3. Definitions:
‘CSR is about how companies manage the
business processes to produce an overall
positive impact on society.’
‘It is the process with the aim to embrace
responsibility for the company’s actions and
encourage a positive impact through its
activities on the environment, consumers,
employees, communities, stakeholders and
all the other members of the public sphere.’
4. Corporate Social Responsibility (CSR)
CSR is the sum total of the following:
Economic Responsibilities (Make a
profit)
+Legal Responsibilities (Obey the law)
+Ethical Responsibilities (Be ethical)
+Philanthropic Responsibilities
(Good corporate citizen)
=CSR
5. Corporate Social Responsibility
Historical Perspective:
From the 1950’s to the present, the
concept of CSR has gained
considerable acceptance and the
meaning has been broadened to
include additional components.
6.
7. CSR basically includes issues
Business Ethics
Community
Investment
Environment
Governance
Human Rights, etc.
8. Why should companies get involved
in CSR?
To create a trust among the
investors.
For becoming a preferred choice of
their customers.
For enhancing brand value and their
reputation.
Long term sustainability for the
organization and the society.
9. Pyramid Of CSR
Philanthropic Responsibilities
Be a good corporate citizen.
Ethical Responsibilities
Be ethical.
Legal Responsibilities
Obey the law.
Economic Responsibilities
Be profitable.
10. CORPORATE SOCIAL RESPONSIBILITY
Business Responsibilities in the 21st Century:
Demonstrate a commitment to society’s values
and contribute to society’s social,
environmental, and economic goals through
action.
Insulate society from the negative impacts of
company operations, products and services.
Share benefits of company activities with key
stakeholders as well as with shareholders.
Demonstrate that the company can make
more money by doing the right thing.
11. CORPORATE SOCIAL RESPONSIBILITY
Arguments for CSR:
Addresses social
issues business
caused and allows
business to be part
of the solution
Protects business
self-interest
Limits future
government
intervention
Addresses issues
by using business
resources and
expertise
Addresses issues
by being proactive
12. CORPORATE SOCIAL RESPONSIBILITY
Arguments against CSR:
Restricts the free market
goal of profit
maximization
Business is not equipped
to handle social activities
Dilutes the primary aim
of business
Decreases business
power
Limits the ability to
compete in a global
marketplace
13. CASE STUDY
ITC Limited is the multibusiness conglomerate
diversified into FMCG,
Hotels, Paperboards and
Packaging, Agro Business
and Information
Technology. Apart from
this, it also spends a
considerable amount of
its earnings towards
CSR.
15. CSR And Economic Performance At ITC
ITC has crafted
innovative business
models that augment
sustainable livelihoods
for the nation.
In 2012-13, the
company spent about Rs.
82 crores on CSR.
There was about 1.62%
increase in the CSR
spending in 2012-13
when compared to
1.29% in the year 201011
16. The big question is whether CSR is justified or not??
And, it is very important to answer this question since
many big companies do escape from CSR.
Spending considerable amount on CSR is obviously a
barrier to profitable enterprises. However, it is very
important to have a CSR component since business is
personal. A business can impact thousands of people.
It affects employees. That’s why we need to turn to
Philanthropy. Companies not only have a financial capital
but also social capital and natural capital.
It essentially covers 3 P’s: Profit, People and Planet.
