KES'S

PRATIBHA INSTITUTE OF BUSINESS

MANAGEMENT CHINCHWAD – 411019

Project Report
MASTER DEGREE OF BUSINESS
ADMINISTRATION (MBA)

A SKILL DEVELOPMENT (394) PROJECT REPORT

ON
IMPACT OF CSR PROGRAMS ON COMMUNITY
SUBMITTED BY

Sonawane Vidya Santosh

Sudan Kawaljeet Singh Harvinder Singh
Sukhwani Muskaan Naresh
Surushe Sakshi Laxmikant
Surve Vaishnavi Rajendra
Suryavanshi Karan Subhash
Tajane Kanchan Santosh
Talekar Rhutu Kiran
Temkar Shreeyash Nitin
Thomas Melvyn Marshal
Thopte Saurav Rajesh
Vairagi Manasi Vishwas
Varsha Lingapparaj
Vaswani Ayush Ashok
Wadhwani Harsh Jairam
Yadav Aishwarya Ramesh
Bhalekar sayali kishor
 UNDER THE GUIDANCE OF
Prof. Avinash Darbare

ACKNOWLEDGEMENT

I am extremely grateful to Pratibha Institute of Business Management for having

prescribed this project work as a part of academic requirement in the Masters of Business
Administration (MBA) course. I wish to express a special thanks to my project guide
“Prof. Avinash Darbare”. Without whose guidance the project may not have taken shape.

I would like to thank all those who have directly or indirectly helped me towards the
execution of this project with full sincerity. Sincere thanks to all.

Regards.

Vaishnavi Surve

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 EXECUTIVE SUMMARY

CSR has become a very vital instrument for companies nowadays. Society and business walk
hand in hand. So it has become essential for organizations to contribute to society in a big
way .this the reason why companies tie up with many NGOs. In this project, I have mainly
focused on a very famous and reputed.

Many companies are only making token gestures towards CSR in tangential ways such
as donations to charitable trusts or NGOs, sponsoring of events, etc. only a few Indian
companies publish a Corporate Sustainability Report to measure and assess the impact of
their business on the environment.

CSR is a result of a variety of social, environmental, and economic pressures while In some
other cases many large corporations, it is primarily a strategy to divert attention away from
the negative social and environmental impacts of their lives. It enables the company to
leverage its products, employee strength, networks, and profits and up to some extent to
create a sustainable change for marginalized communities. Despite certain criticisms of the
CSR activities, more and more companies in the world are inclined towards corporate social
responsibility. I have talked about CSR at internationally and in India.

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 Index

Page
Sr No Content No.

1 INTRODUCTION 4

2 OBJECTIVE 8

3 A STATE OF THE ART OF CORPORATE SOCIAL RESPONSIBIITY 12

4 LITERATURE REVIEW 20

5 RESEARCH METHODOLOGY 27

6 INVOLVE NGO's IN IDENTIFYING A CAUSE AND CREATING A STRATEGY 30

7 IMPORTANCE AND ROLE OF CSR 34

8 CORPORATE SOCIAL RESPONSIBILITY - CHALLENGES AND RESOLUTION 38

9 BENFITS OF CSR 40

10 FINDINGS 42

11 CONCLUSION 45

12 BIBLIOGRAPHY 46

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 INTRODUCTION

Corporate social responsibility (CSR) is a self-regulating business model that helps a

company be socially accountable to itself, its stakeholders, and the public. By practicing
corporate social responsibility, also called corporate citizenship, companies can be conscious
of the kind of impact they are having on all aspects of society, including economic, social,
and environmental.

Engaging in CSR means that, in the ordinary course of business, a company is operating in
ways that enhance society and the environment instead of contributing negatively to them.

● Corporate social responsibility is a business model by which companies make a

concerted effort to operate in ways that enhance rather than degrade society and the
environment.
● CSR can help improve various aspects of society as well as promote a positive brand
image for companies.
● Corporate responsibility programs can also raise morale in the workplace.
● CSR is often broken into four categories: environmental impacts, ethical
responsibility, philanthropic endeavors, and financial responsibilities.
● Some examples of companies that strive to be leaders in CSR include Starbucks and
Ben & Jerry's.

Companies are realising that engaging in CSR not only contributes to the betterment of
society but also has a profound impact on their employees. According to a report, 90% of
employees who work at companies with a strong sense of purpose say they’re more inspired,
motivated, and loyal. Corporate Social Responsibility (CSR) initiatives have evolved from a
mere obligation into a strong driver for businesses. While the societal benefits of CSR a well-
documented, a lesser-known but equally compelling aspect of these initiatives is their
remarkable influence on employee engagement. Companies are realising that engaging in
CSR not only contributes to the betterment of society but also has a profound impact on their
employees. According to a report, 90% of employees who work in companies with a strong
sense of purpose say they're more inspired. motivated, and loyal. In fact, companies like
Google and Salesforce are renowned for their philanthropic efforts and commitment to
sustainability, which not only aligns with their core values but also empowers employees to
make a difference, which contributes to their engagement.

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Corporate Social Responsibility (CSR) reflects a commitment by organizations to operate in a
manner that benefits their employees, customers, communities, and the environment. It is a
comprehensive approach to conducting business that extends beyond profit generation to
encompass a company's ethical, environmental, and societal responsibilities. It involves a
broad spectrum of activities, initiatives, and policies designed to ensure that a business, in the
course of its operations, positively contributes to society and the planet. One crucial aspect of
CSR involves ethical practices, which means that organizations are expected to treat their
employees, customers, and stakeholders with fairness and integrity. Additionally, CSR often
includes sustainability efforts, where companies aim to minimize their environmental
footprint through different eco-friendly practices. Furthermore, philanthropic activities and
community involvement are key components of CSR, as businesses are encouraged to give
back to the communities in which they operate. This echoes the words of Winston Churchill,
who famously stated. "We make a living by what we get. We make a life by what we give.”

Corporate Social Responsibility (CSR) allows businesses large and small to enact positive
change. It’s when companies choose to do what’s right not only for their bottom line but also
to build customer trust.

Consumers feel that when they use a product or service of a socially responsible company,
they are doing their part. The more socially responsible the company, the more supportive its
community and consumers become.

Corporate social responsibility helps gain customer trust by caring about issues such as Earth
Day, raising awareness, and encouraging social change. Although there are thousands of
companies doing their part, the efforts of large global corporations have far-reaching results
that can impact global issues, from hunger and health to global warming and climate change.

Examples of Corporate Social Responsibilities:-

Corporate social responsibility comes in many forms. Even the smallest company can impact
social change by making a simple donation to a local food bank. Some of the most common
examples of CSR include:

● Reducing carbon footprints

● Improving labor policies
● Participating in fairtrade
● Diversity, equity, and inclusion
● Charitable global giving
● Community and virtual volunteering
● Corporate policies that benefit the environment

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 ● Socially and environmentally conscious investments

CSR Impact on Businesses’ Employees :

● 71% of employees state that it’s very important to work at a company that partakes in
philanthropy.

● 77% of employees reported a sense of purpose as part of the reason they selected their

current employer.

● 55% of employees would take a pay cut to work for a socially responsible company.

● Employees who participate in corporate giving have 75% longer tenure with their
companies.
● 96% of employees who volunteer with their companies report having a positive

company culture.

● 96% of employees want their employers to match the

donations they make to
nonprofits.

● In one survey, 84% of respondents said they’re more likely to donate if their employer

offers a match.

CSR Impact on Businesses’ Consumers:

● 72% of consumers believe companies should have a legal responsibility to society.

● 77% of consumers are motivated to purchase from companies committed to making

the world a better place.

● Over 90% of consumers worldwide are likely to switch to brands supporting a good
cause.

