specific to products
and those specific to organisations. As such, codes of conduct relate to
organisations while labels are generally associated with products.
Certifications, for their part, deal with both organisations and products.
The second deals with the nature of the criteria for social and
environmental performance on which the tools are based. As we shall see
in the following pages, codes of conduct, labels and certifications can be
based on either substantive or procedural criteria, or on both criteria at the
same time.
Classifying tools of social responsibility
The second classification is based on the type of verification associated
with the social responsibility initiative and differentiates between the ‘self-
proclaimed’ initiatives and those benefiting from professional, institutional
or social recognition. The social responsibility initiative with the least
number of constraints for its economic actors is, of course, that founded on
the declaration of principles, through which the management body publicly
commits itself to respect a series of principles. In the same category, self-
verification certifies that the company itself has carried out the checks
necessary to determine whether or not it is fulfilling its commitments. Both
forms of verification can be qualified as self-verification as they involve
no external audit verifying that the company conforms to the requirements
specified. The second category of initiatives involves an external audit,
carried out by independent professionals, civil servants or NGOs.
Independent and private verifications describe audits carried out by
consultancy bodies, mostly made up of accountants, but also representative
of broader professional backgrounds such as environmental experts. Public
verifications refer to audits carried out by public authorities or bodies
under their control. Regulation is obviously the purest form of this type of
verification, but there are also hybrid forms of public and private
verification. Lastly, what we suggest should be called hetero-verification,
as it involves the intervention of an ‘other’ with all the controversy that
this implies, deals with public initiatives of verification by base-level
groups, NGOs and campaign groups.
It has been a century old practice in India to implement social impact/audit
tools on the philanthropic projects funded by International Agencies. Self-Instructional Material

Social audit and impact tools have been gaining currency in evaluating
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 Corporate Social philanthropic projects lately. The excruciating process to conduct Need
Responsibility Analysis, Social Audit has become a part of CSR Project Management. As
time has progressed the Social welfare scheme/philanthropic scene has
NOTES
developed, and we have evolved to accept and implement international
CSR Project management tools.
The past few years have seen international CSR management practices
gaining momentum. The company Law 2013 has led to the advent of
foreign consulting companies. International consulting companies have
been nudging Indian businesses to move away from mostly subjective
conventional social impact studies to more quantitative and measurable
methods.
1. Reliable means of Communication: In order to establish a smooth
liaison and understanding between business and community, there must be
a reliable means of communication. This is provided by a free and
vigorous press, which is essential if the company is to discharge its
responsibilities. It is through the press that good relationship is developed
between the business and the people.
Regular and periodic representation of facts, figures, and statistics through
press is a great asset for the business as much as its image in the public eye
is brightened. That is why businessmen hold frequent press conferences to
explain their points of view and present facts to the press and are prepared
to hear its reactions.
2. Trained and Educated Men and Women: The company needs trained
and educated men and women to carry on its business. As a citizen, the
company has no right to damage the amenities/property of the community.
The presence of bad effluents, smoky chimneys, ugly buildings, heaps of
solid waste emitting bad odor, insanitary slums, and polluted atmosphere is
an indication of the fact that the business is quite negligent of its moral
duty towards the community. To improve the situation regarding proper
siting of industry and housing colonies, the company must work through
consultation of the locality, rather than build and own these without having
such prior discussions. The company should allow its workers time off for
civic duties and for assisting the technical and other educational
programmes.
3. Public Meetings: Public meetings serve a very useful purpose in as
much as they apprise the community of what a company has done, what it
proposes to do and whether its objectives have been accomplished. Such
local meetings should be regular and annually held and open to the
representatives of consumers, workers and the community besides those of
the shareholders. At such meetings, the chairman gives the report on the
general position of the business, the price of its products, their quality and
standards, future prospects for their improvement, conditions of
employment, prospects of expansion and growth, relation between
business and the community and the activities that business has undertaken
for the benefit of the community.
4. Social Audit: This is an important tool by which factual assessment of
the work done and of the social performance of business is done.
The objective of social audit is to find out whether any cooperation and
mutual relationship exist between labor and management, and whether the
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business has fulfilled its economic, social and other responsibilities and
maintained its predetermined standard and status; what is the nature of
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public relations with the customers etc. Social audit must be compulsory Corporate Social
Responsibility
for all companies.
NOTES
5.6 BUSINESS BENEFITS OF CSR
One of the benefits of pursuing a strategy of social responsibility is that it
generates a positive public image for your company. Further, companies
that meaningfully engage in CSR generate increased media coverage that
is earned as opposed to paid, which is free, positive publicity. With
consumers increasingly concerned about the ethics of the goods and
services they purchase; positive publicity is ever more important.
A strong CSR program can also attract more investors and partners to your
company by illustrating that your business is about more than just the
bottom line. What’s more, investing in CSR can show investors that your
company is healthy and looking towards the future. For example, going
green may have an upfront cost, but it will likely pay off in the long term.
Research shows that companies that pursue green programs perform better
than those that don’t, especially in the second year after the program
launch.
Corporate social responsibility or CSR is a self-regulating business model
that allows a company to be socially accountable not only to itself but also
to its stakeholders and the public. If that definition went over your head,
here is a simpler explanation for you. By practicing CSR, a company adds
values to the society and the environment without compromising with the
business process.
Primarily, CSR is a strategy for large corporations that have grown to the
point where they can give back to society and the environment. It is a great
way to boost your own brand by contributing to society through CSR
activities, philanthropy, and volunteer efforts. Moreover, CSR activities
can also strengthen the bond between the employees and the corporation
and make them feel more connected with the world around them.
By practicing CSR, a company adds values to the society and the
environment without compromising with the business process. Primarily,
CSR is a strategy for large corporations that have grown to the point where
they can give back to society and the environment. It is a great way to
boost your own brand by contributing to society through CSR activities,
philanthropy, and volunteer efforts. Moreover, CSR activities can also
strengthen the bond between the employees and the corporation and make
them feel more connected with the world around them.
CSR activities reflect positively on the image of a company. When you
implement CSR policies in your company, it increases your goodwill.
Consumers will be more willing to avail your products/services because of
the clean image of your company. Companies which are involved in
serious CSR activities are more recognizable. This makes it easier for your
company to attract potential candidates who seek employment
opportunities. Also, when your company starts earning goodwill through
significant CSR activities, the employees are more likely to continue with
the company for a longer tenure.
A company’s reputation in the market determines whether it will receive
new investments or not. With CSR programs, you can certainly boost your
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company’s image. And when your company starts to grab enough eyeballs,
it also attracts a number of investors. Be prepared to receive investment
63
 Corporate Social proposals from venture capitalists, other firms, and even from the
Responsibility government. It is the job of the regulatory authorities to scrutinize the
operations of various companies. However, when your company starts
NOTES
doing CSR activities on a large scale, these regulatory authorities become
less hostile towards your company. Besides, any company that has a strong
CSR generally stays within the regulations to gain the benefits.
A company’s reputation in the market determines whether it will receive
new investments or not. With CSR programs, you can certainly boost your
company’s image. And when your company starts to grab enough eyeballs,
it also attracts a number of investors. Be prepared to receive investment
proposals from venture capitalists, other firms, and even from the
government. It is often said that any publicity is good publicity. When your
company starts a CSR program, it automatically gives your company a
certain level of publicity. It won’t be wrong to call such publicity as an
advertisement. You just need to make sure your products or services are
aligned with the CSR activities you are involved in.
Quite simply, a socially responsible company can make a real difference in
their own respective communities. This, in turn, can create a more robust
reputation for the company, making them more trustworthy for the people,
which can then lead to more shareholder value and profit. Thus, the cycle
continues, cementing the idea that a socially responsible company has
more chances of staying relevant for a long time. This goes way beyond
the relationship with the local community, as a socially responsible
company makes it an employer of choice, leading to more employees that
would genuinely want to support a company’s mission and vision. This, in
turn, would lead to a much healthier employer-employee relationship that
goes beyond the simple you’re-here-because-I-pay-you situation. It also
helps that the current working force is mostly made up of millennials.
According to Better Business Journey, 88 percent of consumers said they
were more likely to buy from a company that supports and engages in
activities to improve society. This couldn’t be any truer, after all, a
company that customers can trust is a company they will stay loyal to for a
long time. Perhaps one of the most important long-term factor to consider
in a business, CSR helps make a company more sustainable and long-
lasting.
Social contribution and sustainability are features that appeal to a whole
new class of customers for any solution. These features are extremely
important in penetrating customer sets in different cultures around the
world, and more discerning customers in every geography. Sustainability
and social responsibility are ways to extend your exclusivity and added
value, thus lowering risk, improving profitability, and justifying a premium
price. All stakeholders see this as an advantage, encouraging new investors
and raising the valuation of your business.
These days, existing customer advocacy is a key attractor of new
customers. In addition, according to recent statistics, the cost of bringing a
new customer to the same level of profitability as old ones is up to 16
times more. Most Millennials and customers of all ages these days strongly
believe that all businesses must be socially responsible and make that a top
criteria for selecting a solution source. Sponsoring social initiatives and
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providing time for employees to support their own initiatives builds
loyalty, pride, and motivation among team members and disparate
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organizations within the company. This makes everyone in the company Corporate Social
Responsibility
more engaged, more responsive, and more productive. Company success is
driven by the quality of the team members they can attract and retain. If NOTES
your business is recognized as providing a socially responsible culture for
employees, as well as comparable initiatives outside the business, the best
and the brightest will join you.
They see a commitment to social change as great positioning for the long-
term, with sustainable value to customers and owners alike. They look for
that balance between maximizing profit and expanding the market. A
potential offset to all these advantages is that balancing act that is required
between social initiatives and the focus on making more money for
survival. It takes a strong and adept business leader and entrepreneur to
make the right tradeoffs.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. Differentiate between stakeholder and shareholder?
2. Name some of the interest groups to CSR?
3. What are the types of Stakeholders?
4. What are the benefits of CSR to business?

5.7 LET US SUM UP

The stakeholder view of strategy integrates a resource-based view and a

market-based view, and adds a socio-political level. One common version
of stakeholder theory seeks to define the specific stakeholders of a
company (the normative theory of stakeholder identification) and then
examine the conditions under which managers treat these parties as
stakeholders .
Through this its also visible that the role of the stake holder is a bit more
and important when it comes to CSR that each levels contribute for the
welfare of the community.
5.8 ANSWER TO CHECK YOUR PROGRESS

1. A shareholder can sell their stock and buy different stock; they do not
have a long-term need for the company. Stakeholders, however, are
bound to the company for a longer term and for specified need and
have a long-term need.
2. Government, Customers, Creditors Society etc.
3. Communities, Investors, Suppliers, Competitors etc.
4. It portrays that the company and the business a corporate undertakes is
not only for the benefit of the company, but the corporate has some
initiatives towards the social concern as well and these attract the
profit margins and the customers and the investors as well.
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65
 Corporate Social 5.9 UNIT END EXERCISE
Responsibility

NOTES
1. Discuss the role of shareholder and stakeholder in a corporate sector?
2. Try preparing a tool or a technique for CSR?
3. Discuss some of the benefits for the employees in a CSR initiatives?
4. Discuss the important roles that each stakeholder play in a CSR?
5.10 SUGGESTED READINGS
http://web.mit.edu/urbanupgrading/upgrading/issues-
tools/issues/stakeholder.html
https://ctb.ku.edu/en/table-of-contents/participation/encouraging-
involvement/identify-stakeholders/main
http://www.brainkart.com/article/Social-Responsibility-towards-Different-
Interest-Groups_34939/
Corporate Social Responsibility in a Global World by Kiyoteru Tsutsui
(2015)
Business Ethics by Alejo José G. Sison (Editor); Ignacio Ferrero (Editor);
Gregorio Guitián (Editor) (Publication date 2018)
A Practical guide to Corporate Social Responsibility by CS Rupanjana De,
Bloomsbury India.

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66
 Corporate Social
UNIT- VI DESIGNING A CSR POLICY – Responsibility

FACTORS INFLUENCING CSR NOTES

POLICY – MANAGING CSR IN

AN ORGANISATION – ROLE OF
HR PROFESSIONALS IN CSR
Structure
6.1 Designing a CSR Policy
6.2 Factors Influencing CSR Policy
6.3 Managing CSR in an Organisation
6.4 Role of HR Professionals in CSR
6.5 Let Us Sum Up
6.6 Answer to Check Your Progress
6.7 Unit End Questions
6.8 Suggested Readings
6.1 DESIGNING A CSR POLICY
In today’s competitive business environment, CSR programs need to go
beyond “doing good.” The most successful CSR initiatives tell a
company’s story, implement customer feedback, position a company as a
leader on social issues, and determine how community investment dollars
will be spent. But to accomplish this, CSR programs first need to be
strategically aligned with a company’s business model. If corporate
citizenship efforts do not demonstrate value to customers, employees,
and shareholders, as well as the community, they’re less likely to be
successful and serve a long term purpose. Below are five ways that your
company can craft an effective corporate social responsibility program
that is strategic and sustainable:
1. Build your strategy around your company’s core competencies:
There are many worthy causes companies can choose to support, but
without focus and alignment around what your business already does
well, CSR efforts may be less effective. If a company has developed
strengths, research, and knowledge in a specific area, supporting a
cause that aligns with that expertise can be both a win for community
partners and the company with new customer visibility and revenue
streams. “CSR can be both a risk mitigation strategy and an
opportunity-seeking strategy, and leaders should look for the ‘sweet
spot’ within their organizations—that is, the intersection between
business and social/environmental returns,” Kellie McElhaney,
Director at the Center for Responsible Business.
2. Recognize issues that matter to your customers: According to
a Cone Communications CSR Study, 87% of consumers would
purchase a product based on a company supporting a social or
environmental issue the consumer cares about. Consumers are
rewarding socially responsible companies through brand loyalty,
making donations to charities companies support, and purchasing
products that provide a social benefit. As recent corporate scandals in
the news have demonstrated, consumers also aren’t afraid to use their
buying power to punish companies who have acted irresponsibly or Self-Instructional Material
harmfully, through boycotts and negative social media campaigns.
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 Corporate Social 3. Develop CSR initiatives that make your employees proud:
Responsibility Strategic companies are also using CSR programs to protect and grow
their biggest asset—their employees. Seventy-six percent of
NOTES
millennials consider a company’s social and environmental
commitments when deciding where to work and 64% would not take a
job if a potential employer didn’t have strong corporate social
responsibility practices in place. “Being a good employer has always
served companies well in terms of recruitment and retention, now
those practices can also yield broader positive business
benefits,” said Alison DaSilva, Executive VP of CSR Strategy at Cone
Communications. In addition, engaged employees are more likely to
stay with a company longer, reducing attrition cost. Eighty-eight
percent of millennials say their job is more fulfilling when they are
provided opportunities to make a positive impact on social and
environmental issues. These initiatives can range from paid time off
for volunteering to company-wide days of service to skills-based
virtual micro-volunteering opportunities.
4. Measure the ROI of your CSR efforts for the C-suite and your
investors: Measuring CSR programs can be overwhelming, especially
when initiatives can span many different departments such as human
resources, marketing, sustainability and compliance. However,
developing an organized framework for reporting that links efforts
back to strategic priorities for the business will inform your C-suite
and investors if your CSR efforts are affecting your company’s
performance. Seek to quantify socially conscious efforts that are
directly tied to the company’s bottom line—for example, activities
that drive cost savings, new customer acquisition, and brand
awareness.
5. Expand your company’s definition of CSR: Traditionally, efforts
aimed at reducing environmental resources, annual giving programs,
and cause marketing campaigns largely defined good corporate
citizenship. And while those efforts are valuable, consumers and
companies alike have grown and become more innovative in how they
define a responsible company. According to a Cone Communications
CSR Study, consumers prioritize the following business actions as
important: being a good employer, operating in a way that protects and
benefits society and the environment, creating products and services
that ensure individual wellbeing, investing in causes in local
communities and around the globe, and standing up for important
social justice issues.
CSR programs have the potential to help your business and society
progress, but only if done well. By aligning corporate citizenship
efforts with revenue-generating activities, you can ensure your CSR
program is strategic and sustainable.
CSR programs speak to how a company will not only comply with legal
and ethical standards, but also go beyond – perhaps, by engaging in further
social and/or environmental good in the local and ultimately global
community.
In addition to being a good corporate citizen, having a well thought out and
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executed CSR program becomes part of your appeal in the business
development process. As large brands increasingly aim to do business with
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companies whose policies mirror their own commitment, your access to Corporate Social
Responsibility
their business now or in future could hinge on whether your company has a
CSR policy that aligns with theirs. NOTES

10 things to keep in mind for laying the foundation for a successful

CSR policy:
1. Determine what makes your company unique: Each company's
culture and skills position it to establish unique ways to support
sustainable communities through initiatives that are intrinsic to a
company's brand. This is your company's opportunity to get local or
global or creative or all of the above. Establish what will motivate
employees and align the company's objectives with external
stakeholders. Companies might initiate best-in-class policies, champion
regulatory or legislative changes, or reinvent a product that changes an
industry.
2. Look at the gold standards for guidelines: Adopt an internationally
recognized standard with approved criteria and metrics that are
independently verified by a certification body. Find one with metrics
most relevant to your business so you can establish your baseline
performance and goals – perhaps that's the certification of core source
material you use in your business, or your carbon or water footprint,
level of waste diversion, and/or your community involvement. Look at
the areas that are impacted by your business, the areas that matter to
you, and to the stakeholders you want to engage.
3. Engage employees: By engaging your employees in the process of
creating, implementing and managing your CSR policy you will foster a
sense of ownership in and responsibility for the success of your
company's CSR program while discovering the ways in which core
business must adapt its practices to best execute the program.
4. Consider health and safety: Your policies should take into account the
health and safety of your employees beyond what is just required by the
letter of the law. This doesn't stop at hard hats or safety glasses, but
extends to all facets of how you do business. Ensure that you have the
budget and infrastructure for proper equipment, training and support.
Healthy and safe work employees are the most productive employees.
5. Draft it. Live it. Breathe it: A CSR program is more than a well-
articulated document – it needs to be comprised of executable principles
that every member of the organization can put into action. If you're
asking your team to do anything you yourself wouldn't do, then assume
there are others like you on the team and re-evaluate.
6. Brand it: Consider your CSR program not only as part of your overall
brand strategy but as having an equally strong and recognizable brand
that can stand alone. Could your CSR program be the difference maker
between you and your competition? If so, you'll want to monetize that
distinction by branding the program for both customers and employees
as you build a sustainable and positive corporate culture.
7. Establish metrics: Identify the benchmarks and metrics that reinforce
successful practices in order to show how you've moved the needle over
time. By actively adhering to reported outcomes you will also
demonstrate commitment and align your company with potential Self-Instructional Material

stakeholders who respect the effort and the transparency.

69
 Corporate Social 8. Treat your program like a course of study and create a curriculum:
Responsibility Build in the training and education that will be needed for current and
future employees to learn about the program and how to embody it
NOTES
within their job function.
9. Continuous improvement: Once you've determined the program, don't
rest on your laurels. CSR programs have goals – what will you do once
you achieve those goals? How will you push farther? Account for
continuous improvement strategies that will increase your potential
impact every year. Perhaps it's about higher percentages or certification.
10. Leverage your CSR policy to align with like-minded companies and
build trust: Reach out and engage with other companies that share your
values through formal networks, associations, conferences and panel
discussions. This will help showcase your company's CSR commitment
and allow you to compare notes and take learning back to your team for
future strategic planning, positioning and growth.
The sooner you establish your CSR policy, the sooner you can begin
demonstrating your company's commitment to upholding far-reaching and
long-term sustainability standards. And with that establish the leadership,
trusted relationships and positioning needed for successful future growth.
6.2 FACTORS INFLUENCING CSR POLICY
In recent times, the markets have had a huge impact on adoption of CSR
initiatives. Broadly speaking, this has happened in both direct and indirect
ways.
Consumer Awareness: The consumer as a concerned citizen is aware of
how companies are impacting the society and the environment, and as a
consumer, he/she can choose to patronize companies who have a better
record of discharging their social responsibilities.
Market Forces: Consumers have indirectly impacted adoption of CSR.
They expect companies to be proactive in being socially responsible and
also expect companies to enforce the same standards on their business
partner Companies such as Nike, Hershey’s, Wal-Mart, and even Body
Shop have faced a lot of flak when their suppliers have been found to
engage in unfair employment or environmentally harmful practices.
This means that large corporations are now imposing social responsibilities
on their suppliers and other business partners. Many of these partners are
SMEs and in order to continue as suppliers to these large corporate, they
have to introduce minimum levels of social responsibility in the way they
conduct business.
Globalization: The CSR is now being implemented across the supply
chain and with this comes the realization that many of these supply chains
are global in nature. For example, petroleum from Saudi Arabia is
processed into polymers in a petrochemical complex in India, which is
then shipped to China, where it is used to make toys. It is then ultimately
sold in a store in Argentina belonging to a US-based retailer.
The companies benefit through lower operating costs, increased sales and
customer loyalty, greater productivity, gaining ability to attract and keep
skilled employees, getting access to more capital through more willing
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investors etc. CSR is the thoughtful and practical way to give back to Corporate Social
Responsibility
the society.
NOTES
Besides the potential loss of socially conscious consumers, CSR impacts a
business' ability to attract top talent and affects employees' job satisfaction
levels and retention rates. The next generation of workers currently
entering the workforce seek out employers with a clear and
effective CSR strategy.
The phenomenal stretch of Globalization has touched and affected,
positively or negatively as well, practically every aspect of human
existence, through its varying tentacles in its ever-propagating areas of
influence. The recognition and acceptance of the phenomena of Corporate
Social Responsibility (hereinafter referred to as CSR), in developed as well
as developing countries, is a doting example of the same. It needs a special
mention that CSR is nowhere a legally sanctioned document or
observance, but it indeed, has come forth as a minimal standard as to the
governance of business at global level, with international reference
standards set by the United Nations, Organization for Economic Co-
operation and Development (OECD) guidelines and International Labour
Organization (ILO) conventions.
The primary reason as to why this phenomena is rising at such a fast pace,
is the global competitiveness ensuing between the business houses of
different countries. The corporates mainly demonstrate the extra
responsibility to earn the goodwill of the market, and CSR helps in
building loyalty and trust amongst shareholders, employees and customers.
In this sense CSR denotes a voluntary endeavour by the big business
houses to look into the varied issues and concerns of the public at large,
apart from the profit-maximising objectives.
CSR is closely linked with the principle of sustainable development, which
argues that enterprises should make decisions based not only on financial
factors such as profits or dividends but also based on immediate and long
term social and environmental consequences of its activities. CSR has a
significant role in controlling the perils of uncontrolled development,
satisfying the needs of the present generation and at the same time
ensuring that the resources of future generations is not jeopardized. [1] The
inclusion of the objective of ‘sustainable development’ within the CSR
agenda magnifies the duties and responsibilities of the big business houses,
upto a large extent, which cannot be made limited as per any parameters.
The realization of the ultimate objective of sustainable development is a
long and continuous process, and is rather more inclusive, which includes
the interest of the developing nations also.
The impact of CSR in context of developing nations, as evident, is rather a
negative impact. The primary reason as identified by the authors seems to
be the inappropriate approach towards the practical applicability of the
CSR in the developing countries. There is lacunae in the structural
approach towards implementation of the CSR agenda within the
developing countries, mainly due to the irresponsible inactiveness on the
part of the government of the developing countries, in framing its policies
and regulations as per the international norms and requirements, as CSR is
largely a global phenomena.
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 Corporate Social 6.3 MANAGING CSR IN AN ORGANISATION
Responsibility
As a cross funcional process in the organization, effective management
NOTES of corporate social responsibility requires a definition of strategies,
programs and an action plan that structures this process from its initiation
to the measurement of end effects
Adopt a business code of ethics: A business code of ethics will
outline employee conduct on issues such as ethics, values,
environment, diversity, employee respect and customer service.
More and more entrepreneurs are choosing to go one step further
by changing their governance document to include their
commitment to social and environmental goals.
Follow a workplace health and safety program: Creating a clear
workplace health and safety program will help you establish
reliable systems to protect your employees and prevent accidents
and injuries. It will also ensure you are compliant with government
legislation on health and safety.
Commit to protecting the environment: Develop policies and
practices that allow your company to fulfill your commitment to
the environment. For example, you can consider producing a
report that documents your activities and results as they relate to
your environmental impact. Some companies produce broader
“sustainability” reports, which encompass social, economic and
environmental activities.
Get your suppliers on board: Ensure your suppliers know and meet
your expectations of responsible behaviour regarding issues such as
fair pricing, for example. Screen them to determine their past
conduct, and tell them what you expect.
Be smart about donating money: Get behind causes that are
meaningful for your business. A forestry business, for example,
might choose to support organizations that protect the environment.
Many manufacturing businesses donate to community
organizations in towns where they have plants. The idea is to give
back to society, while at the same time sending a message about the
values of your brand.
Don’t greenwash your business: Use marketing techniques that are
fair and honest, and that reflect your company’s integrity. Avoid
any advertising or communication that could be seen as
manipulative or harmful to the public. Make sure you walk the talk
and that your company does what it says it does, otherwise your
company could risk a customer backlash.
Explore B Corp certification: Many public and society-minded
entrepreneurs are choosing to get B Corp certified. B Corps are
certified “beneficial” companies. Their purpose is to create value
for society as well as money. They meet high standards of
transparency and accountability, and create positive social and
environmental benefit.

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 Corporate Social
6.4 ROLE OF HR PROFESSIONALS IN CSR
Responsibility
Human Resource departments play a critical role in ensuring that the NOTES
company adopts CSR responsibility programs. Furthermore, HR can
manage the CSR plan implementation and monitor its adoption
proactively, while documenting (and celebrating) its success throughout
the company.
HR technology can help with a CSR program, including reducing the
company's carbon footprint to benefit the planet. Start with these areas:
Implement and encourage green practices.
Foster a culture of social responsibility.
Celebrate successes.
Share and communicate the value of corporate social responsibility
to employees and the community.
Implement and Encourage Green Practices: Implement green
practices to assist in environmental waste reduction, while promoting
and encouraging stewardship growth, better corporate ethics and
long-lasting practices that promote both personal and corporate
accountability. The value inherent in embracing green aspects of
corporate responsibility is clearly understood, given the direct impact
that rising energy and utility costs have on employees' pocketbooks.
Conservation has become an accepted means of making our planet
healthier. Reducing each employee's carbon footprint is a great way
of getting energy conservation and recycling waste initiatives off the
ground. Here are suggestions to start:
Recycle paper, cans, and bottles in the office; recognize
departmental efforts.
Collect food, and especially donations, for victims of floods,
hurricanes and other natural disasters around the globe.
Encourage reduced energy consumption; subsidize transit passes,
make it easy for employees to carpool, encourage staggered
staffing to allow after rush hour transit.
Permit telecommuting and allow employees working remotely to
the degree possible.
Encourage shutting off lights, computers, and printers after work
hours and on weekends for further energy reductions.
Work with IT to switch to laptops over desktop computers.
(Laptops consume up to 90% less power.)
Increase the use of teleconferencing, rather than on-site meetings
and trips.
Promote brown-bagging in the office to help employees reduce fat
and calories to live healthier lives and reduce packaging waste, too.
It can be safely said that Human Resource is taking a more proactive role
as an Active Business Partner. CSR has increased motivation level of the
employees. The analysis also revealed that CSR activities increase
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employee commitment towards work and organization. This leads to
positive and efficient results.
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 Corporate Social Check Your Progress
Responsibility
Note: a. Write your answer in the space given below
NOTES
b. Compare your answer with those given at the end of the unit.
1. What are the factors influencing CSR policy r?
2. Role of HR professional in CSR?
3. What is the need in ‘Commit to protecting the environment’?

