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Study Material: Managing For Sustainability

This document provides an overview of a course on managing for sustainability. It includes: 1) The course title ("Managing For sustainability"), semester (MBA Semester IV), unit details (Unit-I with 48 slides), and instructor details. 2) An introduction to concepts like CSR, stakeholders, responsibilities to different stakeholder groups like customers, shareholders, employees, community, and state. 3) Steps for formulating and implementing CSR policies like developing a decision structure, planning, setting targets, training, and communication.

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Sunil Pawar
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37 views

Study Material: Managing For Sustainability

This document provides an overview of a course on managing for sustainability. It includes: 1) The course title ("Managing For sustainability"), semester (MBA Semester IV), unit details (Unit-I with 48 slides), and instructor details. 2) An introduction to concepts like CSR, stakeholders, responsibilities to different stakeholder groups like customers, shareholders, employees, community, and state. 3) Steps for formulating and implementing CSR policies like developing a decision structure, planning, setting targets, training, and communication.

Uploaded by

Sunil Pawar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Study Material

For the course

Managing For sustainability


(3 credit course)

MBA Semester IV

Unit-I (48 slides)

by: Prof.S.V.BIDGAR

PIRENS TECHNICAL CAMPUS


INSTITUTE OF BUSINESS MANAGEMENT AND ADMINISTRATION
Introduction to CSR
• Increasing awareness of business and its environment
interdependency.
• Discontinued totally private bodies view of business.
• Shifted managers responsibility from business owners to the
society.
• Effect of enterprise functions on the linked persons.
• Here comes the need to strike the social balance of opposing
forces.
• Kenneth and Andrews concept-in terms of objective for
societal welfare and restrained individual or organizational
activities.
Concept of CSR
• Coined in different ways
-business responsibility to perform its economic functions
efficiently.
-obligation to consider societal interest while…
-Philanthropic and charitable activities
• Social responsibility in fact beyond economic function
• On the contrary, utilization of its economic power to protect
society.
• H.R. Bowen’s definition-in terms of obligations and policies.
• Difference between Social obligations and Social Responsibility
Nature of CSR
• Survival-organizational environmental interactions-
responsibilities towards society
• Two types of Responsibilities(due to organizational,societal
and environmental governance)
• Social responsibility as decision taken by Management that…
• Two principles
• Significant for the growth
• Areas of Social Responsibility.
• Social Responsibility in terms of Stakeholder
• CSR is proactive in Nature
• Pattern varies according to the organization
Forces for CSR
Consumerism

Self Interest

Trade Unions

Gov. Control

Trusteeship(societal caretaker concept)

Professionalization
Relevance of CSR in present day Business
environment
Business as society creation

Work for all enterprise interest

Public Image improvement

Social Power

Leadership and Competence


Relevance of CSR in present day Business
environment
Economic Objectives Promotion

Professional Managers demand

Free enterprise and avoid Govt Control

Social Impact
Critics to CSR
Economic Goals Dilution

Vague Concept

Burden on Consumers

Unfamiliarity of managers with social affairs

Misdirection of Resources
Critics to CSR
Responsibility without power

Unjust overburden

Un measurable

Improper role
Limits to CSR
• Ensuring Profitability and Viability
• Not Encroaching Government authority

• Competent managers
• Reciprocity principle

• Socioeconomic power Balance


• Social Cost Benefit Analysis
Enforcing CSR
I. Legislative Measures
i. Representation of Social Groups
ii. Social Audit
iii. Clause in Memorandum
Enforcing CSR
II. Voluntary Measures(consumer and business view)
i. Consumer organization to compel Businessmen
ii. Exercising effective control forming trade unions
iii. Control over Management forming SH associations
iv. Developing suitable organizational Culture
Barriers to CSR
I. The Organization(profitability objective)
II. The Division(again profitability issue arises)
III. The Individual Manager(ability to take
employee into confidence)
IV. The Industry(seems very clear and
understandable)
Meaning of Corporate Citizenship
• Degree to which business is responsible to meet SH
requirements.
• Aim of business to elevate the quality and standard of living
• Increase in demand for socially responsible corporations and
thereby punishment exists.
• Negative Corporate Citizenship practices.
• Act of proactively addressing societal issues while building SH
partnership.
• Integration of philanthropic values in Good Corporate
Citizenship.
• Management of organizations wider influence within the
society for mutual benefits(Marsden and Andriof1968)
Nature of Corporate Citizenship
1. Universality
2. Strategic oriented
3. Social Responsibility fulfillment
4. SH Oriented
5. Globalized
Benefits of Corporate Citizenship
1. Improves environment
2. Goodwill creation
3. Sharpens about company in minds
4. Improves HR
5. Promotes Development
Stages of Corporate Citizenship
• Studied by Philip Mirvis and Bradley Googins at
Centre for Corporate Citizeship,Boston (keep in mind)
• Refer table…
Formulating and Implementing CSR Policy