● More than 66% of consumers would pay more to buy

from socially and

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 environmentally responsible businesses.

● Creating value for the customer, positively impacting society, and inspiring

innovation and positive change are the three highest-ranking components of a

company’s purpose.

● 88% of people want to know about a company’s CSR efforts when considering
making a purchase.

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 OBJECTIVES

The objective of understanding the impact of Corporate Social Responsibility (CSR) on the
community is multifaceted and involves various dimensions. CSR refers to the voluntary
actions that businesses take to address social, environmental, and ethical issues in addition
to their core economic activities. Here are some key objectives in understanding the impact
of CSR on the community:

1. Social and Environmental Impact Assessment:

● Evaluate how CSR initiatives contribute to positive social and environmental

outcomes in the community.
● Understand the effectiveness of CSR programs in addressing specific issues, such as
poverty alleviation, education, healthcare, environmental sustainability, and more.

2. Community Development:

● Assess the role of CSR in promoting community development and well-being.

● Measure the tangible benefits experienced by the community, such as improved
infrastructure, increased access to education and healthcare, and enhanced quality of
life.

3. Stakeholder Engagement and Relations:

● Understand how CSR practices impact the relationships between businesses and their
stakeholders, including local communities.
● Evaluate the level of engagement and collaboration between businesses and
community members in the planning and execution of CSR initiatives.

4. Brand Reputation and Consumer Perception:

● Examine the influence of CSR on a company's brand reputation and how it is

perceived by consumers.
● Explore whether consumers are more likely to support businesses that demonstrate a
commitment to social responsibility.

5. Long-Term Sustainability:

● Assess the sustainability of CSR initiatives and their long-term

impact on the community.

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 ● Consider whether CSR practices contribute to the overall resilience and sustainability
of the community, both socially and environmentally.

6. Compliance and Ethical Standards:

● Ensure that CSR initiatives adhere to ethical standards and legal requirements.
● Evaluate the extent to which CSR programs align with the values and expectations of
the community and society at large.

7. Employee Engagement and Satisfaction:

● Explore how CSR initiatives impact employee morale, engagement, and job
satisfaction.
● Determine whether employees feel a sense of pride and purpose working for a
company that actively contributes to the community.

8. Risk Management:

● Identify and manage potential risks associated with CSR initiatives, including
unintended negative consequences or backlash from the community.
● Understand how effective CSR practices can contribute to mitigating risks and
enhancing a company's resilience.

Here are additional aspects to consider when understanding the impact of Corporate Social
Responsibility (CSR) on the community:

9. Economic Impact:

● Evaluate the economic impact of CSR initiatives on the local community. This
includes assessing job creation, income generation, and overall economic
development resulting from the company's social responsibility efforts.

10. Capacity Building:

● Examine whether CSR programs contribute to building the capacity of local

communities. This can include providing training and education opportunities that
empower community members to enhance their skills and capabilities.

11. Cultural Sensitivity:

● Consider the cultural context of CSR initiatives and whether they respect and align
with the cultural values and norms of the community. Cultural sensitivity is crucial for
the acceptance and success of CSR programs.

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12. Transparency and Accountability:

● Assess the transparency and accountability of CSR activities. A transparent approach

to CSR, with clear communication about goals, progress, and outcomes, builds trust
with the community and other stakeholders.

13. Collaboration with NGOs and Government:

● Explore the extent to which businesses collaborate with non-governmental

organizations (NGOs) and government agencies in implementing CSR initiatives.
Such collaborations can enhance the effectiveness and reach of social responsibility
programs.

14. Measuring Social Return on Investment (SROI):

● Use methodologies such as Social Return on Investment (SROI) to quantify and

measure the social and environmental impact of CSR initiatives. This helps in
understanding the value created for both the business and the community.

15. Adaptability and Flexibility:

● Consider how adaptable and flexible CSR programs are in response to changing
community needs and priorities. Being responsive to evolving circumstances ensures
that CSR initiatives remain relevant and effective.

16. Global Supply Chain Considerations:

● Assess the impact of a company's CSR practices not only on the immediate local
community but also on global supply chains. Responsible sourcing and production
practices can have far-reaching effects on communities worldwide.

17. Education and Awareness:

● Evaluate the role of CSR in raising awareness and educating the community about
social and environmental issues. Educational initiatives can contribute to long-term
positive change by empowering individuals with knowledge.

18. Innovation and Technology Transfer:

● Explore whether CSR initiatives involve the transfer of innovative technologies or

practices to the community, fostering sustainable development and improved living
standards.

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 ● Understanding these additional dimensions provides a more comprehensive view of
how CSR influences and interacts with the community, and how businesses can
strategically align their social responsibility efforts for maximum positive impact.

Overall, the objective is to gain insights into how CSR activities positively or negatively
affect the community, and to use this knowledge to inform and improve corporate practices,
strengthen relationships with stakeholders, and contribute to sustainable development

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 A State of the Art of Corporate Social Responsibility

The concept of Corporate Social Responsibility (CSR) stems from the need for
companies to interconnect the needs of the community with the various sources of profit.
The growing interest in CSR issues, especially in banks, is the result of a cultural journey
that sees the company react to market changes and to be the protagonist of an
increasingly sustainable future.

The prevailing approach up to this period was that there was a negative correlation
between the ethical and social orientation of the investor and the economic performance.
It was believed that investing in good behavior practices would reduce the number of
available investment alternatives and possibly damage economic performance.

The spread of sustainable investments in financial markets, the development of ethical

stock market indices and ethical rating methodologies, has helped to affirm the belief that
there are economic benefits related to the assumption of corporate social responsibility.
In fact, investing in socially responsible behaviors can also bring economic benefits.

In line with these considerations, CSR is not a follow-up to profit, but sees it as a profit-
making option. In banking, CSR is an important aspect of the company’s strategy and it
must have a substantial value in its business. In other words, it is necessary to integrate
CSR into strategies, processes, operations as well as daily relationships with
stakeholders. If sustainability enters these areas, then it can effectively contribute to the
resilience of the economic and social fabric, foster confidence in the market and the
acceleration of the recovery from the crisis.

Absent or incorrect CSR policies have a much greater negative effect on performance
than the positive effects of correct policies. However, the recent recession in the world
economy, particularly in Europe, has shed light on some management scandals and the
lack of integrity in the European banking sector. This has had a negative impact not only
on bank returns but also on bank reputation. Banking governance plays a crucial role in
the implementation of CSR practices. It is believed that sustainable measures lead to
reputation and performance improvement when management demonstrates strong ethical
leadership. In the banking sector, some sustainable policies have not been able to
improve reputations and returns since the start of the financial crisis . Unethical practices
and mismanagement in several European banks have caused anger, and distrust of the
sector that has received public bailouts, while some bank executives have been paid
exorbitant bonuses. As a result, the ethical leadership and credibility of the banks were
called into question, resulting in a major loss of reputation, as the public perceived
discrepancies between the CSR directives of bank executives and their effective

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behaviors . In this scenario, investments in CSR have failed to improve reputation due to
weak business leadership.

Undoubtedly, there is the need for integrated communication between the criteria for
implementing CSR practices. Disclosure of CSR is regulated by national and
international self-regulatory measures. It is a voluntary disclosure and this faculty is
linked to the very essence of ethics, inevitably influenced by specific business activities
and difficult to define without proper contextualization.

Among the most relevant CSR provisions are the OECD Guidelines, which suggest that
integrated relationships should be adopted. In addition, the Global Reporting Initiative
(GRI) guidelines for sustainable reporting include the principles needed to define report
content (Materiality, stakeholder inclusion, sustainable context and comprehensiveness)
and relationship quality. They also include standard disclosure: organizational strategy
and profile, management approach and performance indicators (economic, environmental
and social.