6.5 LET US SUM UP

This chapter deals with the Designing a CSR policy, factors influencing
CSR policy, managing CSR in an organisation and role of HR
professionals in CSR for our basic understanding and developing CSR
Policies and equip us in grooming ourselves in as a professional in CSR
6.6 ANSWER TO CHECK YOUR PROGRESS
1. Consumer awareness, market place and globalisation.
2. Role of HR Professional in CSR
• Implement and encourage green practices.
• Foster a culture of social responsibility.
• Celebrate successes.
• Share and communicate the value of corporate social responsibility
to employees and the community.
3. Commit to protecting the environment: Develop policies and practices
that allow your company to fulfill your commitment to the
environment.
6.7 UNIT END QUESTIONS
1. Elucidate the importance of Designing a CSR policy
2. Briefly explain the factors influencing CSR policy
3. What is the need of managing CSR in an organisation?
4. Explain the role of HR professionals in CSR
6.8 SUGGESTED READINGS
Lexis Nexis CSR in India - Steering Business towards Social Change 1st
Edition 2017 by Kshama V Kaushik.
Ethics codes, corporations and the challenge of globalisation, Cragg
Wesley, 2005.
Journal of business ethics.
The journal of Management and governance.
CSR and environmental management.

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 Corporate Social
UNIT- VII GLOBAL RECOGNITIONS OF Responsibility

CSR – ISO 14000 – SA 8000 – AA NOTES

1000 – CODES FORMULATED

BY UN GLOBAL COMPACT-
UNDP, GLOBAL REPORTING
INITIATIVE
Structure
7.1 Global Recognitions of CSR
7.2 ISO 14000
7.3 SA 8000
7.4 AA 1000
7.5 Codes Formulated by UN Global Compact
7.6 UNDP
7.7 Global Reporting Initiative
7.8 Let Us Sum Up
7.9 Answer to Check Your Progress
7.10 Unit End Questions
7.11 Suggested Readings
7.1 GLOBAL RECOGNITIONS OF CSR
Geothermal leader Energy Development Corporation (EDC) has recently
been included in the FTSE4Good Emerging Index for its strong
Environmental, Social and Governance (ESG) practices and was cited by
CSR Asia Weekly as the top PH company admired by CSR professionals.
FTSE4Good is an equity index series created by global index provider
FTSE Russell, part of London Stock Exchange Group, designed to help
investors integrate environmental, social and governance (ESG) factors
into their investment decisions. The indexes identify companies that better
manage ESG risks and meet globally recognized and stringent corporate
responsibility standards. The FTSE4Good Emerging Index was launched
in December 2016 and covers over 20 emerging countries.
Meanwhile, Asia-Pacific Region publication CSR Asia Weekly ranked
EDC first in the Philippines and no. 6 in Asia Pacific among companies
that Corporate Social Responsibility professionals admire. The result was
called from a survey conducted among 500 CSR managers, consultants
and NGO professionals by CSR Asia, one of the leading providers of
research, training and advisory services on sustainable business practices
in Asia.
According to the published report, EDC, a new entry in the list of
outstanding companies doing sustainable CSR work, was given a thumbs
up for programs they have implemented that seek to improve the lives of
the people and protection of the environment. Apart from being a global
diversified renewable power company, EDC implements comprehensive
environmental management and corporate social responsibility programs
that ensure inclusive growth and enhance the ecosystem in areas where it
operates. “For over 40 years, we have strived to make a positive impact on
the environment and our host communities as we generate clean,
renewable energy to power our country. Creating harmony for our Self-Instructional Material
business, the people around us, and our planet has always been at the heart
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 Corporate Social of our sustainability strategy,” said Richard B. Tantoco, EDC president
Responsibility and COO. EDC’s Health, Education, Livelihood, and Environment
(HELEn) program has been consistently recognized for its success and
NOTES
sustainability. EDC, the country’s leading producer of geothermal energy,
likewise measures its own economic, environmental, and social impact and
discloses it every year through its annual performance report following the
Global Reporting Initiative’s most widely used reporting framework.
7.2 ISO 14000
ISO 14000 is defined as a series of international environmental
management standards, guides, and technical reports. The standards
specify requirements for establishing an environmental management
policy, determining environmental impacts of products or services,
planning environmental objectives, implementing programs to meet
objectives, and conducting corrective action and management review.
The primary objective of the ISO 14000 series of standards is to promote
effective environmental management systems in organizations. The
standards seek to provide cost-effective tools that make use of best
practices for organizing and applying information about environmental
management.
The ISO 14000 family was developed in response to a recognized industry
need for standardization. With different organizational approaches to
environmental management, comparisons of systems and collaboration had
proved difficult.
History of ISO 14000
The first environmental management system standard, BS 7750, was
published in 1992 by the BSI group.
In 1996, the International Organization for Standardization (ISO)
created the ISO 14000 family of standards.
ISO 14001 underwent revision in 2004.
The current revision of ISO 14001 was published in September 2015.
The first standard in the ISO 14000 series, ISO 14001, provides an
organization with the requirements for an environmental management
system (EMS) that can easily integrate into their business management
systems. This system allows an organization to take a proactive approach
to environmental issues with the early identification of problems and the
prospects for improvement thereby achieving higher standards of
environmental performance. ISO 14000 is a set of international standards
covering environmental management systems (EMS), environmental
auditing, environmental labeling, the assessment of environmental
performance and life cycle evaluation. As a follow-up to the
standardization process that was started with the ISO 9000 series, the ISO
14000 series of international standards sets the outline on how
organizations can integrate environmental considerations into their
operations and products. It is a set of voluntary environmental
management standards, guides and technical reports, which specifically
concentrates on environmental management systems, operating practices,
products, and services. The ISO 14000 standards do not propose
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the impact that their activities, products or services have on the Corporate Social
Responsibility
environment.
NOTES
Principles of environmental management:
Standards outlined in the ISO 14000 family are designed with key
principles of environmental management in mind:
To encompass environmental management systems and the
environmental aspects of products
To not be restricted by country or region
To uphold and promote public interest as well as the interests
of those who use and be affected by the standards
To be cost-efficient, robust, and adapt to many different needs,
requirements, and circumstances, at any scale, globally
As part of their flexibility, to be suitable for internal and/or
external verification
To utilize scientific evidence and principles
To continuously improve upon existing principles of
environmental management
To be actionable, practical, and useful for organizations using
them
ISO 14000 & other standards in the ISO 14000 family
Some of the most notable standards in the ISO 14000 series include:
ISO 14004 – General guidelines on principles, systems and
support techniques
ISO 14006 – Guidelines for incorporating ecodesign
ISO 14015 – Environmental assessment of sites and
organizations (EASO)
ISO 14020 – Environmental labels and declarations
ISO 14031 – Environmental performance evaluation
ISO 14040 – Life cycle assessment
ISO 14050 – Vocabulary
ISO 14063 – Environmental communication
ISO 14064 – Greenhouse gases
ISO 19011 – Guidelines for auditing management systems
One of the most popular of all of the ISO 14000 standards, ISO 14001
sets out the requirements for an effective environmental management
system (EMS), much like the 9001 standard outlines the requirements
for an effective quality management system (QMS). ISO 14001, as
with ISO 9001, provides a framework that organizations are free to
use as a guideline or foundation to build their own tailored
requirements.
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 Corporate Social By implementing an environmental management system based on ISO
Responsibility 14000 principles, companies stand to gain:
NOTES Improved environmental performance
Improved internal management
Improved company image
Improved public relations
Improved government relations
Improved profits
Increased corporate social responsibility
Optimized resource allocation and organization
More satisfied stakeholders
Advantages over competition in various markets
Fewer non-tariff trade barriers
Fewer regulatory problems and inspections
Probably fewer fines related to compliance and regulation
Reduced overhead costs
Reduced insurance costs
Reduced costs of production
7.3 SA 8000
Sustainability SA 8000 - Certification - Social Accountability. SA 8000 is
an international certification standard that encourages organisations to
develop, maintain and apply socially acceptable practices in the workplace.
A social audit is one of the best ways to cost-effectively evaluate your
supplier and proactively identify any compliance issues. Many different
social compliance standards exist, but Social Accountability
8000 (SA8000) is a good starting point for importers that are new to
compliance.
SA8000 compliance sets a strong foundation for compliance with local
laws and international human rights norms. By understanding the
requirements of a SA8000 social compliance audit checklist, you can
prepare your supplier for an audit and be able to accurately interpret the
results of an audit. The SA8000 Standard is the world’s leading social
certification program. It provides a holistic framework allowing
organizations of all types, in any industry, and in any country to
demonstrate their dedication to the fair treatment of workers. Created by
SAI in 1997 as the first credible social certification, it has led the industry
for over 20 years. SA8000 is available for organizations of any size, in any
industry, and in nearly every country of the world.
The SA8000 Standard
The SA8000 Standard is based on internationally recognized standards of
decent work, including the Universal Declaration of Human Rights, ILO
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approach to social performance and emphasizes continual improvement— Corporate Social
Responsibility
not checklist-style auditing.
NOTES
Elements of the Standard
Child Labor
Forced or Compulsory Labor
Health and Safety
Freedom of Association & Right to Collective Bargaining
Discrimination
Disciplinary Practices
Working Hours
Remuneration
Management System
SA8000 improves standards for workers and for business:
Management systems, worker engagement, a culture of continuous
improvement, and other elements of SA8000 not only lead to better
working conditions and worker well-being, they also have benefits for
productivity, stakeholder relationships, market access, and more.
The SA8000 Standard is based on internationally recognized standards of
decent work, including the Universal Declaration of Human Rights, ILO
conventions, and national laws. SA8000 applies a management-systems
approach to social performance and emphasizes continual improvement—
not checklist-style auditing
7.4 AA 1000
The AccountAbility Principles Standard (AA1000APS 2008) provides a
framework for an organisation to identify, prioritise and respond to its
sustainability challenges.
The AA1000 Principles
Inclusivity is the participation of stakeholders in developing and
achieving an accountable and strategic response to sustainability.
Materiality is determining the relevance and significance of an
issue to an organisation and its stakeholders.
Responsiveness is an organisation’s response to stakeholder issues
that affect its sustainability performance. To download this
standard please visit the website
Concerns from and for customers, workforce, shareholders, communities,
and governments have increased the demand for transparent and socially-
responsible practices and initiatives within organizations. Companies
failing to consider their impact on the planet and their people will fall
behind their competition as it becomes the standard and, increasingly, a
requirement to do business. Suppliers, customers, stakeholders, and
markets are now scoring Corporate Social Responsibility (CSR)
performance, and they are looking for specific information and assurance
of corporate performance. This trend has seen higher visibility as large
brands and stock markets have begun using CSR as an additional basis for Self-Instructional Material
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 Corporate Social AA1000 Standard
Responsibility
“AA1000 Series of Standards are principles-based Standards and
NOTES Frameworks used by a broad spectrum of organizations – global
businesses, private enterprises, governments and civil societies – to
demonstrate leadership and performance in accountability, responsibility,
and sustainability,” explains AccountAbility, creator of the AA1000
standard series. The intent of the AA1000 Standard is to assure that
Sustainability is built into an organization’s management system, and to
validate the CSR data being reported. As the leading standard in
Sustainability/CSR assurance, it is based on four principles:
The Foundation Principle of Inclusivity
The Principle of Materiality
The Principle of Responsiveness
The Principle of Impact (new for 2018)
Having guided organizations’ approaches to social equality, healthy
ecosystems, and good organizational governance for over two decades,
AA1000 is the trusted standard for CSR assurance.
Achieving AA1000 Assurance
SRI can help you achieve assurance against AA1000. Clients with
certified management systems can integrate the requirements into their
existing system and certification timetables. The amount of time and full
scope of the reporting assessment will depend on breadth of the reporting,
and size of the organization, very much like traditional standards. SRI can
do much of the assessment off-site though, helping clients save time and
expense. Regular review and continual improvement to an organization’s
corporate social responsibility program will result in an organization’s
ability to:
Design and implement a social responsibility strategy that drives
better business decisions
Adapt more easily to changing legal, political, and cultural
conditions
Manage through measurement your organization’s impact on
people and the environment
Better engage with interested parties
Win stakeholders and customers through trust and credibility
7.5 CODES FORMULATED BY UN GLOBAL COMPACT
The United Nations Global Compact is a strategic initiative that supports
global companies that are committed to responsible business practices in
the areas of human rights, labor, the environment, and corruption. This
UN-led initiative promotes activities that contribute to sustainable
development goals to create a better world.
The United Nations Global Compact is an initiative that global
corporations can sign on to committing to responsible business
practices in the areas of human rights, labor, the environment, and
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 The UN Global Compact has 10 operating principles outlining Corporate Social
Responsibility
these values.
NOTES
The UN Global Compact is based on 10 principles that should define a
company’s value system and approach to doing business. These principles
were collectively founded in the Universal Declaration of Human Rights,
the International Labor Organization’s Declaration on Fundamental
Principles and Rights at Work, the Rio Declaration on Environment and
Development, and the UN Convention Against Corruption. Member
companies are expected to engage in specific business practices that
benefit the people and the planet while pursuing profitability with
integrity.
The UN Global Compact was initially launched with nine Principles. On
24 June 2004, during the first Global Compact Leaders Summit, Kofi
Annan announced the addition of the tenth principle against corruption in
accordance with the United Nations Convention Against
Corruption adopted in 2003.
Human Rights
Businesses should:
Principle 1: Support and respect the protection of internationally
proclaimed human rights; and
Principle 2: Make sure that they are not complicit in human rights
abuses.
Labour Standards
Businesses should uphold:
Principle 3: 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
labour;
Principle 5: the effective abolition of child labour; and
Principle 6: the elimination of discrimination in employment and
occupation.
Environment
Businesses should:
Principle 7: support a precautionary approach to environmental
challenges;
Principle 8: undertake initiatives to promote environmental
responsibility; and
Principle 9: encourage the development and diffusion of
environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its
forms, including extortion and bribery.
Companies that join the compact are expected to integrate these principles
into their corporate strategies, culture, and day-to-day operations. Self-Instructional Material

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 Corporate Social communicate with stakeholders on progress toward meeting the principles.
Responsibility Any company that commits to upholding the principles may join the
compact, which is not legally binding and is purely voluntary.
NOTES
UNITED NATIONS GLOBAL COMPACT, Launched in 2000, the UN
Global Compact brings business together with UN agencies, labor, civil
society and governments to advance ten universal principles in the areas of
human rights, labor, environment and anti-corruption. Through the power
of collective action, the Global Compact seeks to mainstream these ten
principles in business activities around the world and to catalyze actions in
support of broader UN goals. With over 4,100 participating companies
from more than 100 countries, it is the world's largest voluntary corporate
citizenship initiative.
7.6 UNDP
The United Nations Development Programme (UNDP) is the United
Nations' global development network. It advocates for change and
connects countries to knowledge, experience and resources to help people
build a better life for themselves. UNDP works in about 170 countries and
territories, helping to achieve the eradication of poverty, and the reduction
of inequalities and exclusion. We help countries to develop policies,
leadership skills, partnering abilities, institutional capabilities and build
resilience in order to sustain development results.
Role of UNDP in supporting the CSR Agency: As the key implementing
agency for the UN's MDGs, the UNDP is an ideal partner to provide
advisory in helping the Agency support the private sector to align
their CSR strategy with the specific MDG targets.
UNDP has worked in India since 1951 in almost all areas of human
development, from systems and institutional strengthening to inclusive
growth and sustainable livelihoods, as well as sustainable energy,
environment and resilience. UNDP’s programmes continue to fully
integrate a global vision for catalytic change with India’s national
priorities. With over 30 projects on the ground in almost every
state, today UNDP India works to achieve the Sustainable Development
Goals by transforming traditional models to do development
differently. In a rapidly changing global environment, the work of
UNDP and the broader UN family aligns with the Government of
India's new national development vision, India 2030, and builds upon
the Sustainable Development Goals. UNDP India's country programme
for 2018-2022 has three major focus areas:
Inclusive growth
Environment and energy
Strengthening systems and institutions
These are supported by a framework of renewed partnerships and
blended finance solutions, a pool of financial and technical resources
for greater impact and scale, and South-South expertise.
A partnership for sustainable development
UNDP has supported India for the last five decades, both at the federal
and provincial levels, in achieving the Sustainable Development Goals
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(SDGs) through mainstreaming, acceleration and policy support. UNDP
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supports the government to reflect the new global agenda in national Corporate Social
Responsibility
development plans and policies, to accelerate progress on SDG targets,
and provide expertise on sustainable development and governance to NOTES
the central and state governments at all stages of implementation.
Legal framework
In 1952, the Government of India and UNDP entered into a basic
agreement to govern UNDP’s assistance to the Special Agreement on
the Technical Assistance between UN organizations and the
Government of India. In 1959, the Agreement between the UN Special
Fund and the Government concerning assistance from the Special Fund
was signed.
The Department of Economic Affairs, Government of India is the
designated nodal department which approves and signs the Country
Programme Action Plan (CPAP) with UNDP. The programme is
nationally executed and implemented by a range of partners including
government ministries, state governments, district authorities, civil
society organizations, NGOs and other UN agencies.
2018-2022
UNDP Country Programme Document for India (2018-2022): The
Country Programme Document (2018-2022), is formulated in close
consultation with the Government, and guided by both the current and
new UNDP strategic plans, 2014-2017, and 2018-2021. This
consultation process confirmed the following UNDP priorities and
defined areas of intervention. This country programme is fully
integrated with the three UNDP programme outcomes and underpinned
by a framework of renewed partnerships and blended finance solutions,
pooling of financial and technical resources from various sources for
greater development impact and scale, and draws on the best South-
South expertise available.
2013-2017
India UNDAF (2013-2017) :The United Nations Development Action
Framework (2013-2017), developed in partnership with the Planning
Commission of India, reflects the work of all UN entities working in
India. It focuses on six outcomes, in line with the fundamental
principles of the Approach Paper to the 12th Five-Year Plan. These are
- achieving inclusive growth, improving food and nutrition security,
promoting gender equality, ensuring access to quality basic services,
strengthening decentralization and delivering sustainable development.
UNDP Country Programme Document for India (2013-2017): The
Country Programme Document (2013-2017), developed in consultation
with the Government and key partners, builds on the United Nations
Development Assistance Framework (UNDAF) 2013-2017. The
programme is in harmony with the 12th Five-Year Plan of the
Government of India and has benefited from wide-ranging stakeholder
consultations, including within the United Nations system, and a
comprehensive.
Country Programme Action Plan (2013-2017): The Government of
India and UNDP have signed a new Country Programme Action Plan
(CPAP) in support of the Government’s efforts to promote rapid, Self-Instructional Material
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 Corporate Social through partnerships with Central Ministries, state governments and
Responsibility civil society. The CPAP (2013-2017) is based on the Country
Programme Document (2013-2017) which was approved by the UNDP
NOTES
Executive Board in September 2012. The UNDP Country Programme,
which was elaborated under the leadership of the Government and in
consultation with partners, is aligned with the main aims of the
Government’s 12th Five-Year Plan and with the United Nations
Development Action Framework (2013-2017).
2008-2012
India UNDAF (2008-2012): The India-UNDAF 2008-2012 outlines the
vision, strategy and collective action of the UN system. The
overarching objective of the document is to promote social, economic
and political inclusion for the most disadvantaged, especially women
and girls. The essence of the UN's work in India during the five-year
cycle is captured in the four UNDAF outcomes that aim to contribute
to- effective implementation of national flagship programmes,
strengthened capacities of all governance actors for an equitable last
mile delivery of public services, effective utilization of available funds
in select districts, and safeguarding development gains from natural
disasters and the effects of climate change.
UNDP Country Programme Document for India (2008-2012): The
present Country Programme document for India (2008-2012) was
formulated in partnership with the Department of Economic Affairs of
the Ministry of Finance, building on the United Nations Development
Assistance Framework (UNDAF) 2008-2012. The programme is in
harmony with the 11th Five-Year Plan of the Government of India and
has benefited from wide-ranging stakeholder consultations, including
within the United Nations system, and a comprehensive review of
lessons from past cooperation.
Country Programme Action Plan (2008-2012): The Country Programme
Action Plan (CPAP 2008-12) between the Government of India and the
United Nations Development Programme was signed on 27 February
2008, and has seven outcomes across five programme areas of Poverty
reduction, Democratic Governance, Disaster Risk reduction, Energy and
Environment, and HIV and development. The focus areas of the UNDP
India programme are closely aligned to the UNDP Strategic Plan and
the 11th Five-Year Plan of India. The CPAP is currently being
implemented through 60 projects in partnership with 15 central line
ministries, seven UNDAF state governments, and a number of NGOs
and UN agencies.
Accountability & Transparency
Accountability is the obligation to (i) demonstrate that work has been
conducted in accordance with agreed rules and standards and (ii) report
fairly and accurately on performance results vis-à-vis mandated roles
and/or plans. (source: UNDP Accountability Framework (PDF). UNDP
is committed to independent and objective internal oversight to improve
the effectiveness and efficiency of its operations. UNDP has a long-
standing commitment to transparency and accountability, with country
offices publishing financial, procurement and programme information
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Audit & Investigations: The Office of Audit and Investigations Corporate Social
Responsibility
conducts internal audits, related advisory services and investigation
services. The office also has a unit dedicated to Social and NOTES
Environmental Compliance.
Ethics: The UNDP Ethics Office is an independent, confidential,
impartial, and professional resource for all UNDP staff and personnel,
everywhere. We promote an organizational culture that places the
highest value on professionalism, integrity, accountability,
transparency, results orientation, and mutual respect. Our mission is to
assist UNDP staff and other personnel to perform to the highest
standards of integrity required by the Charter of the United Nations.
Evaluation: The Independent Evaluation Office works to enhance
development effectiveness by strengthening accountability and learning
through evaluation and partnership.
Information Disclosure policy: UNDP is committed to making
information about its programmes and operations available to the
public. Its information disclosure policy is available here.
Policies and procedures: Operational standards and procedural
guidance on UNDP’s core business processes are detailed in
the Programme and Operations Policies and Procedures (POPP).
The enhanced POPP platform is public, bringing greater transparency
on how UNDP operates.
UNDP Enhancing Women’s Role and Participation in Governance
To empower elected women representatives, several initiatives
supported by UNDP in partnership with the Ministry of Panchayati Raj,
such as trainings, workshops, exposure visits are helping women bring
socio-political change in the communities.
Highlights
Empowerment of elected women’s representatives Women’s
empowerment through ected women Panchayat representatives
through trainings, workshops exposure visits, etc.
Training is also provided to women groups at the village-level
along with women elected representatives.
The number of women parliamentarians have gone up
substantially.
7.7 GLOBAL REPORTING INITIATIVE
The Global Reporting Initiative's (GRI) vision is that reporting on
economic, environmental, and social performance by all organizations
becomes as routine and comparable as financial reporting. GRI
accomplishes this vision by developing, continually improving, and
building capacity around the use of its Sustainability Reporting
Framework.
An international network of thousands from business, civil society, labor,
and professional institutions create the content of the Reporting
Framework in a consensus-seeking process.
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The Global Reporting Initiative (GRI) is an independent institution whose
mission is to develop and disseminate globally applicable sustainability
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 Corporate Social reporting guidelines that help organisations to report on the economic,
Responsibility environmental, and social dimensions of their activities, products, and
services. The aim of the GRI Guidelines is to assist reporting organisations
NOTES
and their stakeholders in articulating and understanding contributions of
the organisation to sustainable development through their reports. GRI is
now the most widely used sustainability reporting framework. There are
four key elements in the framework:
Sustainability reporting guidelines (the Guidelines) are the
cornerstone of the framework. These consist of Principles for
defining report content and ensuring the quality of reported
information. They also include Standard Disclosures made up of
performance indicators and other disclosure items, as well as
guidance on specific technical topics in reporting. The third edition
of the Guidelines – the G3 – were published in 2006.
Indicator protocols exist for each of the performance indicators
contained in the Guidelines. These protocols provide definitions,
compilation guidance, and other information to assist report writers
and to ensure consistency in the interpretation of the performance
indicators. Users of the Guidelines should also use the Indicator
Protocols.
Sector supplements complement the Guidelines with interpretations
and guidance on how to apply them in a given sector, and include
sector-specific performance indicators. Applicable sector
supplements should be used in addition to rather than in place of
the Guidelines.
Technical protocols are created to provide guidance on issues in
reporting, such as setting the report boundary. They are designed to
be used in conjunction with the Guidelines and sector supplements
and cover issues that face most organisations during the reporting
process.
Potential benefits
The GRI Guidelines provide a holistic framework that addresses
broad performance – social, environmental and economic – as to
how an organisation is reporting to stakeholders.
They guide an organisation’s approach to ‘proving’ its impact.
GRI is used widely internationally as a generally accepted
reporting framework and, as such, provides a method for increased
comparability.
Organisations can use GRI reporting to help measure and
benchmark performance, both against their own targets and
externally. Management can use the GRI indicators to encourage
employees to understand and contribute to progressively better
performance.
The Guidelines are flexible and can be used in different sectors and
geographical contexts.
The Guidelines support and integrate other tools such as Social
Accounting and the AA1000 Series

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Potential limitations Corporate Social
Responsibility
Adhering to the Guidelines can be labour intensive and full reporting
NOTES
may represent a challenge for smaller organisations.
Their history of use in the third sector is limited and some of the
language and approaches are more familiar and appropriate for
multinational corporations.
They provide guidance, but not accreditation, a mark or external
evaluation unless combined with other tools, such as an assurance
standard.
Their main focus is ‘sustainability’, e.g. reporting external impact but
not necessarily focusing on positive outcomes or impacts.
Who can use GRI Guidelines?
The GRI Guidelines are intended to be applicable to organisations of all
sizes and types operating in any sector. However, they were developed
primarily with the needs of larger businesses in mind. According to GRI,
the reporting framework being used by more than 1500 organisations,
‘including many of the world’s leading brands’.
Resources needed
Leadership: To adhere to the GRI Guidelines, an organisation will need
to collect information and performance across the whole organisation and
therefore it requires the leadership and commitment of management and
senior staff members.
Proficiencies or skills: Skills and experience with developing reports and
impact assessment or data collection would be helpful, as would
experience of other social research methods.
Staff time: Significant time will be required to compile, analyse and write
up information and implement action. Some flexibility exists depending on
whether the organisation uses all or part of the Guidelines.
Courses, support, and information: While GRI does not currently offer
training programmes related to sustainability reporting or the GRI
Guidelines, a number of companies, consultancies, NGOs and other
organisations worldwide do offer this type of service. GRI does not
formally endorse any specific training organisation and does not provide
any sort of certification related to training.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. Write about AA1000?
2. What is the UN Global Compact?
3. Define IS 14000
4. What is the role of UNDP?
5. What is the aim of GRI?

