Professional Documents
Culture Documents
Definition of CSR
Corporate Social Responsibility can be defined as the ethical behavior of business towards its constituencies or stakeholders.
Corporate Social Responsibility is a concept that organizations, especially corporations, have an obligation to consider the interests of customers, employees, shareholders, communities, and ecological considerations in all aspects of their operations.
2nd Concept :
A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.
Stake Holders
Primary Stakeholders Shareholders Secondary Stakeholders Local, state and union Govt Special Interest Parties Trade and Industry Groups
Employees
Business Partners
Regulatory Bodies
Civic Institutions
Media
Competitors
Communities Natural environment Bankers, lenders, and those providing Insurance Customer
UN Global Compact
1)Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. 2)Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Contd .
Principle 4: Elimination of all forms of forced and compulsory labour. Principle 5: Effective abolition of child labour. Principle 6: Elimination of discrimination in respect of employment and occupation. 3)Environment Principle 7: Businesses should support a precautionary approach to environmental challenges
Contd .
Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility; and Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies 4) Anti-corruption Principle 10: Businesses should work against all forms of corruption, including extortion and bribery
Pyramid of CSR
Why CSR ?
The Companies have a responsibility for their impact on society and natural environment, sometimes beyond compliance and liability of individuals. The companies have a responsibility for the behavior of others with whom they do business (for example with supply chain) and Business needs to manage their responsibility with wider society, whether for reasons of commercial viability, or to add value to the society.
CSR is not an optional add-on to business core activities but about the way in which business is managed.
Cultural Traditions
International Pressure
Investment incentives
Government Initiatives
Stakeholders activism
Supply Chain
Models of CSR
Model Focus Constructed and Championed by M.K.Gandhi Ethical ( Trusteeship) Voluntary commitment by Businessmen to public well being
State Ownership and legal Jawaharlal Nehru requirements determine corporate responsibility
Corporate Responsibility limited to private owners (Shareholders) Companies respond to the need of stakeholders Customers , employees, communities etc. Milton Friedman
Stakeholder
R.Edward Freeman
Corporate Giving
Health
Gender equality
Labour Standards
Issue
Company
Human Capital
Infosys
Contd
Action
Environmental Management
Energy Conservation
Reliance
Pioneering evaluation of Human Capital using an education index for its employees. All units in this company are certified to the ISO 14001 environmental management system. Energy conservation measures are saving the company 1150 million rupees per anum. Reduced flushing WC is estimated to save 2 billion litres of water. First Indian company to publish a sustainability report in line with Global Reporting Initiative Guidelines
Water Conservation
Disclosure
Free Enterprise and Competition Business of business is business Individual responsibility Advertising and self interest Denial or prove it Shareholder Value Peripheral Rule of Society
Guarantee + ve good
Precautionary Approach
Integrated risk Management Substantive ongoing dialogue Impact and outcome or you are Profitability and Cost effectiveness Main stream business process Societal well being
Social Reporting
Indicators or we are
Negative
Suppresses all discussion of responsibility issues
Positive
No Fixed policy
Active
Upgrades business to ensure high social responsiveness.
Pro- Active
Structures organization around trying to shape as well as anticipate emerging social issues Tries to shape future CSR- related taste development.
Market
Polity
Evades law and regulation : lobbies against legislation Rejects and contests any assertion that value consideration .
Accepts regulation and obey law: plays no active part in politics Avoids becoming involved in controversies by confirming to dominant values
Counter regulatory threats with offer of CSR. Takes part in debates over application of vales to business .
Shapes and even provides, general governance. Tries to shape terms of values Debates relevance of them to business.
Values
Contd .
To manage a company supply chain ethically and to
avoid complicity in human right violation. To systematically address business accountability using tools such as internal review ,corporate governance principle, key performance indicators. To develop management system and tools which focus on capacity to manage than to audit. To ensure transparent , accountable and strategic engagement with government. To align community investment programmes through a companys CSR as a extension of core business practice.