1. An empirical analysis of CSR in global systematically important institutions

This chapter presents the results of a survey of a sample of banks belonging to the Global
Systematically Important Institutions (G-SII) universe, as defined by the EBA. The list of
banks included in this section follows the EBA’s guidelines on the dissemination of
indicators of global systemic importance in order not only to increase the transparency of
the G-SII identification process, but also to achieve a level playing field in terms of
disclosure requirements between systemically important institutions and other large
institutions. The EBA guidelines directly follow the Recommendations of the Basel
Committee to identify global systemically important banks (G-SIBs) and provide data
that help assess the systemic riskiness of EU banks.

In line with the EBA’s guidelines, all European institutions with a leverage ratio of more
than 200 billion euros are required to participate in this disclosure. Our sample includes
25 G-SII operating on European territory in 2018. The following table (Table 1) shows
the banks included in the sample. Of the 25 banks, 5 are from the United Kingdom, 4 in
Spain and Sweden respectively, 3 in France, 2 in Germany and Italy and 1 for Austria,
Belgium, Denmark and the Netherlands respectively.

2.1 CSR in corporate governance systems:

The importance and efficiency of CSR practices in banks depends almost exclusively on
the board of directors and the information provided to stakeholders. The CSR disclosure
helps to increase the well-being of stakeholders and communicate information on the
bank’s economic, social and environmental performance [36]. This reporting also reduces

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the information asymmetry between shareholders and bank executives [37]. In line with
these considerations, CSR is a valuable tool to increase shareholder confidence and
improve the bank’s ethical behavior. It is therefore one of the key factors in influencing
the bank’s competitiveness and long-term success

The growing interest in CSR has led many countries to introduce their respective
regulatory frameworks. CSR regulations have been imposed for banks in different
countries over the years (e.g. 2003 in Austria, 2007 in Malaysia, 2009 in Sweden, 2010 in
China, 2012 in Spain, 2016 in Belgium and 2017 in Hungary and Singapore). Other
countries, such as Australia, Canada and Cyprus, have soft regulations in the form of
recommendations to encourage the disclosure of CSR . Banks should follow standards
(e.g. GRI, designed for the financial services sector) or employ independent external
auditors to ensure the quality and reliability of the information disclosed.

The efficiency of the banks’ board of directors is important to ensure their stability,
compliance with regulations, the protection of stakeholders as well as to form long-term
strategies that also include sustainability issues. Diversity in the composition of the
Board of Directors is considered one of the key elements to resolve complex issues and
satisfy the interests of different actors. Diversity on company boards should improve
good corporate governance. The diversity of the Board of Directors is examined in terms
of the composition of the board of directors with a focus on the size of the board, the
independence of the board of directors and gender diversity.

2.1.1 Board size

The size of the board of directors in banks is much larger than the boards of directors of
non-financial corporations . These differences in the size of the board of directors may
depend on the complexity of banking activities and regulatory recommendations. Several
studies examine the relationship between the size of the board of directors and the
various performance measures of banks. The size of a bank’s board of directors has
positive effects on performance; this is probably due to the fact that banks are complex
businesses and the advantages of larger boards outweigh costs, improving monitoring
functions and mitigating risks.

In order for the Board of Directors to carry out its functions efficiently, it is necessary to
diversify the skills and experience of its members. More board members are associated
with better monitoring mechanisms for performing their functions as well as an
improvement in CSR practices. As more directors provide a more diverse and broader
variety of skills and opinions, larger boards of directors are expected to focus more on
the CSR . The banking sector, being subject to strict information disclosure requirements,
is more transparent than non-financial companies.

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2.1.2 Independent director

Also the independence of the Board of Directors is considered one of the most efficient
governance mechanisms . Independence is linked to the presence of non-executive
directors who ensure the correct behavior of the company . Independent directors
therefore act as guardians of the company’s legitimacy by ensuring compliance with
regulations and meeting the expectations of the external environment, including social
and environmental concerns . Non-executive directors can be guided by personal
interests and consequently pursue goals that are misaligned with the company’s strategy.
Since CSR information is obtained by management, there is a risk of spreading
misleading information . In that case, independent directors may reduce that risk. Much
of the existing literature is agreed that non-executive board members are positively
associated with the disclosure of the CSR of banks or its quality

2.1.3 Board’s diversity

Nowadays a large part of CSR studies believe that a key success factor is represented by
the diversity of the board in terms of gender, ethnicity or background. Diversity on
boards, expressed in terms of the number of women on the board, should increase the
independence of the board and focus on the interests of different stakeholders .
Leadership styles based on gender diversity suggest that women tend to be more
democratic, showing more empathy for diversity . This indicates that women should have
a positive influence on the functioning of the board of directors as they should promote
collaboration and integration of more complex issues in discussions and decision-
making. Much of the literature on the subject is in agreement in affirming the positive
association between the number of women on the board of directors and the information
on the CSR of the banks .

2.1.4 CSR committee

Finally, it is worth noting that in recent year companies, in order to achieve sustainability
goals, more frequently choose to set up a committee. The CSR or Sustainability
Committee assists the Board of Directors in overseeing the company’s liability practices,
but they can also play a key role in monitoring and evaluating the company’s CSR
performance by ensuring compliance with regulations that manage sustainability risks. In
other words, the CSR Committee helps to improve the ethical culture of the company by
ensuring that the potentially dangerous risks to the company’s reputation are properly
assessed .

The CSR advisory committee periodically reports to the board on sustainability issues
affecting the company, while managing public disclosure on sustainability issues. The

15
existence of a CSR committee is evidence of the company’s commitment to CSR and
therefore to the pursuit of ethical and sustainable objectives.

2.2 Empirical results

I. The size of the board of directors as a lever to make the function of the bank’s board
of directors efficient is analyzed by several academics and scholars. In line with the
introductory considerations, a greater number of members of the board of directors is
associated with better monitoring mechanisms for carrying out the functions of the
board as well as an improvement in CSR practices. In line with these considerations,
the analysis carried out revealed that the average size of Board of Directors is 13
members within a range that varies from a minimum of 6 to a maximum of 21
members. Although a positive correlation between the number of members of the
Board of Directors and size - measured in terms of assets managed - can be detected,
it does not however assume particularly significant values (correlation coefficient:
0,14)

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II. Gender diversity on boards of directors, usually expressed in terms of the number of
women on the board of directors, should have a positive influence on the functioning
of the board of directors and information on banks’ CSR.
The empirical analysis shows that in 2018, the representation of women on the boards of
directors of the banks analyzed was 35%. In three of the banks examined, the number of
women on the board of directors is equal to the number of men. 18 of the banks
examined have a percentage of women on the board of directors of more than 30%, while
in the remaining 7 banks there is a percentage varying between 13 and 29%

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III. Establishing a committee dedicated to CSR is a widespread practice (92% of the
sample). The analysis showed a strong heterogeneity in the behavior of banks. On the
one hand, some banks decide to set up coordination committees that control other
units dedicated to specific CSR issues. On the other hand, in other cases there is
cooperation between officials at group level or committees focusing on specific issues
relating to the environment, society and governance. The range of activities carried
out by CSR functions include: stimulating CSR initiatives and increasing internal
awareness of CSR issues; formulation and monitoring of policy and accountability
programmes; responsibility for coordinating and implementing the company’s
sustainability strategy and action plan; measures to deliver the sustainability strategy
and achieve agreed company-wide goals. In the cases examined, there is often a
special committee for responsible investments in the asset management business area
to ensure that banks’ responsible investment policy is respected

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 Conclusion

The concept of Corporate Social Responsibility stems from the need for companies to
interconnect the needs of the community with the various sources of profit. The growing
interest in CSR issues, especially in banks, is the result of a cultural journey that sees the
company reacting to market changes and being the protagonist of an increasingly
sustainable future.