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 Corporate Social 7.8 LET US SUM UP
Responsibility
Through the various ISO care must be taken to incorporate a plan for
NOTES environmental impact and conformance. Environmental expectations
(both internal and external) should be met and elements of
environmental management will need to be factored into internal audit
programs and training sessions. GRI is a multi-stakeholder process and
independent institution whose mission is to develop and disseminate
globally applicable sustainability reporting guidelines. GRI incorporates
the active participation of representatives from business, accountancy,
investment, environmental, human rights, research and labour
organisations from around the world. Started in 1997, GRI became
independent in 2002, and is an official collaborating centre of the UNEP.
Since its inception, GRI has initiated a process of continuous improvement
driven by the insights and experiences of stakeholders familiar with the
GRI Guidelines and other GRI reporting framework components. The
network of stakeholders is now 30,000-strong.
7.9 ANSWER TO CHECK YOUR PROGRESS
1. The Account Ability Principles Standard (AA1000APS 2008) provides
a framework for an organisation to identify, prioritise and respond to its
sustainability challenges.
2. The United Nations Global Compact is a strategic initiative that
supports global companies that are committed to responsible business
practices in the areas of human rights, labor, the environment, and
corruption. This UN-led initiative promotes activities that contribute to
sustainable development goals to create a better world.
3. ISO 14000 is defined as a series of international environmental
management standards, guides, and technical reports.
4. Role of UNDP in supporting the CSR Agency: As the key
implementing agency for the UN's MDGs, the UNDP is an ideal partner
to provide advisory in helping the Agency support the private sector to
align their CSR strategy with the specific MDG targets
5. The aim of the GRI Guidelines is to assist reporting organisations and
their stakeholders in articulating and understanding contributions of the
organisation to sustainable development through their reports.
7.10 UNIT END QUESTIONS
1. Explain ISO 14000
2. Write a note on SA 8000
3. What is AA 1000
4. Discus the principles formulated by UN global compact-
5. Write about UNDP in India
6. Give an explanation on global reporting initiative.
7.11 SUGGESTED READINGS
The A to Z of Corporate Social Responsibility, Dirk Matten, Wayne
Visser, Manfred Pohl & Nick Tolhurst.
The Oxford Handbook of Corporate Social Responsibility.
Corporate Social Responsibility: Critical Perspectives on Business and
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 Corporate Social
BLOCK- III Responsibility

IMPLEMENTING CSR, CSR IN THE NOTES

ECOLOGICAL ENVIRONMENT AND

TATA POWER
UNIT- VIII IMPLEMENTING CSR – CSR
IN THE MARKETPLACE –
CSR IN THE WORKPLACE –
CSR IN THE COMMUNITY
Structure
8.1 Implementing CSR
8.2 CSR in Market Place
8.3 CSR in Work Place
8.4 CSR in Community
8.5 Check Your Progress
8.6 Let Us Sum up
8.7 Answer to Check Your Progress
8.8 Unit and Exercise
8.9 Suggested Readings
8.1 IMPLEMENTING CSR
CSR plays an important role in overall growth and development of
economy. In the present study the CSR activities performed by various
companies on sector wise is to be discussed in an elaborated manner. All
the sectors, in the economy, did not perform well in all the periods.
Therefore, evaluating the performance of selected sectors, under different
companies, will be 2 discussed in this study. Through the study, the
selected companies may increase their way of spending of CSR amount by
better utilization of resources to maximize benefits to the society.
India has gone one step further than other countries India’s new
Companies Act 2013 (Companies Act) has introduced several new
provisions which change the face of Indian corporate business “Companies
Act 2013 (Companies Act)” has introduced several new provisions which
change the face of Indian corporate business. One of such new provisions
is Corporate Social Responsibility (CSR). The concept of CSR rests on the
ideology of give and take. Companies take resources in the form of raw
materials, human resources etc. from the society. By performing the task of
CSR activities, the companies are giving something back to the society.
In order to support companies in their efforts to assume responsibility,
international organisation, governments, corporate associations and non-
government organisation have developed standards, codes of conduct and
labels that describe and explain the expected conduct. The OECD
guidelines for multi-national companies, the United Nation Global
Compact, the United Nations Guiding Principles on Business and Human
Rights, ISO 26000 on social responsibility and the Global Reporting
Initiative (GRI, a guideline for sustainability reporting) are widely Self-Instructional Material

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 Corporate Social Their implementation should cover the whole range of effects of corporate
Responsibility activities, including the value-added chain, and consider stakeholders'
requirements. The specific conditions under which SMEs operate and the
NOTES
options open to them must be considered in this respect. Transparency and
a readiness do engage in dialogue are at the core of CSR and contribute to
its successful implementation.
The core perception of business has some social responsibilities has
emerged for the past three hundred years ago from a renowned Scottish
philosopher and economist, Adam Smith, in The Wealth of Nations. He
describes the support for market interactions that are freely participated in
by individuals and organizations, saying that they could serve the needs of
the society. Further, people engage in commerce or 8 Page business out of
selfish (Invisible Hand) reasons, or for their personal benefits, but in one
way or other this would also benefit the society as a whole with positive or
negative externalities.
In India, the term Corporate Social Responsibility (CSR) is widely being
used even though related concepts and terms, such as business
responsibility, sustainable development, philanthropy, sustainability,
corporate citizenship, responsible business, triple bottom line, shared
value, value creation, business ethics, socio-economic responsibility,
bottom of pyramid, stakeholder management, corporate responsibility, and
corporate social performance.
Corporate Social Responsibility in India has witnessed a surge in
community spending over the last three years. The official data reveals that
companies have spent nearly Rs 28,000 crore on social welfare activities.
A closer scrutiny suggests that companies have adopted different
methodologies in planning and implementing CSR interventions. While
most would associate themselves with not-for-profit agencies and social
enterprises in implementing CSR projects, some of them have their own
corporate foundations where they are either directly implementing or
partnering with a local NGO.
There are other corporates (very few Indian ones) where social initiatives
are in alignment with the business and therefore are being implemented by
both business and CSR teams, along with other organisation.
A company’s presence in the society can take many forms including
Corporate Social Responsibility, Corporate Citizenship, Corporate
Philanthropy, Corporate Community Involvement, Global Citizenship etc.
But Corporate Social Responsibility is usually the discretionary business
practices which include contribution of resources and effort to the
community. What needs to be emphasized here is the voluntary nature of
such initiatives and denotes actions which go beyond the mandatory ones.
The key areas where such activities are engaged in are usually in the
sectors of health, safety, education, environment, community development.
The corporates engage in these usually in the form of cash contributions,
grants, social marketing, sponsorships, employee volunteering or private
public partnership, and schemes which may or may not be aligned with the
mainstream business of the company. The trend today is towards increased
reporting and visibility of these actions of corporates and establishment of
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norms and standards to help in the transition from doing good being an
obligation to doing it as a business 66 strategy. In addition to increased
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giving many company websites are also displaying sections of reports on Corporate Social
Responsibility
Corporate Social Responsibility which may be labeled differently. Many of
these provide information on their philanthropic activities, initiatives and NOTES
sustainability measures.
CSR has become an effective tool to work in the line of Sustainable
Development Goals (SDGs) with a strong focus on social performance
indicated in the CSR projects of the organizations. The SDGs, otherwise
known as the Global Goals, are a universal call to action to end poverty,
protect the planet and ensure that all people enjoy peace and prosperity.
Most of the businesses consider community as one of its apex stakeholders
and believes in inclusive growth. This year most of the organizations
continued its CSR initiatives in the realm of Education, Health,
Livelihood, Rural Development and Social Entrepreneurship.
Organization’s diverse projects and operations touch lives of people in
many ways and create value by helping in overall and holistic development
of communities within multiple geographies. Through its various
initiatives, Companies endeavor to play a relevant role by serving
communities and projects that address gaps in basic societal requirements.
Section 135 of the Companies Act 2013 provides the threshold limit for
applicability of the CSR to a Company: (a) net worth of the company to be
Rs 500 crore or more; or (b) turnover of the company to be Rs 1000 crore
or more; or (c) net profit of the company to be Rs 5 crore or more. Further
as per the CSR Rules, the provisions of CSR are not only applicable to
Indian companies, but also applicable to branch and project offices of a
foreign company in India.
Every qualifying company requires spending of at least 2% of its average
net profit (Profit before taxes) for the immediately preceding 3 financial
years on CSR activities in India. Further, the qualifying company will be
required to constitute a committee (CSR Committee) of the Board of
Directors (Board) consisting of 3 or more directors. The CSR Committee
shall formulate and recommend to the Board, a policy which shall indicate
the activities to be undertaken (CSR Policy); recommend the amount of
expenditure to be incurred on the activities referred and monitor the CSR
Policy of the company. The Board shall take into account the
recommendations made by the CSR Committee and approve the CSR
Policy of the company.
8.2 CSR IN MARKER PLACE
Corporate responsibility goes hand in hand with socially responsible
practices. For example, administrators, executives, and shareholders and
stakeholders must practice ethical behaviors and join the community in
promoting responsible marketing efforts. Putting on appearances or green
was, the practice of promoting deceptively environmentally friendly
processes or products indicates to customers that the company is not
committed to social responsibility; such behaviors can ultimately hurt the
brand and the company's success. Consumers often can see through
gimmicks, slogans, or efforts that are not genuine or ineffectual. In fact,
65% of the Cone study respondents say they'll research a company's stand
on an issue.
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Recyclable packaging, promotions that spread awareness of societal issues
and problems, and directing portions of profits toward charitable efforts
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 Corporate Social are examples of social responsibility marketing strategies. For example, a
Responsibility clothing company's marketing team may launch a campaign that
encourages consumers to buy a bundle of socks versus one pair; for every
NOTES
bundle sold, the company donates a bundle of socks to military personnel
overseas or to local homeless shelters. As a result of these donations, the
company brands itself as socially responsible and ethical, which ultimately
attracts customers who are engaged in socially responsible commitments
and who want to support the welfare of the community.
Corporate responsibility goes hand in hand with socially responsible
practices. For example, administrators, executives, and shareholders and
stakeholders must practice ethical behaviors and join the community in
promoting responsible marketing efforts. Putting on appearances
or greenwashing, the practice of promoting deceptively environmentally
friendly processes or products indicates to customers that the company is
not committed to social responsibility; such behaviors can ultimately hurt
the brand and the company's success. Consumers often can see through
gimmicks, slogans, or efforts that are not genuine or ineffectual. In fact,
65% of the Cone study respondents say they'll research a company's stand
on an issue, to see if it's being authentic.
In recent years, the debate on CSR has attracted much interest. Several
companies want to include social objectives into their economic objectives,
and thereby integrate respect for certain values and principles in their
management to contribute to environmental and social progress. Even
though the issue of CSR and its strategy is a subject of recent debate
among the scientific community manager, however, few studies have
attempted to demonstrate the existence of a link between the social and
environmental commitments, and the enterprise's strategy. Our main
concern is to measure the impact of the integration of CSR issues on the
enterprise's strategy. The strategy can be seen in its first gasoline as a long-
term planning act, based on a set of assumptions. It assesses how changes
might develop in the near future, to anticipate and design a series of
actions. The strategy corresponds to a distribution of the organization's
resources over the long term in order to gain competitive advantage.
Several policy options may be available to the enterprise. In this study, we
will limit ourselves to the differentiation strategy which is a “Product”
policy whereby an enterprise distinguishes itself from its competitors by
offering a specific offer.
The shift from charity to strategy can be seen in the recent years. Earlier
the philanthropy of companies was demonstrated by them by giving to as
many social causes as possible or to those causes which the management
believed in rather than those associated with their line of business. These
avenues usually were limited to those which were either most visible or
most trendy. There was usually a tendency to avoid issues which might be
seen as self-serving or controversial. In fact, even today, the majority of
organizations skirt problem areas. It has been seen that corporates pick
initiatives which have a relation to their business goals directly or
indirectly and incidentally reaping the benefits of such involvement
whether it is stated expressly or not. The various forms of such strategic
philanthropy can be seen in employee volunteering, integration of issues in
marketing, corporate communication, community relations, etc.
While it was widely held in previous decades that companies should only
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focus on their bottom lines, the past decade has seen a change in this
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thinking. In fact, 66 percent of online consumers said they would pay more Corporate Social
Responsibility
for products or services from companies that are socially and
environmentally responsible, according to a 2015 Nielsen Survey. That NOTES
same survey also found that consumer-goods’ brands with a commitment
to sustainability outperform those that don’t.
Besides the potential loss of socially conscious consumers, CSR impacts a
business’ ability to attract top talent and affects employees’ job satisfaction
levels and retention rates. The next generation of workers currently
entering the workforce seek out employers with a clear and effective CSR
strategy. Quality talent in 2016 wants to be employed by a transparent
company with the goal of doing good, while also making a
profit. Businesses that don’t prioritize a corporate social responsibility
strategy risk losing top talent to companies that are doing so.
Additionally, businesses that practice CSR have happier and more satisfied
employees. This is because employees feel working for a socially
conscious employer gives them a sense of purpose. Also, businesses
practicing corporate social responsibility tend to invest more in their
employees and work harder to create a workplace that employees enjoy
returning to each day. Given that the current average in the U.S. for
employee tenure is 4.2 years, implementing an expansive and effective
CSR strategy can help employers retain their current employees for longer.
The rise of social media has also impacted the importance of corporate
social responsibility. Today, companies with unethical business practices
are exposed harshly on social media and can have their reputation
damaged greatly in a matter of a few hours. Alternatively, social media
also works as a tool to highlight companies implementing CSR or those
with ethical business practices, which can lead to increased sales, a larger
audience reach, and free positive publicity.
Each corporation defines CSR according to the values of its leaders and
according to its corporate culture. Whether it is the issue of global
warming, the issue of transparency, and the issue of retrenchments or with
the client confidentiality issue, companies define CSR in very different
ways, introducing strategic perspective and action. Some corporations
exhibit transparency by making public the compensation packages of the
top team. Others have a different concept of CSR and need for
transparency. Corporations demonstrate their CSR in the way they manage
priorities among stakeholders, they handle conflicts of interest or the
importance they give to the local community. In consulting and financial
services, the way tightness of confidentiality and integrity is managed,
illustrates how the concept of responsibility toward stakeholders is
internalized.
In recent years, increasing attention has been given to the concept of
Corporate Social Responsibility (CSR), defined in terms of the
responsiveness of businesses to stakeholders’ legal, ethical, social and
environmental expectations. CSR has generally been a pragmatic response
to consumer and civil society pressures. These have mainly been focused
on trans-national corporations (TNCs) serving markets in the North, but
often operating in countries in the South. Accusations by governments and
civil society of environmental pollution, human rights abuses and
exploitation of labor in supply chains, have pressured companies to
become more environmentally and socially responsible. However, the
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 Corporate Social being more responsible and is beginning to align products and business
Responsibility relationships, in particular through their supply chains, accordingly.
NOTES Ensuring that CSR supports, and does not undermine, the development of
small and medium-sized enterprises (SMEs) in developing countries is
crucial to meeting the goal of improving the impact of business on society.
SMEs make up more than 90% of all businesses worldwide and are
essential to the ‘path out of poverty’ for many developing countries. If
CSR demands are protectionist, culturally inappropriate or unreasonably
bureaucratic the net effect will be to undermine livelihoods in the South.
On the other hand, the SME sector must not be allowed to become a
loophole in which polluting, exploitative industries flourish.
Support for SME development can be an important part of the CSR
commitment of large companies in the context of responsible supply chain
management, and improvements in social and environmental impacts can
go hand-in-hand with better quality and management.
In today’s market, the competition is very high and business success is
dependent upon its relationship with the customers; without customers
companies cannot survive. Therefore, it is important to build a strong,
positive image and reputation which can lead to higher customer value. For
long term success, it is essential for every company to have loyal
customers, which do not shift to the competition even if this is offering
better prices. Nowadays, companies are facing increasing pressure to
maintain profitability and, at the same time, to behave in socially
responsible ways. The shift of businesses’ approach from profit orientation
towards ethical, social and environmental issues is resulting from the shift
of consumers’ attitudes towards these issues.
Marketing is vital to the success of a business organisation. Corporate
organizations, be it service-oriented or product-oriented, must design
appropriate strategies to market their products and services. Successful
marketing results in stronger products, happier and loyal customers and
bigger profit. There are certain skills demanded of marketing professionals
in a dynamic marketing environment. Such skills are in areas such as
selling and sales management, collection of payments, advertising
(creative ways with less expenditure), sales promotion (good
communication skill), publicity, public relations, exhibitions and other
event management, packaging and branding, corporate identity and image,
marketing research and encouragement. Incorporating best practices of
CSR in marketing strategies is vital to the success of a business
organization and its existence in an environment. The relationship between
marketing and the corporate social responsibility has been studied for
decades with outcomes being influenced by the prevailing economic
paradigm at a specific point in time (Moir 2001). The influence of
marketing activities in our business environment and its duties towards
society as it relates to CSR is widely acknowledged.
When companies take it upon themselves to integrate practices into their
business model that are beneficial to social, economic, or environmental
factors. These practices place value behind the products or services that
they offer while building credibility and loyalty with consumers.
Furthermore, many businesses take CSR one step further and encourage
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From a marketing perspective, businesses can also benefit financially from Corporate Social
Responsibility
adopting. Consumers are, more often than not, actually willing to pay more
a good or service if the company’s values align with their own. If they NOTES
know that they are helping to make a difference for a cause that they care
about, whether locally or globally, the price matters less than the moral
justification.
8.3 CSR IN WORK PLACE
From going green to volunteering, or taking part in charity initiatives, most
organisation have touched on corporate social responsibility (CSR) activity
at one time or another. However, a common misperception about such
activity exists. Many HR professionals perceive CSR as an optional ‘add
on’ to their day to day job, undervaluing its significant impact on
stakeholders, wider society and the organisation in its entirety.
Attracting fresh talent
As the talent pool continues to become more diverse, the modern
workplace is exposed to an array of employee needs, values and desires.
Many prospective staff are yearning for personal fulfilment from the
ability to make a positive stamp on the world around them.
HR professionals must consider how they can align the organization’s CSR
strategies with the core values of the prospective staff they wish to attract.
This will become even more important in years to come, as millennials,
who have proven to be more willing to work at an organisation that
embraces a responsible operating model and culture, will constitute half of
the workforce in fifteen years’ time.
Employee retention
In addition to considering the requirements of prospective staff, successful
organizations will look to involve existing employees in the CSR decision
making process. By doing so, employees will feel personally empowered
by ‘giving back’ and working together to make a positive difference to
society.
Recently, we have seen organizations such as The Walt Disney Company
introduce strategies that focus on staff involvement. Their ‘green standard’
was created with the aim of engaging and encouraging employees to
reduce their environmental footprint both inside and outside of the
workplace. With more than 60,000 staff contributing to the activity, the
positive outcome was extensive.
Here at ADP UK, we have introduced similar strategies that encourage
employees to come together and contribute to our local community. Our
employees can put forward different CSR initiatives and join a dedicated
committee, enabling them to feel part of an organisation that values ‘giving
back’ as a core part of the company mission. With studies showing that
over half of workers say they desire a job where they can make an impact,
involving your employees in CSR can only positively affect their decision
to stay on at the organisation.
Sustainable business

Being a ‘good corporate citizen’ means more than purely hitting financial
targets and complying with regulation. Respecting and making a positive
impact on the wider community is key. From providing jobs and ensuring Self-Instructional Material
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 Corporate Social number of ways organizations can strive towards a more sustainable
Responsibility business model.
NOTES But how can business leaders and HR professionals mirror such practices
in their work? For example, IBM’s ‘innovation jam’, which encourages
individuals across the globe to discover new solutions to long-standing
sustainability problems, has been a hugely successful initiative. This form
of collaborative innovation can also be used by SMEs, as it utilizes
employees’ knowledge to discover ways to resolve sustainability issues.
Engaging employees in ways to increase sustainability will not only
provide a wealth of ideas that could be particularly effective to the
organisation but will also increase employees’ knowledge about
sustainable practice. Incorporating this into their working life, they will
naturally contribute to a business model that positively impacts the society,
and encourages business success, now and into the future.
Next-generation organizations will embrace their ‘higher purpose’ as a
natural part of the business model, and corporate responsibility will no
longer be seen as a separate concept. Existing and potential employee
values are rapidly changing, along with business models and the need to
strive for sustainability. In order to appease existing and potential staff, as
well as contribute to greater business success, HR professionals should
look into incorporating a more holistic view of their strategies and reap in
the many benefits CSR provides both in the business and the wider
community.
Better company image and customer loyalty – Corporate social
responsibility schemes not only increase a brand’s recognition, they
moreover contribute to a better public image. It makes sense that
consumers want to shop with companies that care about causes and
have a sense of social responsibility. Companies that appreciate and
respect consumers are favored, encouraging customer loyalty.
Consumers want to be appreciated and support businesses that are
ethical.
Identifying areas for improvement – CSR efforts often lead to
businesses reviewing and evaluating their current processes, with
many leading to the discovery of ways that the business could be
improved. For example, in 2010 PepsiCo found energy saving
opportunities worth $60m as part of an energy assessment programme
it carried out.
Increased employee engagement and satisfaction – Naturally,
employees want to work for a company involved in positive initiatives
and with a strong public image. CSR schemes create a sense of
community and bonding amongst employees, engaging them and
encouraging positive relations. When stakeholders like employees,
customers and even suppliers can have a strong input to areas of
impact, CSR becomes a truly powerful influence.
Attracts talent and investors – Companies that demonstrate a
dedication to improving communities through CSR programmes are
much more likely to attract valuable and engaged employees.
Besides encouraging companies to re-evaluate their business plans to
become more ethical and conscious of their impact on society, corporate
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associated with CSR might see inhibiting initially, many of them reap Corporate Social
Responsibility
valuable long-term benefits.
NOTES
Though some MNCs and foreign companies indicate the annual expense
thereon, Indian companies usually are reticent on sharing such information
on the public domain. A means of understanding the company's
seriousness of intent is in verifying whether the information provided is
aligned to the company’s vision and mission and whether there is a
strategy for implementing it. The shift from charity to strategy can be seen
in the recent years. Earlier the philanthropy of companies was
demonstrated by them by giving to as many social causes as possible or to
those causes which the management believed in rather than those
associated with their line of business. These avenues usually were limited
to those which were either most visible or most trendy. There was usually
a tendency to avoid issues which might be seen as self- serving or
controversial.
Corporations can leverage corporate volunteerism by encouraging their
employees to volunteer. Many companies allocate hours to go toward
volunteering during the workday, and many more encourage involvement
by offering volunteer grants to the nonprofits where their employees
volunteer.
Social Responsibility is a concept that implies that any individual or
organization has an obligation towards society at large, to perform so as to
maintain a balance between economy and ecosystems.
Today, any corporate knows already the importance of investing in such
issues that even though it has no direct impact on profit margins, they will
demonstrate to customers and the world that they simply care.
Such practices can have greater impact on building a company’s
trustworthiness in any kind of business it is in. Customers are looking for
more than quality in products or services. A study by cone
communications has shown that 9 out of 10 customers expect companies to
do more than make profit — they should also operate responsibly to
address social and environmental issues. The same percentage would
boycott a company if they learned of irresponsible or deceptive business
practices.
While corporate philanthropy (generosity motivated purely to make the
company look good or to create the right spin) for its own sake has its
place, a well-defined and effective CSR campaign identifies and addresses
issues that impact on both the company and the wider community.
Developing a strategic approach to employing people with disability, under
the banner of Corporate Social Responsibility, makes good business sense.
People with disability have valuable skills to offer organisation and show
commitment and loyalty that is unsurpassed. The employment of people
with disability has the power to improve staff morale, as well as improve
customer loyalty and enhance the reputation of an organisation.
Almost four million Australians have a disability, and people with
disability represent 16.6% of Australia’s working age population. People
with disability are consumers, investors and decision makers. Employing
people with disability ensures a diverse workforce, which reflects the
diversity of customers and the community, in turn generating a more Self-Instructional Material

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 Corporate Social organisation to be better equipped to understand their customers and meet
Responsibility their needs.
NOTES The establishment of a CSR strategy (sometimes referred to as a
sustainability strategy) is a crucial component of a company’s
competiveness and something that should be led by the firm itself. This
means having policies and procedures in place which integrate social,
environmental, ethical, human rights or consumer concerns into business
operations and core strategy – all in close collaboration with stakeholders.
For companies, the overall aim is to achieve a positive impact on society as
a whole while maximizing the creation of shared value for the owners of
the business, its employees, shareholders and stakeholders. Not so long
ago, the European Commission defined CSR as “the responsibility of
enterprises for their impacts on society”, a succinct and distinct summation
for sure.
A CSR program that is built on the back of a shared experience—wherein
there has been the opportunity to engage with a charity beyond a monetary
transaction—is likely to return business benefits such as improved morale,
increased staff retention, status as an employer of choice, attracting new
business, and differentiation from competitors. These benefits are seldom
achieved through the donation of money and money alone.
Being a good corporate citizen means that companies have to be internally
well governed and externally responsible. In other words, CSR and
corporate governance are two sides of the same coin. The implication here
is that unless corporates practice good governance they are unlikely to
have a social conscience and hence the first step towards CSR is through
practicing the art of effective corporate governance.
Socially responsible companies tend to attract employees who are eager to
make a difference in the world—in addition to simply collecting a
paycheck. With large companies, there is strength in numbers, where
collective employee efforts can achieve substantial results, which increases
workplace morale and boosts productivity.
Community-oriented companies often enjoy a leg up on their competition,
as well, thanks to superior brand imaging. For example, Tesla CEO Elon
Musk has successfully attracted environmentally-minded consumers, with
his line of cutting-edge electric-powered cars and green
automotive products.
Throughout the last few years, there have been greater demands for
companies to increase employee engagement by reinventing corporate
social responsibility strategies (CSR). One study found C-Suite executives
leading companies to increase their CSR spending by 75 percent compared
to five years ago, indicating companies are no longer afraid to take a stance
and support initiatives they are passionate about. Unsurprisingly, this
impacts people’s choice of employment. Another CSR study found 78
percent of respondents wanting to work at companies that address
important issues and 87 percent of people are more willing to purchase
from companies that advocate for issues they also care about. Knowing
this, companies should use CSR initiatives in ways that make employees
feel connected and engaged and further improve company culture in the
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This kind of socially responsible program is a win-win for every party Corporate Social
Responsibility
involved. Employees of corporations are seen volunteering and donating
their time to important causes in the community, and nonprofits are NOTES
receiving free time and volunteer work, which is essential for the success
of so many nonprofits.
Part of being socially responsible for a corporation means participating in
ethical labor practices. These practices can include:
Offering more competitive salaries to employees
Offering more competitive compensation packages
Providing generous parental leave
Offering tuition reimbursement
Following ethical labor practices reflects well on companies and causes
more individuals to want to work with them.
8.4 CSR IN THE COMMUNITY
First of all, community is generally defined as a group of people sharing a
common purpose, who are interdependent for the fulfillment of certain
needs, who live in close proximity and interact on a regular basis. There
are shared expectations for all members of the group and responsibility
taken from those expectations. The group is respectful and considerate of
the individuality of other persons within the community. In a community
there is a sense of community which is defined as the feelings of
cooperation, of commitment to the group welfare, of willingness to
communicate openly, and of responsibility to and for others as well as to
one’s self. Most important there exists community leaders who are
responsible for the success of any community event, depending on the
needs of the community, and the individual’s own feelings. The
community leaders are individuals who strive to influence others to take
responsibility for their actions, their achievements, and the community
welfare.
The Social responsibilities of corporate companies are known as Corporate
Social Responsibility. It is a duty of the corporate body to protect the
interest of the society as well as the environment. We know the main
motive of business is to earn the money, corporations should take initiative
for the welfare of the society and should perform their activities within the
framework of environmental and community norms.
According to Lord Holmes and Richard Watts “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.”
Corporate companies are part of society and their business activities affect
directly or indirectly to the society. So, the companies should provide
goods and services legally, efficiently and profitably to the society. It is
also the newest management strategies where companies try to create a
positive impact on society while doing business.
Most of the consumers expect from companies to not only make a profit
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but also operate responsibly to address social and environmental issues
according to a study of Cone Communications.
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 Corporate Social Corporates also practice social responsibility by donating to national and
Responsibility local charities which can be beneficial to the society. They have lots of
resources that can benefit the local community. Attending volunteer events
NOTES
says a lot about a company’s sincerity and social responsibility. By doing
good deeds without expecting anything in return, companies are able to
express any concern for their issues and support for certain organization.
The issue of corporate social responsibility (CSR) has been debated since
the 1950s. Latest analyses by Secchi (2007) and Lee (2008) reported that
the definition of CSR has been changing in meaning and practice. The
classical view of CSR was narrowly limited to philanthropy and then
shifted to the emphasis on business-society relations particularly referring
to the contribution that a corporation or firm provided for solving social
problems. In the early twentieth century, social performance was tied up
with market performance. The pioneer of this view, Oliver Sheldon (1923,
cited in Bichta, 2003), however, encouraged management to take the
initiative in raising both ethical standards and justice in society through the
ethic of economizing, i.e. economize the use of resources under the name
of efficient resource mobilization and usage. By doing so, business creates
wealth in society and provides better standards of living.
The three theories of CSR namely utilitarian, managerial and relational in
terms of their meaning and practical emphases. The role of CSR in
community development based on an international perspective due to the
heterogeneity of CSR in its understanding and practices in various
countries of the world. The organization of the article is as follows: First,
theories of CSR are analyzed in order to look at their emphases of
meaning, perspective, and approaches. Second, the roles of CSR are
highlighted specifically in community development because the very logic
of CSR is towards seeing its impact in community socially,
environmentally and economically. Third, competencies required by CSR
managers are discussed in order to have a better understanding of the
practical aspects of CSR. Finally, conclusions and implications for future
research are drawn.
Community development (CD) refers to initiatives undertaken by
community with partnership with external organizations or corporation to
empower individuals and groups of people by providing these groups with
the skills they need to effect change in their own communities. These skills
are often concentrated around making use of local resources and building
political power through the formation of large social groups working for a
common agenda. Community developers must understand both how to
work with individuals and how to affect communities ‘positions within the
context of larger social institutions.
CD is the combined processes, programs, strategies, and activities that
make a community sustainable as compared to economic development
which is the marketing of its potential for growth followed by local efforts
to act on opportunities. The entire set of approaches to community
development practice may be considered a specialized form addressing,
coordinating and building the social infrastructure at a location. CD may
be defined as a process of challenging the undesirable and unacceptable
disparity of conditions and infrastructure that negatively affect the quality
of life in a place where people live and work. It functions best as process in
Self-Instructional Material locations where all strata of society and citizenry are engaged with sense of
community solidarity.
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The widely used meaning of CD is the one given by the United Nations Corporate Social
Responsibility
(United Nations, 1971) in which CD is an organized effort of individuals
in a community conducted in such a way to help solve community NOTES
problems with a minimum help from external organizations. External
organizations include government and non-government organizations, and
corporations of various types and sizes such as small and medium
enterprises (SMEs) and multinational corporations (MNCs). The
implication of UN’s definition of CD is, therefore, emphasizing creativity
and self-reliance in the community for short- and long-term goals, but not
to defy the CSR roles of the various types of business firms. In relation to
the people, the definition of CD is essentially both an educational and
organizational process. Another term closely related to CD is community
work, which is about the active involvement of people in the issues that
affect their lives and focuses on the relation between individuals and
groups and the institutions which shape their everyday experience.
It is a developmental process that is both a collective and individual
experience. It is based on a commitment to equal partnership between all
those involved to enable a sharing of skills, awareness, knowledge and
experience in order to bring about change. It takes place in both
neighborhoods and communities of interest, whenever people come
together to identify what is relevant to them and act on issues of common
concern. The key purpose is to work with communities experiencing
disadvantage, to enable them to collectively identify needs and rights,
clarify objectives and take action to meet these within a democratic
framework which respects the needs and rights of others. Community work
recognizes the need to celebrate diversity and appreciate differences
among ethnic and social groups in the community.
A CSR program helps in data gathering for other public organization
function. For instance, in the United States, Intel and IBM (examples of
mega ICT firms) assisted under-staffed police departments with
information gathering and processing by installing cameras with video
processing abilities in areas where there are high rates of crimes. Intel has
also conducted initiatives to educate local communities on how they can
use technology to prevent crime or at least to use it to detect who
committed the crime. This is an example of technology companies
implement CSR initiatives that both benefit community and support
business objectives.
Closer ties between corporations and community. Through CSR the
existence of corporations in the social system is felt beyond a perception
that corporation is a place just to get employment and producers of goods
and services. By doing so, corporations and community would stay in
peace and harmony. This becomes a social capital that is essential in
community development.
Helping to get talents. Organizations with a reputation for CSR can take
advantage of their status and strengthen their appeal as an attractive
employer by making their commitment part of their value proposition for
potential candidates. It is also found that when employees view their
organization's commitment to socially responsible behavior more
favorably, they also tend to have more positive attitudes in other areas that
correlate with better performance. They believe their organizations
recognize and reward great customer service, act quickly to address and Self-Instructional Material

