1.

1What is CSR
Corporate Social Responsibility is a management concept whereby companies integrate
social and environmental concerns in their business operations and interactions with their
stakeholders. CSR is generally understood as being the way through which a company
achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-
Line- Approach”), while at the same time addressing the expectations of shareholders and
stakeholders. In this sense it is important to draw a distinction between CSR, which can be a
strategic business management concept, and charity, sponsorships or philanthropy. Even
though the latter can also make a valuable contribution to poverty reduction, will directly
enhance the reputation of a company and strengthen its brand, the concept of CSR clearly
goes beyond that.

Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective
needs and capacities of these businesses, and do not adversely affect their economic
viability. UNIDO based its CSR programme on the Triple Bottom Line (TBL) Approach, which
has proven to be a successful tool for SMEs in the developing countries to assist them in
meeting social and environmental standards without compromising their competitiveness.
The TBL approach is used as a framework for measuring and reporting corporate
performance against economic, social and environmental performance. It is an attempt to
align private enterprises to the goal of sustainable global development by providing them
with a more comprehensive set of working objectives than just profit alone. The perspective
taken is that for an organization to be sustainable, it must be financially secure, minimize (or
ideally eliminate) its negative environmental impacts and act in conformity with societal
expectations.

Key CSR issues: environmental management, eco-efficiency, responsible sourcing,

stakeholder engagement, labour standards and working conditions, employee and
community relations, social equity, gender balance, human rights, good governance, and
anti-corruption measures.

A properly implemented CSR concept can bring along a variety of competitive advantages,
such as enhanced access to capital and markets, increased sales and profits, operational
cost savings, improved productivity and quality, efficient human resource base, improved
brand image and reputation, enhanced customer loyalty, better decision making and risk
management processes.
 1.2 DEFINITION OF CSR
definition is that CSR is about how companies manage the business processes to produce an
overall positive impact on society.
Take the following illustration:
The business in society diagram
Companies need to answer to two aspects of their operations.
1. The quality of their management – both in terms of people and processes (the inner
circle).
2. The nature of, and quantity of their impact on society in the various areas.
Outside stakeholders are taking an increasing interest in the activity of the company. Most
look to the outer circle – what the company has actually done, good or bad, in terms of its
products and services, in terms of its impact on the environment and on local communities,
or in how it treats and develops its workforce. Out of the various stakeholders, it is financial
analysts who are predominantly focused – as well as past financial performance – on quality
of management as an indicator of likely future performance.

1.3Need and importance

It’s incredibly important that your company operates in a way that demonstrates social
responsibility. Although it’s not a legal requirement, it’s seen as good practice for you to
take into account social and environmental issues.

Social responsibility and ethical practices are vital to your success. The 2015 Cone
Communications/Ebiquity Global CSR study found that a staggering 91% of global
consumers expect businesses to operate responsibly to address social and environmental
issues. Furthermore, 84% say they seek out responsible products wherever possible.

As the above statistics show, consumers are increasingly aware of the importance of social
responsibility, and actively seek products from businesses that operate ethically. CSR
demonstrates that you’re a business that takes an interest in wider social issues, rather than
just those that impact your profit margins, which will attract customers who share the same
values. Therefore, it makes good business sense to operate sustainably.

1.4Triple bottom line

The triple bottom line consists of social equity, economic, and environmental factors. The
phrase, "people, planet, and profit" to describe the triple bottom line and the goal
of sustainability, was coined by John Elkington in 1994 while at Sustain Ability,[10] and was
later used as the title of the Anglo-Dutch oil company Shell's first sustainability report in
1997. As a result, one country in which the 3P concept took deep root was The Netherlands.
People, the social equity bottom line[edit]
The people, social equity, or human capital bottom line pertains to fair and beneficial
business practices toward labour and the community and region in which a corporation
conducts its business. A TBL company conceives a reciprocal social structure in which the
well-being of corporate, labour and other stakeholder interests are interdependent.
An enterprise dedicated to the triple bottom line seeks to provide benefit to many
constituencies and not to exploit or endanger any group of them. The "upstreaming" of a
portion of profit from the marketing of finished goods back to the original producer of raw
materials, for example, a farmer in fair tradeagricultural practice, is a common feature. In
concrete terms, a TBL business would not use child labour and monitor all contracted
companies for child labour exploitation, would pay fair salaries to its workers, would
maintain a safe work environment and tolerable working hours, and would not otherwise
exploit a community or its labour force. A TBL business also typically seeks to "give back" by
contributing to the strength and growth of its community with such things as health care
and education. Quantifying this bottom line is relatively new, problematic and often
subjective. The Global Reporting Initiative (GRI) has developed guidelines to enable
corporations and NGOs alike to comparably report on the social impact of a business.
Planet, the environmental bottom line[edit]
The planet, environmental bottom line, or natural capital bottom line refers to sustainable
environmental practices. A TBL company endeavors to benefit the natural order as much as
possible or at the least do no harm and minimize environmental impact. A TBL endeavour
reduces its ecological footprint by, among other things, carefully managing its consumption
of energy and non-renewables and reducing manufacturing waste as well as rendering
waste less toxicbefore disposing of it in a safe and legal manner. "Cradle to grave" is
uppermost in the thoughts of TBL manufacturing businesses, which typically conduct a life
cycle assessment of products to determine what the true environmental cost is from the
growth and harvesting of raw materials to manufacture to distribution to eventual disposal
by the end user.
Currently, the cost of disposing of non-degradable or toxic products is borne financially by
governments and environmentally by the residents near the disposal site and elsewhere. In
TBL thinking, an enterprise which produces and markets a product which will create a waste
problem should not be given a free ride by society. It would be more equitable for the
business which manufactures and sells a problematic product to bear part of the cost of its
ultimate disposal.
Ecologically destructive practices, such as overfishing or other endangering depletions of
resources are avoided by TBL companies. Often environmental sustainability is the more
profitable course for a business in the long run. Arguments that it costs more to be
environmentally sound are often specious when the course of the business is analyzed over
a period of time. Generally, sustainability reporting metrics are better quantified and
standardized for environmental issues than for social ones. A number of respected reporting
institutes and registries exist including the Global Reporting Initiative, CERES, Institute 4
Sustainability and others.
The ecological bottom line is akin to the concept of eco-capitalism.[13]
Profit, the economic bottom line
The profit or economic bottom line deals with the economic value created by the
organization after deducting the cost of all inputs, including the cost of the capital tied up. It
therefore differs from traditional accounting definitions of profit. In the original concept,
within a sustainability framework, the "profit" aspect needs to be seen as the real economic
benefit enjoyed by the host society. It is the real economic impact the organization has on
its economic environment. This is often confused to be limited to the internal profit made
by a company or organization (which nevertheless remains an essential starting point for
the computation). Therefore, an original TBL approach cannot be interpreted as simply
traditional corporate accounting profit plus social and environmental impacts unless the
"profits" of other entities are included as a social benefit.

