CORPORATE SOCIAL

RESPONSIBILITY
 Person going from one side of the canyon to the other… a lot
of clouds like fog. The point is going from one way of doing
business to another is very tough. There’s a lot uncertainty.
It takes a lot of skill, but we have to lift ourselves beyond
that, above the fog, and that’s not going to be a simple
exercise. CSR is about seeing the forest, the fog, and seeing
how we can get on the other side, and how we can be well-
equipped for doing that. So probably we need to develop
additional skills, knowledge, and understanding.”
 Message
“The message is that whatever we do today will have an impact
on future generations. It’s not just my kids or your kids or
somebody else’s. It’s future generations. We should not hope
that the walls we build to protect ourselves will be tall
enough to protect our children. Only with very conscious
effort we can make the world for them a better place to live…
even if we address our most selfish needs we have to address
the needs of the next generation. That’s what CSR is about.”
 Definitions: Concept

Philip Kotler & Nancy Lee (2005)

“a commitment to improve community

well-being through discretionary business
practices and contributions of corporate
resources”.
Corporate Social Responsibility (CSR) is a phenomenon

that evolves from charity and stewardship principle

reflects about business and society relationship over

time.
 Corporate Social Responsibility Principles

 The charity principle is the idea that

the wealthiest members of society

should be charitable toward those less

fortunate
 Corporate Social Responsibility Principles

 The stewardship principle is the idea that

business leaders have an obligation to see
that everyone, particularly those in need or at
risk, benefits from their firms’ actions
 According to this view, corporate managers have
been placed in a position of public trust
The concept of CSR entails unilaterally and voluntarily

adoption of socio-environmental policies of good

governance that accommodate socio-moral and

ethical concerns.
The underlying rational behind the concept of CSR is

that, since the business rely on the society to operate

and could not exist or prosper in isolation, therefore

in recognition of dependence, the business is obliged

for rendering mutual benefits to the community as

well.
CSR is a value added decision making process of
identifying and meeting the needs and welfare
based obligations of the internal and external
(direct& indirect) stake holders.
 CSR is industry’s response to reassure society,
community, population, customers, consumers,

investors, and public administration that the

business firms are sensitive to the socio-
environment concerns, their managerial practices
are transparent and meeting all criterion of good
governance, they comply with government rules
and their business practices are ethically and
morally governed.
 Therefore, the concept today encompasses a wide range of
CSR initiatives including:
 moral and ethical concerns, (Good/Bad, Right /wrong)
 good governance,
 socially responsible investments and inventions,
 ensuring well being of the society including environment,
 care and respect for human rights
 and affirmative action to law so as to legitimize their work
processes.
Corporate Social Responsibility (CSR)
CSR in Equation Form Is the Sum of:
Economic Responsibilities (Make a profit)
Legal Responsibilities (Obey the law)
Ethical Responsibilities (Be ethical)
Philanthropic Responsibilities (Good corporate
citizen)
CSR
 “The duty a corporation
has to create wealth by
using means that avoid
harm to, protect, or
enhance societal assets” p. 116
 Historical Perspective

From the 1950’s to the present the concept of

CSR has gained considerable acceptance and
the meaning has been broadened to include
additional components
Corporate Social Responsibility (CSR)
Evolving Viewpoints
 CSR considers the impact of the company’s
actions on society (Bauer)

 CSR requires decision makers to take actions

that protect and improve the welfare of
society as a whole along with their own
interests (Davis and Blomstrom
 Phases of Corporate Social
Responsibility
Frederick provides expanded framework for
understanding the evolution of CSR concept
Divided into 4 phases:
 Corporate social stewardship, 1950s – 1960s
 Corporate social responsiveness, 1960s –
1970s
 Corporate/business ethics, 1980s – 1990s
 Corporate/global citizenship, 1990s – 2000s
Evolving Phases of Corporate Social Responsibility

3 - 21
CSR Phases of CSR CSR Drivers CSR Policy
1960-1970
instruments

Corporate Social Social unrest / Stakeholder

responsiveness protest strategy
Social impact analysis Repeated corporate Regulatory
Strategic priority for social misbehavior compliance
response Public Policy / Social audit
Organizational redesign and Govt Regulations Public affair
training for responsiveness Stakeholders functions
Stakeholder mapping and pressure Governance
implementation reforms
Political lobbying
 Drivers of CSR

 The shrinking role of government

 Demands for greater disclosure

 Growing investor pressure

 Competitive markets
 Benefits of CSR…
 Strengthened brand positioning.

 Enhanced corporate image.

 Increased ability to attract, motivate, and retain

employees.

 Increased sales and market share.

 Increased appeal to investors and financial

analysts.
 CSR also known as
 Sustainable Development
 Corporate Citizenship
 Triple Bottom Line
 Business Ethics
 Sustainable Business Practices
 CSR EXAMPLES
 IBM UK - Reinventing Education Partnership programme
Interactions and sharing of knowledge through a web-based
technology - the “Learning Village” software. Culture of
openness and sharing of good practice

 AVON - a partnership with Breakthrough Breast Cancer, and

its Breast Cancer Crusade has raised over 10 million pounds
since its launch 12 years ago

 TOI’s Lead India campaign, campaign for contribution

towards educating the poor
 Companies in trouble
 Dasani mineral water (part of Coca-Cola).

 Coke’s sale was banned as the result of tests, including

those by the Indian government, which found high
concentrations of pesticides.

 Communities in India , around Coca-Cola's bottling

operations are facing severe shortages of water as a result
of the cola major sucking huge amounts of water from the
common groundwater source.
 Issues at NIKE
 Nike Inc producer of footwear, clothing, equipment and accessory
products for the sports and athletic market.
 Selling to approximately 19,000 retail accounts in the US, and
approximately 140 countries around the world.
 Manufactures in China, Taiwan, Korea, Indonesia , Mexico as well as
in the US and in Italy.
 People working - 58% young adults between 20 and 24 years old,
83% - women.
 Few have work-related skills when they arrive at the factory.
 Issue- unhealthy work environment – debates heated arguments,
verbal abuse , 7.8% of workers reported receiving unwelcome sexual
comments, and 3.3% reported being physically abused. In addition,
sexual trade practices in recruitment and promotion were reported
 Private Sector Perspective
“Corporate Social Responsibility is not a
cosmetic; it must be rooted in our values. It
must make a difference to the way we do our
business.”
 CSR – A New Paradigm

To think comprehensively and systematically about

 The role of business in development
 The manner in which the business is conducted
 Corporate Governance
 Poverty alleviation
 Corporate contribution to peace and war against terror
 Business, government and civil society partnership- common
ground and collective action
Thank You!