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 Corporate Social resolve customer concerns, and are led by people in senior management
Responsibility who act in the best interest of customers.
NOTES The success of CSR is determined by both internal and external factors.
Internal factors are economic considerations, culture of the firm including
the CEO and employees, and ethical influences; while external factors are
compliance with legal requirements and technological influences as well as
national culture. Skills possessed by CSR managers are among the internal
factors determining the success of CSR practices especially in helping
community. Because CSR profession is so new, transferable skills and
knowledge from other related specialization such as environmental
management, business ethics, community development, and human
resource development are valuable.
CSR organizations in many developing countries including Malaysia
consist of local and international firms. As such, this analysis suggests that
comparative studies should be conducted on the differences between
strategies adopted by the two firms in terms of emphases and orientations
in CSR, the specific roles of CSR programs to community and society at
large, and specific business, people as well as technical skills that the CSR
managers should possess. It is also suggested that studies on how CSR
firms strive during the present economic crisis are worthwhile to embark
on; however, they should be aware of the fact that moving towards
achieving firms’ economic goals should be without jeopardizing the social
goals.
Below diagram indicates some of the benefits of CSR at the community
level.

Social
activation

Increased
Education
Health

Better
Economic
employment
Development
oppurtunities

Check Your Progress

Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. What is the purpose of implementing CSR?
2. What do you mean by implementation of CSR in work place refer too?
3. How do the employees benefit through the CSR initiatives?
Self-Instructional Material 4. How effective is CSR at the community level?

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 Corporate Social
8.6 LET US SUM UP
Responsibility
In order to support companies in their efforts to assume responsibility, NOTES
international organisation, governments, corporate associations and non-
government organisation have developed standards, codes of conduct and
labels that describe and explain the expected conduct. The OECD
guidelines for multi-national companies, the United Nation Global
Compact, the United Nations Guiding Principles on Business and Human
Rights, ISO 26000 on social responsibility and the Global Reporting
Initiative (GRI, a guideline for sustainability reporting) are widely
recognized tools and guidelines. The Implementation of the CSR is an
initiative that each and every corporate companies should contribute at
various levels for the social interest and for the welfare of the people.

8.7 ANSWER TO CHECK YOUR PROGRESS

1. The purpose of corporate social responsibility is to give back to the

community, take part in philanthropic causes, and provide positive
social value. Businesses are increasingly turning to CSR to make a
difference and build a positive brand around their company.
2. The role of CSR at the work place implements on the social welfare
benefits and in bringing out a safe and a happy work place for its
employees in bringing up on the understanding.
3. Employees feel a strong sense of purpose when the work they are
doing is impactful, which suggests that CSR programs help
engage employees and reduce the feeling of stress and fatigue that
comes with meaningless work. When employees are engaged in the
work they are doing.
4. It helps in community in a part wise and a slow development but
enriching the livelihood aspects of many individuals and groups in
terms of health, education, welfare etc.
8.8 UNIT END QUESTIONS
1. Discuss the roles of Corporate companies in implementing CSR?
2. Explain the policies and the procedures to be adopted for the
implementation of CSR at various levels?
3. Discuss the successful impacts of various CSR projects at the
Community level?
4. What are benefits of CSR to the community?
8.9 SUGGESTED READINGS
Corporate Social Responsibility in India, Nayan Mitra and Rene
Schmidpeter by Springer International Publishing.
https://www.pdcnet.org/iabsproc/content/iabsproc_2014_0025_0082_0090
(Michael Hopkins, 2017) CSR and Sustainability from the Margins to the
Main stream: A Text book.
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The Triple Bottom Line Andrew Savitz,2006 published by Cookbook.

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 Corporate Social https://www.mondaq.com/india/directors-and-officers/757220/india39s-
Responsibility corporate-social-responsibility-norms--what39s-next
NOTES https://www.thegivingmachine.co.uk/corporate-social-responsibility-
simple-guide/

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 Corporate Social
UNIT- IX CSR IN THE ECOLOGICAL Responsibility

ENVIRONMENT – CASE NOTES

STUDIES: LIFEBUOY SOAPS

“SWASTHYA CHETNA, IT’S
E-CHOUPAL VENTURE, TITAN
INDUSTRIES LIMITED
Structure
9.1 CSR in the Ecological Environment
9.2 Case Studies
9.2.1 Lifebuoy Soaps “Swasthya Chetna”
9.2.2 E-Choupal Venture by ITC
9.2.3 Titan Industries Limited
9.2.4 Empowering Women- MEADOW Initiative
9.3 Let Us Sum up
9.4 Answer to Check Your Progress
9.5 Unit and Exercise
9.6 Suggested Readings
9.1 CSR IN THE ECOLOGICAL ENVIRONMENT
The Environmental responsibility means understanding the unity of
economical, ecological and social spaces by the state subjects, conscious
performing their duties in front of consumers, society and the state. In the
phenomenon of ecological responsibility dominates the moral and ethical
component which must be confirmed by the legal responsibility. Corporate
responsibility is a voluntary work of a private or public sector, aimed at
maintaining high standards of social work, standards of personnel,
minimizing the harmful effect on the environment, creating trusting
relationships between partners and suppliers, society and the state,
improving production efficiency and characteristics of profitability in a
long-run period. The main elements of ecologically responsible enterprise
are: implementation of corporate ecological policy, ecological audit,
involving employees in ecological initiatives, ecological certification,
production of high-quality ecologically friendly goods, constant ecological
monitoring of its work, prefacing industrial innovations.
Ecological environment; It is a branch of science that examines living
things' interests with the environment separately and in full, instead of
examining them at the same time. Ecology, which examines the positive
and negative effects of living things on the environment they live in, aims
to minimize environmental problems and sustain the sustainability of life.
In order to invite the creatures to be more sensitive to the ecological
environment and to raise awareness, there are many studies that recall
nature and cleanliness such as green environment, green world and green
label. At the same time, many scientists and especially European Union
countries There is a lot of work on this issue. Social responsibility should
not come to harm the environment in which you live.
This is a visible fact that cannot be denied. Both for your own quality of
life and for the continuity of the next generations, everyone should show
the necessary sensitivity. A study at the University of North Carolina in the Self-Instructional Material
United States, found in some shampoos “Dietanolamine-DEA mad

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 Corporate Social substance, the brain cells killed cells in the Sea of Marmara in 1978 126
Responsibility varieties today, this number has decreased to 25. Until 2050, it is estimated
that 98% of marine organisms will disappear.
NOTES
The balance is rapidly deteriorating. The effects are seen in all living
things. The greatest impact of the deterioration of the natural balance
depends on many reasons such as chemicals, rapid energy consumption,
destruction of natural resources, and the existence of irreversible wastes.
Nature has an order in itself. For example, it is known that living creatures
survive on condition that they eat one another.
From the perspective of eco-certificated agricultural production there are
three determining criteria of the corporate ecological and social
responsibility ecological, energy and raw material and social.
There is also one concept that has a more global reach: it is called
industrial ecology. Based on a more systemic approach, industrial ecology
draws inspiration from the way in which natural ecosystems function.
It recreates, on the scale of an industrial system, an organization that seeks
optimal management of resources, as well as a high rate of recycling of
both materials and energy. Industrial ecology is a new practice in
environmental management. It tends to integrate the environment into
corporate strategy thanks to performance data and life-cycle assessments,
among other things. Industrial ecology seeks optimization at the level of
groupings of companies.
The strategies employed include the valorization and/or exchange of
industrial residues (residues from one company may represent raw
materials for another); shared services or perhaps collective management
of waste; recycling or rainwater, shared equipment or resources.
The ecological responsibility of the commercial companies implies the
integration of the environment protection requirements into the
commercial activity. It is considered that a commercial company
performing their activities in the light of the sustainable development must
have a long-term approach and perspective, without neglecting the
opportunities occurring at different times. Real value can be created today,
which will sustainably support the development of the business tomorrow.
The European Union, in an attempt to offer a framework for companies
wishing to invest in sustainable development, published in 2001 a Green
Paper on Corporate Social Responsibility defining CSR as:
“The voluntary integration of companies’ social and ecological concerns
into their business activities and their relationships with their
stakeholders. Being socially responsible means not only fully satisfying the
applicable legal obligations but also going beyond and investing ‘more’ in
human capital, the environment, and stakeholder relations.”
The International Organization for Standardization (ISO) is an
international standard-setting body that also addressed the definition of
CSR through its ISO 2600 Standards on CSR. In these guidelines, ISO
defines CSR as:
“The responsibility of an organization for the impacts of its decisions and
activities on society and the environment, resulting in ethical behavior and
transparency which contributes to sustainable development, including the
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stakeholders; complies with current laws and is consistent with Corporate Social
Responsibility
international standards of behavior; and is integrated throughout the
organization and implemented in its relations.” NOTES

CSR is definitely based on a sustainability mindset. Yet, it is especially

based on what companies can do to help reach a sustainable
development path. However, there are other circumstances under which we
can act in a sustainable way – from the way people use technology to the
food they eat, the transportation means they use or the way they commute.
The clothes people buy, how they organize their houses and their
consumption is also related to sustainable and responsible behaviors.
The idea that companies must do CSR and play an active role in the
sustainable development fight has its roots in the work of some American
managers in the 1950s. What was their idea? They thought that if
companies no longer focused only on their profits but also on the impact
they have on society and the environment, they’d have other kinds of
benefits.
For example, if a company pays its employees better, it may spend more
on paying for salaries but on the other hand its workers purchasing power
increases and so do the chances that they buy the company’s products. As
well, if a company better manages its environmental impacts, it will save
money in the short term by avoiding fines and in the long term by
bypassing the necessity to manage natural disasters.
In 1953, Howard Bowen published a book entitled “The Social
Responsibility of the Businessman” in which he explains why companies
should be interested in being more socially and environmentally
accountable and gave the first “recognized” definition of CSR.
Moreover, with the development of environmental concerns in addition to
economic and social issues in the second half of the 20th century, corporate
(social) responsibility became a growing issue. More and more consumers
started becoming critical of companies and wanted them to be more
respectful of the laws, the environment, and more responsible in general.
In the 1990s and 2000s, governments in several countries around the world
started putting in place regulations that created the foundations for modern
CSR. In France, NRE laws were the first to force companies to
communicate their performance in terms of sustainable development.
These laws were then followed by various regulations such as the Grenelle
Laws or the Laws of Vigilance.
Afterward, companies started becoming aware of the need of starting to
invest in CSR so that they didn’t stay behind their competitors. At this
point, CSR started to be seen and used as a tool for management,
communication, and business development. CSR became also essential in
improving corporate image among consumers, enhancing internal
communication and productivity and was a way of reducing costs by
turning organizations more efficient when it comes to managing energy
and resources.
9.2 CASE STUDIES
9.2.1 Lifebuoy Soaps “Swathya Chetna”
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Hindustan Unilever limited is an Indian Consumer brand company which
is based in Mumbai, Maharashtra. Earlier Hindustan unilever was known
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 Corporate Social as Hindustan lever limited. The company changed its name in the year
Responsibility 2007.Present Chairman Harish Manwani.
NOTES The Company started producing the sunlight soap in the year 1888, in the
year 1895 the lifebuoy soap was launched, and the Lever brothers appoints
agents in Mumbai, Chennai, Kolkata and Chennai. In the year 1930 the
Unilever was formed and Margarine Unie.
In the year 2001 with the goals of improving hygiene, fighting disease and
generating rural incomes for small communities, Project shakti is launched
as a pilot in Andhra Pradesh. In the year 2002 Yashodadham a village was
reconstructed in the kutch district of Gujarat was dedicated to 1100
residents who lost their jobs due to a devastating earthquake.
In the year 2005 a managing committee was formed, and their
organizational structure was also simplified and then in the year 2007 the
name was formally changed to Hindustan unilever limited. As a part of
CSR, HUL has initiatives like project Shakti, plastic recycling, women
empowerment etc.….
Swasthya Chetna which means ‘Health awakening, is a multi-phased
activity that works towards the effective hand washing behavior change in
rural communities. The main message of the campaign is “Visibly clean is
not really clean”.
HUL works to create a better future every day and helps people feel
good, look good and get more out of life with brands and services that
are good for them and good for others. With over 35 brands spanning
20 distinct categories such as soaps, detergents, shampoos, skin
care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice
cream, and water purifiers, the Company is a part of the everyday life of
millions of consumers across India. Its portfolio includes leading
household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and
Pureit.
“Lifebuoy, an undisputed market leader for 117 years, has a compelling
vision “to make 5 billion people across the world, feel safe and secure by
meeting their personal care hygiene & health needs”.
Lifebuoy has always been marketed as ‘a tough cleaning soap for a
tough man.’ (Of course, the 2002 re-launch targeted Lifebuoy as a soap
that brought good health to the entire family). Lifebuoy has been seen as
a value for-money product, a soap that is long-lasting. In a very smart TV
ad campaign, children are shown cleaning a street. The message put across
is that since these children are secure from ailments that are caused by a
lack of proper sanitation and hygiene, thanks to the fact that they use
Lifebuoy, they are in a position to ensure cleanliness and hygiene for the
entire community. Thus, Lifebuoy not only ensures good health and
cleanliness for individuals, but healthy and productive communities
as well.
The ‘Lifebuoy Swasthya Chetana’ programme uses a ‘direct consumer
contact methodology and touches the lives of 70 million people in 18,000
villages. A unique feature of this campaign is that it utilizes multiple
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nature. Gushes the HLL spokesman, “This programme aims to Corporate Social
Responsibility
educate people about the benefits of hand wash with soap, and how hand
wash can help kill invisible, disease causing germs. It is thus a marketing NOTES
programme with a strong social cause of improving the health and hygiene
of rural India.
Lifebuoy's “Swasthya Chetna” (LSC) was a five-year health and hygiene
education program initiated by Hindustan Lever Limited (HLL), the Indian
arm of the fast-moving consumer goods (FMCG) major, Unilever. The
program was formally launched in 2002, in eight states across India.
It has also planned its strategy like even in some of the smallest shops in
the villages across India the customers must find its product and also
appointed 6000 sub-stockists. As a result, the distribution network directly
covers about 50,000 villages and reaching about 250 million consumers.
By the Swasthya Chetna project company has already covered greater
percentage of villages and is being progressively extended.
The objective of this program was to educate around 200 million people in
rural and urban areas about the importance of adopting good 'health and
hygiene ‘practices. The program spread awareness about germs and their
adverse effects on health, and how proper 'health and hygiene ‘practices,
such as bathing and washing hands with soap could prevent diseases like
diarrhea.
According to HLL, LSC was not a philanthropic activity, but a marketing
program with a social benefit. HLL sought to grow the Lifebuoy brand in
India by attracting those consumers who never used soap. In the process,
the company sought to bring about a behavioral change by convincing
people to use soaps more frequently, thus creating more users for its brand.
This program was also seen as a successful case for public-private
partnership.
The local interventions of the Life buoy it has also distributed soaps in the
Gurudwaras in Punjab, engaging over 35,000 people with lifebuoy health
and hygiene programme as a CSR Initiative.
Some of the Major CSR of HUL are as follows:
(1) Greening Barrens (Water Conservation & Harvesting): It has 2 main
objectives: (a) To reduce water consumption in its own operations and
generate sub-soil water tables at its own sites through the principles of
5R—Reduce, Reuse, Recycle, Recover & Renew. (b) Help adjacent
villages to implement appropriate models of watershed development.
(2) Shakti—Changing Lives in Rural India: Shakti is HUL’s rural
initiative, which targets small villages with population of less than 2000. It
seeks to empower under privileged rural women by providing income-
generating opportunities, health & hygiene education through Shakti Vani
program and creating access to relevant information through the Shakti
Community Portal.
(3) Health & Hygiene Education: Lifebuoy Swastya Chetna is a rural
health and hygiene initiative, started in 2002, and was initiated in media
dark villages in UP, MP. Bihar, WB, Maharashtra and Orissa States for
spreading awareness about washing hands with Lifebuoy soap.
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 Corporate Social (4) Economic Empowerment of Women: The Fair & Lovely Foundation is
Responsibility HUL’s initiative which aims at economic empowerment of women across
India. It aims to achieve this through providing information, resources,
NOTES
inputs and support in the areas of education, career and enterprise.
(5) Special Education & Rehabilitation: Under the Happy Home initiative,
HUL supports special education and rehabilitation of children with
challenges. (a) Asha Daan: Initiated in 1976, HUL supported Mother
Teresa and Missionaries in Charity to set up a home in Mumbai for
abandoned, challenged children and the destitutes. (b) Ankur: In 1993,
HUL’s Doom Dooma Plantation Division set up Ankur for special
education of challenged children aged between 5 and 15 years. Ankur
provides educational, vocational and recreational activities to over 35
children with range of challenges like hearing or sight impairment, polio,
cerebral palsy and several learning difficulties. (c) Kappagam: Encouraged
by Ankur’s success, Kappagam (Shelter), the second center for special
education of challenged children, was set up in 1998 on HUL Plantations
in South India. It has 17 children. The focus is same as that of Ankur.
(d) Anbagam: This is another day care center (Center of Love), which was
started in 2003 in south India plantations. It takes care of 11 children.
Besides medical care and meals, they too are being taught skills such that
they can become self-reliant and pursue elementary studies.
SWOT Analysis of Hindustan unilever
STRENGHTHS
Strong Brand Portfolio
Strong Distribution Network
Over 16 million outlets all over the world
700 million Customer Base
Strong R&D of the company
Highly Skilled Human Resource
First soap to use carbolic acid, which gave it a red color and strong,
medicinal scent
Wide portfolio for the Lifebuoy brand ranging which includes Soap, Hand
Sanitizer and Hand Wash
High consumer awareness for the brand of Lifebuoy
Most popular soap brand specially in the rural market
Excellent brand visibility and extensive distribution
WEAKNESS
Strong Competition
Changing consumption Pattern
High Advertising Costs
Lower market penetration in urban areas as compared to rural areas
Initially positioned as a masculine soap, which was eventually turned as a
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Not been perceived as a beauty soap, and is mainly used just for hand Corporate Social
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washing
NOTES
OPPORTUNITIES
Large domestic market in India-over a billion population
More potential in rural markets
Changing Lifestyles & Rising income levels, i.e. increasing per capital
income of consumers
The Lifebuoy ‘Swasthya Chetana programme’ uses a ‘direct consumer
contact’
methodology, and touches the lives of 70 million people in 18,000 villages
Imparting education about importance of hand washing to prevent spread
of ger
Used global epidemics like swine flu to further promote products for better
hygiene and protection
THREATS
Tax and regulatory structure
Mimic of brands
Entry of ITC in FMCG sector
Increasing cost of raw material
Competitor brands offering similar levels of protection
Considered to be a low-end product and may find it difficult to move up in
the segment.
9.2.2 E- CHOUPAL Venture by ITC
Agriculture is vital to India. It produces 23% of GDP, feeds a billion
people, and employs 66% of the workforce. Because of the Green
Revolution, India’s agricultural productivity has improved to the point that
it is both self-sufficient and a net exporter of a variety of food grains. Yet
most Indian farmers have remained quite poor. The causes include
remnants of scarcity-era regulation and an agricultural system based on
small, inefficient landholdings. The agricultural system has traditionally
been unfair to primary producers. Soybeans, for example, are an important
oilseed crop that has been exempted from India’s Small-Scale Industries
Act to allow for processing in large, modern facilities. Yet 90% of the
soybean crop is sold by farmers with small holdings to traders, who act as
purchasing agents for buyers at a local, government-mandated
marketplace, called a mandi. Farmers have only an approximate idea of
price trends and have to accept the price offered them at auctions on the
day that they bring their grain to the mandi. As a result, traders are well
positioned to exploit both farmers and buyers through practices that sustain
system-wide inefficiencies.
Rural India is a difficult business location. Transport, electric power, and
information infrastructure are inadequate. Business practices are
underdeveloped or outdated. Lack of access to modern resources has
resulted in an under-trained workforce. Rural society is structured around Self-Instructional Material