Banks integrate social and environmental interest into their strategic objectives. Together
with the financial and environmental aspects, the ethical value of the banks assumes
greater importance for the development of both production and marketing strategies,
representing a new tool for competitiveness.

Banks pay attention to corporate social responsibility as an additional lever of innovation

and development to better compete on the market in the medium and long term. More
precisely, CSR contributes to the improvement of proactive risk management, integrating
it with social, environmental and government variables; improves the relationship with
stakeholders, promoting an analysis of the needs of bank interlocutors and the
development of products, services and commercial models. Finally, the CSR makes
explicit the implications that the role of intermediation of money has on society and
favors the creation of a shared value. In light of the above, this chapter has set itself the
objective of exploring the level of integration of Corporate Social Responsibility in the
banking system. To achieve this, we carried out an exploratory analysis on a sample of 25
banks, belonging to the universe of Global Systematically Important Institutions in 2018.
All the bank’s official documents on governance and sustainability policies were
analysed, and we used the Datastream database for some qualitative aspects. Our study
focused on four areas of investigation relating to the composition, size and configuration
of the boards of directors.

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 LITERATURE REVIEW

1. Archie Caroll:

Archie Carroll is a renowned scholar in the field of corporate social responsibility (CSR) and
management ethics. While he is well-known for his development of the CSR pyramid, his
work extends to exploring the impact of CSR on various stakeholders, including
communities. It's important to note that Archie Carroll has contributed to the theoretical
understanding of CSR rather than conducting specific empirical studies. Below, I'll outline
key aspects of Archie Carroll's work and how it relates to the impact of CSR on communities:

CSR Pyramid:

Archie Carroll's CSR pyramid is a widely recognized framework that categorizes the
responsibilities of businesses into four levels:

Economic Responsibility:

At the base of the pyramid is economic responsibility, emphasizing that a company's primary
function is to be profitable and contribute to economic development. This implies creating
jobs, generating income, and producing goods and services.

Legal Responsibility:

The second layer involves complying with laws and regulations. Businesses must operate
within the legal framework to ensure fairness and justice in their practices.

Ethical Responsibility:

Going beyond mere legal compliance, the ethical responsibility level highlights the
importance of conducting business in a morally upright manner. This involves considering the
impact of business decisions on various stakeholders, including communities.

Philanthropic Responsibility:

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The top of the pyramid represents philanthropic responsibility, suggesting that businesses
should engage in activities that contribute to the well-being of society. This includes
supporting community projects, charitable causes, and other initiatives beyond what is legally
and ethically required.

Community Impact:

While Archie Carroll's work doesn't delve into specific empirical studies on the impact of
CSR on communities, his conceptual framework lays the foundation for understanding how
businesses can contribute positively to the well-being of the community. Here are key points
related to community impact:

Philanthropy and Community Development:

Carroll's pyramid emphasizes philanthropic responsibility, suggesting that businesses should

go beyond their economic and legal obligations to contribute to the development of
communities through charitable activities.

Ethical Considerations:

The ethical responsibility level encourages businesses to consider the ethical implications of
their actions on various stakeholders, including communities. This involves conducting
business with integrity and considering the social and environmental consequences of
business decisions.

Stakeholder Theory:

Carroll's work is aligned with stakeholder theory, which recognizes that businesses have a
responsibility to a broader set of stakeholders, including communities. Businesses should
consider the impact of their operations on the well-being of these stakeholders.

Balancing Responsibilities:

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Carroll's pyramid suggests a hierarchy of responsibilities, but it also recognizes the
interdependence of these responsibilities. Businesses need to balance economic, legal, ethical,
and philanthropic considerations to contribute positively to communities.

2. Aneel Karnani:

Aneel Karnani is a professor of strategy at the University of Michigan's Stephen M. Ross

School of Business. He has written extensively on the topic of Corporate Social
Responsibility (CSR) and has provided critical perspectives on the impact and effectiveness
of CSR initiatives, particularly in relation to their influence on communities. It's important to
note that Karnani's work often challenges some prevailing views on CSR, offering a more
skeptical perspective.

Key Themes in Aneel Karnani's Research:

Critical Evaluation of CSR Effectiveness:

Karnani has questioned the overall effectiveness of CSR initiatives, challenging the notion
that businesses engaging in social and environmental activities always lead to positive
outcomes for communities.

Focus on Poverty Alleviation:

One of the central themes in Karnani's work is a focus on poverty alleviation. He argues that
businesses should primarily address poverty-related issues directly rather than relying on
indirect CSR activities.

Business as a Driver of Development:

Karnani emphasizes the role of core business activities in contributing to economic

development and poverty reduction. He contends that businesses can make a more significant
impact by focusing on their core operations.

Critique of Voluntary CSR Initiatives

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Karnani has criticized the voluntary nature of CSR, suggesting that relying on companies to
voluntarily engage in socially responsible activities might not be sufficient to address
complex societal challenges.

Call for a Broader Perspective:

In his research, Karnani advocates for a broader perspective that goes beyond the
philanthropic aspects of CSR. He encourages businesses to integrate social and
environmental considerations into their core strategies.

The Role of Government and Regulation:

Karnani argues that government regulations and interventions are crucial in ensuring that
businesses contribute positively to society. He contends that relying solely on voluntary CSR
might not be effective without an appropriate regulatory framework

3. David Vogel:

David Vogel is a notable scholar in the field of business and society, particularly in the areas
of corporate social responsibility, business ethics, and environmental management.

Key Themes in David Vogel's Research:

Business and Society Interaction:

David Vogel has explored the dynamic relationship between businesses and society,
examining how corporate activities influence and are influenced by broader social and
environmental contexts.

Voluntary Approaches to CSR:

Vogel has researched the effectiveness of voluntary CSR initiatives. His work assesses the
role of businesses in voluntarily adopting social and environmental practices and the impact
of such initiatives on communities.

Regulation and CSR:

23
Vogel has studied the relationship between government regulations and corporate social
responsibility. His research addresses the ways in which regulatory frameworks influence
corporate behavior and their impact on communities.

Environmental Management:

A significant portion of Vogel's work focuses on environmental management and the role of
businesses in addressing environmental challenges. This may include issues related to
pollution, resource use, and sustainable business practices.

Globalization and CSR:

Vogel has explored the implications of globalization on corporate social responsibility. This
includes studying how global supply chains and international business activities impact
communities and the environment.

Representative Works:

"The Market for Virtue: The Potential and Limits of Corporate Social Responsibility" (2005):

In this book, Vogel critically examines the motivations behind corporate social responsibility
and the potential and limitations of businesses adopting socially responsible practices.

4. Mary Gentile:

Mary Gentile is recognized for her work in the field of business ethics, values-driven
leadership, and ethical decision-making. While she may not be specifically known for
research on the impact of Corporate Social Responsibility (CSR) on communities, her
contributions to ethics education and leadership development intersect with broader themes
related to responsible business practices and societal impact.

Key Themes in Mary Gentile's Research:

Giving Voice to Values (GVV):

Mary Gentile is best known for developing the Giving Voice to Values (GVV) framework.
GVV is an innovative approach to values-driven leadership and ethical decision-making,
emphasizing the importance of individuals taking action on their values in the workplace.

24
Ethics Education in Business:

Gentile's work emphasizes the need for integrating ethics education into business curricula.
She has been an advocate for preparing future business leaders to navigate ethical challenges
and make responsible decisions in their professional lives.

Impact on Organizational Culture:

While her work may not be directly focused on the impact of CSR on communities, Gentile's
emphasis on ethical decision-making and values-driven leadership suggests an interest in
fostering positive organizational cultures that consider broader societal implications.