1.5 -Csr in todays world

A strategic approach to CSR is increasingly important to a company's competitiveness. It can

bring benefits in terms of risk management, cost savings, access to capital, customer
relationships, human resource management, and innovation capacity. It also encourages
more social and environmental responsibility from the corporate sector at a time when the
crisis has damaged consumer confidence and the levels of trust in business.
 Through CSR, enterprises can significantly contribute to the European Union’s treaty
objectives of sustainable development and a highly competitive social market
economy. CSR underpins the objectives of the Europe 2020 strategy for smart,
sustainable and inclusive growth, including the 75% employment target. Responsible
business conduct is especially important when private sector operators provide public
services.
 CSR requires engagement with internal and external stakeholders so it enables
enterprises to anticipate better and take advantage of fast-changing expectations in
society as well as operating conditions. This means it can also act as a driver for the
development of new markets and create real opportunities for growth.
 By addressing their social responsibility, enterprises can build long-term employee,
consumer and citizen trust as a basis for sustainable business models. This in turn
helps to create an environment in which enterprises can innovate and grow. The
economic crisis and its social consequences have to some extent damaged levels of
trust in business, and have focused public attention on the social and ethical
performance of enterprises, including on issues such as bonuses and executive pay.
 Helping to mitigate the social effects of the crisis, including job losses, is part of the
social responsibility of enterprises. In the longer term, CSR offers a set of values on
which to build a more cohesive society and on which to base the transition to a
sustainable economic system.
 By renewing efforts to promote CSR now, the Commission aims to create conditions
favourable to sustainable growth, responsible business behaviour and lasting job
creation for the medium and long-term.
aspects of each business:

 Customers;
 Suppliers;
 Environment;
 Communities; and,
 Employees.
The most effective CSR plans ensure that while organizations comply with legislation, their
investments also respect the growth and development of marginalized communities and the
environment. CSR should also be sustainable – involving activities that an organization can
uphold without negatively affecting their business goals.
 2.2 -What is CSR

The most earliest and prominent definitions ascribed to CSR is the one given by Howard
Bowen who (Carroll, 1999) refer to as the father of Corporate social responsibility “the
obligations of businessmen to pursue those policies, to make those decisions, or to follow
those lines of action which are desirable in terms of the objectives and values of our
society” (Bowen, 1953). All other definitions in the early 50s recognise the need for
managers to assume responsibility for public good “it has to consider whether the action is
likely to promote the public good, to advance the basic beliefs of our society, to contribute
to its stability, strength, and harmony” (Drucker, 1954). Furthermore, the two definitions
are united on the need to align CSR with what mangers consider as current and prevailing
features of the socio-political environment they operate within. (Carroll, 2008) stated that
the whole idea of CSR in this early period is corporate philanthropy but there are only few
actions which can be regarded as beyond philanthropy in this period.

1. Corporate managers are appointed as public trustees

2. There is need to balance competing stakeholders claims with corporate resources;
and
3. The acceptance of philanthropy as a humane philosophy and discretionary principle
of the organisation.