subsistence and is unprepared for modern products and services. These

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 Corporate Social constraints, along with many others, have dissuaded most companies from
Responsibility taking on the challenge of rural commerce. Yet such an engagement can
serve a dual agenda: bridging rural isolation and the resulting disparities of
NOTES
education and economic opportunity, while at the same time creating a
potentially large profit opportunity for the organization willing to tackle
the inefficiencies. The key question is how modern resources and methods
can be practically deployed to profitably overcome rural constraints. Also
important are the social impacts of such an engagement.
ITC’s e-Choupal initiative began by deploying technology to re-engineer
procurement of soya and other crops from rural India. It has gone on to
serve as a highly profitable distribution and product design channel. The
effort holds valuable lessons in rural engagement and demonstrates the
magnitude of the opportunity while illustrating the social and development
impact of bringing global resources, practices, and remuneration to the
Indian farmer.
ITC is one of India’s leading private companies, with annual revenues of
US$2 billion. Its International Business Division was created in 1990 as an
agricultural trading company; it now generates US$150 million in
revenues annually. The company has initiated an e-Choupal effort that
places computers with Internet access in rural farming villages; the e-
Choupals serve as both a social gathering place for exchange of
information (choupal means gathering place in Hindi) and an e-commerce
hub. What began as an effort to re-engineer the procurement process for
soy, tobacco, wheat, shrimp, and other cropping systems in rural India has
also created a highly profitable distribution and product design channel for
the company—an e-commerce platform that is also a low-cost fulfillment
system focused on the needs of rural India. The e-Choupal system has also
catalyzed rural transformation that is helping to alleviate rural isolation,
create more transparency for farmers, and improve their productivity and
incomes.
E-Choupal is an India-based business initiative by ITC Limited that
provides Internet access to rural farmers. The purpose is to inform and
empower them and, as a result, to improve the quality of agricultural goods
and the quality of life for farmers.
Launched in June 2000, 'e-Choupal', has already become the largest
initiative among all Internet-based interventions in rural India. 'e-Choupal'
services today reach out to over 4 million farmers growing a range of crops
- soybean, coffee, wheat, rice, pulses, shrimp - in over 35000 villages
through 6100 kiosks across 10 states (Madhya Pradesh, Haryana,
Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Kerala, Maharashtra,
Andhra Pradesh and Tamil Nadu).
The problems encountered while setting up and managing these 'e-
Choupals' are primarily of infrastructural inadequacies, including power
supply, telecom connectivity and bandwidth, apart from the challenge of
imparting skills to the first-time internet users in remote and inaccessible
areas of rural India.
Several alternative and innovative solutions - some of them expensive - are
being deployed to overcome these challenges e.g. Power back-up through
batteries charged by Solar panels, upgrading BSNL exchanges with RNS
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static content on website to stream in the dynamic content more efficiently, Corporate Social
Responsibility
24x7 helpdesk etc.
NOTES
As India's 'Kissan' Company, ITC has taken care to involve farmers in the
designing and management of the entire 'e-Choupal' initiative. The active
participation of farmers in this rural initiative has created a sense of
ownership in the project among the farmers. They see the 'e-Choupal' as
the new age cooperative for all practical purposes.
This enthusiastic response from farmers has encouraged ITC to plan for
the extension of the 'e-Choupal' initiative to altogether 15 states across
India over the next few years. On the anvil are plans to channelize other
services related to micro-credit, health and education through the same 'e-
Choupal' infrastructure.
Another path-breaking initiative - the 'Choupal Pradarshan Khet', brings
the benefits of agricultural best practices to small and marginal farmers.
Backed by intensive research and knowledge, this initiative provides Agri-
extension services which are qualitatively superior and involves pro-active
handholding of farmers to ensure productivity gains. The services are
customized to meet local conditions, ensure timely availability of farm
inputs including credit, and provide a cluster of farmer schools for
capturing indigenous knowledge. This initiative, which has covered over
64,000 hectares, has a multiplier impact and reaches out to around 70,000
farmers.
Spurred by India’s need to generate foreign exchange, ITC's International
Business Division (IBD) was created in 1990 as an Agri-trading company
aiming to “offer the world the best of India's produce.” Initially, the
agricultural commodity trading business was small compared to
international players. By 1996, the opening up of the Indian market had
brought in international competition. Large international companies had
better margin-to-risk ratios because of wider options for risk management
and arbitrage. For an Indian company to replicate the operating model of
such multinational corporations would have required a massive horizontal
and vertical expansion. In 1998, after competition forced ITC to explore
the options of sale, merger, and closure of IBD, ITC ultimately decided to
retain the business. The Chairman of ITC challenged IBD to use
information technology to change the rules of the game and create a
competitive business that did not need a large asset base. Today, IBD is a
US$150 million company that trades in commodities such as feed
ingredients, food-grains, coffee, black pepper, edible nuts, marine
products, and processed fruits.
ITC Limited (formerly India Tobacco Company Limited) is a consumer
product and agribusiness conglomerate in India known for their production
of cigarettes, specialty paper, food products and packaging services.
Through the e-Choupal initiative, ITC has created more than 6,500 e-
Choupal computer stations in rural areas that serve an average of six
hundred farmers each. Using this technology, farmers may order supplies,
learn about best agricultural practices, receive weather reports and read
about pricing for crops throughout the region. Farmers can use that
information to their own prices. They also obtain higher profit margins
because they’re no longer forced to sell through a middleman. ITC Limited
also benefits from the initiative, by simplifying its supply chains and Self-Instructional Material
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 Corporate Social Farmers can use that information to their own prices. They also obtain
Responsibility higher profit margins because they’re no longer forced to sell through a
middleman. ITC Limited also benefits from the initiative, by simplifying
NOTES
its supply chains and increasing its profits.
E-Choupal is an initiative of the International Business Division (IBD) of
one of India’s leading private companies, ITC Ltd. Beginning in 2000, ITC
set up a network of ICT kiosks around the country, called e-Choupal (an
open meeting place in a village).
E-Choupal, the two-decade old initiative from ITC aimed to web-enable
farmers to overcome challenges related to information access and
procurement, is set for a major makeover this year. Driven by increasing
smart phone penetration in the country coupled with declining data costs,
the FMCG and hospitality conglomerate plans to launch a mobile version
of the programme by middle of 2019.bWhen the programme was started
20 years ago, each e-Choupal cost around ₹30 lakh; this subsequently
came down to just about ₹1.5 lakh as computers and technology became
more affordable. The initiative now comprises about 6,100 installations
covering over 35,000 villages in 21 States and serving over four million
farmers across the country.
Under the current system, ITC helps build village internet kiosks. These
kiosks enable farmers access information in their local language on the
weather and market prices, besides knowledge on scientific farm practices
and risk management. With real-time information, farmers are able to align
their farm output with market demand. The system also helps reduce
transaction costs by eliminating the need for intermediaries as farmers are
virtually linked to the mandi (agricultural market) system for price
discovery. ITC, in turn, benefits from lower net cost of procurement by
eliminating costs in the supply chain that do not add value.
e-Choupal also unshackles the potential of Indian farmer who has been
trapped in a vicious cycle of low risk-taking ability > low investment >
low productivity > weak market orientation > low value addition > low
margin > low risk-taking ability. This made him and Indian agribusiness
sector globally uncompetitive, despite rich & abundant natural resources.
Such a market-led business model can enhance the competitiveness of
Indian agriculture and trigger a virtuous cycle of higher productivity,
higher incomes, enlarged capacity for farmer risk management, larger
investments and higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for
industrial goods so necessary for the continued growth of the Indian
economy. This will create another virtuous cycle propelling the economy
into a higher growth trajectory.
e-Choupal' makes use of the physical transmission capabilities of current
intermediaries - aggregation, logistics, counter-party risk and bridge
financing -while disintermediating them from the chain of information
flow and market signals.
With a judicious blend of click & mortar capabilities, village internet
kiosks managed by farmers - called sanchalaks - themselves, enable the
agricultural community access ready information in their local language on
the weather & market prices, disseminate knowledge on scientific farm
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practices & risk management, facilitate the sale of farm inputs (now with
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embedded knowledge) and purchase farm produce from the farmers' Corporate Social
Responsibility
doorsteps (decision making is now information-based).
NOTES
Real-time information and customized knowledge provided by 'e-Choupal'
enhance the ability of farmers to take decisions and align their farm output
with market demand and secure quality & productivity. The aggregation of
the demand for farm inputs from individual farmers gives them access to
high quality inputs from established and reputed manufacturers at fair
prices. As a direct marketing channel, virtually linked to the 'mandi' system
for price discovery, 'e-Choupal' eliminates wasteful intermediation and
multiple handling. Thereby it significantly reduces transaction costs.
'e-Choupal' ensures world-class quality in delivering all these goods &
services through several product / service specific partnerships with the
leaders in the respective fields, in addition to ITC's own expertise.
A pure trading model does not require much capital investment. The e-
Choupal model, in contrast, has required that ITC make significant
investments to create and maintain its own IT network in rural India and to
identify and train a local farmer to manage each e-Choupal. The computer,
typically housed in the farmer’s house, is linked to the Internet via phone
lines or, increasingly, by a VSAT connection, and serves an average of 600
farmers in 10 surrounding villages within about a five-kilometer radius.
Each eChoupal costs between US$3,000 and US$6,000 to set up and about
US$100 per year to maintain.
Using the system costs farmers nothing, but the host farmer, called a
sanchalak, incurs some operating costs and is obligated by a public oath to
serve the entire community; the sanchalak benefits from increased prestige
and a commission paid him for all e-Choupal transactions. The farmers can
use the computer to access daily closing prices on local mandis, as well as
to track global price trends or find information about new farming
techniques—either directly or, because many farmers are illiterate, via the
sanchalak. They also use the e-Choupal to order seed, fertilizer, and other
products such as consumer goods from ITC or its partners, at prices lower
than those available from village traders; the sanchalak typically
aggregates the village demand for these products and transmits the order to
an ITC representative.
At harvest time, ITC offers to buy the crop directly from any farmer at the
previous day’s closing price; the farmer then transports his crop to an ITC
processing center, where the crop is weighed electronically and assessed
for quality. The farmer is then paid for the crop and a transport fee. “Bonus
points,” which are exchangeable for products that ITC sells, are given for
crops with quality above the norm. In this way, the e-Choupal system
bypasses the government-mandated trading mandis.
Farmers benefit from more accurate weighing, faster processing time, and
prompt payment, and from access to a wide range of information,
including accurate market price knowledge, and market trends, which help
them decide when, where, and at what price to sell. Farmers selling
directly to ITC through an e-Choupal typically receive a higher price for
their crops than they would receive through the mandi system, on average
about 2.5% higher (about US$6 per ton). The total benefit to farmers
includes lower prices for inputs and other goods, higher yields, and a sense
of empowerment. The e-Choupal system has had a measurable impact on Self-Instructional Material

what farmers chose to do: in areas covered by e-Choupals, the percentage

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 Corporate Social of farmers planting soy has increased dramatically, from 50 to 90% in
Responsibility some regions, while the volume of soy marketed through mandis has
dropped as much as half.
NOTES
In mid-2003, e-Choupal services reached more than 1 million farmers in
nearly 11,000 villages, and the system is expanding rapidly. ITC gains
additional benefits from using this network as a distribution channel for its
products (and those of its partners) and a source of innovation for new
products. For example, farmers can buy seeds, fertilizer, and some
consumer goods at the ITC processing center, when they bring in their
grain. Sanchalaks often aggregate village demand for some products and
place a single order, lowering ITC’s logistic costs. The system is also a
channel for soil testing services and for educational efforts to help farmers
improve crop quality. ITC is also exploring partnering with banks to offer
farmers access to credit, insurance, and other services that are not currently
offered or are prohibitively expensive. Moreover, farmers are beginning to
suggest—and in some cases, demand—that ITC supply new products or
services or expand into additional crops, such as onions and potatoes.
Thus, farmers are becoming a source of product innovation for ITC.
The e-Choupal model demonstrates that a large corporation can play a
major role in recognizing markets and increasing the efficiency of an
agricultural system, while doing so in ways that benefit farmers and rural
communities as well as shareholders. It also shows the key role of
information technology and maintained by a corporation but used by local
farmersin helping bring about transparency, increased access to
information, and rural transformation. Critical factors in the apparent
success of the venture are ITC’s extensive knowledge of agriculture, the
effort ITC has made to retain many aspects of the existing production
system, including maintenance of local partners, the company’s
commitment to transparency, and the respect and fairness with which both
farmers and local partners are treated.
The e-Choupal system not only serves as a monopoly agriculture produce
procurement channel, but also a source of agriculture and development
information, agriculture extension services, and increasingly, community
information for upstream actors. It thus threatens to overwhelm public and
community-based systems that traditionally undertook many of these
activities. In fact, it is a real concern that, citing the presence of e-Choupal
kind of corporate systems, many governments will begin to withdraw their
presence in these areas. Consequently, this raises a number of equity and
social justice-based issues. There are some early indications that this may
already be taking place. There is no leverage that the local community and
local self-governance systems have over the e-Choupal system, and during
interviews.
9.2.3 Titan Industries Limited
Starting from the steel, automobiles and software to consumer goods and
telecommunications the Tata Group operates more than 80 companies. It
has around 200,000 employees across India and thus has the pride to be
Nation ‘s largest private employer. Mr. Ratan N. Tata has led the eminent
Tata Group successfully. He was trained as an architect at New York's
Cornell University, but he chose to enter the family business. He assumed
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the Chairmanship of the Group in 1991. Named Business Man of the Year
for Asia by Forbes in 2004, Mr. Ratan Tata serves on the board of the Ford
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Foundation and the program board of the Bill & Melinda Gates Corporate Social
Responsibility
Foundation's India AIDS initiative. Tata Group chairman Ratan Naval Tata
has stepped down to pass on the entire responsibility to Cyrus Mistry. NOTES
Under Tata, the group went through major organizational phases —
rationalization, globalization, and now innovation, as it attempts to reach a
reported $500 billion in revenues by 2020-21, roughly the size of what
Walmart is today.
Tata is accredited to initiate various labor welfare laws. For example- the
establishment of Welfare Department was introduced in 1917 and enforced
by law in 1948; Maternity Benefit was introduced in 1928 and enforced by
law in 1946. A pioneer in several areas, the Tata group has got the credit of
pioneering India's steel industry, civil aviation and starting the country's
first power plant. It had the world's largest integrated tea operation. It is
world's sixth largest manufacturer of watches (Titan).
In July 2004, B. Muthuraman, Managing Director, Tata Steel Limited
announced that in future TISCO would not deal with companies, which do
not conform to the company's Corporate Social Responsibility standards.
Speaking at the annual general meeting of the Madras Chamber of
Commerce and Industry, He stated, "We will not either buy from or sell to
companies that do not measure up to Tata Steel's social responsibility
standards."
Titan Industries Limited was incorporated in 1984 as a joint venture
between the Tata Group and the Tamil Nadu Industrial Development
Corporation Limited (TIDCO). The company has its registered office in
Hosur and its corporate office in Bangalore. It also has manufacturing and
assembly operations in Dehradun, Pantnagar, and Roorkee. The company
is organized into three major divisions. The watch division manufactures
and retails quartz watches, sunglasses, licensed watch brands, precision
engineering components, automobile clocks, special purpose machines,
and automation systems. The jewelry division manufactures and markets
18 kt studded jewelry, 22 kt plain jewelry and platinum jewelry under the
brand name Tanishq. The precision engineering division focuses on
automobile clocks and aerospace components.
In keeping with the Tata Ethos of engaging and empowering the
communities around its work sites, Titan also has a well-crafted
community development programme of giving back to the community.
It was evident that giving back to the community has been ingrained in the
fabric of the Titan way of life, which parallels the Tata Group’s overall
outlook on community initiatives. Titan Industries Limited’s commitment
to CSR initiatives was palpably profound even before the advent of the
mandatory CSR spending as per the new Indian government’s companies
bill. Titanwith its management, places significant premium on
transcending the oft-pervasive generation of profits, which businesses have
long been synonymous with, to a purposeful inclusion of the community in
business growth.
Titan Industries Limited has clear goals with regards to CSR. Over the
next five years, the company plans on impacting the lives of 100,00
people, with 45000 earmarked for the first year. The company aims to
focus on the needy, most exploited and underprivileged in the Indian
society. Titan Industries Limited’s CSR initiatives focus on health, Self-Instructional Material

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 Corporate Social The substantial investment in CSR initiatives by Titan Industries Limited
Responsibility lends credence to this burning desire by the company to contribute to the
common good of the society.The amount of money invested in CSR
NOTES
initiatives in 2012/2013 (Rs. 3 Crores) points clear to the company’s intent
on contributing to making the lives of the poor, vulnerable, neglected and
underprivileged better.
9.2.4 Titan CSR Projects
Titan Industries Limited has embarked on CSR initiatives to satiate its
insistence on improving the lives of the poor, the underprivileged and
underserved in the society. It is palpable that it has over the years
undertaken projects in the underprivileged communities (like Scheduled
Caste/Scheduled Tribes, tribal as well as other “backward” (as it is often
used in India) societies). Some of these include: Titan Kanya—girl child
education initiative, the MEADOWS women empowerment program,
Titan Scholarship, provision of “Eye Care” to underprivileged
communities, Kariga Park, to name a few. To make these projects more
facile, it is worth elaborating on some of them. The group has also
employed 169 differently abled people in blue collar work force in Hosur.
Titan Company Limited (Titan), a joint venture between the Tata Group
and the Tamil Nadu Industrial Development Corporation (TIDCO),
commenced its operations in 1984 under the name Titan Watches Limited.
Titan is the fifth largest integrated own brand watch manufacturer in the
world. Over the last three decades, Titan has expanded into
underpenetrated markets and created lifestyle brands across different
product categories. Titan is widely known for transforming the watch and
jewelry industry in India and for shaping India's retail market by
pioneering experiential retail and its headquarters is located at Bengaluru
in Karnataka.
Titan Company believes that corporate responsibility begins with its
employees. The company ensures that harmony, peace and inclusive
approach at work place are maintained. Efforts are made to engage
employees in programs designed to fulfil our ecological and social
responsibility. Various work-place initiatives are conducted to achieve
this: War on Waste - an initiative that reduced the impact of manufacturing
operations on the environment. At Titan Company, Corporate Social
Responsibility is more than philanthropy - it is an internal process that
reflects the soul of the company.
Corporate social responsibility is a basic element of TITAN Group ‘s
governing objective and one of its corporate values. In its corporate
philosophy CSR is defined as doing less harm and better by adopting the
following practices.
Respecting and Supporting local communities
Caring for the Employees
Being an active member of the society
Committed to Sustainable development
Putting safety first at their work place.
9.2.5 Titan Kanya Project
The Titan Kanya is an educational initiative that the company has
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embarked upon in response to the alarming educational and other problems
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facing the girl child in India. Titan recognizes the import of education in Corporate Social
Responsibility
alleviating the problems of the girl child. As a result, it aims to create
awareness across the company by encouraging employees, vendor NOTES
partners, franchisees, distributors, etc. to actively participate in educating
the girl child. Employees can contribute money through sponsorships or by
volunteering to teach students. Franchisees or vendor partners can adopt a
learning center, adopt a child, or become a Titan Kanya evangelist by
enrolling their staff as volunteers to teach in sponsored schools.
Across the world and particularly in India, research has indicated that
educating girls has far-reaching, positive effects. Educated girls tend to
marry later, have fewer children, feed them better, and are most likely to
provide education for their children.
In 2012, Titan decided to bolster its efforts in education through a girl
child education initiative. “The time had come for us to invest in a cause
that directly impacted the girl child who is exploited and endangered,
especially because of the practice of female feticide, followed by even the
upper-class families,” Bhaskar Bhat, managing director of Titan decided
on working on these issues.
The initiative named ‘Titan Kanya’ – Empowered Girl Child aims to
support 10,000 girl children with participation directly by Titan and
through support from the employees and business associates. The girls hail
from urban, rural and tribal areas of the country, sometimes deeply remote,
with little access to a school. The programme takes a holistic approach to
the cause of girl child education, by not only addressing the needs of
Kanyas in the Academic Support Centers and ensuring attendance and
good results, but also engaging with their families and other stakeholders
to build ownership among the community.
Partnering with two well-known and well-executed girl child education
programmes, Titan embarked on its mission to empower the girl child,
supported by employees, vendor partners, franchisees and distributers.
Besides providing monetary support, Titan encourages employees to
volunteer for these programmes.
Titan’s partnership with Nanhi Kali, run by the K C Mahindra Education
Trust (KCMET) in collaboration with the Nandi Foundation, has helped
empower 7,097 girls across 490 Schools. The collaboration with IIM Pact,
an initiative of the alumni of the Indian Institute of Management,
Ahmedabad (IIMA) has helped better the lives of 2,090 girls across 60
learning centres. As of December 2014, 9,187 girl children had been
reached via Titan Kanya.
This one-on-one tailored approach has resulted in children showing
tremendous progress in a period of just three months: each child progress
by one level, each quarter. The programme is offered up to Grade 5, and
the students are eventually mainstreamed into local middle schools.
Additionally, basic counselling for parents and community mobilization, as
well as teacher training is also conducted. Over 90 per cent of the children
under this programme have been drawn from minority communities whose
access to education has been restricted due to social and financial
limitations.
The Nanhi Kali programme, in collaboration with KCMET, has impacted
girl child education in the cities of Chennai, Kanker, Krishnagiri, Self-Instructional Material
Mahabubnagar, Delhi, Sheopur, Ratlam, Hyderabad, Mumbai,

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 Corporate Social Vishakapatnam and Pratapgarh. The initiative has received great support
Responsibility from Titan employees (595 volunteers across 543 academic centres) and
business associates. And because every journey needs to stay on course for
NOTES
it to reach its destination, the programme is tracked on the following
parameters: reduction in ‘drop-out’ rates; improvement in school
attendance; and improvements in learning levels in Maths, Science and
Languages.
Project sector: Education, Employability and Livelihoods Enhancement.
9.2.6 Empowering Women – The Meadow Initiative
Management of enterprises and Development of Women (MEADOW)
began as a programme to help combat female infanticide in the
Dharmapuri district, and to better the standard of living of women in these
communities. Its initiatives involvement started by hiring women to make
chapatis for the factory works. Later they were asked to take care of the
laundry, in the year 1995, Titan joined hands with Myrada an NGO that
works for Social causes and started a bracelet making unit. Satisfied by the
professionalism by these women. Titan then converted the bracelet unit
into a privately held company. It was then the MEADOW came into
existence for the empowerment of the women especially. Titan began to
give technical training and business managing skills to the women in the
MEADOWS. Today around 200 women of these villages’ own meadow.
The Management Enterprise and Development of Women (MEADOW)
program is a CSR initiative by Titan in collaboration with a local NGO,
Mysore Resettlement and Development Agency (MYRADA) which
involves organizing poor semi-literate women from Hosur into self-help
groups. The initiative began with contracting laundering of uniforms to
them. Over time, other processes were outsourced including assembling of
metal watch straps (bracelets). Titan provided them with capital equipment
in addition to training them. Currently, 23 activities have been outsourced
including case buffing, movement assembly, deburring, polishing
aerospace components and jewelry making. This has had a significant
impact on the socio-economic development of these women and villages.
Focusing on women empowerment remains a subject of great interest for
organizations around the world but is this issue new within the Tata group.
In this management brief it focus on the initiatives taken up by the Tata
Group related to women empowerment.
Social responsibility was never regarded as an additional or miscellaneous
activity by the Tata Group. For long, the Group influenced the community
and lives of people associated with it in numerous ways. As pioneers of
some of the best practices in the area of people development and labor
relations, the group and the companies in their own capacity also played an
important role and took several initiatives to transform the lives of women
in the communities they operated in and helped making a difference to the
society at large. The Sir Dorabjee Tata Trust established in 1932 along
with the allied trusts- JRD and Thelma J Tata- for promoting the cause of
welfare, education, health, rehabilitation and overall upliftment of women
in India.
Research has propounded several frameworks delineating the various
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dimensions along which women could be empowered. While some of the
frameworks discuss broad dimensions of empowerment such as CIDA
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(1996), others like Kishor’s (2000a) includes valuation of women, equality Corporate Social
Responsibility
in marriage, as well as specific elements (e.g. lifetime exposure to
employment). These frameworks primarily encompass economic, socio- NOTES
cultural, familial/interpersonal, legal, political, and psychological
dimensions. Each of these dimensions cover a range of empowerment sub-
domains, such as physical mobility, to non-familial social support systems
and networks available to women that need to be addressed. While some
group initiatives were a part of the Group’s corporate social responsibility
activities, others were started to support the business needs of the
organization in turn creating economic and social empowerment of the
community.
Titan’s manufacturing unit in Hosur in the Krishnagiri district of
Karnataka is a drought- prone area, suffering from social issues including
gender inequality, low literacy rates, female child labor and high female
infanticide rates. In collaboration with MYRADA (formerly the Mysore
Resettlement and Development Agency) – a non-government organisation
that facilitated women’s self-help groups, - Titan set up Project Meadow
(Management of Enterprise and Development of Women) in 1996 with an
aim to provide employment opportunities to young women. The project
initiated with just 24 girls with a qualification of high school education
evolved into a registered company (Meadow, set up in 1998) with 343
women members as owner-managers and workers in their own enterprise.
The women were provided with jobs like laundering uniforms of TITAN
factory workers, and washing industrial trays used in holding watches and
straps. The women were also given extensive training in material
accounting and documentation procedures. The jewelry division of Titan
outsourced some crucial activities in the production of studded jewelry;
primarily in the area of waxing, stone-setting and alloying to Meadow. An
initial batch of 40 women was trained to advance their skills in jewelry-
making. They began with bracelet link assembly, and gradually undertook
16 different tasks such as case buffing, hand press and gold plating,
strapping, movement assembly, jewelry and strap masking.
SWOT ANALYSIS:
STRENGTHS
Large network of exclusive stores and service centers
High Top of the mind recall, especially for the midmarket segment.
Different sub-brands under the brand titan success in demographic
segmentation
Exported in 40 countries
WEAKNESS
Premium category brands like xylys have been camouflaged by the Titan
brands image of being a mid-player
Haven’t penetrated the global market as some other international watch
makers.
OPPURTUNITIES
India is an under penetrated market for watches
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Global expansion and tie-ups with global watch and jewelry markets

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 Corporate Social THREATS
Responsibility
Broad target segments may lead to lack of focus in brand strategy
NOTES
Stiff competition faced by foreign brands, particularly in premium
segment.
Key Initiatives Driven
Girl Child Initiatives in education and their livelihood
Skill development
Supporting arts, crafts and heritage
Support towards local and national causes- Responsible citizenship.

Check Your Progress

Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. What are the benefits of CSR for the Ecological environment?
2. How does the e-Choupal benefit Farmers?
3. What is the relationship between environmental sustainability and
CSR?
4. What were the major key achievements of the MEADOW project?

9.3 LET US SUM UP

Since the times of the barter system to present era of plastic money, the
mankind has stridden out long path. There is no doubt in this that
“profitability” has always been the primary force and main motivation
behind all this development. This motive actually increased cut throat
competition between the business forms. Because of this competition, the
companies stated exploiting the quality of product as well as the
environmental concern. Slowly and gradually the business houses realized
that they have to give back to the society because they are surviving
because of the society only. This realization gives the birth to the concept
of Corporate Social Responsibility. However, the companies started using
this concept for brand building more than delivering it as a responsibility.
The studies also revealed that the companies used the corporate social
responsibility for enhancing their profit as well. Through this role of the
CSR and its case studies overall, we can conclude that how these visionary
projects have been sustainable one and is still extending contributing
towards the life of many people.
9.4 ANSWER TO CHECK YOUR PROGRESS
1. CSR is a social regulation which is integrated into the business type or
model of the company and in-turn how these protect the sustainability
of the environment in managing the development of the green cover.

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2. Accessibility to the internet helps the farmers to know about their mandi Corporate Social
Responsibility
prices and goods storage practices and also to place orders for the seeds
and agriculture related items. NOTES

3. Sustainability relates to the reduction of environmental impact through

reduction of consumption (reduce, recycle, reuse). Corporate
Responsibility wider relationship between the organisation and
contributes for the wellness of the environment and the community.
4. The titan industries through its MEADOWS programme which was a
skill development programme especially for the welfare and the
livelihood of the women of more than 200 villages.
9.5 UNIT END QUESTIONS

1. What are the other ways that a Corporate can contribute towards the
sustainability of the environment?
2. Prepare a model of CSR Contributing towards the livelihood of the
women and education of the Children?
3. Discuss the successful sustainable projects of the TATA group in the
philanthropic activities?
4. Discuss as a group the benefits of e eChoupal and prepare a project that
would benefit the farmers and the rural livelihood?
9.6 SUGGESTED READINGS
https://www.titancompany.in/corporate-social-responsibility-initiative
https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/india/d
ownloads/report_2013_sarbah.pdf
http://oaji.net/articles/2015/1928-1431085671.pdf
https://www.academia.edu/4511194/Strategic_Management_HUL_
Lifebuoy
https://www.slideshare.net/georgetcherian/a-case-study-on-lifebuoy
https://www.itcportal.com/businesses/agri-business/e-choupal.aspx
Corporate Social Responsibility: A Practioner’s Perspective by Nirbay
Lumde published by Notion Press 2018.