Alignment of Values and Actions:

The GVV framework encourages individuals to align their values with their actions,
promoting a culture where ethical considerations are integrated into daily business practices.
This alignment may extend to how businesses engage with and impact communities.

Social Responsibility in Leadership:

Although not explicitly stated in her research, Gentile's focus on values-driven leadership
suggests an interest in the broader social responsibility of leaders and organizations, including
their impact on communities.

5. Ed Freeman:

Ed Freeman, a prominent scholar in the field of business ethics and stakeholder theory, has
made significant contributions to understanding the role of corporations in society. While Ed
Freeman's work is not necessarily focused on the direct impact of Corporate Social
Responsibility (CSR) on communities, his development and promotion of stakeholder theory
have influenced discussions about how businesses engage with and impact various
stakeholders, including communities.

Key Themes in Ed Freeman's Research:

Stakeholder Theory:

25
Ed Freeman is often considered the architect of stakeholder theory. This theory posits that
businesses have a moral and ethical responsibility to consider the interests of all stakeholders,
not just shareholders. Stakeholders include employees, customers, suppliers, communities,
and others who are affected by or can affect a company's actions.

Ethics and Capitalism:

Freeman has explored the ethical dimensions of capitalism and the role of businesses in
creating value not only for shareholders but also for a broader set of stakeholders. His work
challenges the traditional notion that the primary responsibility of a corporation is to
maximize shareholder value.

Community as a Stakeholder:

While Freeman's work may not specifically focus on CSR's impact on communities,
stakeholder theory inherently includes communities as stakeholders. Communities are
recognized as entities with interests and concerns that should be considered by businesses in
their decision-making processes.

Business as a Force for Good:

Freeman has advocated for a more inclusive and positive role for businesses in society. He
contends that businesses when managed ethically and with consideration for all stakeholders,
can be a force for good and contribute to the well-being of communities.

Strategic Management and Stakeholders:

Freeman's research has delved into the strategic implications of stakeholder management. He
emphasizes the importance of aligning business strategies with the interests of stakeholders to
achieve long-term success.

26
 Research Methodology of Corporate Social Responsibility

Corporate Social Responsibility (CSR) research employs a mixed-methods approach to gain

comprehensive insights into the motivations, implementations, and impacts of CSR
initiatives. This typically involves a blend of qualitative and quantitative methods.

Qualitative Approaches:

Interviews and case studies are essential components of CSR research, enabling the
exploration of stakeholders’ perspectives and contextual nuances. In-depth interviews with
company representatives, employees, and external stakeholders provide valuable qualitative
data on the underlying motives and challenges associated with CSR practices. Case studies,
focusing on specific organizations, offer a detailed examination of CSR implementation
within a real-world context.

Quantitative Approaches:

Surveys play a crucial role in CSR research by quantifying perceptions and attitudes toward
CSR initiatives. These surveys may target employees, customers, and other relevant
stakeholders to gather data on their awareness, satisfaction, and expectations regarding the
company’s CSR activities. Additionally, quantitative content analysis of corporate reports
and communications provides measurable data on the extent and nature of CSR practices.

Integration of Methods:

A holistic understanding of CSR requires the integration of qualitative and quantitative

findings. By triangulating data from interviews, case studies, and surveys, researchers can
develop a comprehensive picture of how CSR is conceptualized, implemented, and
perceived. This approach enhances the validity and reliability of the research findings.

Additional Methods:

Literature reviews are critical for situating a company’s CSR practices within the broader
academic and business context. Document analysis of CSR reports, policies, and
communication materials aids in identifying trends and patterns. Benchmarking against
industry standards and competitors allows for a comparative analysis, shedding light on the
relative effectiveness and innovation of CSR practices.

27
Methodological Rigor in Corporate Social Responsibility Research

•Sampling and Participants:

•Careful selection of participants is crucial. Stakeholders from various levels within the
organization, such as executives, employees, and customers, offer diverse perspectives.

•Random sampling in quantitative surveys ensures representative data, while purposive

sampling in qualitative interviews and case studies helps capture specific insights.

•Data Collection:

•Qualitative data collection involves open-ended interviews exploring motivations,

challenges, and perceptions. These interviews provide rich, contextualized information.

•Quantitative surveys use structured questionnaires to gather standardized data, facilitating

statistical analysis. The questions often cover awareness, satisfaction, and perceived impact
of CSR initiatives.

•Data Analysis:

•Qualitative data undergoes thematic analysis to identify patterns and themes, providing a
nuanced understanding of the qualitative insights.

•Quantitative data is subjected to statistical analysis, employing tools like regression analysis
and factor analysis to draw correlations and identify significant variables.

•Triangulation:

•Triangulation involves cross-verifying findings from different methods. Qualitative insights

can validate or provide context for quantitative data, enhancing the overall credibility of the
study.

•Longitudinal Studies:

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•Longitudinal studies, tracking CSR practices over time, offer a dynamic perspective. They
reveal the evolution of CSR initiatives, their adaptability to changing contexts, and the long-
term impact on stakeholders and the environment.

•Ethical Considerations:

•Ethical considerations are paramount in CSR research. Informed consent, confidentiality,

and respect for participants’ perspectives are integral to maintaining the integrity of the
research.

•Challenges and Limitations:

•Acknowledging challenges, such as potential biases in self-reported data and the evolving
nature of CSR definitions, adds transparency to the research. Limitations, such as sample
size constraints and the dynamic business environment, should be discussed.

•Practical Implications:

•The research outcomes should not only contribute to academic knowledge but also offer
practical insights for businesses. Recommendations for optimizing CSR strategies,
addressing challenges, and enhancing stakeholder engagement can guide corporate decision-
making.

•Dissemination of Findings:

•Dissemination strategies, including academic publications, industry reports, and

presentations at conferences, ensure the broader community benefits from the research.

In conclusion, a robust research methodology for CSR integrates sampling strategies, diverse
data collection methods, rigorous analysis techniques, and ethical considerations.
Triangulation of findings, acknowledgment of challenges, and practical implications enhance
the relevance and impact of CSR research in both academic and business contexts

29
 INVOLVE NGOS IN IDENTIFYING A CAUSE AND CREATING A
STRATEGY

The first stage of crafting a strategic plan is analyzing the business’s current state of affairs. A
helpful tool for doing this is conducting a SWOT analysis on the NGO. SWOT stands for
Strengths, Weaknesses, Opportunities, and Threats and is a way of evaluating where a
business stands in its market.

NGOs employ various strategies to achieve their objectives, such as advocacy and lobbying
for policy change, capacity-building and training for community empowerment, fundraising
and resource mobilization for sustainability, and collaboration with other stakeholders to
leverage collective impact.

Some of the tactics we will explore in the subsequent series of blog posts on successful
strategic management of NGOs include

Embrace Purpose-Driven Leadership (Strategy 1)

At the heart of every successful non-profit lies purpose-driven leadership. According to the
Stanford
Social Innovation Review, organizations with inspiring leaders who can

clearly articulate their vision are 13 times more likely to outperform their peers. Thought
leaders like Simon Sinek have emphasized the importance of starting with “why” to ignite
passion and commitment among team members and stakeholders.

Purpose-driven leaders articulate a compelling vision, unite teams with a shared sense of
purpose, and navigate challenges with resilience. Moreover, NGOs can enhance their
performance by integrating innovative strategies that align with their mission and target the
specific needs of their beneficiaries.

Foster Strong Community Partnerships (Strategy 2)

Collaboration is key to achieving lasting impact, and non-profits can leverage community
partnerships to amplify their efforts. According to a report by the National Council of Non-
profits, organizations that actively collaborate with partners have a greater ability to tackle
complex issues and drive change. Establishing strong relationships with local businesses,

30
government agencies, and other non-profits can lead to shared resources, increased reach, and
enhanced program effectiveness.
Collaboration fosters creativity, expands resources, and multiplies the impact of our collective
efforts.

