Types and nature of social responsibilities, CSR
principles and strategies, models of CSR, Best
practices of CSR, Need of CSR, Arguments for and
against CSR, CSR Indian perspective, Indian
examples
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.
- Lord Holme and Richard Watts
CSR means devising corporate strategies and
building a business with the Societys need in mind.
- Cannon
General Electric
Employees volunteer over 1 million per year! Donations from
the GE foundation have supported senior centers, children with
autism, literacy programs, and neglected urban spaces among
many other programs. On Global Community Days, GE
coordinates company-wide to address urgent projects around
the world. GE knows that a helping hand starts in backyard
extends across the world.
Dell supports over 4,615 charities around the world. Dell
Youth Connect provides technology and educational facilities
in 11 countries. The Dell Social Innovation Challenge provides
funding and mentorship to college students to further projects
that help solve social problems. Dells disaster relief program
provides holistic assistance to communities affected by natural
disaster around the world. Dells employees are a social good
force to be reckoned with.
Corporate Social
Responsibility
CSR is the process with the aim to embrace responsibility for the
companys actions and encourage a positive impact through its activities
on the environment , consumers, employees , communities, stakeholders
and all other members of the public sphere who may also be considered
as stakeholder.
Economic Responsibility to earn profit
Legal Responsibility to comply with law
Ethical Not acting just for profit, but doing what is
right , just and fair
Voluntary and Promoting human welfare and good will
Philanthropic Being a good corporate citizen contributing
to the community and quality of life
Types and nature of Social Responsibilities
1) Responsibility towards the customers- good quality
products, quality materials, apt technology. Marketing has
moved from customer satisfaction to customer delight.
2) Social responsibility to prospects- welfare projects by the
company.
3) Social responsibility to community-
Conservation of trees and forests, pollution free environment,
useful fuel efficient automobiles, providing self employment
opportunities
4) Responsibility towards human resources:
Eight hour shift was first introduced by TISCO
In 1915, free medical aid to employees and their families was
started , while the ESI act came into force only in 1948.
5)Responsibility towards social and ecological environment
Companies can adopt villages for concentrated development
activities.
6) Responsibility towards government
Paying taxes in time, participating in social welfare project,
cooperating with government policies
7) Social responsibility to global business environment:
Globally approved quality, globally competitive price and
globally approved technology
Need of CSR
To enrich the societal approach
To establish a good corporate image
To get involved in social welfare projects
To encourage organizations to take up solutions
for social problems environment and pollution
To enhance better business environment
To position better their products and to increase
market share
To fix up moral responsibility in the minds of
employees.
Arguments for and against CSR
Arguments for & against the CSR
Corporate should have some moral & social
obligations to undertake for the welfare of the
society.
Proper use of resources, capability &
competence.
The expenditure on CSR is a sort of
investment.
Company can avoid many legal
complications.
Arguments against the CSR
Fundamental principles of business gets
violated.
It is very expensive for business houses.
CSR projects will not be successful.
CSR is to induce them to steal away the
shareholders money.
Lack of broad support.
Models of corporate social
responsibility
Friedman model
Ackerman Model
Carroll Model
Environmental Integrity & Community
Model.
Corporate Citizenship Model.
Stockholders & Stakeholders Model.
New Model of CSR.
Friedman Model(1962-73)
A businessmen should perform his duty well,
he is performing a social as well as a moral
duty.
A businessmen has no other social
responsibility to perform except to serve his
shareholders & stockholders.
Ackerman Model (1976)
The model has emphasized on the internal policy
goals & their relation to the CSR.
Four stages involved in CSR.
Managers of the company get to know the
most common social problem & then
express a willingness to take a particular
project which will solve some social
problems.
Intensive study of the problem by hiring
experts & getting their suggestions to make
it operational.
Managers take up the project actively &
work hard.
Evaluating of the project by addressing the
Contd.
Six Strategies in the adoption of CSR.
