• CSR is a way of conducting business, by which corporate

entities visibly contribute to the social good. Socially

responsible companies use CSR to integrate economic,
environmental and social objectives with the company’s
operations and growth.

• “The continuing commitment by business to behave ethically

and contribute to sustainable economic development while
improving the quality of life of the workforce and their families
as well as of the local community and society.”- WBCSD
(World Business Council for Sustainable Development)
• Corporate governance is the system by which companies are
directed and controlled. Boards of directors are responsible
for the governance of their companies. The shareholders’
role in governance is to appoint the directors and the
auditors and to satisfy themselves that an appropriate
governance structure is in place. The responsibilities of the
board include setting the company’s strategic aims,
providing the leadership to put them into effect, supervising
the management of the business and reporting to
shareholders on their stewardship. The board’s actions are
subject to laws, regulations and the shareholders in general
meeting. - The Cadbury Report (1992, paragraph 2.5).
• “CSR is a commitment to improve community well-
being through discretionary business practices and
contributions of corporate resources”(Kotler & Lee,
2005).
Evolution of SDGs
• In the 18th
century, faith-based organizations refused to invest in industries, like tobacco and liquor productio
n, the slave trade, and war-related activities, that did not align with their values.
In the 19th century, wealthy businessman and philanthropist Andrew Carnegie challenged wealthy
people to support social causes, following his belief in the Gospel of Wealth
• Howard Bowen, an American economist and Grinnell College president, is often cited as the “father
of CSR.” He connected the responsibility of corporations to society and published a book in 1953,
which advocated for business ethics and responsiveness to societal stakeholders called
Social Responsibilities of the Businessman.
• CSR truly began to take hold in the U.S. in the 1970s, when the concept of the “social contract”
between business and society was declared by the Committee for Economic Development in 1971.
The social contract is based on the idea that business functions because of public “consent,”
therefore business has an obligation to constructively serve the needs of society.
• The very early adopters of CSR were companies such as Johnson & Johnson, whose founder, Robert
Wood Johnson, established their credo in 1943, which requires that the needs of those they serve
be put first.
• As the 21st century progresses, the CSR field continues to evolve. In 2005, Environmental, Social &
Governance (ESG) was first coined, and a few years later, “Sustainability” became a frequently
used term in the field.
• The dot-com crash of the early 2000s and the financial crisis of 2008 “brought discussion on the
social responsibility of business into the zeitgeist,” according to McKinsey.
• In the mid-2010s, the global conversation around CSR grew with the introduction of the
Enactment of Companies Act in India in 2013, mandating CSR for companies doing business in
India. This was followed in 2015 by the signing of the Paris Climate Agreement and the creation of
the United Nations Sustainable Development Goals (SDGs)
DIFFERENT APPROACHES TO CSR
• Community based development approach.
o In this approach, corporations work with local communities to
make themselves better. Often the activities in which companies
participate are establishing education facilities for adults,
providing sanitation facilities in poor countries and HIV/AIDS
education programmes etc.
• Philanthropy
o This includes monetary donations and aid given to local
organizations and impoverished communities in developing
countries. Some organizations do not like this approach as it does
not help build on the skills of the local people, whereas
community-based development generally leads to more
sustainable development.
• incorporate the CSR strategy directly into the business
strategy of an organization
• Creating Shared Value, or CSV. The shared value model
is based on the idea that corporate success and social
welfare are interdependent. A business needs a healthy,
educated workforce, sustainable resources and adept
government to compete effectively.
o CSV received global attention in the Harvard Business Review
article Strategy & Society: The Link between Competitive
Advantage and Corporate Social Responsibility by Michael E.
Porter, a leading authority on competitive strategy
• Carroll (1979): pyramid of corporate social performance one of the most
cited model. Four areas:
• Economic
• Legal
• Ethical
• Philanthropic

• Dahlsrud (2008): five dimensions of CSR

• Dahlsrud (2008) reviewed several definitions of CSR in order to identify the areas in
which CSR reached, finding five dimensions:
• Environmental
• Social
• Economic
• Stakeholder
• Voluntariness
THE TRIPLE BOTTOM LINE: THE TRIPLE BOTTOM LINE
IS A BUSINESS CONCEPT THAT STATES FIRMS SHOULD COMMIT TO MEASURING
THEIR SOCIAL AND ENVIRONMENTAL IMPACT—IN ADDITION TO THEIR FINANCIAL
PERFORMANCE—RATHER THAN SOLELY FOCUSING ON GENERATING PROFIT, OR
THE STANDARD “BOTTOM LINE.”
Responsibility Pyramid in Business
Need of CSR
Arguments for 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.
• It create a better impression.
• Corporate should return a part of wealth.
COMPONENTS OF CSR
• Employees
• Customers
• Environment
• Society
CSR in India :
After 1945, TATA implemented social welfare provisions for its
employees that have since become the legislative norm.

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).
“Desirable Corporate Governance: A Code”, established
in April 1998. This was an initiative by the Confederation
of Indian Industry (CII).
international institutions, has relevance for India through
the work of the ILO, the OECD, Socially Responsible
Investment (SRI), the SA8000 Social Accountability
scheme and through the work of the UN Commission on
Human Rights,
• PM’s Ten Point Social Charter 2007
• MCA and CSR
• Voluntary Guidelines on CSR, 2009
o Released in Dec 2009, in presence of the president of India
o A statement of Intent by the national government
o Intended to be replaced by a more comprehensive guideline.
• National Voluntary Guidelines on Social, Environmental and
Economic Responsibilities of Business 2011
• Planning Commission and Task Force on Business Regulation.
• Guidelines on Corporate Social Responsibility and
Sustainability for Central Public Sector Enterprises
Applicability : (sec. 135(1))
• To all companies that have either of the following in any financial year:
►Net worth of INR 500 crore or more
►Turnover of INR 1000 crore or more
►Net profit of INR 5 crore or more

CSR COMMITTEE :-
For every financial year, CSR spending would be computed as 2% of the
average net profits made by the company during every block of three
preceding financial years

Report of the CSR Activities.

LIST OF CSR ACTIVITIES :-
• Eradicating extreme hunger and poverty;
• Promotion of education;
• Promotion of gender equality and empowering women;
• Reducing child morality and improving maternal health;
• Ensuring environmental sustainability;
• Employment enhancing vocational skills;
• Social business projects;
• Contribution to the Prime Minister's National Relief Fund or any
other fund setup 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 ;
• Such other matters as may be prescribed. (Corporate Social
Responsibility) Companies act, 2013
• Tata Group – TIFR , TISS , Tata Cancer Hospital, Ratan
Tata Institute , JRD Tata Lecture Series – Awards.
Nationalization of Tata enterprises

• Ambuja Cement receives International Reorganization

for Di- Salianation Project in Costal Gujarat
• Wipro – Donation of 1/4th of Personal Worth’s by Owners
for Social Cause
• JSW Steel in Dolvi – Pen , Maharashtra Provides free
electricity to nearby villages through surplus of captive
unit
Criticisms
• The influential economist Milton Friedman argued that CSR was a
misuse of corporate resources; since businesses are owned by their
shareholders, money invested on projects beyond the core business
that do not add to the bottom line can be seen as money stolen
from its rightful owners.
• MOTIVE : Some critics believe that CSR programs are undertaken
by companies such as British American Tobacco (BAT), the
petroleum giant BP (well-known for its high-profile advertising
campaigns on environmental aspects of its operations), and
McDonald's to distract the public from ethical questions posed by
their core operations. They argue that some corporations start CSR
programs for the commercial benefit they enjoy through raising
their reputation with the public or with government.