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 Corporate Social
Responsibility UNIT- X TATA POWER; TOOLS FOR
NOTES
COMMUNICATING CSR (SKILL
BUILDING): SOCIAL MEDIA,
FILMS AND REPORTS AND
DEVELOPMENT STRATEGIC
PARTNERSHIPS
Structure
10.1 TATA Power
10.2 Tools for Communicating CSR (Skill Building): Social Media, Films
and Reports
10.3 Development Strategic Partnerships
10.4 Let Us Sum Up
10.5 Answer to Check Progress
10.6 Unit End Questions
10.7 Suggested Readings
10.1 TATA POWER
Tata Power Company Ltd is India's largest integrated private power
company with a significant international presence. The company has an
installed generation capacity of 10857 MW (as of August 2018) in India
and a presence in all the segments of power sector viz. Fuel & Logistics
Generation (thermal hydro solar and wind) Transmission Distribution and
Trading. It has successful public-private partnerships in Generation
Transmission and Distribution in India namely Tata Power Delhi
Distribution Limited with Delhi Government for distribution in North
Delhi `Power links Transmission Ltd.' with Power Grid Corporation of
India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to
Delhi and ‘Maithon Power Ltd.’ with Damodar Valley Corporation for a
1050 MW Mega Power Project at Jharkhand. Tata Power is one of the
largest renewable energy players in India and has developed the country's
first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on
super-critical technology. Tata Power has signed a Distribution Franchisee
Agreement (DFA) with Ajmer Vidyut Vitran Nigam Limited (AVVNL)
and formed a Special Purpose Vehicle (SPV) TP Ajmer Distribution
Limited (TPADL) to cater to the power requirements of customers in
Ajmer for a period of 20 years.Tata Power's international presence
includes strategic investments in Indonesia through 30% stake in the
leading coal company PT Kaltim Prima Coal (KPC) in Singapore through
Trust Energy Resources to securitise coal supply and the shipping of coal
for its thermal power generation operations; in South Africa through a joint
venture called ‘Cennergi’ to develop projects in South Africa Botswana
and Namibia; in Australia through investments in clean coal technologies
and in Bhutan through a hydro project in partnership with The Royal
Government of Bhutan. Tata Power commissioned its first hydroelectric
power generating station commissioned at Khopoli in the year 1915 with
an installed capacity of 40 MW which was subsequently upgraded to 72
MW. In the year 1922 they commissioned another hydro power station at
Bhivpuri with an installed capacity of 40 MW subsequently upgraded to 72
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MW. In the year 1927 they set up Third Hydro power station of 90 MW
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capacity at Bhira which was subsequently upgraded to 150 MW. In the Corporate Social
Responsibility
year 1956 the company set commissioned a major thermal power station of
62.5 MW capacity at Trombay to meet the increasing demand of NOTES
electricity. Also they set commissioned two more thermal units of similar
capacity i.e. 62.5 MW in the years 1957 and 1960 respectively. In the year
1965 they set up Fourth thermal unit of 150 MW capacity at Trombay. In
the year 1984 the company commissioned India's first 500 MW generating
unit with multi-fuel burning capability at Trombay. In the year 1990 they
set up Second 500 MW thermal unit at Trombay. In the year 1994 the
company commissioned a gas-based 180 MW capacity combined cycle
plant to provide quick-start capacity to Trombay Thermal Station and to
ensure reliable and uninterrupted supply for essential services in Mumbai.
In the year 1996 the company commissioned the 150 MW Pumped Storage
Unit at Bhira. Also they set up 67.5 MW Thermal Power Plant at Jojobera
(Jharkhand). In the year 2000 The Tata Hydro-Electric Co. Ltd. The
Andhra Valley Power Supply Co. Ltd. and the Tata Power Co. Ltd. are
amalgamated to become one entity- The Tata Power Company Limited.
Also they commissioned a unit of 120 MW at Jojobera. In the year 2001
the company set up 81.3 MW diesel generator based plant at Belgaum
Karnataka. In the year 2003 the company entered into a joint venture with
Power Grid Corporation of India Ltd. to develop a 1200 Km long
transmission line to bring electricity from Bhutan to Delhi. In the year
2004 the company incorporated a wholly owned subsidiary company
known as Tata Power Trading Co. Ltd. for the power trading business. In
the year 2005 the company commissioned the unit 4 of 120 MW capacity
at Jojobera. In the year 2006-07 the company completed the acquisition of
30% equity in Indonesian Coal Mines PT Kaltim Prima Coal (KPC) and
PT Arutmin Indonesia as well as trading companies from PT Bumi
Resources. In the year 2008 the unit 1 of 2 x 45 MW Phase of Haldia
Project is synchronised with the grid. Also the company commissioned the
expansion project of 250 MW (Unit # 8) at Trombay. During the year
2009-10 the company successfully completed the overhaul of Unit 5
during which the Unit underwent major renovation and modernization. The
company commissioned Unit 3 of 30 MW resulting in increase in the
installed capacity of the plant to 120 MW. These Units use hot coke oven
gas from Hooghly Metcoke and Power Company Limited to produce steam
for power generation. Also the company commissioned an additional 42
MW of wind power capacity taking the total capacity to 201 MW. During
the year 2010-11 the company commissioned an additional 6 MW of wind
power capacity in Maharashtra taking the total installed wind power
capacity in Mumbai Operations to 106 MW. Also the company acquired a
21 MW wind farm taking the total installed capacity outside Mumbai
operations to 122 MW. In 2012 Tata Power commissioned a 25 MW solar
plant at Mithapur in Gujarat. During the year under review Tata Power
commissioned 1050 MW Maithon power project. During the year under
review Tata Power acquired 26% stake in large mines at PT Baramulti
Suksessarana Tbk (BSSR) Indonesia. In 2013 Tata Power implemented the
first 4000 MW Ultra Mega Power Project of India at Mundra Gujarat
based on super critical technology. In 2014 Tata Power exited from
Indonesian coal mine PT Arutmin Indonesia. During the year under review
Tata Power acquired a 39.2 MW wind farm near Dwarka Jamnagar in
Gujarat. During the year under review Tata Power commissioned 28.8
MW solar power project at Palaswadi in Maharashtra. During the year Self-Instructional Material
under review the company completed the commissioning of 32 MW Wind
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 Corporate Social farm project in Maharashtra. In 2015 Tata Power's Joint-Venture Maithon
Responsibility Power Limited (MPL) commenced flow of energy to Kerala on a Long
Term Agreement basis. In 2016 Tata Power's Joint-Venture commissioned
NOTES
120 MW Itezhi Tezhi hydro power project in Zambia. During the year
under review Tata Power partnered with Toshiba and Cargill to design and
develop India's first green safe and compact natural ester-based pad mount
substation. On 12 June 2016 Tata Power Company (Tata Power)
announced that its 100 percent subsidiary Tata Power Renewable Energy
(TPREL) has signed share purchase agreement (SPA) with Welspun
Energy (WEPL) to acquire its subsidiary Welspun Renewables Energy
(WREPL). This represents the largest transaction in renewables space in
India. WREPL has one of the largest operating solar portfolios in India
spread across ten states. It has about 1140 MW of renewable power
projects comprising of about 990 MW solar power projects and about 150
MW of wind power projects. Out of 1140 MW renewable portfolio nearly
1000 MW of capacity is operational and balance capacity is under
advanced stages of implementation. On 19 August 2016 Cennergi Tata
Power's 50:50 joint venture with Exxaro Resources in South Africa
announced the commencement of commercial operations for its 95 MW
Tsitsikamma Community Wind Farm (TCWF) project. Cennergi was
selected as the preferred bidder for two wind projects under the second
window of the Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP) by the South African government.
With the commissioning of the Tsitsikamma project Cennergi's operational
portfolio has increased to 229MW. In 2017 Tata Power's 100 percent
subsidiary Tata Power Renewable Energy commissioned 100 MW wind
farm in Andhra Pradesh. During the year under review Tata Power
executed Distribution Franchisee Agreement (DFA) for electricity
distribution in Ajmer City. On 2 January 2018 Tata Power Renewable
Energy Ltd. (TPREL) Tata Power's wholly-owned subsidiary announced
the commissioning of its 50 MW DCR solar plant at Pavagada Solar Park
in Karnataka. The project was won by the company on 4 April 2016 under
the National Solar Mission Phase-II Batch-II Tranche-I State Specific
Bundling Scheme. On 8 January 2018 Tata Power announced that it has set
up additional electric vehicle charging stations at strategic locations
thereby making Mumbai truly ready to usher in the Electric Vehicle wave.
The latest Electric Vehicle charging stations by Tata Power have been set
up at Palladium Mall Lower Parel and Phoenix Marketcity Kurla; and two
more coming up at BKC and western express highway at Borivali. On 26
March 2018 Tata Power announced that the company's Board has
approved the sale of its shares in Tata Communications and Panatone
Finvest to Tata Sons and its affiliates. Panatone Finvest holds 30.1% of
Tata Communications. The move is a part of the company's plan to
monetize its non-core assets and improve the balance sheet to set the stage
for next phase of growth. The estimated realisation will be about Rs 2150
crore and is subject to shareholders' approval. On 29 March 2018 Tata
Power announced that its Board has approved the sale of its Defense
business to Tata Advance Systems Limited a wholly owned subsidiary of
Tata Sons at an enterprise value of Rs 2230 crore (out of which Rs 1040
crore payable at the time of closing and Rs 1190 crore payable on
achieving certain milestones) subject to Government & other approvals.
This is as part of the company's plan to monetize its non-core assets and
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wholly owned subsidiary Tata Power Renewable Energy Limited (TPREL) Corporate Social
Responsibility
has received a Letter of Award from Karnataka Renewable Energy
Development Limited (KREDL) to develop 250 MW (50 MW x 5 Nos) of NOTES
solar projects located in state's Tumkur district at Karnataka. On 27
September 2018 Tata Power and Hindustan Petroleum Corporation
Limited (HPCL) a Navratna Oil & Gas Public Sector Undertaking
announced the signing of a Memorandum of Understanding (MoU) for
setting up commercial-scale charging stations for Electric Vehicles at the
HPCL retail outlets and other locations across India. Tata Power and
HPCL through this new landmark MoU have agreed to collaborate in
planning development and operation of charging infrastructure for electric
vehicles (e-cars e-rickshaws e-bikes e-buses etc.) at suitable locations
across India. Both entities also intend to additionally explore areas of
opportunities & collaboration in related fields like Renewable Energy.
10.2 TOOLS FOR COMMUNICATING CSR (SKILL BUILDING):
SOCIAL MEDIA, FILMS AND REPORTS
CSR communication in the Social Media / social networks
Within the wide range of services offered on the Internet, the use of online
social networks has grown exponentially in recent years. Unlike websites,
these networks allow greater ease of access to dialogue and
communication among users. This is the age of Web 2.0, which offers
companies a number of possibilities in their management of CSR
communication and dialogue with their stakeholders. Web 2.0 refers to
applications that promote contents generated by the user, the sharing of
those contents and their collaborative creation (Coombs, 2012). The social
media stand out among these applications as one of the main founding
elements of this new generation known as Web 2.0 (Vinke, 2011). Social
media are based on web and mobile technology media that allow the
creation and exchange of contents generated by the user as well as social
interaction and communication (Burkhardt, 2009). These include online
social networks, blogs, localisation services, video sharing sites, etc.
(Gómez, 2012), online social networks being the ones that have undergone
the greatest growth in popularity (Vinke, 2011). Online social networks are
web services that enable users to build a public or semi-public profile
within certain limits or conditions of privacy that vary from one extent to
another depending on the social network. The main function that they offer
is that of connecting you with other users in order to share information and
to see contacts with other profiles, while yours can also been seen by
others (Boyd & Ellison, 2008). Some of the advantages offered by these
networks include their worldwide popularity, the low cost involved in
implementing them, instantaneous communication, the ease with which
real-time measurements can be made, etc. (Madinabeitia, 2010).
This evolution from Web 1.0 to Web 2.0 has gone hand-in-hand with an
increase in two-way communication over the Internet. This has opened up
new possibilities for CSR communication in companies. Online social
networks have contributed to the development and transformation of CSR
to such an extent that authors such as Visser (2010) call it the Age of CSR
2.0. The speed of communication and the connectivity of many actors
bringing different voices to the debate of CSR are what Castelló, Morsing,
and Schultz (2013) call the pluralisation process. Users of online social
networks, in general, are calling for a closer, more committed and Self-Instructional Material
transparent relationship with companies (Ros-Diego & Castelló-
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 Corporate Social Martínez, 2012). As a result, organisations have to go a step further with
Responsibility regard to online social networks. They need to enhance the CSR
communication of their responsible actions not only to generate a profit,
NOTES
but also as a way to contribute to their commitment to and promotion of
CSR (Ros-Diego & Castelló-Martínez, 2012). As a result of this, CSR
communication is no longer directed by organisations in the sense that best
serves their interests. Now the receivers, in this case consumers and other
stakeholders, have a greater capacity to control the message
(Hansen, 2012). These users call for companies to perform more
responsible actions and such demands become widespread in very little
time. Organisations must therefore be capable of enhancing the ties with
their users by building a social capital that yields benefits for all the parties
involved (Vinke, 2011).
Films
Documentary Films is a mediated storytelling genre and communication
practice shaped by the creative freedom of scripted entertainment
storytelling, alongside aspects of the research, reporting practices, and
outputs of journalism. Documentary, therefore, is both an artistic
expression and product, as well as reflection of truth. In this context, it can
also be understood as a mechanism for communication in pursuit of social
change and engagement with the public about topical issues. Documentary
storytelling in the United States and around the world is often produced by
independent filmmakers who are external to the decision-making
boundaries of formal media institutions. Independence permits often-
unseen perspectives to be reflected in the culture and enables community-
centered storytellers and collaboration. Documentary production practices
and audience accessibility have evolved in the digital era and consequently
so has the potential for nonfiction storytelling to actively engage publics.
As contemporary audiences are able to access documentaries in theaters,
TV, online streaming outlets, and social media channels, documentary
storytelling plays an influential persuasive role, shaping public opinion and
spotlighting social issues. Documentary is often leveraged as an advocacy
communication mechanism to raise awareness and advocate for change on
challenging social problems and issues. Historically, documentary
scholarship has resided primarily within film journals. However, as the
professional ecosystem around documentary storytelling as communication
mechanism has evolved, and as documentaries are more readily available
in the entertainment marketplace, scholars across disciplines increasingly
examine documentary influence and practices related to public
engagement. This article is not an exhaustive examination of documentary
storytelling as an art form, nor does it attempt to present all documentary
genres; rather, it locates documentary intentionally within communication
practice and available scholarship, while including core principles of
documentary as a media genre. The work also acknowledges that
documentary genres—within the context of communication and public
engagement—are not mutually exclusive. This article offers an overview
of documentary as a communication practice and source of contemporary
societal influence. It does so by presenting relevant literature within three
broad themes that reveal documentary as communication practice, not
simply documentary as entertainment or art form: cultural context and
production of documentary, contemporary documentary genres as
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which includes both media effects and grassroots community engagement.
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Across genres of documentary as communication, legal and ethical Corporate Social
Responsibility
challenges are crucial, given the centrality of both arenas to production,
distribution, and audience reception of artistic reflections of real life. NOTES

Reports
An Annual Report in today’s context has become an important
communication material. Some organisations use it for fund raising
activities, some as a need and request from funders, some to showcase key
activities and achievements of an organisation and some present it as a
technical report. It is called as a technical report, since it projects/states
different types of information, either domain-wise or project-wise. A
typical Annual Report often contains financial information, to include
Income and Expenditures. Whatever the reason, one should see the story
board of an Annual Report with a visual layout of pictures, images,
photographs and also include the required text.
At the Center for Science, Technology and Policy (CSTEP), a not-for-
profit organisation and one of the largest Think Tanks based in Bangalore,
India, an Annual Report is a technical report. However, it is designed to
share with audience from various backgrounds and experiences events,
mile stones achieved, impact studies made, innovations, new projects to
name a few.
The production of the latest Annual Report went through a systematic and
rigourous process to ensure that nothing was missed out. The process
began with identifying the audience. While it was accepted that the
primary audience would be CSTEP the larger and exterior audience would
be any one from – policy/decision makers both from the State and National
levels, to funders, consortium partners, ex-employees and acquaintances
and new visitors. For any communication material to go out to the public,
it is believed that the immediate audience (inner/organisation) need to
understand and accept what is going out to the public. There are 2 primary
reasons for this, one, by accepting what is being showcased in an Annual
Report, one primarily admits to having ownership, secondly, in most cases
all the employees become the spokespersons of an organisation. Since an
Annual Report is used as a communication tool, it is very important to
understand and accept the contents of the same.
10.3 DEVELOPMENT STRATEGIC PARTNERSHIPS
Strategic partnerships are often an ideal way to build brand traction,
expand your audience and customer base, access additional resources and
talent, and stimulate revenue growth without acquiring another company.
You can create a temporary brand partnership through a joint marketing
campaign. Also you can aim for a longer partnership (e.g., joint venture) to
create new products or services. I’ve worked in various partnerships
throughout my career.
Here are some tips to help you approach and manage partnerships in a way
that creates a win-win.
1. Define individual and mutual value: While a strategic partnership can
increase your brand value, don’t forget to assess your own value and
ensure it is recognized within the relationship. Defining value up front is
important to maintain equal footing and illustrate why the someone should
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work with you. Before you formalize a partnership, make sure you
understand the value you both bring, how that value is enhanced, and what
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 Corporate Social additional customer-centric value is generated through the partnership. If
Responsibility you don’t have those answers or they don’t add up, you shouldn’t proceed.
If you are satisfied, then it’s a strategic partnership that will likely deliver a
NOTES
solid return.
2. Identify a shared vision and principles: Create a written vision
statement and principles to guide everything you do together. Although
you are not forming a company, it helps to write this down and use it as a
foundation for how you will interact and collaborate. Think of it as a
temporary culture in place for the time period of the partnership. Also,
partnerships will have friction. You are both separate companies with
agendas and objectives that may not always mesh. This is where your
shared vision and principles will help. Consulted them when there is a
conflict to find common ground and negotiate through the differences.
3. Take your time and do it right: Any rushed relationship typically does
not go well — or last long. It’s okay to take time to get to know one
another and feel each other out. Spending time on a social and professional
level can help you understand each other’s quirks.
Conduct due diligence on each other, and have follow-up meetings until
each of you is satisfied it is the right decision to collaborate. Also, once
you are in the partnership, don’t rush to end it if you sense anything that
makes you uncomfortable. It will take time to get into a flow with each
other. If there are problems, talk them through rather than ditch the
partnership.
4. Create partnership parameters: The partnership should
have parameters on how you work with each other. This will bring
structure and meaning to the partnership. It will also minimize any
misunderstandings that could derail the value you are trying to create.
Parameters should be in the form of an agreement that describes the roles
and responsibilities of each partner. It should also list goals, success
metrics, and timelines to achieve certain milestones. It will also cover the
financial aspects and how the strategic partnership ends in terms of
estimated time frames and exit strategies.
5. Train, assess and communicate regularly: I’ve seen situations where
brands partner, decide on some tactics and assume it will just go as
planned. The better approach is to invest in training each other’s teams to
understand the brand benefits on an individual and mutual basis. Everyone
involved in the partnership should regularly communicate. This can be
accomplished through collaboration software and project management
apps, while maintaining regular meetings. Assessment is a must-have
strategy to ensure the tactics are doing what both brands want. This is
where metrics really help: If anything is not working, regular
communication can prove invaluable to help pivot as quickly as possible.
The integration of sales and marketing teams can also maximize the
resources used for deployment and changes.
Strategic partnerships allow you to play the field. Yes, it’s okay to create
more than one partnership at the same time — as long as it makes sense,
follows the above tips, and doesn’t undermine another partner. Most
brands understand the value of multiple partnerships, but tread carefully or
go in a different direction if you are considering strategic partners that
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could be competitors. Not every business will be in a position to take
advantage of strategic brand partnerships. If you are in the early stages,
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you may not have the value other brands seek. You also may not be Corporate Social
Responsibility
prepared to work with others if you need to build more internal experience
and knowledge about the industry and business operations. And that’s NOTES
okay. You can always circle back in the future and consider how a
strategic partnership can benefit your business in the long run.
Some other tips for Development strategic partnerships:
1. See beyond what's on the table. Imagine there is one chocolate chip
cookie on the table but everyone wants a piece. It’s warm, chewy and
calling you by name. OK, now imagine there is another whole sheet of
cookies baking in the oven. This is the best way I can describe the scarcity-
abundance theory. The bottom line is that when we enter strategic
partnerships, the dynamic plays out best when we come from a place of
abundance.
2. Be clear on your why. Often people enter into partnerships because
they don’t feel they have enough value on their own. Coming from this
place almost never creates a mutually beneficial relationship. The chance
of getting burned is almost guaranteed. Be clear on the value you bring to
the table. Be honest about why you're interested in creating a partnership
and what you bring to the table. Write down the answers to the
following: “Why does this relationship benefit my professional and
personal growth?” and “What do I expect to gain from this partnership?”
This is not a time to hash out your business plan or a mission and vision
statement. If you don’t have clear answers
3. Understand the why of your potential partners. Do not hesitate to ask
a potential partner why he or she is seeking to connect and what he or she
is hoping to gain. The answers are not always clear at the outset. Listen
carefully to what the other party is saying. Do you have the right chemistry
and a shared vision to make this relationship mutually beneficial? If you
sense resistance or a lack of clarity, postpone any decision making until
your questions are answered completely and you're confident this
relationship will be profitable and beneficial to you both.
4. Seek commonality and a shared vision. Certainly everyone comes
with different strengths and weaknesses, however, the best partnerships
work because the vision and values are shared as well as passion and
enthusiasm. These can carry the partnership through any sticking points in
negotiations. Remember, the best partnerships work most smoothly when
each party’s strengths shore up the connection to create elevated and
shared success.
5. Don’t rush the process. There is no need to hurry into a
deal. Sometimes enthusiasm and excitement can blind you to red flags and
foibles. Set a follow-up meeting to address next steps so as to be sure that
both parties are on board and equally committed. A lack of follow-through
by one party could mean stress and strain in the future. Judicious and
thorough planning are key.
6. Expect to be uncomfortable. When hashing out details about what
each party brings to the table, expect some push and pull. A lot of people
become uncomfortable with disagreement. Don’t let that be you. By being
prepared, you will be clear about where you stand firm and where you can
give way. Negotiation is a dance and as the saying goes, it takes two to Self-Instructional Material
tango. By holding on for a positive outcome, commit to moving through

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 Corporate Social sticking points with grace and tact. Expect win-win relationships. Initial
Responsibility enthusiasm can open the door but stick–to–itiveness seals a good deal.
NOTES 7. Write things down. Great partnerships require great protection. Seal all
agreements in writing to avoid messy breakups in the future. This is one of
the hardest conversations to have but by far the most important. A great
way to phrase this is to say, “I’m really excited about this partnership and I
think we will achieve great success together. Because I value our
relationship so much, let’s put our agreement in writing to protect our
interests and ensure our growth as partners. How does that sound to you?”
Granting yourself some protection by signing on the dotted line is
brilliance in action. Respect yourself enough to protect yourself and your
ideas. Contracts preserve relationships not destroy them.
If a possible partner bristles at signing anything in writing, thank your
lucky stars and walk away. Integrity includes clarity of principle. And an
agreement in writing seals a relationship and provides a level of security
and fairness that is priceless.
Check Your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. What do you know about TATA power?
2. Mentions the tools used for communicating in CSR?

10.4 LET US SUM UP

Every challenge becomes a learning curve to perform and outdo yourself

the next time. We realised that next time we will start collecting
information way ahead, which primarily means make you Database
Management more robust and up to date. Start collecting important
information (both text and images) in a separate folder (you can also create
sub folders for types of information). This will help you to retrieve
information quickly during production.

10.5 ANSWER TO CHECK YOUR PROGRESS

1. Tata Power Company Ltd is India's largest integrated private power

company with a significant international presence.
2. Social Media, Films and reports

10.6 UNIT END QUESTIONS

1. Write about TATA power
2. Explain the tools for communicating CSR
3. What are the key factors in development strategic partnerships?

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 Corporate Social
Responsibility
10.7 SUGGESTED READINGS
NOTES
https://styluspub.presswarehouse.com/browse/book/9781579227555/Creati
ng-Strategic-Partnerships
https://www.amazon.com/Strategic-Partnerships-Entrepreneurs-Ventures-
Alliances/dp/B006OI078C

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 Corporate Social
Responsibility BLOCK- IV CSR IN INDIA, LEGAL
NOTES PROVISIONS AND
SPECIFICATIONS ON CSR
UNIT- XI CSR IN INDIA: AN OVERVIEW
OF CSR, RULES UNDER
COMPANIES ACT 2013
Structure
11. 1 Introduction
11.2 An Overview of CSR
11.3 Rules Under Companies Act 2013
11.4 Let Us Sum Up
11.5 Answer to Check Your Progress
11.6 Unit End Questions
11.7 Suggested Readings
11.1 INTRODUCTION
The Corporate Social Responsibility concept in India is governed by
Section 135 of the Companies Act, 2013 and Rules made thereunder
wherein the criteria has been provided for assessing the CSR eligibility of
a company, Implementation and Reporting of their CSR Policies. India
having the most elaborated CSR mechanism and implementation strategy
has started its journey to set a benchmark in attaining sustainability goals
and stakeholder activism in nation building. The Companies Act, 2013
passed by the Parliament has received the assent of the President of India
on 29th August, 2013. The Act consolidates and amends the law relating to
companies. The Companies Act, 2013 has been notified in the Official
Gazette on 30th August, 2013. Some of the provisions of the Act have
been implemented by a notification published on 12th September, 2013.
The provisions of Companies Act, 1956 is still in force.
11.2 AN OVERVIEW OF CSR
In India, the concept of corporate social responsibility has developed in
phases. In the 19th century, business families like Tata, Birla, Godrej and
others were inclined towards social causes and they continue to do the
same now that too in a larger scale. Between 1960-80, when the Indian
companies were facing high taxes, licensing and restrictions, private
companies got involved in corporate malpractices. This is the time when
legislations on corporate governance, labour and environment issues were
enacted. CSR was also given a try to be implemented. Post-1980, when
licensing was reduced to a certain extent, companies became more willing
to contribute towards the social causes as corporate social responsibility.
The Companies Act, 1956 had clear provision for CSR but the new
Companies Act, 2013 makes CSR mandatory for companies which fall
within the ambit of section 135(1). The said section is to be read with the
Schedule VII and Companies (Corporate Social Responsibility) Rules,
2014.
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CSR in India has evolved through different phases, like community Corporate Social
Responsibility
engagement, socially responsible production and socially responsible
employee relations. Its history and evolution can be divided into four NOTES
major phases.
Phase 1 (1850 To 1914): The first phase of CSR is known for its charity
and philanthropic nature. CSR was influenced by family values, traditions,
culture and religion, as also industrialization. The wealth of businessmen
was spent on the welfare of society, by setting up temples and religious
institutions. In times of drought and famine these businessmen opened up
their granaries for the poor and hungry. With the start of the colonial era,
this approach to CSR underwent a significant change. In pre-Independence
times, the pioneers of industrialization, names like Tata, Birla, Godrej,
Bajaj, promoted the concept of CSR by setting up charitable foundations,
educational and healthcare institutions, and trusts for community
development. During this period social benefits were driven by political
motives.
Phase 2 (1910 To 1960): The second phase was during the Independence
movement. Mahatma Gandhi urged rich industrialists to share their wealth
and benefit the poor and marginalized in society. His concept of
trusteeship helped socio-economic growth. According to Gandhi,
companies and industries were the ‘temples of modern India’. He
influenced industrialists to set up trusts for colleges, and research and
training institutions. These trusts were also involved in social reform, like
rural development, education and empowerment of women.
Phase 3 (1950 To 1990): This phase was characterized by the emergence
of PSUs (Public Sector Undertakings) to ensure better distribution of
wealth in society. The policy on industrial licensing and taxes, and
restrictions on the private sector resulted in corporate malpractices which
finally triggered suitable legislation on corporate governance, labour and
environmental issues. Since the success rate of PSUs was not significant
there was a natural shift in expectations from public to private sector, with
the latter getting actively involved in socio-economic development. In
1965, academicians, politicians and businessmen conducted a nationwide
workshop on CSR where major emphasis was given to social
accountability and transparency.
Phase 4 (1980 Onwards): In this last phase CSR became characterized as
a sustainable business strategy. The wave of liberalization, privatization
and globalization (LPG), together with a comparatively relaxed licensing
system, led to a boom in the country’s economic growth. This further led
to an increased momentum in industrial growth, making it possible for
companies to contribute more towards social responsibility. What started
as charity is now understood and accepted as responsibility.
The list of activities is as follows:
Eradicating extreme hunger and poverty
Promoting education
Promoting gender equality and empowering women
Reducing child mortality and improving maternal health
Combating human immunodeficiency virus, acquired immune
deficiency syndrome, malaria and other diseases
Ensuring environmental sustainability Self-Instructional Material

Enhancing vocational skills

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 Corporate Social Promoting social business projects
Responsibility Contribution to the Prime Minister's National Relief Fund or any
NOTES
other fund set up by the Central Government or the State
Governments for socio-economic development and relief and funds
for the welfare of the Scheduled Castes, the Scheduled Tribes,
other backward classes, minorities and women, etc.
Under 135 (3), the Corporate Social Responsibility Committee should also
recommend the amount of expenditure to be incurred on the activities and
monitor the Corporate Social Responsibility Policy of the company from
time to time.
Under 135 (4), the Board of every company referred to in sub-section (1)
should approve the Corporate Social Responsibility Policy for the
company and disclose contents of such Policy in its report and also place it
on the company's website. The Board should also ensure that the activities
mentioned in the Corporate Social Responsibility Policy of the company
are undertaken.
Most importantly, under 135 (5), the Board of every company referred to
in sub-section (1), should ensure that the company spend at least two
percent of the average net profits of the company made during the three
immediately preceding financial years, in pursuance of its Corporate Social
Responsibility Policy.
11.3 COMPANIES (CSR POLICY) RULES, 2014
For decades, companies in India has been regulated and governed by the
outdated Companies Act, 1956. After years of debate and contemplation,
The Indian Parliament passed the New Companies Act, 2013. It is divided
into 7 schedules, 29 chapters and 470 sections.
It has brought various new features to corporate legislation which include
but are not limited to mandatory spending on Corporate Social
Responsibility of at least of 2% of net profit, curbing corporate
delinquency by introducing punishment for falsely including a person to
enter into an agreement with a bank or a financial institution to obtain
credit facilities, introduction of new entity called ‘one person company’,
simplified the procedure for mergers and acquisitions, limitation on the
number of companies in which the same auditor may be appointed,
strengthening the role of women by stipulating appointment of at least one
women director in the board room, limit in the number of maximum
partners etc.
The Companies Act, 2013 came into force on 12th September 2013. But
the provisions of section 135 relating to CSR came into effect on 1st April
2014. The features of Section 135 read with Schedule VII and (Corporate
Social Responsibility Policy) Rules, 2014 are described as below:
As per Section 135(1) of The Companies Act, 2013, “every company
having net worth of rupees five hundred crore or more, or turnover of
rupees one thousand crores or more or net profit of rupees five crores or
more during any financial year shall constitute a Corporate Social
Responsibility Committee of the board consisting of three or more
directors, out of which one director shall be an independent director.”
Thus, every company having net worth of rupees 500 crore or more or
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turnover of rupees 1000 crore of more or a net profit of rupees 5 crore or
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more in a financial year shall fall within the ambit of CSR provisions. This Corporate Social
Responsibility
particular provision is applied to all Indian Companies as well as Foreign
Companies. NOTES

The Rules clarify that:

those companies which cease to meet the contribution threshold for
three consecutive years are not required to have a CSR Committee
or to comply with the other requirements under section 135 until
they meet the threshold again;
any surplus arising out of CSR activities shall not be considered
part of a company’s business profit;
a company’s CSR policy shall specify the CSR projects and
programs to be undertaken, modalities of execution,
implementation schedules and monitoring processes;
companies may choose to conduct their CSR programs through
trusts, societies or charitable companies operating in India,
provided that if the entity is not set up by the company, its holding
or subsidiary or associated company, that entity has been carrying
out related activities for at least three years;
companies may collaborate or pool resources with other companies
to undertake their CSR activities, so long as the companies can
report separately on those CSR activities;
CSR activities must be undertaken within India;
activities that are for the exclusive benefit of employees of the
company or their families, contributions to political parties and
activities in the normal course of business are excluded from the
CSR spending; and
up to 5% of a company’s annual CSR expenditures may be used for
capacity building of the company’s own personnel or of their
implementing agencies.
The Rules also provide situations in which the composition of a company’s
CSR committee may differ from that stated in section 135; for example,
where a private company has only two directors on its Board, the CSR
committee will be composed of those two directors.
Also, Schedule VII of the Act, which lists the types of activities for which
CSR expenditures can be made, was amended. Activities have been both
added and removed from the original list and more detail has been
provided as to what types of activities are acceptable. For example, the
eradication of hunger and poverty now also includes “promoting
preventive healthcare and sanitation and making available safe drinking
water.”
CSR has gone through many phases in India. The ability to make a
significant difference in the society and improve the overall quality of life
has clearly been proven by the corporates. Not one but all corporates
should try and bring about a change in the current social situation in India
in order to have an effective and lasting solution to the social woes.