Harness the Power of Technology (Strategy 3)

In the digital age, technology is a formidable ally for non-profits seeking sustainability. From
social media outreach to data analytics for impact assessment, technology empowers
organizations to work smarter and more efficiently. A study by the Non-profit Tech for Good
indicates that 67% of non-profits worldwide believe technology is essential for their long-
term growth and success.

Invest in Continuous Learning (Strategy 4)

To thrive in a rapidly evolving landscape, non-profits must prioritize continuous learning and
adaptability. Thought leader Dr. Carol Dweck’s research on growth mindset emphasizes the
importance of seeing challenges as opportunities to learn and improve. Non-profits that
encourage a culture of learning and professional development foster innovation and stay
ahead of the curve. In a growth mindset, challenges are exciting rather than threatening.
They’re opportunities to learn and grow.

Cultivate Diverse Revenue Streams (Strategy 5)

Diversifying revenue streams is a crucial aspect of long-term non-profit sustainability. Over-

reliance on a single funding source can leave organizations vulnerable during economic
fluctuations. According to the Non-profit Finance Fund, organizations that diversified their
funding sources saw a 69% increase in revenue during challenging economic times. A diverse
funding portfolio creates a stable foundation for our mission and allows us to remain agile in
challenging times.

NGO purpose or cause

A non-governmental organization or NGO typically is established to work toward public or

social welfare goals. For instance, an NGO could focus on human rights, voters’ rights,
healthcare, helping the poor, and preventing cruelty to animals. NGOs can be funded by

31
donations and grants. One example of an NGO is Greenpeace International. It was founded in
1971 to protect the environment and the Earth.

NGOs often lead the way in providing relief and aid during these times. Your donation
ensures that these organizations are prepared to respond swiftly and effectively to crises,
providing essentials like food, clean water, shelter, and medical care to those in desperate
need.

NGOs are not only engaged in direct service delivery; they also play a crucial role in
advocacy and raising awareness. Your donation supports their efforts to bring attention to
critical issues, advocate for policy changes, and create a collective voice for those who might
not have one. This advocacy work can lead to systemic changes that address the root causes
of problems, resulting in a more sustainable impact.

In a world facing numerous challenges, from environmental degradation and healthcare

disparities to social injustices and educational inequalities, the role of NGOs has become
increasingly crucial. These organizations serve as beacons of hope, working tirelessly to
alleviate suffering, rectify imbalances, and pave the way for a more equitable and sustainable
planet. However, the accomplishment of their goals hinges significantly on the generosity of
individuals willing to step up and make a difference through their donations.

Let’s examine the profound impact of your donations on NGOs and the causes they
champion. Beyond being a financial transaction, donating to NGOs is a powerful statement of
solidarity. It’s a declaration that you recognize the urgency of the issues at hand and are
committed to being a proactive part of the solution. Every contribution, whether big or small,
resonates as a voice for positive change in a world that often grapples with complex
problems.

As we explore the multifaceted reasons why your donation support matters, we’ll uncover
how your benevolence acts as a catalyst for change, amplifies the reach of limited resources,
addresses pressing and emergent needs, bridges service gaps, and empowers advocacy and
awareness campaigns. It’s also important to examine the transformative role your donations
play in driving innovation, fostering both local and global impact, and leaving a lasting
legacy that echoes through generations.

A good first step would be to explore the profound influence your donations wield. From the
tangible outcomes they achieve to the intangible spirit of hope they kindle, your support
matters not just to NGOs but to the very fabric of our shared human experience.

32
NGOs involved in

NGO activities include but are not limited to, environmental, social, advocacy and human
rights work. They can work to promote social or political change on a broad scale or very
locally. NGOs play a critical part in developing society, improving communities, and
promoting citizen participation

As one can tell from the basic definition above, the difference between non-profit
organizations (NPOs) and NGOs is slim. However, the term “NGO” is not typically applied
to U.S.-based non-profit organizations. Generally, the NGO label is given to organizations
operating on an international level although some countries classify their own civil society
groups as NGOs.

NGOs focus on a wide range of issues and areas. These might include women’s rights, the
health of the environment and planet, healthcare, political advocacy, labor unions, religious
faith, care of aging adults, and youth empowerment.

While the government is not involved in the activities of NGOs, U.S. law normally regulates
them via their filing of information returns that show an NGO’s funding, management, and
activities.

NGOs can be formed by any group of people that wants to carry out missions in the public
interest. They can have staff and budgets. NGOs can operate internationally. The government
has no influence over them and no say in their activities or tax-exempt status. They can be
non-profit and usually are. They rely on donations, grants, and membership dues for funding.

A non-governmental organization (NGO) serves as a liaison between the government and the
general public. When a few concerns do not reach the government or are not resolved, NGO
functions play an essential part in assigning these issues to the government.

33
 IMPORTANCE & ROLE OF CSR

Importance of CSR:

We live in a world where social responsibility is a critical factor in how employees choose
where to work and where consumers decide to spend their money. Understanding the impact
they have on the world around them has never been more important for large corporates.

But more than that, in order to stand out in a positive light, they need to implement and
commit to a program of social responsibility activities.

The nature of CSR has evolved, it is now more than simply giving to charity; it has become
an integral part of how organizations run their business and focus on consumers’ perceptions
of company governance, the company’s positive influence on society, and how it treats its
employees.

Each year Boston-based Reputation Institute releases its list of the world’s most responsible
companies. The findings are based on 170,000 ratings from interviews with the public in 15
of the world’s largest economies. In 2017, Danish firm Lego was named the world’s most
responsible company.

The public believes the company behaves ethically, conducts business fairly, operates
transparently, protects the environment, and supports worthy causes.

In particular, the company was highlighted for its top-down approach to CSR activities: a key
factor in ensuring that CSR is taken seriously throughout an organization. Microsoft and
Google rounded off the top three.

It’s clear why corporate social responsibility is important to organizations: it enhances public
trust; it makes an organization a more attractive prospect for employees, particularly
Millennials; it leads to more engaged employees, and let’s not forget that engaging in CSR
and becoming a responsible business can have a positive impact on an organization’s bottom
line.

Corporate social responsibility (CSR) is the responsibility recognized by the companies for
acting in socially responsible manner. There is no single universally accepted definition of
corporate social responsibility, it has generally come to mean business decision making

34
linked to ethical values, legal compliance, and respect for people, community, and
environment. CSR expects a company to go further than required by law so as to:

● Treat employees fairly and with respect.

● Operate with integrity and in an ethical manner in all its business dealings with
Customer, suppliers, lenders, and others
● Respect human rights
● Sustain the environment for future generations
● Be a responsible neighbour in the community and a good ‘corporate citizen’.

Role of CSR in Community :

Meaning of Community:

First of all community is generally defined as a group of people sharing a common purpose,
who are interdependent for the fulfilment of certain needs, who live in close proximity and
interact on a regular basis. There are shared expectations for all members of the group and
responsibility taken from those expectations. The group is respectful and considerate of the
individuality of other persons within the community. In a community there is a sense of
community which is defined as the feelings of cooperation, of commitment to the group
welfare, of willingness to communicate openly, and of responsibility to and for others as well
as to one’s self. Most important there exists community leaders who are responsible for the
success of any community event, depending on the needs of the community, and the
individual’s own feelings. The community leaders are individuals who strive to influence
others to take responsibility for their actions, their achievements, and the community welfare.

Community (C) refers to initiatives undertaken by community with partnership with external
organizations or corporation to empower individuals and groups of people by providing these
groups with the skills they need to effect change in their own communities. These skills are
often concentrated around making use of local resources and building political power through
the formation of large social groups working for a common agenda. Community developers
must understand both how to work with individuals and how to affect communities positions
within the context of larger social institutions.

