FOR ORGANIZATIONS AND MANAGEMENT STUDENTS !!!

2. • Corporate social responsibility (CSR), also known as
corporate responsibility, corporate citizenship,
responsible business, sustainable responsible business
(SRB), or corporate social performance is a form of
corporate self regulation integrated into a business
model.
•CSR policy would function as a built-in, self-
regulating mechanism whereby business would
monitor and ensure its support to law, ethical
standards, and international norms.

3.  CSR-focused businesses would proactively promote the
public interest by encouraging community growth and
development, and voluntarily eliminating practices that
harm the public sphere, regardless of legality.
 The term "CSR" came in to common use in the early
1970s, after many multinational corporations formed,
Corporate social responsibility is not a new concept in
India. However, what is new is the shift in focus from
making profits to meeting societal challenges. Now-a-
days, employees are actively participating in the social
activities even on holidays. This is mainly because
employees feel a sense of pride when they are involved in
such activities. Moreover, companies are having
dedicated departments for CSR.

4.  Firms can no longer continue to exploit environmental
resources and escape from their responsibility by acting as
separate entities regardless of the interest of the society.
Organizations, now, are realizing the need to shift their
focus on the interest of society. The sense of being socially
responsible has to come from within. CSR involves various
voluntary efforts in which companies engage themselves in
order to give something back to the society. It involves
providing innovative solutions to societal and
environmental challenges. Organizations generally believe
that acting in a socially responsible manner will create
value for them. The fact that an organization is committed
to social causes, also gives employees a sense that the
company would also be committed to the welfare of its
employees as well.

5.  Today, Corporate Social Responsibility has become a
worldwide concept whereby organizations consider
the interests of society by taking responsibility for
the impact of their activities on customers,
employees shareholders, communities and the
environment in all aspects of their operations. It is
one of the most important global issues with serious
challenges and implications on almost all sectors.

6. CONCEPT OF SOCIAL
RESPONSIBILITY
 Social responsibility of business refers to its
obligation to take those decisions and perform those
actions which are desirable in terms of the objectives
and values of our society. The assumption of social
responsibilities by business enterprises implies that
they respect the aspirations of society and would try
their best to contribute to the achievement of these
aspirations along with their profit interests. This
idea is in contrast to the common notion that
business exists only for maximizing profits for its
owners and it is irrelevant to talk of public good.

7.  In this sense social responsibility is broader than
legal responsibility of business. Legal
responsibilities may be fulfilled by mere compliance
with the law. On the other hand, social
responsibility involves an element of voluntary
action on the part of business people for the benefit
of society.

9. NEED FOR SOCIAL RESPONSIBILITY
 What is the right thing to do when it comes to social
responsibility? Should a business enterprise be run
for the benefit of its owners who may desire to get as
much profit as is possible or else, it needs to be
responsible for serving the interest of other sections
of society such as customers, employees, suppliers,
government and community? The very concept of
social responsibility implies that it is essentially an
ethical issue, since it involves the question of what is
morally right or wrong in relation to the firm’s
responsibilities.

10.  Social responsibility also has an element of
voluntary action on the part of business person who
may feel free to perform or not to perform such
responsibilities. They may also exercise their
freedom for deciding the extent to which they would
like to serve various sections of society. In fact all
business people do not feel equally responsible
towards society. There has been a debate in which
some people strongly believe that a firm’s only social
responsibility is towards its owners. Some other
however hold an opposite view and argue that the
firm has a social responsibility to serve all sections of
society who are affected by its decision and actions.

11. ARGUMENTS FOR SOCIAL
RESPONSIBILITY
Justifications for existence and growth
Long term interest of the firm
Avoidance of government regulation
Maintenance of society
Availability of resources with business
Converting problems in to opportunities
Better environment for doing business
Holding business responsible for social
problems

12. ARGUMENTS AGAINST SOCIAL
RESPONSIBILITY
Violation of profit maximization objective
Burden on consumers
Lack of social skills
Lack of broad public support

13. CSR: Definition
 The totality of CSR can be best understood by three
words: ‘corporate’, ‘social,’ and ‘responsibility’ . In
broad terms, CSR to responsibilities corporations
have towards society within which they are based
and operate, not denying the fact that the purview of
CSR goes much beyond this. CSR is comprehended
differently by different people.
 Corporate Social Responsibility is just about two
aspects:

14.  The steps taken by the company to neutralize,
minimize or offset the negative effects caused by its
processes and product-usage.
 The further positive steps a company takes using its
resources, core competence, skills, location and funds
for the benefit of people.

16. Definition given by Philip Kotler and Nancy Lee define CSR
as:
“a commitment to improve community well being through
Discretionary business practices and contributions of
corporate Resources” whereas Mallen Baker refers to CSR
as “a way Companies manage the business processes to
produce an Overall positive impact on society.”

17. Definition given by World Business Council for
Sustainable Development “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.

19. KINDS OF SOCIAL RESPONSIBILITY
 ECONOMIC RESPONSIBILITYL
 LEGAL RESPONSIBILITY
 ETHICAL RESPONSIBILITY
 PHILANTHROPIC RESPONSIBILITY

20.  ECONOMIC RESPONSIBILITY: - A business enterprise is
basically an economically entity and therefore its primary
social responsibility is economic i.e. produce goods and
services that society wants and sells them at a profit.
 LEGAL RESPONSIBILITY: - Organizations must ensure
every employee knows and observes relevant laws for
example its illegal for sales people to lie to customers or
mislead them about the advantages of buying a product.
Sale’s peoples statements legally must match advertising
claims.