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 Corporate Social Check Your Progress
Responsibility
Note: a. Write your answer in the space given below
NOTES
b. Compare your answer with those given at the end of the unit.
1. Why was CSR introduced?
2. What does company’s act all about?
3. How many rules are in Company policy?

11.4 LET US SUM UP

This chapter helps us in understanding the historic background of CSR in
India and how was it carried out and implemented before the companies
act 2013. We also get to know the in-depth analogy on the companies act,
CSR policy rules and its nature in detail.
11.5 ANSWER TO CHECK YOUR PROGRESS
1. The purpose of corporate social responsibility is to give back to the
community, take part in philanthropic causes, and provide positive
social value. Businesses are increasingly turning to CSR to make a
difference and build a positive brand around their company.
2. The Companies Act, regulates the incorporation, responsibilities,
directors and dissolution of an organization in India. The newly
incorporated Act provides more power to the shareholders and
emphasizes more on Corporate Governance.
3. The Companies Act, 2013 has been notified on 30th August 2013 after
getting the assent of the President. The Act is having 29 Chapters, 470
sections and 7 schedules.
11.6 UNIT END QUESTIONS
1. Write of the history of CSR in India.
2. Short note on Companies act Rules 2013
3. CSR helps in many ways in building the communities: Justify
4. If you are to bring one change in the companies act 2013, what would
it be and why?
11.7 SUGGESTED READINGS
https://www.lexology.com/library/detail.aspx?g=c8fed18d-68e8-49ba-
b3ee-acd1775a10d4
https://www.csr.gov.in/Companies%20ACT%202013.php
https://cleartax.in/s/corporate-social-responsibility

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 Corporate Social
UNIT- XII LEGAL PROVISIONS AND Responsibility

SPECIFICATIONS ON CSR – NOTES

TCCI (TATA COUNCIL FOR

COMMUNITY INITIATIVES)
Structure
12.1 Legal Provisions and Specifications on CSR
12.2 TCCI (TATA Council for Community Initiatives)
12.3 Let Us Sum Up
12.4 Answer to Check Your Progress
12.5 Unit End Questions
12.6 Suggested Readings
12. 1 LEGAL PROVISIONS AND SPECIFICATIONS ON CSR
A company is responsible for the repercussions its activities have on the
community and it has to take the initiatives as responsibility to make good
for the harm done by it. The term corporate social responsibility is
synonymous with Corporate Citizenship. Corporate social responsibility
may also be referred to as “corporate citizenship” and can involve
incurring short-term costs that do not provide an immediate financial
benefit to the company but instead promote positive social and
environment change. The initiatives and efforts that a company takes as
part of corporate social responsibility are more than what is required by
environmentalist.
LEGAL VIEWS
The CSR committee of every company which fulfils the criteria specified
in sub-section (l) of section 135 is supposed to register a foundation/
institution for undertaking the CSR activities, either under the Trust Act,
Societies Act or the Companies Act.
Some of the highlights of the rules are as follows:
Programs benefitting only the company employees are not
considered as CSR activities. Hence the companies must be careful
is choosing programs or activities according to the schedule VII.
Money spent on capacity building of staff under the CSR banner
cannot exceed 5% of the expenditure
CSR expenditure shall include all expenditure including
contribution to corpus, or projects related to CSR. But caution
should be made to fall within the schedule VII purview.
Contribution made to any political parties cannot amount to CSR
activity
The Companies Rules, 2014 also gives provision for more than two
companies to collaborate and undertake CSR programs. The Board's
Report of company from the financial year 2014 shall include an annual
report on CSR. In case of a foreign company, the balance sheet shall
contain an annexure regarding report on CSR.

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 Corporate Social A format for the annual report given in the rules is presented below:
Responsibility
A brief outline of the company's CSR policy, including overview of
NOTES projects or programs proposed to be undertaken and a reference to the
web-link to the CSR policy and projects
The Composition of the CSR Committee.
Average net profit of the company for last three financial years
Prescribed CSR Expenditure
Details of money spent on CSR during the financial year
Amount unspent if any, reasons
Manner in which the amount spent during the financial year.
Society’s expectations are increasing towards the social development by
the companies. So, it has become necessary for the companies to practice
social responsibilities to enhance their image in the society. Even though
companies are taking serious efforts for the sustained development, some
critics still are questioning the concept of CSR. There are people who
claim that Corporate Social Responsibility underlies some ulterior motives
while others consider it as a myth. The reality is that CSR is not a tactic for
brand building; however, it creates an internal brand among its employees.
Indulging into activities that help society in one way or the other only adds
to the goodwill of a company. Corporate Social Responsibility is the duty
of everyone i.e. business corporations, governments, individuals because
of the reasons: the income is earned only from the society and therefore it
should be given back; thus wealth is meant for use by self and the public;
the basic motive behind all types of business is to quench the hunger of the
mankind as a whole; the fundamental objective of all business is only to
help people. CSR cannot be an additional extra - it must run into the core
of every business ethics, and its treatment of employees and customers.
Thus, CSR is becoming a fast-developing and increasingly competitive
field. Being a good corporate citizen is increasingly crucial for commercial
success and the key lies in matching public expectations and priorities, and
in communicating involvement and achievements widely and effectively.
After the enactment of the Companies Act-2013, it is estimated that
approximately 2,500 companies have come in the ambit of mandated CSR;
the budget could touch approximately INR 15,000 – 20,000 crores. It is
very likely that the new legislation will be a game-changer, infusing new
investments, strategic efforts and accountability in the way CSR is being
conceived and managed in India. It has opened new opportunities for all
stakeholders (including the corporate sector, government, not-for-profit
organizations and the community at large) to devise innovative ways to
contribute to equitable social and economic development. Currently, CSR
in India is headed in a positive direction as there already exists a multitude
of enabling organizations and regulatory bodies such as the Department of
Public Enterprises (DPE), Ministry of Corporate Affairs (MCA), and
Indian Institute of Corporate Affairs (IICA). These institutions have
already set the wheels in motion and are playing an important role in
making CSR a widespread practice and in ensuring success in reducing
inequalities without risking business growth.
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Benefits of A Corporate House Gets from Corporate Social Corporate Social
Responsibility
Responsibility
NOTES
1. Improves Public Image:
Positive social responsibility improves a company’s public image and
relationship with consumers. Companies that demonstrate their
commitment to various causes are perceived as more philanthropic
than companies whose corporate social responsibility endeavours are
non-existent. A corporation’s public image is at the mercy of its social
responsibility programs and how aware consumers are of these
programs. Remember, consumers feel good shopping at institutions
that help the community. Clean up your public image (and broadcast it
to the world!). Corporations can improve their public image by
supporting non-profits through monetary donations, volunteerism, in-
kind donations of products and services, and strong partnerships. By
publicizing their efforts and letting the general public know about their
philanthropy, companies increase their chances of becoming
favourable in the eyes of consumers.
1. Increases Media Coverage:
Having a strong CSR program can increase the chances that your company
gets news coverage. It doesn’t matter how much a company is doing to
save the environment if nobody knows about it. Companies need to form
relationships with local media outlets so they’ll be more likely to cover the
stories that particular company has to offer them. On the other hand, if a
corporation participates in production or activities that bring upon negative
community impacts, the media will also pick this up. Unfortunately, bad
news spreads quicker than good news. Media visibility is only so useful in
that it sheds a positive light on your organization.
2. Boosts Employee Engagement:
Corporate social responsibility helps attract and retain engaged and
productive employees. Employees like working for a company that has a
good public image and is constantly in the media for positive reasons.
Happy employees almost always equal better output. Nearly 60% of
employees who are proud of their company’s social responsibility are
engaged at their jobs. When companies show that they are dedicated to
improving their communities through corporate giving programs (like
matching gifts and volunteer grants!), they are more likely to attract and
retain valuable, hardworking, and engaged employees. If a corporation is
philanthropically minded, job-hunting individuals are more likely to apply
and interview for available positions. Once hired, employees who are
engaged will stay with a company longer, be more productive on a daily
basis, and will be more creative than disengaged workers.
3. Attracts & Retains Investors:
Investors care about corporate social responsibility and so should
companies. Investors who are pouring money into companies want to
know that their funds are being used properly. Not only does this mean that
corporations must have sound business plans and budgets, but it also
means that they should have a strong sense of corporate social
responsibility. When companies donate money to non-profit organizations
and encourage their employees to volunteer their time, they demonstrate to Self-Instructional Material

investors that they don’t just care about profits. Instead, they show that
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 Corporate Social they have an interest in the local and global community. Investors are more
Responsibility likely to be attracted to and continue to support companies that
demonstrate a commitment not only to employees and customers, but also
NOTES
to causes and organizations that impact the lives of others.
Benefits A Non-Profit Corporate House Gets from Corporate Social
Responsibility
1. Funding Via Matching Gift Programs: Matching gift programs have
the potential to double, and sometimes even triple, an organization’s
fundraising revenue. Corporations that offer matching gift programs
essentially double the donations that their employees are giving to eligible
non-profits. What more could an organization want? Truthfully, matching
gifts are a bit more complicated than that. Each company has a different set
of guidelines, deadlines, and requirements that must be met before they’ll
match an employee’s contribution to a non-profit. However, the
opportunity to receive twice as many donations still hangs in the air for
organizations looking to benefit from corporate social responsibility
programs.
2. More Volunteer Participation: Matching gift programs have the
potential to double, and sometimes even triple, an organization’s
fundraising revenue. Corporations that offer volunteer grants are
outsourcing helping hands to eligible non-profit organizations. A
corporation with this kind of program might offer (for example) $250 to a
non-profit once an employee has volunteered at least 10 hours with the
organization. There are also pay-per-hour grants that many corporations
offer that pay a certain amount per hour volunteered. This kind of socially
responsible program is a win-win for every party involved. Employees of
corporations are seen volunteering and donating their time to important
causes in the community, and non-profits are receiving free time and
volunteer work, which are essential for the success of so many non-profits.
3. Forging Corporate Partnerships: CSR brings non-profits and
companies together, creating strong partnerships between the two. Yet
another positive impact corporate social responsibility has on non-profit
organizations is the possibility of corporate partnerships. These
partnerships are vital to the work a corporation can do in the local
community and important to a non-profit that may not have the resources
for major marketing campaigns. For a non-profit organization, a
partnership with a local or national corporation puts its name on tons of
marketing materials that otherwise could not have been afforded on tight
budgets. A key benefit is that the partnership brings additional awareness
to the non-profit’s cause.
4. Varied Sources of Revenue: Corporate social responsibility programs
can be another source of revenue for non-profits. Non-profits cannot solely
rely on individual donations for support. Granted, individuals make up
roughly three-fourths of an organization’s total monetary contributions, but
this doesn’t mean that non-profits should discount corporations and
businesses as viable sources of revenue. In fact, companies with strong
corporate social responsibility programs are looking for non-profits to be
the recipient of grants, matching gift programs, and volunteer grant
programs. CSR initiatives can help non-profits make up that left over 25%
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 Corporate Social
12.2 TATA COUNCIL FOR COMMUNITY INITIATIVES (TCCI)
Responsibility
About TATA: Founded by Jamsetji Tata in 1868, the Tata group is a NOTES
global enterprise, headquartered in India, comprising 30 companies across
ten verticals. The group operates in more than 100 countries across six
continents, with a mission 'To improve the quality of life of the
communities we serve globally, through long-term stakeholder value
creation based on Leadership with Trust’.
Tata Sons is the principal investment holding company and promoter of
Tata companies. Sixty-six percent of the equity share capital of Tata Sons
is held by philanthropic trusts, which support education, health, livelihood
generation and art and culture.
In 2018-19, the revenue of Tata companies, taken together, was $113.0
billion (INR 792,710 crore). These companies collectively employ over
720,000 people.
Each Tata company or enterprise operates independently under the
guidance and supervision of its own board of directors. There are 28
publicly-listed Tata enterprises with a combined market capitalisation of
over $160 billion (INR 11,10,308 crore) as on March 31, 2019.
Companies include:
Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata
Consumer Products, Titan, Tata Capital, Tata Power, Tata Advanced
Systems, Indian Hotels and Tata Communications.
Tata Council for Community Initiatives (TCCI)
TCCI was established in 1994. TCCI's mission states: "We will work
together to be, and to be seen as, a group which strives to serve our
communities and the society at large". TCCI is also involved in assisting
Tata companies maintain sustainability reporting the guidelines of Global
Reporting Initiative (GRI). It is the focal point for the UN Global Compact
in India, which has 42 Tata companies as signatories, the highest in the
world from a single business group. In collaboration with the United
Nations Development Programme (India), TCCI has crafted the Tata Index
for Sustainable Human Development, aiming at directing, measuring and
enhancing the community work that Tata enterprises is undertaking for the
upliftment and welfare of the people.
TCCI – Tata council of community initiatives Created in early 90’s CII
(Confederation of Indian Industry) had approached Mr. J.R. D Tata and
Mr. R. N Tata for the same. The context was to see how Indian business
world respond to its responsibilities. Tata’s first decided to look into their
own group of companies first and design a framework for them. The
significance of can be seen from the involvement of the 2 senior directors
in charge of the project
It’s not just setting up foundation or trust to pursue philanthropic activities
but to embed TCCI into business. The theoretical concept of CSR needs to
be integrated into day to day activity. TCCI also helps in exploring
strategies that can lead to community development the methodology
adopted was not of forceful pushing down of norms but building a
consensus among the companies and creating a passion for inclusive
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 Corporate Social It was never about finding solutions to the ills but about creating sensitivity
Responsibility about them and sharing ideas and expertise to find the most feasible
solution. Over 28088 registered volunteers.
NOTES
Some of the key changes brought are: -
Setting goals and indicators of human development thus bridging
gap between everyday activity and overall growth.
Improve quality of life for all
All the efforts and stories are documented for future reference and
learning.
TCCI put together key perspectives and common threads and brought out
guidelines. Companies enlisted their core competencies to find imaginative
and creative ways to meet society needs. Example – TCS led an initiative
of adult literacy programme. TCCI took this at group level to take it across
9 states benefiting 1,11,265 people. MBBS course of Maharashtra
government has included a course on learning disability for helping
children with learning disability.
TCCI encouraged all major companies to uniformly adopt environmental
management system such as ISO 14000 series, the global reporting
initiatives, and SA 8000. It had an impact on over 85% of companies and
90% of employees.
This reinforces the belief that CSR is about building livelihoods. TCCI
helped to reorient programmes to encourage the creation of
microenterprises, self-employment, and to promote social
entrepreneurship. They did not help in providing eye operations, etc. but
they helped in forming SHG, increase income levels, provided skills, etc.
Early forms of CSR were financial grants for various causes  These were
to indicate the virtues of the company. Few instances e.g. BITS Pilani, the
approach was philanthropical.
Philanthropy Stakeholder
Programs in alignment with their vision and mission statement. Main
reasons for shifting were:
Confinement of investment.
Negligible Community participation
Low levels of accountability and transparency issues in
implementation phase.
Tata Index for Sustainable Human Development:
TCCI, in collaboration with the United Nations Development Program
(India), created the Tata Index for Sustainable Human Development. This
was aimed at directing, measuring and enhancing the community work that
group enterprises undertake. TCCI is also involved in assisting Tata
companies address the sustainability subject through the Global Reporting
Initiative, a United Nations initiative that has guidelines for companies on
social responsibility. The Tata Index for Sustainable Human Development
is a set of guidelines for Tata companies looking to fulfil their social
responsibilities. It has been built around the Tata Business Excellence
Model (TBEM), an open-ended framework that drives business excellence
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Tata Corporate Sustainability Policy Corporate Social
Responsibility
"No success or achievement in material terms is worthwhile unless it
NOTES
serves the needs or interests of the country and its people.”- J R D Tata
The corporate policy of the group encompasses the sustainable
development of all the stakeholders.
The major points included in the corporate policy are following:
Demonstrate responsibility and sensitivity to biodiversity and the
environment
Comply with rules and regulations relating to environment.
Constantly upgrade technology and apply state-of-the-art processes
and practices with institutional arrangements that will combat
larger issues like climate change and global warming.
Create sustainable livelihoods and build community through social
program pertaining to health, education, empowerment of women
and youth, employee volunteering,
Find ways to enhance economic human, social and natural capital
for bringing and maintaining a balance among business, society and
environment.
The Tata group sustainability policy articulates how Tata companies create
long-term stakeholder value by integrating economic, environmental and
social considerations. The policy will help Tata companies to integrate
sustainability considerations into all decisions and key work processes,
mitigating future risks and maximising opportunities. It embodies the
principles of product stewardship by enhancing health, safety,
environmental and social impacts of products and services across their
lifecycles. Further, under the policy, Tata companies commit to aspire to
global sustainability leadership in the sectors they operate in by
constituting a governance structure to oversee sustainability endeavours.
The governance process, under the aegis of the Boards, identifies relevant
sustainability issues and develops comprehensive sustainability strategies
with goals, targets, mitigation and adaptation action plans.
The Tata Sustainability Group (TSG) is a group-level resource that works
with Tata companies driven by a mission to guide, support and provide
thought leadership to all Tata group companies in embedding sustainability
in their business strategies and demonstrating responsibility towards
society and the environment. As the Tata group’s nodal resource on
sustainability, TSG performs several roles across the knowledge, advisory
and execution functions.
In its knowledge function, TSG brokers, manages and makes available a
range of information, best practices and tools. TSG advises the group and
group companies on various policies and strategies to review processes and
engage with stakeholders. TSG’s execution function covers three key
agendas which include implementing group CSR programmes like Tata
STRIVE, the group volunteering programme, Tata Engage, and responding
to humanitarian emergencies.

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 Corporate Social Check Your Progress
Responsibility
Note: a. Write your answer in the space given below
NOTES
b. Compare your answer with those given at the end of the unit.
1. What does TCCI mean?
2. Write on Companies act 2013.
3. Why is Tata sustainability policy formulated?
4. What is corporate citizenship?

12.3 LET US SUM UP

This chapter gives us an explanation about the legal provisions for
Corporate Social Responsibility in India and how it is to be implements
and reasons behind it to be made a CSR policy through Company’s law of
2013. It also draws attention towards various areas where the companies
should involve themselves n activities. We also understand the Tata
council of community initiatives, better their responsibilities and their
sustainability policies in detail.
12.4 ANSWERS TO CHECK YOUR PROGRESS

1. TCCI means, Tata council of community initiatives, formed in early

90’s. The context was to see how Indian business world respond to its
responsibilities. Tata's first decided to look into their own group of
companies first and design a framework for them.
2. Companies Act 2013, has brought various new features to corporate
legislation which include but are not limited to mandatory spending on
Corporate Social Responsibility of at least of 2% of net profit.
3. The Tata group sustainability policy articulates how Tata companies
create long-term stakeholder value by integrating economic,
environmental and social considerations. The policy will help Tata
companies to integrate sustainability considerations into all decisions
and key work processes, mitigating future risks and maximizing
opportunities.
4. Corporate citizenship refers to a company’s responsibilities toward
society. The goal is to produce higher standards of living and quality
of life for the communities that surround them and still maintain
profitability for stakeholders.
12.5 UNIT END QUESTIONS

1. What is TCCI and why was it formed?

2. Write down the list of areas allowed through CSR activities to carry
out.
3. State companies’ rules 2013 and explain its context of origin
4. Write the benefits of corporates and Nonprofit through Corporate
Social Responsibility.

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5. Write a note on TATA’s sustainability policy.

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 Corporate Social
12.6 SUGGESTED READINGS
Responsibility
http://www.legalservicesindia.com/article/2265/Corporate-Social- NOTES
Responsibility.html
http://www.tatasustainability.com/resources/TSGBrochure2015.pdf
https://www.researchgate.net/publication/268226026_Legal_Framework_
for_CSR_in_India

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 Corporate Social
Responsibility BLOCK- V
NOTES TATA MODEL ON CSR AND CSR
AWARDS IN INDIA
UNIT-XIII TATA MODEL ON CSR –
NATIONAL CSR HUB, TISS
MUMBAI – SUCCESS AND
FAILURE WITH CSR
INITIATIVES
Structure
13.1 CSR - TATA Group
13.2 TQMS
13.3 CSR Activities of Tata Companies for Social Development
13.4 National CSR Hub, TISS Mumbai
13.5 Success and failure with CSR initiatives
13.6 Issues Hindering the Corporate Social Responsibility
13.7 Let Us Sum Up
13.8 Answer to Check Your Progress
13.9 Unit End Exercise
13.10 Suggested Readings
13.1 CSR – TATA GROUP
Tata Group has adopted a three-pronged approach to fulfil its corporate
social responsibility goals “In CSR, at the group level we focus on three
broad areas: volunteering, disaster response and group programmes. Tata
volunteering initiative, Tata Engage, encourages Tata colleagues to
connect with society at large, to develop a deep understanding of our core
purpose to improve the quality of life of the communities we serve
globally,"
The corporate policy of the group encompasses the sustainable
development of all the stakeholders. The major points included in the
corporate policy are following:
Demonstrate responsibility and sensitivity to biodiversity and the
environment
Comply with rules and regulations relating to environment
constantly upgrade technology and apply state-of-the-art processes
and practices with institutional arrangements that will combat
larger issues like climate change and global warming
Create sustainable livelihoods and build community through social
program pertaining to health, education, empowerment of women
and youth, employee volunteering,
Find ways to enhance economic human, social andnatural capital
for bringing and maintaining a balance among business, society and
environment.

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Contributions for the National Development Highlights: Corporate Social
Responsibility
Tata Health Infrastructure
NOTES
Tata main hospital at Jamshedpur
ICU in Jodi and Balaguer
CHC in Bari and Kuhika
Hospitals in Gobarghati, Sukinda, Joda, Belpahar, Belipada and
Bamnipal
Lifeline Express
The hospital on wheels
Mobile health clinics
Centre for hearing impaired children
Tata Educational Infrastructure
Institute of mathematics
Sukinda college
Joda college centenary Learning centre at XI MB
J N Tata Technical Education centre
School of hope
Shishu Niketan
Balwadi schools assisted by Tata Steel
Tata Sports Infrastructure
Tata athletics academy
Tata archery academy
Tata Football academy
Tata steel adventure foundation
Sports feeder centres
Stadium at Keonjhar
Preservation of culture and Heritage
Contribution to setting up national Centre for performing arts
Mumbai.
Tribal cultural centres showcase legacy of nine tribes Jharkhand
and Orissa.
Gramshree mela activities.
In July 2004, B. Muthuraman, Managing Director, Tata Steel
Limited (TISCO) announced that in future TISCO would not deal
with companies, which do not conform to the company’s Corporate
Social Responsibility (CSR) standards. Speaking at the annual
general meeting of the Madras Chamber of Commerce and
Industry, He stated, "We will not either buy from or sell to
companies that do not measure up to Tata Steel's social
responsibility standards." 25487 International Journal of
Development Research, Vol. 09, Issue, 01, pp. 25485-25489,
January, 2019
Introducing changes in company’s articles (Clause Number 10) for
sustaining CSR. Amendments were made to the Articles of
Association of the major Tata group companies in the 1970s.
Newly included was an article stating that the "company shall be
mindful of its social and moral responsibilities to consumers, Self-Instructional Material
employees, shareholders, society and the local community. To
institutionalize the CSR charter, a clause on this was put into the
149
 Corporate Social group’s ‘Code of Conduct.' This clause states that group
Responsibility companies had to actively assist in improving quality of life in the
communities in which they operated. All the group companies
NOTES
were signatories to this code. CSR was included as one of the key
business processes in TISCO. It was one of the eight key business
processes identified by TISCO’s management and considered
critical to the success of the company.
13.2 TQMS
Tata Quality Management Services (TQMS – a division of Tata Sons) had
been entrusted with the task of institutionalizing the Tata Business
Excellence Model (TBEM). The TBEM provides each company with a
wide outline to help it improve business performance and attain higher
levels of efficiency and productivity. It aims to facilitate the understanding
of business dynamics and organizational learning. TBEM is a customized
to Tata adaptation of the globally renowned Malcolm Baldrige model.
TBEM model focuses on seven core aspects of operations: leadership,
strategic planning, customer and market focus, measurement, analysis and
knowledge management, human resource focus, process management and
business results. Performance is measured in absolute points; companies
have to achieve a minimum of 500 points (out of 1,000) within four years
of signing the BEBP agreement. TQMS helps Tata companies use the
model to gain insights on their business strengths and opportunities for
improvement. This is managed through an annual process of assessment
and assurance. The model, through its regular and calibrated updates, is
used by Tata companies to stay in step with the ever-changing business
environment.
13.3 CSR ACTIVITIES OF TATA COMPANIES FOR SOCIAL
DEVELOPMENT
1. TATA STEEL: Tata Steel has adopted the Corporate Citizenship
Index; Tata Steel spends 5-7 per cent of its profit after tax on several
CSR initiatives. This includes:
Self-Help Groups (SHG’s):
Over 500 self-help groups are at present operating under various
poverty minimizing programs; out of which over 200 are engaged in
activities of income generation thorough micro enterprises. Women
empowerment programs through Self-Help Groups have been extended
to700 villages. From the year 2003 to 2006, the maternal andinfant
survival project had acoverage areaof 42villages inGamharia block in
Seraikela Kharsawa and a replication project was taken up in Rajnagar
block. For providing portable water to rural communities 2,600 tube
wells have been installed for the benefit of over four Lakhs people.
Support for Social Welfare Organizations:
Tata Steel supports various social welfare organizations like;
Tata Steel Rural Development Society
Tribal Cultural Society
Tata Steel Foundation for Family Initiatives
National Association for the Blind
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 Centre for Hearing Impaired Children Corporate Social
Responsibility
Indian Red Cross Society, East Singhbhum
NOTES
Healthcare Projects: The healthcare projects of Tata Steel include
facilitation of child education, immunization and childcare, plantation
activities, creation of awareness of AIDS and other healthcare projects.
Economic Empowerment: A program aiming at economic
empowerment through improvised agriculture has been taken up in
three backward tribal blocks in Jharkhand, Orissa and Chhattisgarh,
and expected to benefit 40,000 tribal people living in over 400 villages
in these three States.
Assistance to government: Tata Steel has hosted 12 Lifeline Expresses
in association with the Ministry of Railways, Impact India Foundation
and the Government of Jharkhand. Over seven lakhs rural and another
seven Lac urban population have been benefited by the CSR activities
of Tata Steel.
2. TATA MOTORS:
Pollution Control: Tata Motors is the first Indian Company to introduce
vehicles with Euro norms. To make environment friendly engines it has
taken the help of world-renowned engine consultants like Ricardo and
AVL. It has manufactured CNG version of buses and also launched a
CNG version of its passenger car, the Indica. Over the years, Tata Motors
has also made investments in the establishment of an advanced emission-
testing laboratory.
Maintaining Ecological Balance: Tata Motors has planted 80,000 trees in
the works and more than 2.4 million trees have been planted in
Jamshedpur region. Over half a million trees have been planted in the
Poona region. The company has directed all its suppliers to package their
products in alternate material instead of wood. In Pune, the treated water
is conserved in lakes attracting various species of birds from around the
world.
Employment Generation the Tata Motors Grihini Social Welfare Society
assists employees’ women dependents; they make a variety of products,
ranging from pickles to electrical cable harnesses etc; thereby making them
financially secure.
Economic Capital For health, education and women empowerment in
rural areas In Lucknow, two Societies - Samaj Vikas Kendra & Jan Parivar
Kalyan Santhan have been formed.
Human Capital Through a scholarship program Idahoan, the company
supports 211 students. Out of these students 132 students are from the
marginalized sections of the society. The company has entered into
Public-Private Partnership (PPP) for upgrading 10 Industrial Technical
Institutes (ITI) across the country.
3. TATA CHEMICALS LTD (TCL):
Tata Chemicals Limited was also the first organization to run world’s first
hospital on wheels - the Life Line Express, through Jamnagar district for
the first time between November 21, 2004 and December 21, 2004. Tata
Chemicals is making an effort for sustainability. Sustainability for the
group means honesty and transparency towards stakeholders, Self-Instructional Material

environmental protection, generating economic value, promoting human

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 Corporate Social rights and creating social capital. All in all, they have the policy of 25488
Responsibility Rd. Humayun Rahman and Rd. Ram Singh et al. An overview of car taken
by tata group -avoid, reduce and reuse. The company runs a rural
NOTES
development program at Okahandja and Babrala.
4. TATA TEA:
Tata Tea has been working sincerely since the 1980s to cater the needs of
especially abled people. It has setup the Srishti Welfare Centre at
Munnar, Kerala; its various programs provide education, training and
rehabilitation of children and young adults with special needs. It has four
projects viz:
The DARE School providing the students with training in basic
academics, self-help skills and skills like gardening, cooking,
weaving etc.
The DARE strawberry preserve unit the trainees to preserve natural
strawberry are paid, they receive social cover, free medical aid and
other benefits.
Athaliah Provides vocational training to physically challenged
persons in the art of making recycled paper
Arana Disabled people are given training in various natural dyeing
techniques including block printing, batik work, etc.
5. TISCO:
It is the only Indian company trying to put into practice the Global
Compact principles on human rights, labour and environment. TISCO was
also conferred the Global Business Coalition Award in 2003 for its efforts
in spreading awareness about HIV/AIDS.
6. TELCO:
It has started community development activities for the benefit of TELCO
families and local residents in 1973 like: To help the families of
employees develop better living standards by organizing extension
education programs, training in various trades/skills and providing
opportunities to earn additional income. It is fighting against Leprosy at
Jamshedpur.
7. Tata Relief Committee:
Tata Relief Committee (TRC) works to provide relief at disaster affected
areas. During natural calamities there are two phases of assistance –
(a) relief measures and
(b) rehabilitation program.
After the Gujarat earthquake the group built200 schools in two years and
they rendered help during the Orissa floods when people lost cattle. Even
after the Tsunami disaster members of TRC immediately reached the
places and supplied the things required.