Moving onwards from then CSR has transformed from philanthropy to regulated practices
and instrumentality or strategic CSR. In the new millennium corporations are increasingly
receiving more pressures on compliance with regulations on environmental protection,
transparency, and the market is saturated with competitors thereby necessitating the
introduction of CSR as a strategy to survive and be more efficient . Researchers in this
period are focusing on the impact of CSR on financial performance (). The focus of CSR
conceptual review and empirical studies has shifted from an ethics orientation to a
performance orientation and the level of analysis has moved away from a macro-social level
to an organizational level in this era. The essence of engaging in CSR in the new millennium
is tagged as “doing good to do well
 2.2 Need and importance
1. The Importance of Social Responsibility• Solving Social Problems: -For example, is
the protest against aerosol sprays.• Resource given by the organizations to solve the
social problem.• -Organization should be, for example, give due consideration to the
design of work organization and job satisfaction, make very reasonable effort to give
security of employment, and provide employment opportunities for minority
groups.
2. 3. • Improves Public Image of the Firm: -Social initiatives taken by organizations tend
to promote goodwill, public favour, corporate trust, profit. - E.g. Cigarettes•
Improving Stock Price: -for example: giving recognition to the needs of developing
countries; limiting the extent of political involvement or campaigning; donations to,
or sponsorship of, the arts, educational or educational or research institutions,
sporting organizations or charities.• Best Interest of Business to Promote and
Improve the Communities:
3. 4. • Assist to Government: - to solve social, economical and political problems of the
country.• Pressure of Consumer Movement: - to protect consumers against business
malpractices like adulteration, black marketing, unfair pricing, shortage in weight,
measures, etc.• Pressure of Trade Union: - relations between management and
labour.• Need of Social Audit.
4. 5. • Attracts and retains staff:• Customers are attracted to socially responsible
companies:• Corporate Social Responsibility attracts investors:• Corporate Social
Responsibility helps to cut your business costs
5. 6. • To share the negative consequences as a result of industrialization.• Helping to
get talents.• Role in transfer of technology (TOT).• CSR is for human right corporate
sustainability.
6. 7. • For corporate sustainability goals.• Interdependency between a corporation and
community.• A CSR program can be seen as an aid to alleviate poverty

Institutional pressure for CSR improvement has increased necessitating introduction of CSR
initiatives that focus beyond shareholders wealth maximisation (Waddock, 2008). Business
corporations are expected to engage in the following;
 2.3 Definition of CSR

Corporate social responsibility has attracted attention from a range of

businesses and stakeholders. A wide variety of definitions have been developed but with
little
consensus. Part of the problem with definitions has arisen because of the different interests
represented. A business person may define CSR as a business strategy, an NGO activist may
disagreement about the definition will arise from the disciplinary approach." [4] For
example, while
an economist might consider the director's discretion necessary for CSR to be
implemented a
risk of agency costs, a law academic may consider that discretion to be an appropriate
expression of what the law demands from directors.
Corporate social responsibility has been defined by Sheehy as "international private
business
self-regulation." [4] Sheehy examined a range of different disciplinary approaches to
defining CSR.

2.4-Triple bottom line

What is the Triple Bottom Line (TBL)

The triple bottom line (TBL) is a concept which broadens a business' focus on the financial
bottom line to include social and environmental considerations. A TBL measures a
company's degree of social responsibility, its economic value and its environmental impact.

The phrase was introduced in 1994 by John Elkington and later used in his 1997 book
"Cannibals with Forks: The Triple Bottom Line of 21st Century Business." A key challenge
with the TBL, according to Elkington, is the difficulty of measuring the social and
environmental bottom lines, which necessitates the three separate accounts being
evaluated on their own merits.

BREAKING DOWN Triple Bottom Line (TBL)

Normally, a company's bottom line on its income statement is its net income, i.e., its
profits. Elkington's TBL is intended to advance the goal of sustainability in business
practices, in which the focus of companies is extended beyond profits to include social and
environmental issues to measure the total cost of doing business. An investment manager,
individual investor or CEO that wants to pursue the TBL must consciously consider, in
addition to the economic bottom line, the social and environmental areas in making
investing and business decisions. Deploying money and other resources, such as human
labor, to a project or an investment can either contribute to these three goals or focus on
profit at the expense of one or both of the other two. Some of the repercussions that have
come about from ignoring the TBL in the name of profits include destruction of the
rainforest, exploitation of labor, and damage to the ozone layer.
In effect, TBL is the idea that it is possible to run an organization in a way that not only earns
financial profits but also betters people’s lives and helps the planet. The elements of the TBL
are referred to as "people, profits and planet."

People + Planet = Social + Environmental Responsibility

It can be challenging to maximize financial returns while also doing the greatest good for the
people and the environment. Consider a clothing manufacturer whose best way to
maximize profits might be to hire the least expensive labor possible and to dispose of
manufacturing waste in the cheapest way possible. The result might be the highest possible
profits for the company but miserable working and living conditions for laborers, and
damage to the natural environment and the people who live in that environment. In the
past, such practices were more socially acceptable, but today, many consumers are willing
to pay more for clothing and other products if it means that workers are paid a living wage
and the environment is being respected in the production process. Many consumers want
companies to be transparent about their practices and to be considerate of all
their stakeholders, hence the popularity of the TBL concept that accounts for the full cost of
doing business.

Adding the "people" element of social responsibility to corporate bottom lines shifts the
focus to the fair treatment of employees and off-site labor, as well as enacting favorable
practices in the communities where companies conduct business. For example, Mars,
Incorporated's Cocoa for Generations is a sustainable cocoa initiative that requires its cocoa
farmers to be certified by fair trade organizations to ensure they follow a code of conduct
that includes fair treatment to those providing labor. In exchange for certification, Mars
provides productivity technology and buys cocoa at premium prices.

The bottom line referred to as the "planet" represents the implementation of sustainable
practices and the reduction of environmental impact. These measures range in scope from
green initiatives such as recycling programs within corporations to companies dedicated to
manufacturing products using only sustainable materials. For example, Axion Structural
Innovations builds railroad ties and pilings using recycled plastic bottles and industrial waste
instead of using standard materials such as wood, steel and cement.