22.  ETHICAL RESPONSIBILITY: - This includes the behavior of
the firm that is expected by society but not codified in
law for example respecting the religious sentiments and
dignity of people while advertising for a product .
 DISCRETINARY /PHILANTHROPIC RESPONSIBILITY :- This
refers to purely voluntary obligation that an enterprise
assumes, for instance, providing charitable contribution
to educational institutions or helping the affective people
during floods or earthquakes. It is the responsibility of the
company management to safeguard the capital
investment by avoiding a speculative activity and under
taking only healthy ventures which give good returns on
investments.

23. SOCIAL RESPONSIBILITY TOWARDS
DIFFERENT INTEREST GROUPS
 once the social objective of business is recognize, it is
important to know to whom and for what the business
and its management are responsible. Obviously, a
business unit has to decide in which areas it should carry
out social goals. Some of the specific responsibilities and
enterprise may be outlined as under:

24. RESPONSIBILITY TOWARDS SHAEHOLDERS OR OWNERS :
A business enterprise has the responsibility to provide a
fair to the shareholders or the owners on their capital
investment and to ensure the safety o such investment.
The corporate enterprise on a company form of the
organization nust also provide the shareholders with
regular, accurate and full information about its working as
well as scheme of future growth.

26.  RESPONSIBILITY TOARDS THE WORKERS :- Management
of an enterprise is also responsible for providing
opportunities to the workers for meaningful work. It
should try to create the right kind of working conditions
so that it can win the cooperation’s of workers. The
enterprise must respect the democratic rights of the
workers to form the union. the worker must also be
ensure of a fair wage and fair deal from the management.

27.  RESPONSIBILITY TOWARDS THE CONSUMERS:-
Supply of quality and quantity of goods and services to
consumers at reasonable prices constitutes the
responsibility of an enterprise towards its customers. The
enterprise must take proper precautions against poor
quality, lack of desired service, misleading and dishonest
advertising and so on. They must also have the right of
information about the product , the company and other
matters having a bearing on their purchasing decisions.

28.  RESPONSIBILITY TOWARDS THE GOVERNMENT AND
COMMUNITY: - An enterprise must respect the laws of
the country and pay taxes regularly and honestly. It must
behave as a good citizen and act according to the well
accepted values of the society. It must protect the natural
environment and should avoid bad, smoky- chimneys,
ugly buildings, dirty working condition and so on. It must
also develop a proper image in society through
continuous interaction with various groups of people.

29. EXAMPLE :-

30.  TATA Motors:-provides desks, benches, chairs, tables
cupboards, electrical fittings and educational and sports
material to various primary schools in Singur. The
company has also planned similar programmes to
upgrade school infrastructure and is also planning to set
up a computer laboratory in one of the high schools.
 TVS:- TVS Electronics was involved in CSR during the
Tsunami to provide relief measures to the victims. They
have also participated with the government to improve
sanitation in a village called Tiruvidenthai. Such initiatives
will help in improving the conditions of rural people.

31.  Satyam Foundation of Satyam Computer Services Ltd.,
Infosys Foundation of Infosys Technologies Ltd., GE
Foundation of the General Electric Company are
exemplary instances of the philanthropic commitment of
the corporate sector in India. Irrespective of the profits
they make, these foundations are aiming at uplifting of
the poor and enhancing the standard of life in the rural
sector.

32. Infosys Technologies Limited
 Infosys is actively involved in various community
development programms. Infosys promoted, in 1996, the
Infosys Foundation as a not-for-profit trust to which it
contributes up to 1%PAT every year. Additionally, the
Education and Research Department (E&R) at Infosys also
works with employee volunteers on community
development projects.

33. Infosys leadership has set examples in the area of
corporate citizenship and has involved itself actively in
key national bodies. They have taken initiatives to work in
the areas of Research and Education, Community Service,
Rural Reach Programme, Employment, Welfare activities
undertaken by the Infosys Foundation, Healthcare for the
poor, Education and Arts & Culture.

34. ITC Limited :-
 ITC partnered the Indian farmer for close to a century. ITC is
now engaged in elevating this partnership to a new paradigm
by leveraging information technology through its trailblazing
'e-Choupal' initiative. ITC is significantly widening its farmer
partnerships to embrace a host of value-adding activities:
creating livelihoods by helping poor tribals make their
wastelands productive; investing in rainwater harvesting to
bring much-needed irrigation to parched drylands;
empowering rural women by helping them evolve into
entrepreneurs; and providing infrastructural support to make
schools exciting for village children. Through these rural
partnerships, ITC touches the lives of nearly 3 million villagers
across India.

35. Mahindra & Mahindra :-
 The K. C. Mahindra Education Trust was established in 1953 by late Mr.
K. C. Mahindra with an objective to promote education. Its vision is to
transform the lives of people in India through education, financial
assistance and recognition to them, across age groups and across
income strata. The K. C. Mahindra Education Trust undertakes a number
of education initiatives, which make a difference to the lives of
deserving students. The Trust has provided more than Rs. 7.5 Crore in
the form of grants, scholarships and loans. It promotes education
mainly by the way of scholarships. The Nanhi Kali project has over
3,300 children under it. We aim to increase the number of Nanhi Kalis
(children) to 10,000 in the next 2 years, by reaching out to the
underprivileged children especially in rural areas.

36. THANK YOU