Presented by
Piyush Kumar
MBA II SEM
Also known as corporate responsibility / corporate citizenship / responsible
business / sustainable responsible business (SRB) or corporate social
performance
A form of corporate self-regulation
CSR is the deliberate inclusion of public interest into corporate decision-
making, and the honoring of a triple bottom line:
People
Planet
Profit.
Business would embrace responsibility for the impact of their activities on
the environment, consumers, employees, communities, stakeholders and all
other members of the public sphere.
A survey carried out by The Times foundation in
2008, revealed that over 90% of Indian
organizations were involved in CSR
initiatives in areas like: -
Education
Health
Livelihood creation
Skill development and
Empowerment of the women.
Multiple Responsibilities of Business
Economic Legal
Responsibility Responsibility
Social
Responsibility
Social Responsibilities...
An organization’s obligation to maximize its positive
impact on stakeholders and to minimize its negative
impact.
Includes legal, ethical, economic, and
philanthropic (discretionary) dimensions
Refers to obeying governmental laws and
regulations
Civil law: rights & duties of individuals and
organizations
Criminal law: prohibits specific actions and
imposes fines and/or imprisonment as
punishment for breaking the law
Behaviors and activities that are expected or
prohibited by organizational members, the
community and society .
Standards, norms, or expectations that reflect
the concern of major stakeholders
How resources for the production of goods and
services are distributed within the social
system?
Do you think consumers favor socially
responsible companies or are they most
enamored with companies that maximize
profits?
Pros and Cons
of
CSR
Arguments for corporate Arguments against corporate
social responsibility social responsibility
Balances corporate power Lowers economic
with responsibility. efficiency and profit.
Discourages government Imposes unequal costs
regulation. among competitors.
Promotes long-term profits Imposes hidden costs passed on
for business. to stakeholders.
Responds to changing Requires social skills business
stakeholders’ demands. may lack.
Corrects social problems Places responsibility on business
caused by business. rather than individuals.
Views of CSR
The shareholder view
• The only social responsibility of business is to create shareholder
wealth.
• Corporate management cannot decide what is in the social
interest.
• The costs of social responsibility which do not increase the value
of stock, will be passed on to consumers.
The multiple stakeholders view
• All customers and employees must be treated with dignity.
• Relationships with suppliers must be based on mutual trust.
• Belief in fair economic competition.
• Business can contribute to social reform and honour human
rights.
Human resources
A CSR programme can be an aid to recruitment and retention particularly within
the competitive graduate student market. CSR can also help to improve the
perception of a company among its staff, particularly when staff can become
involved through
• payroll giving
• fundraising activities
• community volunteering.
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition that
can separate them from the competition in the minds of consumers. CSR can
play a role in building customer loyalty based on distinctive ethical values
CSR’s 2 Aspects.
To reduce the negative effects caused by its products and processes on the
environment,
Positive steps a company must take using its resources and core competence for the
benefit of society.
FACTS:
The results of the ratings for 2008 show that 49% of the companies are not doing
any CSR activity.
Just 1% or 10 of the 1000 largest Indian companies studied have got the highest
rating of Level 4.
Companies that have got a Level 4 rating are:
• ACC
• Ballarpur Industries
• HDFC
• Infosys Technologies,
• Jubilant Organosys
• Kansai Nerolac
• Moser Baer
• TCS
• Tata Steel
• Titan Industries.
Recommendations to companies for CSR’,
1) A company must spend a minimum of 0.2% of
annual sales on CSR
2) A company must publish its CSR activities in the
annual report, or in a separate Sustainability Report
3) Following International guidelines for Environment,
Health and Safety.
• A US $28 billion corporation.
• In the league of Fortune 500 companies.
• An extraordinary force of 100,000 employees, belonging to 25 different nationalities.
• "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times
and Wall Street Journal Study 2007.
• Over 50 per cent of its revenues flow from its overseas operations.
The Group operates in 25 countries — India, UK, Germany, Hungary, Brazil, Italy, France,
Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,
Philippines, Dubai, Singapore, Myanmar, Bangladesh
Beyond business — the Aditya Birla Group is:-
:: Working in 3,700 villages
:: Reaching out to seven million people annually through the Aditya Birla Centre for
Community Initiatives and Rural Development.
:: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing
social causes
:: Running 41 schools and 18 hospitals
A message "We care".
Income 2008-2009 = Rs 815 Cr (rounded off)
Net profit after tax (08-09) = Rs 75 Cr (rounded off)
CSR Rating- 3/5
CSR activities:
•Mangrove conservation has been the key focus of the Environment Cell.
•The residential township and community
•Focusing on environmental education
• Godrej has successfully oriented thousands of school, colleges ,through their Mangrove
Awareness Programs.
Godrej has formed specialist group:
The Envirotech Group – for pollution-reduction.
The Encon Group – for energy conservation.
Garden Deparment - which looks after the natural environment.
Income 2008-2009 = Rs 14000 Cr (rounded off)
Net profit after tax (08-09) = Rs 3500 Cr (rounded off)
CSR Rating-4/5
CSR activities:
Sharing Wealth to Diminish Disparities
Free medical aid in 1915.
Education.
Income generation for tribals.
Health care.
Health care awareness including eye care, tuberculosis treatment, general health
awareness, HIV/AIDS Awareness and Mother and Child survival programmes.
Ongoing Programmes
•Mother and Infant Survival Programme Population Stabilisation
•Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent
Reproductive Services.
•Specifically targeted programmes on HIV and AIDS.
•Project "WATSAN" for Water and Sanitation Free Health Checkups for Women at
Surya Clinics
•Pioneer in Family Initiatives and HIV/AIDS Awareness Ringing the first alarm bell for
Coca-Cola have invested in various recycling activities
and modified their packaging to minimize its
environmental impact.
HDFC has started a ‘village adoption’ scheme to improve
the investment climate in Indian Villages.
Co’s. Not Performing CSR Activities
(All these listed companies have scored 0 /5 in CSR)
Airports Authority of India - New Delhi
Aurobindo Pharma Ltd - Hyderabad, (AP)
Berger Paints India Ltd - Kolkata,(W.B)
Bharat Sanchar Nigam Ltd - New Delhi
City Union Bank Ltd – Kumbakonam (T.N )
Exide Industries Ltd - Kolkata,W.B
LIC Housing Finance Ltd – Mumbai (Mah)
Moser Baer India Ltd – Delhi
Unitech Ltd - Gurgaon, (Har)
Social responsibility help an organization to
Increase its efficiency besides minimizing
its risks. They are the best ways to restore
public confidence in an organization and
build a prosperous future.