Profits: The Financial Bottom Line

The addition of social and environmental responsibilities can have a positive effect on a
company's financial bottom line. A Nielsen reportreleased in October 2015 found that 73
percent of millennials, which represent the largest consumer demographic in U.S. history,
were willing to pay more for sustainable goods, up from 55 percent in 2014.

In addition to growing revenues, companies are integrating social and environmental

standards with corporate governance policies, which can reduce the chances of brand-
damaging events and missteps. In addition to governance benefits, the transformation to a
TBL is increasingly seen as a vital factor in building corporate brands and goodwill, which
represent 30 percent of the value of public companies, on average.
 2.5 CSR in todays world

Lal Bahadur Shastri states that – Too often the community has view points that the Business
men has selfish gains and rather goes for the societal welfare. This norm has to be removed
if business has to fully be made alive in the perspective of the society welfare and then only
the societal harmony and its welfare can be projected. Many a times it is been involved as
the charitable contributions advances done by the Corporates for the society. Anyway,the
Companies, which manages the Business produce for the positive impact for the society is
known as the CSR (Corporate Social Responsibility ) for the whole Jagat-Janani as a whole.
Company’s sense towards the ecology and society is also a CSR, how it operates within a
system. This was started in the late 1960’s and early 1970’s and now, it has become an
integral part of the Corporate scenario. CSR should be community-based approach. It should
be always for the society, and of the society, and by the society using the policies for their
own positive benefits. CSR is all about managing business processes to a positive directed
impact on society.

Corporate Social Responsibility (CSR) is the continuing commitment of Business, to behave

ethically and communicate and contribute to economic development, by improving the
quality of life, of the workforce and the families as well as communities and society keeping
in focus.- World Business Council for Sustainable development. Gandhiji has rightly said,
that the wealth created from the society must be given back to the society.
CSR helps people to understand in a Better perspective.
Betterment-atti- tude of the society can be emulated in that perspectives, while in CSR.
Everyone abides by the rules and regulations for the betterment of society through CSR.
Everyone participates in Community development participation through CSR.
Even through, Test- A, and Hypothesis Testing, it can be found out that work-place
environment can be enhanced and so the productivity can be maxim
•Immense peace will be attained when we (Corporates), practice good CSR policies
•There can be good economic responsibilities attained.
•Legal aspects can be attained via good CSR policies.
•Ethical aspects can be achieved easily while good CSR policies.
•Accounting and Good Financial aspects can be achieved through excellent CSR policies via
– CUSTOMERS, EMPLOYEES, SOCIETY & GOVERNMENT FACETS.
•It is the Corporate-Responsibility towards paying proper wages and salaries to the
employees and workers.
•It is how the Company and the customers behave with each other in terms of Price and
quality.
•It is how society works for the perspectives of health and society.
•It is how the corporate works with the Government in terms of rules and regulations for
the benefits of the coun
•We have to bless ourselves through proper CSR policies, with good Corporate e-structuring
and Management techniques.
•We should used good community development programs in view of health and safety
modes.
•Ecological considerations should be taken into consideration for the welfare of the society,
like lowering the pollution levels.
•Work-place environment can be enhanced for the betterment of the employees working in
the company
 3.1 What is CSR ?
Corporate social responsibility (CSR, also called corporate sustainability, sustainable
business, corporate conscience, corporate citizenship, conscious capitalism, or responsible
business)[1] [2] [3] is a type of international private business self-regulation.[4] While once it
was possible to describe CSR as an internal organisational policy or a corporate ethic
strategy,[5] that time has passed as various international laws have been developed and
various organisations have used their authority to push it beyond individual or even
industry-wide initiatives. While it has been considered a form of corporate self-
regulation[6] for some time, over the last decade or so it has moved considerably from
voluntary decisions at the level of individual organisations, to mandatory schemes at
regional, national and even transnational levels.
Considered at the organisational level, CSR is generally understood as a private firm policy.
As such, it must align with and be integrated into a business model to be successful. With
some models, a firm's implementation of CSR goes beyond compliance with regulatory
requirements and engages in "actions that appear to further some social good, beyond the
interests of the firm and that which is required by law".[7][8] The choices of 'complying' with
the law, failing to comply, and 'going beyond' are three distinct strategic organisational
choices. While in many areas such as environmental or labor regulations, employers may
choose to comply with the law, or go beyond the law, other organisations may choose to
flout the law. These organisations are taking on clear legal risks. The nature of the legal risk,
however, changes when attention is paid to soft law.[9] Soft law may incur legal liability
particularly when businesses make misleading claims about their sustainability or other
ethical credentials and practices. Overall, businesses may engage in CSR for strategic or
ethical purposes. From a strategic perspective, the aim is to increase long-term profits and
shareholder trust through positive public relations and high ethical standards to reduce
business and legal risk by taking responsibility for corporate actions. CSR strategies
encourage the company to make a positive impact on the environment and stakeholders
including consumers, employees, investors, communities, and others.[10] From an ethical
perspective, some businesses will adopt CSR policies and practices because of ethical beliefs
of senior management. For example, a CEO may believe that harming the environment is
ethically objectionable.[11]
3.2Definition of csr
The World Business Council for Sustainable Development in its publication Making Good
Business Sense by Lord Holme and Richard Watts, used the following definition:

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
The same report gave some evidence of the different perceptions of what this should mean
from a number of different societies across the world.
 3.3 Needs and importance