• Simple meaning of CSR implementation(daily decisions and


process) TALKING THE TALK AND WALKING THE TAILK
• Necessity (avoidance of dissatisfaction, less chances of trouble)
• Steps of strategies to implement CSR commitments:
I. Develop CSR decision making structure
II. Planning and executing CSR business plan
III. Setting targets
IV. Employee engagement
V. CSR training
VI. Addressing problematic behavior
VII. Build communication plans
Develop an Integrated CSR Decision
making structure
• Alignment of CSR into overall objectives and goals-automatic
customers consideration while taking corporate decisions.
• Different CSR decision making structures
• Transparency, accountability and performance dimensions
• Assignment of CSR to board members
• Appointing CSR expert member on the board
• Adding CSR responsibilities to the board
• Appointment of senior officer and committee having
particular departmental CSR responsibility
Plan and Execute CSR Business Plan
• After structure identifies accountable personalities
• It should be incorporated into company’s business
plan
• Transforms words into action
Setting Measurable Targets and Making
out Performance Measures
• Intermediate targets for effective implementation
• A broadly used approach (making out commitment
objectives-building up KPI-working out measurement
methods-measure the results)
• SMART Guidelines
• Exemplified
• Modification of the objectives and thereby…
Engage Employees and others related to
CSR commitment
• Vital role of the employees in implementation
• Success with Senior managers and for success
implementation in the hands of employees
• This necessitates the proper communication between both
• When believed that CSR is just HOT AIR,becomes difficult…
so senior managers need to be serious.
• Act of engaging implies act of awareness creation.
Design and Conduct CSR Training
• Continuous training implementation
• Languages of the employees to be accounted for training
module design
• 5 step approach
1. Need analysis
2. Learning objectives
3. Programme designing
4. Programme implementation
5. Evaluation
Creating Mechanisms for Addressing
Problematic Behavior
• Detecting against bad going by auditing and
monitoring
• Most sensitive part of the CSR activities
• Approach creation for employees trying to be
illegal or disobedient.
• Assigning responsibility with the senior
managers.
Building Internal and External
Communications
• CSR info should be communicated to employess by
all means possible
• Up to date agenda put up in meetings at all levels
• Fine external communication through selected
people of the organization
• Commuication comprises of awareness
campaigns,advertising,speeches
• Websites importance in this.
• Customization of communications
Meaning of stakeholders
• Individual, groups or organizations associated
• Affected directly or indirectly by Business
performance
• Variety of information used from stakeholders
for decision making.
• The type of information disseminated
depends upon the type of stakeholders
Types of Stakeholders
I. Internal Stakeholders( insiders, direct effect, involved
directly with the actions)

Employees Managers Owners

•1 •2 •3

II. External stakeholder


-no need to put up a chart over here.
III.Difference between the two(very clear)
Responsibility of Business towards
Stakeholders(Customers)
• Meet the ultimate aim first
• Paramount importance of this responsibility
• Perfection in all terms as expected by the customers
• Some basic responsibilities:

Production according to requirement

Prompt and adequate service

Attention towards complaints and


objections
Reply to enquiries

Co-Operation

Consumer-product research

Correction step in distribution system

Efficiency enhancemnt
Responsibility towards shareholders

Safety of Investment

Dividend

Direct participation in management

Information dissemination
Innovation and Growth

Public Image

Shareholders obligation(reversed responsibility)


Responsibility towards workers/employees

Fair wages and security

Opportunities to the workers

Proper working conditions and welfare

Trade Union Rights


Continued…
Proper Recognition

Proper training and promotion

Grievance Handling System

Company code of conduct


Responsibility towards Community

Education spread

Meetings

Help to Local Government

Fair competition

Other responsibilities
Responsibility towards State
Abide by Laws

Co-operation

Taxes and Duties

Other like….
Stakeholders Interest
• Necessary after identifying stakeholders.
• Some interested in further investments while
others not.
• Stakeholder mapping tool.
• So…
Identify
Discover
Stakeholder
Interest
s
Identifying Stakeholders
• Thinking beyond obvious.
• Easy to identify primary stakeholders but indirectly
affected isn’t that easy.
• Some recommended ways:
1. Brainstorm
2. From the community of interested geographical
area.
3. Advice from organization related in the effort.
4. Getting ideas from the stakeholders themselves or
itself.
5. If possible and as you feel…ADVERTISE.
Discovering Stakeholders Interest
• Potential beneficiaries with FOR
• Self centered or greedy
• Examples of economic concerns in support.
• Organizations ,agencies and institutions having stake
• Cultural reasons blocking interest
• Ideology of people like for example those against government
• Legislators and policy makers view
• Staff members added or reduced work in carrying out a effort
• Family concerns….Example
Influence of Stakeholders

Governance Customers
and Social and
Responsibility Community

Business
Employees Partners
Bottom of the Pyramid opportunities
• Aspiring poor's >handful of rich
• Investment in Bottom of Pyramid means
-reducing povety
-prevent social decay,
-prevent terror
• If not will the difference betwee poor and rich countries will
get broaden
• Needs innovation of technology and models
BOP(4 CONSUMER TIERS)

Tier 1
75-100
million
$20,000

Tier 2 & 3
1,500-1,750 million
$1,500-20,000

Tier 4
4,000 milliion
< $1,500
BOP(Invisible opportunity)
• MNC,s judges markets on the basis of income levels
• The result is discarding of BOP opportunities
• Need of influencing view of developing countries by MNC’s
• Some assumptions needed to be re-examined
1. Poor not the target customers
2. Poor's inability to afford
3. Poor’s can use outdated technologies
4. Managers not interested in humanitarian.
5. Can leave BOP to governmental
6. Hard to find managers interested in BOP
Strategies for tapping BOP
• New Delivery
• Prod Dev. formats
• Manufacturing • Robust product
• Distribution creation

Price
Duality views
Performance

Sustainability Profitability
• Reduction in resources • Investmnet
• Recyclability intensity
• Renewableenergy • Margins
• Volume
4 Keys to flourish BOP

BOP KEYS
Putting it all together

Innovation is
the answer
How Environmental-social issues shape the
market
• Considerable impact on company’s performance
• Extent of impact varies from company to company
Some issues depicted in Global Risks 2011 sixth edition of World
Economic Forum

Water quality and Scarcity

Climate change

Energy

Air pollution

Waste and Waste management


Biodiversity Loss

Forest and Soil Degradation

Earthquakes and Volcanic eruption

Population growth and Demographics

Food production and safety


Poverty

Human health and safety

Human Rights

Corruption

Social unrest

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