Rejection strategy
Adversary strategy
Resistance strategy
Compliance strategy
Accommodation strategy
Proactive strategy
Carroll Model(1991)
Carroll Model(1991)
Philanthropic requirements: Donation, gifts, helping
the poor. It ensure goodwill & social welfare.
Ethical responsibility: Follow moral & ethical values
to deal with all the stakeholders.
Legal responsibility: Abiding the laws of the land.
Economic responsibility: Maximize the shareholders
value by paying good return.
Environmental Integrity &
Community Health Model.
This model developed by Redman.
Many corporate in US adopted this model.
Corporate contribution towards environmental
integrity & human health, there will be
greater expansion opportunities.
Healthy people can work more & earn more.
CSR is beneficial for the corporate sector.
CSR in a particular form is welcome.
Corporate Citizenship
Model
To be a corporate citizen, a corporate firm has
to satisfy four conditions:
Consistently satisfactory
Sustainable economic performance
Ethical actions
Behaviour.
A particular firms commitment to corporate
citizenship requires the fulfillment of certain
social responsibilty.
Stockholders & Stakeholders Model
Stockholders Stakeholder
ORIENTATION
Model Model
1 2
Sel Intere
f Productivism Progressivism st
MOTIVES
3 4
Duty
Moral Philanthropy Ethical Idealism
Contd.
Productvists believe that the only mission of a
firm is to maximize the profit.
Philanthropists who entertain the
stockholders. CSR is dominated by moral
obligations & not self-interest.
Progressivists believes the corporate
behaviour basically motivated by self interest
& should have ability to transform the society
for good.
Ethical Idealism concern with sharing of
corporate profits for humanitarian activities.
New Model of CSR
Ethical
Rooting
Stron Poor
g
CSR (+) CSR(-)
Strong
Capability
Financial
CSR(-) CSR(-)
Poor
Best Practices of CSR
To set a feasible, Viable & measureable goal.
Build a long lasting relationship with the
community.
Retain the community core values.
The impact of the CSR needs to be assessed.
Reporting the impact.
Best Practices of CSR
CSR Principles and Strategies
The universal declaration of Human Rights
The international Labor Organizations Declaration on
Fundamental Principles and Rights at Work
The Rio Declaration on Environment and Development
The UN Global Compact asks companies to embrace, support
and enact, within their sphere of influence, a set of core values
in the areas of human rights , labour standards, the
environment and anti-corruption
CSR Strategies
Obstructionist (Opponent) Stance
Defensive Stance
Accommodative Stance
Proactive Stance
Indian Perspective.
The Sachar committee was appointed in 1978 to
look into corporate social responsibility issues
concerning Indian companies .
The company must behave & function as a
responsible member of society.
Committee suggests openness in corporate
affairs & behaviour.
Some business houses have established social
institutions like Schools, colleges, charitable
hospitals etc.
Corporate sectors have not made significant
contributions. (Polluting Environment).
Vodafone promised to cut down
their carbon dioxide emissions in half
by 2020 through improving the
energy efficiency of its globalmobile
-phone networks. Additional points
for Vodafone on CSR because they
are constantly updating us with the
results of the campaign; no matter
whether its going well or not.
Future promises includes pledging to
recycle 95% of network equipment
waste and plans to reduce work-
related accidents that cause lost
time by 10%. On top of that,
Vodafone is a leadingbusinessin
socially responsible products such as
the text-to-speech software for blind
people and easy-to-use handsets for
the elderly.
The banks head of corporate
sustainability, Teresa Au, has
said that despite the economic
situation,HSBC would continue
to support its sustainability
campaign. Initiatives include
providing small businesses with
sustainability insurance options
and developing an index for
climate change.
The business has also boosted
its management of ethical and
socially responsible investing
funds by 60% over the last two
years. HSBC has an American
unit that is dedicated to
assisting local communities by
promoting affordable
homeownership, among other
goals.