Despite CSR’s capacity of fetching a lot to the corporate desk, a fair number of companies
show high dissatisfaction towards this responsibility with some disclosing to have adopted
CSR in the first place as marketing tactic and some, considering CSR as a coerced burden
whose absence may have brought much more to the companies in the long run. Hence, to
understand what importance CSR holds in today’s era and whether its graft is worth the
outcome or not, we must look at some of the following points.
Advanced Public Image
Companies which are perceived as less self-regarding are actually favored by customers. It
may be psychological but somehow people find companies with social responsibilities as
more approachable. Sending out messages about your corporation’s philanthropic attitude
will do good to design the public image as it reflects an empathetic side of the company.
Corporations can do that by supporting nonprofit organizations or through donations.
Boosts Government Relations
To be in the good books of politicians and government regulators, companies must present
a positive public perception on its seriousness about social responsibility. This is not only the
best way to make easier contacts with government officials but also to avoid various
investigations and probes or even public campaigns.
Customer & Employee Engagement
It becomes easier to talk to customers or pursue them when you have a rather good
message to share. When customers get interested eventually in your cause, they’re slowly
going to believe the ambitions of your company. Obviously this is no maneuvering but with
a little effort on social responsibilities, a company reaches more public in new ways than it
might do without CSR. Likewise, today’s generation is ambitious and they’re in the constant
lookout for being associated with companies that have a good public image and is always in
the media for its positive decisions.
Brand Distinction
This is one of the reasons why companies from past incorporated CSR in the first place. But
since it is a common phenomenon now, corporations are trying out new ways to build up
their goodwill by experimenting on their social responsibilities. They’re not only taking it
seriously but bringing in a lot of creativity so that they serve their visionary purpose along
with creating a distinct image for themselves in the market.
Positive Workplace Environment
Corporations that care about the lives outside the barriers of their business kind of inspire
and motivate employees to walk into work each day eagerly. This enhances the relationship
between the highest management to the lowest paid workers as they go on to believe that
a united approach could do wonders.
Along with these there are other advantages of establishing CSR like retaining investors who
want to constantly know that their funds are being used properly, creating strong
partnership between nonprofit organizations and companies and dig out the best of their
workforce. With so many benefits and a vision to be a company that people look upon must
be the ultimate goal of every corporation after all.
 3.4Triple bottom line

The TBL is an accounting framework that incorporates three dimensions of performance:

social, environmental and financial. This differs from traditional reporting frameworks as it
includes ecological (or environmental) and social measures that can be difficult to assign
appropriate means of measurement. The TBL dimensions are also commonly called the
three Ps: people, planet and profits. We will refer to these as the 3Ps.

There is no universal standard method for calculating the TBL. Neither is there a universally
accepted standard for the measures that comprise each of the three TBL categories. This
can be viewed as a strength because it allows a user to adapt the general framework to the
needs of different entities (businesses or nonprofits), different projects or policies
(infrastructure investment or educational programs), or different geographic boundaries (a
city, region or country).

Both a business and local government agency may gauge environmental sustainability in the
same terms, say reducing the amount of solid waste that goes into landfills, but a local mass
transit might measure success in terms of passenger miles, while a for-profit bus company
would measure success in terms of earnings per share. The TBL can accommodate these
differences.

Additionally, the TBL is able to be case (or project) specific or allow a broad scope—
measuring impacts across large geographic boundaries—or a narrow geographic scope like a
small town. A case (or project) specific TBL would measure the effects of a particular project
in a specific location, such as a community building a park. The TBL can also apply to
infrastructure projects at the state level or energy policy at the national level.

The level of the entity, type of project and the geographic scope will drive many of the
decisions about what measures to include. That said, the set of measures will ultimately be
determined by stakeholders and subject matter experts and the ability to collect the
necessary data. While there is significant literature on the appropriate measures to use for
sustainability at the state or national levels, in the end, data availability will drive the TBL
calculations. Many of the traditional sustainability measures, measures vetted through
academic discourse, are presented below.

Economic Measures
Economic variables ought to be variables that deal with the bottom line and the flow of
money. It could look at income or expenditures, taxes, business climate factors,
employment, and business diversity factors. Specific examples include:

 Personal income
 Cost of underemployment
 Establishment churn
 Establishment sizes
 Job growth
 Employment distribution by sector
  Percentage of firms in each sector
 Revenue by sector contributing to gross state product

Environmental Measures
Environmental variables should represent measurements of natural resources and reflect
potential influences to its viability. It could incorporate air and water quality, energy
consumption, natural resources, solid and toxic waste, and land use/land cover. Ideally,
having long-range trends available for each of the environmental variables would help
organizations identify the impacts a project or policy would have on the area. Specific
examples include:

 Sulfur dioxide concentration

 Concentration of nitrogen oxides
 Selected priority pollutants
 Excessive nutrients
 Electricity consumption
 Fossil fuel consumption
 Solid waste management
 Hazardous waste management
 Change in land use/land cover

Social Measures
Social variables refer to social dimensions of a community or region and could include
measurements of education, equity and access to social resources, health and well-being,
quality of life, and social capital. The examples listed below are a small snippet of potential
variables:

 Unemployment rate
 Female labor force participation rate
 Median household income
 Relative poverty
 Percentage of population with a post-secondary degree or certificate
 Average commute time
 Violent crimes per capita
 Health-adjusted life expectancy
Data for many of these measures are collected at the state and national levels, but are also
available at the local or community level. Many are appropriate for a community to use
when constructing a TBL. However, as the geographic scope and the nature of the project
narrow, the set of appropriate measures can change. For local or community-based
projects, the TBL measures of success are best determined locally.