13.4 NATIONAL CSR HUB, TISS MUMBAI

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In March 2010, Department of Public Enterprises (DPE) issued a set of
guidelines on Corporate Social Responsibility in order to formalise the
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way CSR is done in the Public Sector Undertakings (PSUs). This move led Corporate Social
Responsibility
to the formation of National Corporate Social Responsibility Hub (NCSR
Hub) which would perform the following functions: NOTES

Nation-wide compilation, documentation, and creation of database

Advocacy and Research.
Preparation of Panels of Implementing organisations/ monitoring
and valuation Agencies.
Promotional activities, including production of short films, printing
of brochures, pamphlets etc.
Conferences, Seminars, Workshops - both national and
international.
Act as a Think Tank.
Any other matter as entrusted to it from time to time by the
Department of Public Enterprises (DPE).
The NCSR Hub was formally launched on 21st March, 2011 to focus on
the mammoth task of developing a strategic framework for CSR in India.
The Hub strives to assist an enterprise by guiding them towards
appropriate business processes and by building strategies to fulfil the social
responsibilities of an organisation which helps them evolve their
relationships with stakeholders for the common good, and demonstrates
their commitment by adoption of responsible business practices.
Tata Institute of Social Sciences National Corporate Social Responsibility
(CSR) Hub was set up to facilitate the development of a holistic and
relevant CSR approach, and provide common strategic directions and plans
for companies to achieve greater impact with their CSR initiatives.
13.5 SUCCESS AND FAILURE WITH CSR ACTIVITIES
SUCCESS WITH CSR INITIATIVES:
CSR for Company lies in their strategies and ordinary operations as
remarked by far most of the masters in the midst of the research. CSR in
Indian Industry needs a more broad look appeared differently in relation to
exchange parts where other than gathering engagements, more
noteworthiness ought to be given to issues, for instance, the kind of credit,
the bank is giving, to whom the credit is being given and specifically how
valuable is the money being used. CSR ought to be worked by Company in
their system, inward, instead of looking outside.
It is found in the audit that Company like Tata has grasped such a culture
where a whole division is overwhelmingly associated with towards Project
Management practices and budgetary examinations are coordinated. It has
a Carbon Disclosure Management System additionally in line to screen its
carbon outpouring. Mahindra and Mahindra Company too has
endeavoured a couple arranges as indicated for its situation examine
towards up liftmen of poor people and triple essential concern approach.
Tata Company has scored most critical to the extent its exertion,
presentation techniques, straightforwardness and obligation. BPCL
(BHARAT Petroleum Corporation restricted) is one among little Company
that has devised an alternate CSR presentation report which is exceptional
in case of modern Sector. The company nearby BPCL has done massively
well to impact its advantages inside the social estimations.
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153
 Corporate Social It is moreover imperative and highlighted in the research that few
Responsibility Company have set up an alternate Foundation of them to wear down CSR
and Sustainable Development issues. Some of these foundations are:
NOTES
Tata
Reliance
Larsen &Toubro
Few others like the Mahindra and Mahindra and BPCL add to CSR
through them beneficent trusts and society. As a fundamental analysis, it is
found that for some Company, CSR is all in all a Brand Building Exercise
instead of a vow, however the advancing competition and making a brand
in customers and distinctive accomplices’ eye too much shows up a win-
win condition for all.
As indicated, creating trusts and foundations, rather than alternative
markets like social endeavours, is a most adored course of CSR practice by
Indian companies. In an indistinguishable route from other distinctive
countries, the amount of foundations in India is expanding tirelessly in the
latest couple of decades. Various foundations have been set up to give
giving. A normal 100 corporate foundations are incorporated into CSR
practices in India. In any case, such trusts and foundations for the most
part work at a sheltered separation from the company, keeping the
mainstreaming of CSR into the middle business methodology and
confining CSR to gathering progression so to speak. On the off chance that
there ought to be an event of India, the research from substance analysis
done in light of CSR reports reveals that most existing CSR programs in
India have tended to focus on the overall public driven estimation with
element aggregate venture at all levels.
Overall, surmising out few Case Studies for example, it could be assumed
that the Industrial Industry Between 2013-14till 2015-16. India has grasped
CSR unequivocally and there is much care and relationship from this
Company towards Social Up liftmen and Commitment. Also, in light of
evidences, the research found that the Public Sector Company
(Nationalized COMPANY) had beaten the PRIVATE Sector Company in
India towards their devotion to general CSR mediations. Regardless, an
entrancing point to note is that the Public Sector Company are not found a
great deal to plug or brand their CSR demonstration when stood out from
the Private Sector Company which are get-together various respects in
print media and respect limits. Still, the general Indian Industrial Sector
has performed well starting late on their understanding and exercises
towards the social obligation. There are issues of concern where CSR
ought to be taken into the inside game plan of Industrial operations and
regular activities as opposed to taking Community based endeavours that
are more suitable to various sections like land, oil and gas and FMCG.
Keeping cash needs more social mindfulness towards Project Financing,
Social Investments and Utilization of Funds by end customers, which is a
bit of their system and a skilled undertaking.
Company also needs to splash up Global Declarations like that of the
Equator Principles, UNDP FI and so on expect an essential part in this as
to bring the dealing with a record industry under the scanner of national
and overall traditions that urges Company to look for after activities
towards CSR and Sustainable Development. In future to develop help
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enlistments as for CSR practices in Indian industrialize Community and
154
meanwhile it could be an eye-opener for some Indian Company who are Corporate Social
Responsibility
still not leap forward or sensitive towards the Social Community which are
just their energy or target customers. NOTES

The Company, who may take CSR as an element of their Strategy and
regular operations, are positively expected that would find a prevalent
picture among the overall population and a thick resource report toward
the end of looking for after year stood out from those rejecting the
commitment or escaping from gathering hypotheses. From now on, Indian
Company needs to figure out how to consolidate CSR as a part of their
Business Mission and their Vision.
CSR: A Failure
Mandating CSR for businesses will not do any good unless there are
proper mechanisms for its enforcement. One of the main hindrances that
stand in the way of effective CSR enforcement is finding credible projects
that the corporates can support. According to Guardian, bigger charities are
being flooded with money, while the smaller charities have to seek their
way for finding of funds due to which they lack the resources and capacity
to cope up with the company’s bureaucratic and operational demands.
According to KPMG Report, geographic bias with respect to the
company’s funding of CSR activities is also prevalent, as firms tend to
fund those projects that are closer to where they are based. This results in
industrialized areas getting preference over the poorer and underdeveloped
areas that are truly in need of some development and aid.
Fear that the companies would find their way to avoid shelling out money
for CSR activities has appeared to be well founded. A survey by
accountancy firm KPMG found that 52 of the country’s largest 100
companies failed to spend the required 2% last year. A smaller proportion
has gone further, according to an Economic Times investigation, allegedly
cheating the system by giving donations to charitable foundations that then
return the monies minus a commission. The main problem with the CSR is
the reported expenditure on the projects. Most firms don’t mention the
exact amount of expenditure spent by them on the CSR activities. Due to
this, it becomes very problematic for the government to comprehend the
exact amount of funds spent by the firms in this relationship because there
is evidence showing that the firms were initially spending less than 2%
increased their CSR activity, but those that were initially spending more
than 2% reduced their CSR expenditure.
But, even if we were to take the CSR expenditure at its face value and
assume the validity of all the numbers reported, there are still major issues
that are to be dealt with. An expenditure that does not lead to higher profits
for firms is treated as a tax by them. According to the KPMG, the
corporate tax rate in India i.e. 34.61% is one of the highest in the world,
compared to a global average of 24.09%. So, the CSR is viewed by the
firms as a 2% tax, albeit it is not paid to the government but many
companies consider the 2% CSR expenditure as another way of burning
their pockets.
Even though there has been a substantial increase in the social activities
incurred by the firms, but the spending has mostly gone to the set priorities
of the company rather than the democratically determined priorities. Of the
nine different schedules prescribed by The Companies Act, 2013 two Self-Instructional Material
schedules: combating various diseases and promotion of education

155
 Corporate Social accounted for 44% of the total CSR expenditure while reducing child
Responsibility mortality received no funding and eradicating extreme hunger and poverty
received only 6% of the total CSR expenditure.
NOTES
The fact that about 50% children in India are malnourished due to acute
poverty, relief and care only appears as a distant dream to them. It is the
government’s duty to determine and fulfil the needs of the society by
channelizing the funds of the public. With the CSR law, the government
has failed in one of its primary functions.
The issue of geographic inequity also needs to be taken into consideration
as there is a wide amount of gap in spending on CSR activities between the
states of India. For example, Maharashtra, Gujarat, Andhra Pradesh,
Rajasthan and Tamil Nadu account for well over one-quarter of all CSR
spending. Towards the bottom of the list are Nagaland, Mizoram, Tripura,
Sikkim and Meghalaya—all from the North-East.
This inequity reflects the interests and priorities of the business sector.
Therefore, it is the duty of the government to ensure that the society moves
towards a more egalitarian society.
13.6 ISSUES HINDERING THE CORPORATE SOCIAL
RESPONSIBILITY
The earlier government used to rely on legislation and regulations for
regulating the objectives of the business sectors. But, the reduction of
government involvement in CSR has resulted in the exploration of non-
voluntary actions.
To ensure that CSR becomes a success, it is necessary that there should be
a consensus among the local agencies. But, a lack of consensus, results in
duplication of activities by the corporates which further results in
generating a competitive spirit between the local agencies rather than a
collaborative approach.
The success fruit of CSR can only be plucked when there exists knowledge
about the CSR activities within the local communities. Since not much
efforts have been put in creating awareness about the CSR activities,
thereby it has resulted in a lack of interest on part of local communities in
participating towards CSR activities.
Also, there is non-availability of well-organized governmental or non-
governmental organizations in remote and rural areas. Due to the absence
of any proper authority, the needs of the rural people often get unnoticed
and there remains no proper authority along which a company can assess
and identify the needs of the society.
Further, the key to any successful CSR initiative is transparency, but there
are certain perceptions that partner NGOs or local agencies do not disclose
the information about their programs, address concerns, assess Impacts and
utilize funds. This lack of transparency creates an indelible impact on the
relationship and trust between the companies and local communities which
is the key to the success rate of any CSR initiative.
In order to ensure that the CSR activities are carried out in an efficient and
effective manner, it is necessary to ensure that each organization and
institution is well equipped with proper resources. But due to a dearth of
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trained and effective organizations, fulfilment of CSR initiatives, appears

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to be a distant dream. This results in the compromise and limitation of Corporate Social
Responsibility
various CSR initiatives.
NOTES
Various analysis shows that the law in its current form is failing to
promote healthy CSR initiatives due to its poor enforcement and lack of
clear obligations. The legal provisions related to CSR contains vague
language which results in a high degree of self-interpretation. Another flaw
from which the CSR has to struggle is that the Act doesn’t penalize a
defaulter and just allows them to walk away with an explanation regarding
their failure on CSR activities. This results in high corruption, low levels
of public confidence, low development and weak institutions.
Check your Progress
Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. What are the 3 approaches of Tata?
2. List down the initiatives of CSR at Tata Motors
3. Write on National CSR hub?
4. State a few reasons why CSR was a failure?

13.7 LET US SUM UP

This chapter elucidates the details of how and what CSR model is been
followed by Tata, what are the various initiatives and activities carried out.
We also understand the TISS Mumbai’s national CSR hub and its duty and
purposes. The chapter enlists the various impacts and failures of CSR with
the social realities and how they have navigated in the purpose forward or
vice versa.

13.8 ANSWER TO CHECK YOUR PROGRESS

1. In CSR, at the group level we focus on three broad areas:
volunteering, disaster response and group programs, Tata Engage and
Tata Volunteering Initiative.
2. Initiatives taken by tata motors are, Pollution Control, Maintaining
Ecological Balance, Employment Generation, Economic Capital For
health and Human Capital.
3. NCSR Hub plays an instrumental role in shaping CSR landscape in
the country through its extensive research and knowledge-based
advisory services. National CSR Hub has been positioned to facilitate
CSR engagement of corporates. The Hub has set up ‘Capacity
Building and Training Vertical’ that extends learning support to CSR
leaders and professionals through various initiatives.
4. The success fruit of CSR can only be plucked when there exists
knowledge about the CSR activities within the local communities.
Since not much efforts have been put in creating awareness about the
CSR activities, thereby it has resulted in a lack of interest on part of
local communities in participating towards CSR activities.
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 Corporate Social 13.9 UNIT END QUESTIONS
Responsibility
1. Write on the CSR initiatives by Tata Group?
NOTES
2. Note on the issues hindering the corporate social responsibility.
3. Explain impacts and failures of CSR in India
4. Write in detail on Tata’s infrastructure in health and Education.
5. If you are in charge of a company’s CSR initiatives, what would be
the activities you will carry out and why?
3.10 SUGGESTED READINGS

https://www.researchgate.net/publication/334416766_AN_OVERVIEW_
OF_CSR_TAKEN_BY_TATA_GROUP
https://shodhganga.inflibnet.ac.in/handle/10603/208621
https://blog.ipleaders.in/csr-triumphs-failures/

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 Corporate Social
UNIT-XIV CSR AWARDS IN INDIA - Responsibility

ROLE OF SOCIAL WORKER NOTES

IN CSR
Structure
14.1 CSR Awards in India
14.2 Role of Social Worker In CSR
14.3 Let Us Sum Up
14.4 Answer to Check Your Progress
14.5 Unit End Exercise
14.6 Suggested Readings
14.1 CSR AWARDS IN INDIA
India is the first country to make the Corporate Social Responsibility
(CSR) mandatory in 2014 following an amendment to the Companies Act
2013. Before the Companies Act 2013, it was purely the company’s choice
whether to involve in CSR activities or not. With the amendment all the
companies with a minimum net worth of INR 500 crore, turnover of INR
1,000 crore, or net profit of Rs 5 crore are required every year to spend at
least 2% of their average profit for the previous three years on CSR
activities. It has been five years since the law came into action and in order
to commemorate the efforts taken by the companies the government
announced the National CSR Awards. The government of India hosted the
first National Corporate Social Responsibility Awards (NCSRA) on 29th
October 2019 in New Delhi. It was instituted by the Ministry of Corporate
Affairs to recognize companies for their outstanding contribution in area of
Corporate Social Responsibility (CSR) to achieve inclusive growth and
inclusive and sustainable development. These awards are the highest
recognition in the field of CSR given by the Government of India and was
given by the President of India, Shri Ram Nath Kovind. This year 528
entries were received for NCSRA. After shortlisting, 131 companies were
invited for detailed submissions which were then followed by field
verification of the claims made by the companies. Based on the
submissions by the companies and reports of the independent assessment
by CSR experts, Jury recommended 19 winners and 19 honorable
mentions across the three award categories.
The 3 award categories were:
1. Corporate Awards for Excellence in CSR
2. Corporate Awards in CSR in Challenging Circumstances
3. Up to Eleven Awards to be given based on contribution to National
Priority Schemes so as to motivate corporates to spend in these areas
India CSR has sought nominations for the prestigious Corporate Social
Responsibility (CSR) awards that will recognise companies that have made
a positive impact through such activities.
8th edition of prestigious India CSR Awards that recognise excellence in
corporate social responsibility is here! The prestigious award recognises
the most admired and outstanding CSR initiatives in the country and
acknowledges the notable contributions that are raising benchmarks by Self-Instructional Material
bringing transformative change in the society through innovation and
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 Corporate Social excellence. The Award Ceremony will be held in Mumabi during the
Responsibility mega India CSR Leadership Summit – CSR for SDGs Goals in the month
of May 2020. The India CSR Awards 2020 seeks to recognise the
NOTES
companies that have positively impacted both business and society by
taking a strategic approach to CSR through collaborative programme.
Nominations Open
The Awards with more than 20 categories is open to all companies
registered in India. It is open for nomination by all companies, corporate
funded foundations and partnerships. We invite your organisation to be the
part of the 8th edition of India CSR Awards 2020 in respective categories.
Your organizations will be invited to present a case study before the jury
or jury will be visiting the CSR Project locations and will have interaction
with CSR management.
We have received nominations on various successful programmes from
esteemed organisation across the nation for India CSR Awards 2020.
1. Ashok Leyland
2. Village Social Transformation Foundation (Govt. of Maharashtra)
3. Pernod Ricard India Private Limited
4. Mahindra Rural Housing Finance Limited
5. Mahindra Insurance Brokers Ltd.
6. CybageAsha Trust – Cybage Software Pvt. Ltd.
7. Khushboo Charitable Trust
8. ReNew Power Pvt Limited
9. Dharampal Satyapal Limited (DG Group)
10. Dabur India Limited
11. Jagran Pehel
12. Serve Samman
13. EPAM Systems India Private Limited
14. Perfetti Van Melle India Private Limited
15. Godfrey Phillips India Limited
16. Hindalco Industries Limited
Ministry of Corporate Affairs, Government of India has instituted National
Corporate Social Responsibility (CSR) Awards to recognize companies
that have made a positive impact on the society through their innovative &
sustainable CSR initiatives. This award is the apex recognition of CSR
initiatives in India. Recognize the companies that have positively
impacted both business and society by taking a strategic approach to CSR
through collaborative program. Recognize the companies that are leading
transformation by integrating sustainability in their core business model.
Recognize companies for implementing measures for conservation and
sustainable management of the biodiversity and ecosystem in the value
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technologies that will help to build a robust CSR programs to further the
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cause of inclusive and sustainable development. With the enactment of Corporate Social
Responsibility
Companies Act, 2013 containing the CSR provision under Section 135, the
mandate for CSR has now become a part of corporate governance. NOTES
Schedule VII of Companies Act, lists the activities to be undertaken under
CSR by the companies as per the prescribed thresholds. The CSR
activities, undertaken by the private and the public sector companies, are
now expected to have strategic approach as opposed to mere charity,
donations etc. and to bring innovative solutions to development issues.
National CSR Awards seeks to recognize outstanding CSR projects /
programems in following three categories:
i) Four awards for Excellence in CSR, based on CSR spend
ii) Five awards for CSR projects in Aspirational Districts/ difficult terrains
iii) Eleven awards for CSR projects in National Priority Areas
Three awards, one each in above three categories are reserved for Micro,
Small and Medium Enterprises (MSMEs)
First National CSR Awards was successfully carried out in the year 2019,
winning and honourable mention companies were conferred awards in
different categories in the presence of Hon’ble President of India, Hon’ble
Minister of Finance and Corporate Affairs and Minister of State for
Finance and Corporate Affairs on 29 October 2019. Nominations are now
invited for National CSR Awards 2020. In accordance with the Scheme of
National CSR Awards, only following organizations have been designated
to make nominations under different categories of the awards:
Ministries/ Departments of Government of India
State Governments & Union Territory Administrations
Professional Institutions: ICSI, ICAI, ICMAI
National Level Trade and Industry Chambers
14.2 ROLE OF THE SOCIAL WORKER
The transformation from industrial social work to corporate social
responsibility points out a definite shift in the realm of social work, goal,
objective and priorities of business. Over the past several decades social
workers around the world have successfully been able to integrate with the
modern production and business processes, particularly in addressing the
emergent needs of the industrial population like those arising out of the
psychosocial impact of workforce alienation, over-specialization,
competitiveness, and stress and fatigue on their life. Over all these years,
as there has been a major transformation in defining human beings in the
context of business from human resource to human capital, the corporate
has also been restructuring its role in revitalizing its human resources
alongside taking care of the vast external stakeholders (customers) through
its new slogan of ‘corporate social responsibility’. But this new
configuration lends itself to the process of self-examination and the litmus
test remains. Is corporate social responsibility a new area structured to
delineate the corporate's idea of greater variety of social services for
humankind; or just one more catchphrase used to establish the fact that
business houses are doing ‘a lot more’ than mere expansion of industrial
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social work; or has there been a change in the principal objective and
priority of the corporate at the back of starting these programmes.
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 Corporate Social Corporate social workers take on many roles, including some of the
Responsibility following:
NOTES Managing Corporate Social Responsibility
Corporate Officers
Life Management
Human Resources
Companies often find that social workers’ training in social justice issues
make them the right fit for carrying out their CSR plans. As a result, many
larger firms will hire a director or manager of corporate social
responsibility. Having a social worker at a high level in a corporation,
with social workers as corporate officers, could have helped some large,
prominent companies avoid the scandals that have plagued them in recent
years, and could have prevented the accompanying bad press. Today,
firms are learning that lesson.
Some companies are hiring social workers for nontraditional roles:
Wells Fargo Bank has hired social workers to focus on life management
issues, such as the financial challenges associated with aging. Google has
hired a social worker to review privacy and user policies. Other tasks that a
social worker can help carry out include conducting community needs
assessments, which will help a company decide which philanthropic
activities would be most beneficial to the area in which it is located. As the
appetite for corporate volunteerism increases, the role of social workers
becomes more essential. They can help assess the key needs—and
deficiencies—of the community, and see where those needs align with the
values of the company.
The Transition from Social Work to Human Resources:
Trained social workers have skills that are easily transferable to the
corporate world; this is especially true in the area of human resources.
Why do human resources professionals with degrees in social work
succeed? The reasons are many.
Since social workers often study diversity and inclusion, they might be
better prepared to help a company hire a workforce that reflects the
diversity of society at large
Since social workers are often trained in providing therapy, they could
be best suited to deal with harassment or discrimination claims
Additionally, as social workers are adept at understanding
relationships, interpersonal dynamics and human behavior, they can
coach workplace groups to increase productivity and fulfill short- and
long-term objectives
Social workers are also skilled at helping companies manage change— for
example, helping navigate the challenges that arise when a merger between
two companies, with two different cultures, takes place. Social workers are
trained in the concept of systems theory and, further, to recognize how
small changes in one part of a system creates alterations in other parts of
the system. Companies are increasingly aware that, to have a financially
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healthy organization, their workforce likewise must be healthy. Many

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companies hire occupational social workers to help make workplaces safer Corporate Social
Responsibility
and help employees find work-life balance.
NOTES
Research study: To an increasing degree, occupational social workers help
formulate employee assistance programs (EAP) that offer assessments,
counseling, and referrals to workers who have challenges at work or in
their personal lives, and to identify and address “stressors.” Studies
conducted in 2009 found that three-quarters of U.S. organizations had
some form of EAP for their workers. More recent EAP services offered by
company-hired social workers include crisis management, training and
education on mental health problems, elder and childcare issues. They also
help employees deal with substance abuse, domestic violence, divorce or
military deployments. Other tasks carried out by social workers include so-
called “360-degree evaluations,” which enable individual workers to
receive feedback from co-workers, superiors and clients.
Through 360-degree evaluations, employees can see where their skills
and behaviors align with the goals and values of the corporation: Social
workers may be called upon to evaluate the organization as a whole,
carrying out a systematic overview of the company’s work environment,
processes, problem-management and organizational structure.

Check Your Progress

Note: a. Write your answer in the space given below
b. Compare your answer with those given at the end of the unit.
1. India is the first country to make the Corporate Social Responsibility
(CSR) mandatory in the year ____________
2. When and where did the government of India hosted the
first National Corporate Social Responsibility Awards (NCSRA)
3. Expand EAP
4. State a few words about the first national CSR awards.

14.3 LET US SUM UP

To sum up, according to the national association of social workers (nasw),
“the primary mission of the social work profession is to enhance human
well-being and help meet the basic human needs of all people, with
particular attention to the needs and the empowerment of people who are
vulnerable, oppressed, and living in poverty….” Paypal “give teams” take
part in worldwide community-based non-profit groups to improve the
communities where they live and work. Hormel foods are committed to
creating a culture of inclusion and diversity in its global workforce. The
demand for social workers in the economy as a whole is anticipated to
grow. Last year, the bureau of labor statistics predicted growth of nearly
11% in the field by 2028.
14.4 ANSWER TO CHECK YOUR PROGRESS

1. India is the first country to make the Corporate Social Responsibility

(CSR) mandatory in 2014.
2. The government of India hosted the first National Corporate Social Self-Instructional Material
Responsibility Awards (NCSRA) on 29th October 2019 in New Delhi.
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 Corporate Social 3. EAP -employee assistance programs
Responsibility
4. First National CSR Awards was successfully carried out in the year
NOTES 2019, winning and honourable mention companies were conferred
awards in different categories in the presence of Hon’ble President of
India, Hon’ble Minister of Finance and Corporate Affairs and Minister
of State for Finance and Corporate Affairs on 29 October 2019.
14.5 UNIT END QUESTIONS
1. Explain the CSR awards in India.
2. Highlight the role of Social Worker in CSR
14.6 SUGGESTED READINGS
Benioff, Marc (2004), ‘The Future of Corporate Social Responsibility’,
Economist, 22 January.
Cowe, Roger (2003), ‘Performance Management: Verifying the Facts is a
Difficult Task’, Financial Times, 29 September, 4.
Heyman, Margaret M. (1971), ‘Employer-sponsored Programs for Problem
Drinkers’, Social Casework, November, 547–52.
Jones, Otto F. (1975), ‘Insight: A Program for Troubled People’, in
Richard L. Williams, and Gene H. Moffat, eds, Occupational Alcoholism
Programs, pp. 257–58 (Springfield, IL: Charles C. Thomas).

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