Corporate Social Responsibility
Corporate Social Responsibility
Lecture Outline:
Corporate Social responsibility.
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.
Meaning:
Corporate social responsibility is a gesture of showing
the company’s concern & commitment towards society’s
society.
The Companies Act, 2013 has formulated Section 135,
Companies (Corporate Social Responsibility) Rules, 2014 and Schedule VII
which prescribes mandatory provisions for Companies to fulfil their CSR. This
article aims to analyse these provisions (including all the amendments therein).
conditions:
Consistently satisfactory
Sustainable economic performance
Ethical actions
Behaviour.
A particular firm’s commitment to corporate citizenship
requires the fulfillment of certain social responsibilty.
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.
Create community awareness.
Need for Corporate Social
Responsibility
To reduce the social cost.
To enhance the performance of employees.
It a type of investment.
It leads to industrial peace.
It improves the public image.
Can generate more profit.
To provide moral justification.
It satisfies the stakeholders.
Helps to avoid government regulations & control.
Enhance the health by non polluting measures.
Arguments for & against the CSR
2.Knowledge: With all the information we can find today ,consumers will be
able to access these companies files and when purchasing between products that
are similar in nature, will be able to choose the one that has the best CSR
The Volkswagen case shows in stark contrast that we must reinvent CSR.
The people who head these departments must be made responsible for their
companies’ actions
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).
Phases of CSR in India
STAKEHOLDERS
The term "stakeholders" encompasses a variety of people. Stakeholders are customers,
shareholders, employees and communities with a vested interest in a company's
strategies and development plans. All of these individuals are affected by a company's
sustainability efforts, and those efforts affect society as a whole and the global
environment. Because enterprise is increasingly linked to the global economy and
developing countries, stakeholders also include citizens of countries with developing
economies. These individuals are ultimately affected by multinational corporations'
business strategies and sustainability efforts, as environmentally sound practices
improve water quality and natural resource reserves.
ECONOMIC EFFECTS
2. RESPONSIBILITIES:
act with integrity – being honest, fair and trustworthy in all business dealings
and relationships;
avoid conflicts between CSR's interests and personal interests;
protect CSR's business assets;
respect and abide by our obligations to fellow employees, shareholders,
customers, suppliers, competitors and the communities in which CSR operates;
and
act within the laws and regulations affecting business conduct.
3. Responsibility and Accountability of the CSR Board of Directors and
Managers
Charity comes from the old French word Chrité and means, “Providing for
those in need; generosity and giving”. The practice of charity involves giving
money, goods or time to the unfortunate, either directly of by means of
charitable trust or other worthy causes.
Charity tends to be emotional, immediate response which mainly focused on
rescue and relief, whereas Philanthropy is more strategic and built on
rebuilding.
The main difference is that Charity aims to relieve the pain of a
particular social problem, whereas Philanthropy attempts to address the
root cause of the problem. An example is the difference between
sending painkillers to malaria patients, which is charity, versus
educating the public in affected areas or supporting medical research
teams in finding a cure for malaria, which are philanthropy.