There are several similar approaches to secure stakeholder participation and input in
designing the TBL framework: developing a decision matrix to incorporate public
preferences into project planning and decision-making,3using a "narrative format" to solicit
shareholder participation and comprehensive project evaluation,4 and having stakeholders
rank and weigh components of a sustainability framework according to community
priorities.5 For example, a community may consider an important measure of success for an
entrepreneurial development program to be the number of woman-owned companies
formed over a five-year time period. Ultimately, it will be the organization's responsibility to
produce a final set of measures applicable to the task at hand.

3.5 Csr in todays world

Corporate social responsibility has become the main focus of interest not only by the
organizations’ managers but also for the practitioners of development, both within the
bilateral and multilateral agents and development NGOs. Official development agencies
particularly have a positive view for CSR impacts. The current debate of CSR dates back to
990s. It is the latest manifestation of the debate over relationship between society and
business. The consideration from large corporations in US in late 19th century led to
movements of antitrust and utilities regulation. Demand for CSR in US companies sought to
demonstrate that corporations could be better without intensive push from unions and
governments. At the international level, the draft charter of International Trade
Organization was signed that included measures to be addressed including employment
standards, international investment and business practices

Extent of Following CSR behavior in various organizations

According to a definition by European Union states, CSR is the concept to explain the way
companies integrate environmental and social concerns in their business activities and
interaction with shareholders on a voluntary basis (Herbert, C. M. & Schantz, C. V. (2007, p.
4). Scholars of economics and management share the assumption widely that focus of the
business firms is only profit and provision of public goods is the task of the state system. The
businesses are being conceived as economic actors and state agencies and governments to
be only political actors. Scherer & Palazzo (2011) have suggested that under the
globalization conditions, the strict labor division between nation state governance and
private business does not hold any longer.

Most of the businesses have initiated to assume that political and social responsibilities
which are beyond the legal requirements and can fill the vacuum with regulations in global
governance. They have found that there is growing number of publications that proposed
the concept of CSR and considered the implications of new theorizing about governance,
business firm and democracy.
There is a need for development options to meet the key challenge for the CSR behavior by
the organizations. According to a study by World Bank, there are some considerations as
follows for CSR behavior:

- Organizational needs of the buyer, and whether such needs make the adoption of CSR
more or less likely,
- The risk that CSR option may lower the standards,
- Cost of time and money that is required for the implementation of the option, and concern
that whether the stakeholder will get ready for required investment,
- Implementation feasibility of CSR, particularly required roles of institutional actors and
whether they are willing to have such role and
- Implications for role of public sector, including donors from industrial countries and
governments of developing countries (The World Bank Group, 2003).

It is important to know that CSR policies are not only the result of good will of the leaders of
a business, but some stakeholder raise the issues relating interests of governments,
investors, employees and others. De, et al (2008) have described such influencing groups as
the activist groups and argued that such groups start their influencing campaign by
organizing and collecting information about the concerned issues and disseminate the
information to their target audience. They inform the management of the target firm about
their particular concerns and desired outcomes. If the responses of a firm are seem to be
inadequate, the activist groups are likely to continue the campaign, however, with some
more valid tactics.

The authors have introduced four types of tactics that are being used by the activist group
to pressurize the firms to not to rely on legal action or state for issue resolution: political
consumerism, shareholder activism, alternative business syste.
 4 CSR in india
India is the first country in the world to make corporate social responsibility (CSR)
mandatory, following an amendment to The Company Act, 2013 in April 2014. Businesses
can invest their profits in areas such as education, poverty, gender equality, and hunger.

The amendment notified in the Schedule VII of the Companies Act advocates that those
companies with a net worth of US$73 million (Rs 4.96 billion) or more, or an annual
turnover of US$146 million (Rs 9.92 billion) or more, or a net profit of US$732,654 (Rs 50
million) or more during a financial year, shall earmark 2 percent of average net profits of
three years towards CSR.

In the draft Companies Bill, 2009, the CSR clause was voluntary, though it was mandatory
for companies to disclose their CSR spending to shareholders. It is also mandatory that
company boards should have at least one female member.

CSR has been defined under the CSR rules, which includes but is not limited to:

 Projects related to activities specified in the Schedule; or

 Projects related to activities taken by the company board as recommended by the
CSR Committee, provided those activities cover items listed in the Schedule.

Corporate social responsibility: Examples in India

Tata Group
The Tata Group conglomerate in India carries out various CSR projects, most of which are
community improvement and poverty alleviation programs. Through self-help groups, it is
engaged in women empowerment activities, income generation, rural community
development, and other social welfare programs. In the field of education, the Tata Group
provides scholarships and endowments for numerous institutions.

The group also engages in healthcare projects such as facilitation of child education,
immunization and creation of awareness of AIDS. Other areas include economic
empowerment through agriculture programs, environment protection, providing sport
scholarships, and infrastructure development such as hospitals, research centers,
educational institutions, sports academy, and cultural centers.
Ultratech Cement
Ultratech Cement, India’s biggest cement company is involved in social work across 407
villages in the country aiming to create sustainability and self-reliance. Its CSR activities
focus on healthcare and family welfare programs, education, infrastructure, environment,
social welfare, and sustainable livelihood.

The company has organized medical camps, immunization programs, sanitization programs,
school enrollment, plantation drives, water conservation programs, industrial training, and
organic farming programs.