The role of CSR in Community Development used in this paper is any direct and indirect
benefits received by the community as results of social commitment of corporations to the

35
overall community and social system. The common roles of CSR in Community
Development are discussed as follows:

● To share the negative consequences as a result of industrialization. This is related to

increasing conscience-focused marketplaces necessitating more ethical business
Processes. E.g. higher UK road tax for higher emission vehicles, thus reducing the
burden Of small vehicle owners in a community. By doing so, small vehicle Owners
share less the tax burden, hence could re-channel the money for more productive Uses
in the community.

● Closer ties between corporations and community. Through CSR the existence of
Corporations in the social system is felt beyond a perception that corporation is a
place Just to get employment and producers of goods and services. By doing so,
corporations And community would stay in peace and harmony. This becomes a social
capital that is Essential in community development.

● Helping to get talents. Organizations with a reputation for CSR can take advantage of
their status and strengthen their appeal as an attractive employer by making their
commitment part of their value proposition for potential candidates. It is also found
that when employees view their organization’s commitment to socially responsible
behaviour more favourably, they also tend to have more positive attitudes in other
areas that correlate with better performance. They believe their organizations
recognize and reward great customer service, act quickly to address and resolve
customer concerns, and are led by people in senior management who act in the best
interest of customers. Confidence in senior management is higher in other areas, too,
when employees give their company high marks for being socially responsible. For
example, if a large number of employees perceive that their organization’s senior
management supports new ideas and new ways of Doing things, this would result on
better perception of employees to the organization, hence their trust and loyalty to the
organization. There is a correlation between a company’s success in the marketplace
is often influenced by its capacity for innovation, the perception of the employees to
the organization. It is also a factor in attracting and retaining talents. In relating to
Community Development, good employees’ perceptions on a corporation would lead
to the community that treats the corporation as an important economic asset in the
community.

36
● Role in transfer of technology (TOT). Closer ties help in TOT between MNCs that
give concerns on CSR and communities in the host countries. MNC is a corporation
that has its facilities and other assets in at least one country other than its home
country. Such companies have offices and/or factories in different countries and
usually have a centralized head office where they coordinate global management.
Very large multinationals have budgets that exceed those of many small countries.
Barton (2007) focuses on three mechanisms of international technology transfer: the
flow of human resources; the flow of public-sector technology support: and the flow
of private technology from MNCs to developing countries. He argues for greater
mobility within. And globalization of, the world’s scientific enterprise and reasserts an
economic rationale for investing in public-sector research in the developing countries.
Through TOT coupled with CSR processes, the targeted community would gain in the
various aspects of product development and marketing, such as better price and
quality, as well as concern for people’s wellbeing.

● CSR helps to protect environment. Some of the world’s largest companies have made
a highly visible commitment to CSR, for example, with initiatives aimed at reducing
their environmental footprint. These companies take the view that financial and
environmental Performance can work together to drive company growth and social
reputation.

● Interdependency between a corporation and community. The close link between a

Corporation and community is another aspect of CSR role in Community
Development Because in long run it creates sustainable development.

37
 Corporate Social Responsibility (CSR): Challenges and Resolutions

Corporate social responsibility (CSR) is a concept that has gained increasing popularity in
recent years. It refers to the idea that businesses have a responsibility to contribute to the
well-being of society and the environment, beyond simply maximizing profits for their
shareholders.

While many companies have embraced CSR and have made significant strides in this area,
there are still a number of challenges that need to be addressed. In this article, we will explore
some of these challenges and offer some potential solutions.

What are the Challenges Faced in CSR Implementation?

One of the biggest challenges businesses face when it comes to CSR is the lack of a clear
framework for implementing and measuring CSR initiatives. Unlike other business activities,
such as finance or marketing, there is no established framework for CSR that businesses can
follow. This means that businesses often have to develop their own CSR strategies and
metrics, which can be time-consuming and costly. Furthermore, it can be challenging to
measure the effectiveness of CSR initiatives, as the impact of such initiatives is often long-
term and difficult to quantify.

Another challenge with CSR is the lack of transparency and accountability. In order for CSR
to be effective, it is important for companies to be open and honest about their efforts. This
means disclosing information about their environmental and social impacts and the steps they
take to address any negative impacts. However, many companies are not transparent about
their CSR efforts, which can undermine trust and lead to skepticism about their commitment
to social and environmental responsibility. To overcome this challenge, companies can
implement robust CSR management systems that provide detailed information about their
CSR activities and impacts. They can also engage with stakeholders, such as investors,
employees, and customers, to solicit feedback and input on their CSR efforts.

A third challenge is a difficulty of balancing short-term economic considerations with the

need to implement sustainable, long-term CSR initiatives. In today’s fast-paced business
environment, companies are under constant pressure to generate profits and deliver value to
shareholders. As a result, many companies may be hesitant to invest in CSR programs that
may not provide an immediate financial return.

What are the Solutions Can Companies Take in CSR Initiatives?

38
Despite these challenges, there are a number of potential solutions that companies can
consider in order to overcome these obstacles and effectively integrate CSR into their
operations.

One approach is to develop a clear and comprehensive definition of CSR that is aligned with
the expectations and priorities of key stakeholders. This definition should be based on a
robust set of principles and should be regularly reviewed and updated in order to ensure that
it remains relevant and effective.

Another important step is to establish standardized reporting and disclosure mechanisms for
CSR activities. This can help to ensure that companies are providing consistent and
comparable information about their CSR performance, and can help to facilitate
benchmarking and benchmarking and peer review.

To address these challenges, it is important for businesses to work together and develop
clear guidelines and regulations for CSR initiatives. This can help to ensure that all
businesses are operating in a consistent and responsible manner, and can help to create a more
coordinated and effective approach to CSR. In addition, businesses should also invest in
research and development to find cost-effective and efficient ways of implementing CSR
initiatives. This can help to reduce the potential financial implications of these initiatives and
can make it easier for businesses to justify the costs of implementing CSR initiatives.

Overall, the challenges of implementing CSR initiatives can be daunting, but with a clear plan
and a commitment to working together, businesses can overcome these challenges and
operate in a socially and environmentally responsible manner. By taking these steps,
businesses can not only improve their own operations but also make a positive difference in
their communities and the world at large.

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 THE BENEFITS OF CSR

Responsible business reputation

Corporate social investment can help you to build a reputation as a responsible business,
which can, in turn, lead to a competitive advantage Companies often favour suppliers who
have responsible policies, since this can reflect on how their customers see them. Some
customers don’t just prefer to deal with responsible companies – they insist on it.

Costs savings

By reducing resource use, waste and emissions, you can help the environment and save
money too. With a few simple steps, you may be able to lower your utility bills and achieve
savings for your business. See how to reduce your business waste to save money.

Finding and keeping talented staff

Being a responsible, sustainable business may make it easier to recruit new employees or
retain existing ones. Employees may be motivated to stay longer, thus reducing the costs and
disruption of recruitment and retraining.

Recruits, Retains, and Engages Employees

Employee motivation is more often than not a top concern for employers. It’s harder than it
may seem to motivate a team of people through a monthly pay packet alone. A survey of
nearly 25,000 people aged 18-35 from 186 countries revealed that 40% of young people think
sense of purpose/impact is one of the most important criteria when considering a career
opportunity. And 55% of employees would choose to work for a socially responsible
company, even if it meant a lower salary.