Mahindra & Mahindra

Indian automobile manufacturer Mahindra & Mahindra (M&M) established the K. C.
Mahindra Education Trust in 1954, followed by Mahindra Foundation in 1969 with the
purpose of promoting education. The company primarily focuses on education programs to
assist economically and socially disadvantaged communities. CSR programs invest in
scholarships and grants, livelihood training, healthcare for remote areas, water
conservation, and disaster relief programs. M&M runs programs such as Nanhi Kali focusing
on girl education, Mahindra Pride Schools for industrial training, and Lifeline Express for
healthcare services in remote areas.

ITC Group
ITC Group, a conglomerate with business interests across hotels, FMCG, agriculture, IT, and
packaging sectors has been focusing on creating sustainable livelihood and environment
protection programs. The company has been able to generate sustainable livelihood
opportunities for six million people through its CSR activities. Their e-Choupal program,
which aims to connect rural farmers through the internet for procuring agriculture products,
covers 40,000 villages and over four million farmers. Its social and farm forestry program
assists farmers in converting wasteland to pulpwood plantations. Social empowerment
programs through micro-enterprises or loans have created sustainable livelihoods for over
40,000 rural women.

Methodology of corporate social responsibility

CSR is the procedure of assessing an organization’s impact on society and evaluating their
responsibilities. It begins with an assessment of the following aspects of each business:

 Customers;
 Suppliers;
 Environment;
  Communities; and,
 Employees.

The most effective CSR plans ensure that while organizations comply with legislation, their
investments also respect the growth and development of marginalized communities and the
environment. CSR should also be sustainable – involving activities that an organization can
uphold without negatively affecting their business goals.

Organizations in India have been quite sensible in taking up CSR initiatives and integrating
them into their business processes.

It has become progressively projected in the Indian corporate setting because organizations
have recognized that besides growing their businesses, it is also important to shape
responsible and supportable relationships with the community at large.

Companies now have specific departments and teams that develop specific policies,
strategies, and goals for their CSR programs and set separate budgets to support them.

Most of the time, these programs are based on well-defined social beliefs or are carefully
aligned with the companies’ business domain.

CSR trends in India

FY 2015-16 witnessed a 28 percent growth in CSR spending in comparison to the previous

year.

Listed companies in India spent US$1.23 billion (Rs 83.45 billion) in various programs
ranging from educational programs, skill development, social welfare, healthcare, and
environment conservation. The Prime Minister’s Relief Fund saw an increase of 418 percent
to US$103 million (Rs 7.01 billion) in comparison to US$24.5 million (Rs 1.68 billion) in 2014-
15. The education sector received the maximum funding of US$300 million (Rs 20.42 billion)
followed by healthcare at US$240.88 million (Rs 16.38 billion), while programs such as child
mortality, maternal health, gender equality, and social projects saw negligible spend.

In terms of absolute spending, Reliance Industries spent the most followed by the
government-owned National Thermal Power Corporation (NTPC) and Oil & Natural Gas
(ONGC). Projects implemented through foundations have gone up from 99 in FY 2015 to 153
in FY 2016, with an increasing number of companies setting up their own foundations rather
than working with existing non-profits to have more control over their CSR spending.
2017 CSR spends further rose with corporate firms aligning their initiatives with new
government programs such as Swachh Bharat (Clean India) and Digital India, in addition to
education and healthcare, to foster inclusive growth.
 5.1 - Arguments for and against csr

Arguments in favour of CSR:

The following arguments favour corporate social responsibility:
1. Protect the interests of stakeholders:
Labour force is united into unions which demand protection of their rights from business
enterprises. To get the support of workers, it has become necessary for organisations to
discharge responsibility towards their employees.

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Caveat emptor (‘let the buyer beware’), no more holds true. Consumer today is the kingpin
around whom all marketing activities revolve. Consumer does not buy what is offered to
him. He buys what he wants. Firms that fail to satisfy consumer needs will close down
sooner or later. Besides, there are consumer redressal cells to protect consumers against
anti-consumer activities. Consumer sovereignty has, thus, forced firms to assume social
responsiveness towards them.

Firms that assume social responsibilities may suffer losses in the short-run but fulfilling
social obligations is beneficial for long-run survival of the firms. The short-term costs are,
therefore, investments for long-run profitability.

2. Long-run survival:
Business organisations are powerful institutions of the society. Their acceptance by the
society will be denied if they ignore social problems. To avoid self-destruction in the long-
run, business enterprises assume social responsibility.

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3. Self-enlightenment:
With increase in the level of education and understanding of businesses that they are the
creations of society, they are motivated to work for the cause of social good. Managers
create public expectations by voluntarily setting and following standards of moral and social
responsibility.

They ensure paying taxes to the Government, dividends to shareholders, fair wages to
workers, quality goods to consumers and so on. Rather than legislative interference being
the cause of social responsibility, firms assume social responsibility on their own.

4. Avoids government regulation:

ADVERTISEMENTS:

Non-conformance to social norms may attract legislative restrictions. Government directly

influences the organisations through regulations that dictate what they should do and what
not. Various agencies monitor business activities.

For example, Central Pollution Control Board takes care of issues related to environmental
pollution, Securities and Exchange Board of India considers issues related to investor
protection, Employees State Insurance Corporation promotes issues related to employees’
health etc. Organisations that violate these regulations are levied fines and penalties. To
avoid such interventions, organisations have risen to the cause of social concerns.

5. Resources:
Business organisations have enormous resources which can be partly used for solving social
problems. Businesses are the creation of society and must work in the best interest of
society, both economically and socially.

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6. Professionalisation:
Management is moving towards professionalism which is contributing to social orientation
of business. Increasing professionalism is causing managers to have formal management
education and qualifications. Managers specialise in planning, organising, leading and
controlling through their knowledge and subscribe to the code of ethics established by a
recognised body.

The ethics of profession bind managers to social values and growing concern for society.
Thus, there is increasing awareness of social responsibility. To grow in the environment of
dynamism and challenge, business concern does not decide whether or not to discharge
social responsibilities but decides how much social responsibility to discharge. A good
business anticipates developments and acts in accordance with the currently conceived
social responsibilities to achieve the future targets.

Arguments against CSR:

Corporate social responsibility is limited on the following grounds:
1. Business is an economic activity:
It is argued by the opponents of social responsibility that basic function of a business
enterprise is to look into economic viability of its operations. It is for the Government to
look after interests of the society. The prime responsibility of assuming social responsibility
should, therefore, be of the Government and not of the business enterprises.
2. Quantification of social benefits:
What measures soc ial responsibility and to what extent should a business enterprise be
engaged in it, what amount of resources should be committed to the social values, whose
interest should hold priority over others (shareholders should be preferred over suppliers or
vice versa) and numerous other questions are open to subjective considerations, which
make social responsibility a difficult task to be assumed.

3. Cost-benefit analysis:
Any social-benefit programme where initial costs exceed the benefits may not be taken up
by enterprises even in the short-run.

4. Lack of skill and competence: Professionally qualified managers may not have the
aptitude to solve the social problems.
5. Transfer of social costs:
Costs related to social programmes are adjusted by the business concerns in the following
ways:
(a) High prices:
The costs are passed to consumers by increasing prices of goods and services.

(b) Low wages:

If managers maintain the level of prices, the social costs may be reflected in reduction of
wages.

(c) Low profits:

If wages are stabilized, profits would be reduced, which will lower dividends to the
shareholders. Low profits will reduce managers’ desire to further engage in corporate social
responsibility

6. Sub-optimal utilisation of resources:

If scarce resources are utilised for social goals, this would violate the very purpose of
existence of an organisation.
 5.2 Arguments for and against csr

Arguments Against Corporate Social Responsibility

Skeptics often claim that businesses should focus on profits and let the government or
nonprofit organizations deal with social and environmental issues.
Milton Friedman claimed that free markets, rather than companies, should decide what is
best for the world. He believes that Adam Smith’s “invisible hand” will do all the work to
make everything better.
Another argument is that companies are meant to create products or provide services
rather than handle welfare activities. They do not have the expertise or knowledge
necessary for handling social problems. Also, if managers are concentrating on social
responsibilities, they are not performing their primary duties for the company at full
capacity.
Finally, being socially responsible damage a company in the global marketplace. Cleaning up
the environment, ensuring product safety, and donating money or time for welfare issues all
raise company costs. In the end, this cost will be passed on to the consumer through the
final prices of the product or service. While some customers may be willing to pay more for
a product from a company that is socially responsible, others might not be. This can place a
company at an economic disadvantage.
Arguments for Corporate Social Responsibility
The simplest argument for social responsibility is that it is the right thing to do. Some of
society’s problems have been created by corporations such as pollution and poverty-level
wages. It is the ethical responsibility of business to correct these wrongs.
Another point is that businesses have many of the resources needed for solving society’s
problems and they should use them to do so.
Another reason for companies to be socially responsible is that if businesses are not, then
the government will create new regulations and establish fines against corporations. This
has especially been the case for the pollution issue.
If businesses police themselves, they can avoid government intervention. Finally, social
responsibility can be profitable. It is possible for companies to prosper and build
shareholder value by working to solve social problems. It can be a great way for a company
to build positive public relations and attract top talent in the industry.
 6 Warrier foundation

We are a non-profit charitable indian organisation seeking to build a sustainable community

through various initiatives. we work with multiple communities with a thrust, however, on
providing shelter, education and healthcare for children.
our mission is to provide an ecosystem for individuals to create a way of life, discovering
their potential in all dimensions - physical, mental, social and spiritual - thus identifying their
purpose in life.

Activities
We have undertaken multiple initiatives in the arena of education, healthcare and disaster
relief with the support of like-minded organisations and individuals. Through these, we
hope to provide a better quality of life to those deserving of the support.
 Education
 Health Care
 Environment
 Right Writing
 Disaster Relief

Facilities
Through our projects of the Balamandirams and the Universal Centre, our endeavour is to
create a space where individuals can explore their inner being and channelise it towards
their own progress and betterment of the society.
 Balamandir
 Universal Center
 Jnana Seva Kendra

Partner With Us
In order to carry out our various projects and improve our infrastructure, we are constantly
seeking partners who share our vision and beliefs. The support may be through your time,
counsel or financial means - we welcome it.
Aham Brahmasmi - "I am the infinite reality" Human beings have boundless intelligence and
immeasurable inner potential. The purpose of life is to discover 'who we are' and realize our
free and blissful state of being. Our being will enable others to grow and evolve through
integrating body, mind, intellect and spirit.
"Give a man a fish; you feed him for a day. Teach him how to fish; you feed him for life"

Our Mission
To empower individuals to discover and realize their full potential in Physical, Mental,
Family, Professional, Social and Spiritual dimensions. This is achieved through Education,
Health Care, Social and Spiritual activities