Increases Sales

When companies implement a solid CSR strategy, their sales increase. This is often an
indirect impact, but an impact nonetheless. Since consumers are becoming more conscious
about who they buy from, your business could have the upper hand over a competitor who

40
has no CSR or a CSR program that is perceived as inauthentic. Consequently, the customer is
more likely to choose your brand. And if you keep your customer service up, you’ll enjoy
their repeated business. Interactive voice response (IVR) or live chat bots ensure you’re
always one step ahead when it comes to your competitors and how they interact with
customers.

Improves Loyalty

When you adopt a CSR strategy, expect improved loyalty from customers and employees
alike. As a leader, you should constantly evaluate what your employees think about your
CSR. A good grasp of social responsibility is also important to stakeholders and shareholders.
People admire businesses that take positive steps toward improving the world. Hence, they
are more likely to stick with you. They may not be interested in another business offering the
same service but without a CSR pledge.

Leaves a Green Footprint

Arguably the most important reason of all to take CSR seriously is that you’re being kinder to
the community and the planet. A staggering 12.5% of the world’s carbon pollution since 1854
has been produced by just five corporate giants. But this doesn’t mean even your small
carbon footprint as a SME shouldn’t be challenged.

Competitive advantage

CSR initiatives can significantly improve your company’s public image by positioning it
favorably in the eyes of consumers, regulators, and investors. Business Wire research shows
that consumers expect the brands they support to be socially responsible. 70% of consumers
want to know what the brands they support are doing to address social and environmental
issues. Therefore, implementing CSR initiatives gives your company a competitive
advantage. You’ll gain a steady revenue stream, loyal customers, business partnerships, and
new investments.

Other benefits of CSR to companies

By acting in a sustainable, responsible way, you may also find it easier to:

Access finance – investors are more likely to back a reputable business

Attract positive media attention – e.g. when taking part in community activities

41
 FINDINGS

● Roles of CSR in CD refer to the ways the responsible behaviour is perceived by

community of
● stakeholders and how impacts are felt by them. The analysis shows that CSR proved
to have many roles
● and the brought impacts to the community as follows: Closer ties and
interdependencies between
● corporations and community, sharing the costs the society has to pay due to
environmental degradation,
● transfer of technology from international companies to developing countries,
environmental protection
● measures that done together by corporation and the communities, poverty alleviation
in the communities,
● human right advocacy, and helps in data gathering by ICT firms to facilitate public
organization functions.
● Roles of CSR in CD refer to the ways the responsible behavior is perceived by
community of
● stakeholders and how impacts are felt by them. The analysis shows that CSR proved
to have many roles
● and the brought impacts to the community as follows: Closer ties and
interdependencies between
● corporations and community, sharing the costs the society has to pay due to
environmental degradation,
● transfer of technology from international companies to developing countries,
environmental protection
● measures that done together by corporation and the communities, poverty alleviation
in the communities,
● human right advocacy, and helps in data gathering by ICT firms to facilitate public
organization functions.

1. Roles of CSR in Community refer to the ways the responsible behaviour is

perceived by community of stakeholders and how impacts are felt by them. The
analysis shows that CSR proved to have many roles and the brought impacts to the
community as follows: Closer ties and interdependencies between corporations and
community, sharing the costs the society has to pay due to environmental
degradation, transfer of technology from international companies to developing
countries, environmental protection measures that done together by corporation
and the communities, poverty alleviation in the communities, human right
advocacy, and helps in data gathering by ICT firms to facilitate public organization

42
 functions. It is also observed that skills needed by CSR managers do vary due to
the diverse disciplines involved and also the complexity of the roles

and responsibilities of a CSR initiative. There are no specific qualifications

required for this field. Because the field is new, transferable skills and knowledge
from other related specializations such as environmental management, business
ethics, transfer of technology, human resource management and community
development, are valued.

2. Corporate Social Responsibility plays a pivotal role in positively impacting local

communities. By integrating ethical practices and sustainable initiatives into their
strategies, businesses can foster economic development, improve social welfare,
and contribute to environmental sustainability. Through collaboration and
stakeholder engagement, companies can maximize the effectiveness and reach of
their CSR programs, driving significant positive change in the communities they
operate in. Ultimately, the combined efforts of businesses, governments, and civil
society are essential in ensuring a sustainable and inclusive future for all.

3. The challenges of implementing CSR initiatives can be daunting, but with a clear
plan and a commitment to working together, businesses can overcome these
challenges and operate in a socially and environmentally responsible manner. By
taking these steps, businesses can not only improve their own operations but also
make a positive difference in their communities and the world at large.

4. For CSR projects to be successful, raising public awareness about CSR is essential.
CSR projects are more likely to be successful if the public is made aware of them.
Even when it comes to implementing CSR programs, involving stakeholders has
proven difficult. The biggest obstacle is the lack of community support or a lack of
response from the public. In addition, it's difficult to find workers who are qualified
and suitable for CSR activities. No specific instructions or policies govern CSR
activities. While CSR activities vary in size between large and small corporations
and companies, large corporations have more CSR activities than smaller
corporations. CSR activities are closely monitored and closely collaborated with
implementation partners, including NGOs, to ensure that programs achieve their
goals.

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5. Companies striving to measure success beyond bottom-line financial results may
adopt corporate social responsibility strategies. These strategies may target
environmental, ethical, philanthropic, and fiscal responsibility that extend beyond
the products they sell. CSR aims to make the world a better place beyond
transacting with customers and may result in company-specific benefits as well.

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 CONCLUSION

The analysis of Corporate Social Responsibility (CSR) activities underscores their pivotal
role in fostering sustainable business practices and contributing to broader societal well-
being. Through an in-depth examination of various CSR initiatives, it becomes evident that
organizations embracing social and environmental responsibility not only fulfill ethical
obligations but also enhance their corporate reputation and long-term viability.

The report has highlighted the multifaceted nature of CSR, encompassing philanthropy,
environmental stewardship, ethical labor practices, and community engagement. By actively
participating in these initiatives, companies can build stronger connections with stakeholders,
including customers, employees, and investors. Furthermore, the positive impact of CSR on
employee morale and productivity suggests a direct correlation between responsible business
practices and organizational success.

As we move towards an era where consumers are increasingly conscious of the social and
environmental implications of their choices, the significance of CSR cannot be overstated.
Companies that integrate sustainability into their core business strategies not only contribute
to global efforts to address pressing challenges but also position themselves as leaders in their
industries.

However, it is crucial to acknowledge that the effectiveness of CSR activities is contingent on

transparency, genuine commitment, and measurable impact. As such, organizations must
adopt a holistic and integrated approach to CSR, aligning initiatives with their values,
industry standards, and the Sustainable Development Goals (SDGs).

In light of the findings presented in this report, it is recommended that businesses continue to
evolve their CSR practices, adapting to emerging challenges and leveraging opportunities for
positive societal impact. Through ongoing evaluation, collaboration with stakeholders, and
innovation, companies can cultivate a culture of responsibility that not only benefits the
communities they serve but also contributes to the long-term success and resilience of the
business itself. Ultimately, the pursuit of CSR is not merely a trend but a strategic imperative

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for businesses aspiring to thrive in a socially conscious and environmentally aware global
landscape.

BIBLIOGRAPHY

1) Corporate social responsibility (CSR): Wikipedia

2) Baseline Study on CSR in Macedonia. UNDP. (2007).

3) Procedia: Social and Behavioural Sciences

4) CSR in India: Some Theory and Practice in Wall Street Journal dated Thursday, April 23,
2009.

5) Wiser, W. (2007), The A to Z of Corporate Social Responsibility, Wiley, London.

6) Rogers, E. M. (1962), “Diffusion of Innovations,” New York: The Free Press.

7) The csr journal.in/what-is-the-importance-of-csr/

8) https://www.researchgate.net/

9) www.legalserviceindia.com

10) www.sciencedirect.com

11) www.makemyassignments.com/blog/disadvantages-of-csr/

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