UNIVERSITY OF PETROLEUM & ENERGY STUDIES

COLLEGE OF LEGAL STUDIES

B. COM., LLB. (HONS.)TAXATION LAWS

SEMESTER - I

ACADEMIC YEAR: 2016-17

SESSION: JULY-DECEMBER
ASSIGNMENT
FOR
BUSINESS ORGANISATION
Under the Supervision of: Mrs.Shikha Rana
On the Topic : Corporate Social Responsibility

NAME: NITISH KUMAR NAVEEN

SAP NO: 500054889
ROLL NO : 063
 CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society.
A business's CSR can encompass a wide variety of tactics, from giving away a portion of a company's
proceeds to charity, to implementing "greener" business operations CSR is a concept with many
definitions and practices. The way it is understood and implemented differs greatly for each company
and country. Moreover, CSR is a very broad concept that addresses many and various topics such as
human rights, corporate governance, health and safety, environmental effects, working conditions and
contribution to economic development. Whatever the definition is, the purpose of CSR is to drive
change towards sustainability.

Although some companies may achieve remarkable efforts with unique CSR initiatives, it is difficult to be
on the forefront on all aspects of CSR. Considering this, the example below provides good practices on
one aspect of CSR environmental sustainability. Movement aimed at encouraging companies to be
more aware of the impact of their business on the rest of society, including their own stakeholders and
the environment Most consumers agree that while achieving business targets, companies should do CSR

at the same time.Most consumers believe companies doing charity will receive a positive
response. Somerville also found that consumers are loyal and willing to spend more on retailers that
support charity. Consumers also believe that retailers selling local products will gain loyalty. Smith
(2013) shares the belief that marketing local products will gain consumer trust. However, environmental
efforts are receiving negative views given the belief that this would affect customer service.[ Oppewal et
al. (2006) found that not all CSR activities are attractive to consumers.They recommended that retailers
focus on one activity. Becker-Olsen (2006) found that if the social initiative done by the company is not
aligned with other company goals it will have a negative impact. Mohr et al. (2001) and Groza et al.
(2011) also emphasise the importance of reaching the consumer In competitive markets cost-benefit
analysis of CSR initiatives, can be examined using a resource-based view (RBV). According to Barney
(1990) "formulation of the RBV, sustainable competitive advantage requires that resources be valuable
(V), rare (R), inimitable (I) and non-substitutable (S).A firm introducing a CSR-based strategy might only
sustain high returns on their investment if their CSR-based strategy could not be copied (I). However,
should competitors imitate such a strategy, that might increase overall social benefits. Firms that choose
CSR for strategic financial gain are also acting responsibly.

RBV presumes that firms are bundles of heterogeneous resources and capabilities that are
imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for
firms that acquire immobile resources. McWilliams and Siegel (2001) examined CSR activities
and attributes as a differentiation strategy. They concluded that managers can determine the
appropriate level of investment in CSR by conducting cost benefit analysis in the same way that
they analyze other investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain an
abnormal return if it could prevent competitors from imitating its strategy.

MILLENNIUM DEVELOPMENT GOALS AT THE HEART OF CORPORATE SOCIAL

RESPONSIBILITY.

Eradicate extreme Poverty and Hunger.

Achieve Universal Primary education.
Promote gender equality and empower women.
Reduce child morality.
Improve maternal health.
Combat HIV/AIDS , Malaria and other fatal diseases.
Ensure environmental sustainanbility.
Develop a goal partnership.

FOUR DIMENSIONS OF CORPORATE SOCIAL RESPONSIBILITY.

 BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY.

Increased employee loyalty and retention.

Increased quality of products and services.
Increased customer loyalty.
Less volatile stock value.
Reduced regulatory oversight.
Access to capital and market.
Greater productivity and quality.

BUSINESS IMPACT OF CORPORATE SOCIAL RESPONSIBILITY.

Human capital
Innovation
Shareholder value
Revenue (changes in revenue due to change in market share and new markets.)
Operational efficiency
Access to debt and equity capital
Customer attraction and retention

CURRENT STATE OF CORPORATE SOCIAL RESPONSIBILITY IN INDIA

CSR is not a new concept in India. Ever since their inception, corporates like the Tata
Group, the Aditya Birla Group,and Indian Oil Corporation, to name a few, have been
involved in serving the community. Through donations and charity events, many other
organizations have been doing their part for the society. The basic objective of CSR in
these days is to maximize the company's overall impact on the society and stakeholders.
CSR policies, practices and programs are being comprehensively integrated by an
increasing number of companies throughout their business operations and processes. A
growing number of corporates feel that CSR is not just another form of indirect expense
but is important for protecting the goodwill and reputation, defending attacks and
increasing business competitiveness. Companies have specialised CSR teams that
formulate policies, strategies and goals for their CSR programs and set aside budgets to
fund them. These programs are often determined by social philosophy which have clear
objectives and are well defined and are aligned with the mainstream business. The
programs are put into practice by the employees who are crucial to this process. CSR
programs ranges from community development to development in education,
environment and healthcare etc.

CONCLUSION.

It is now recognized that poverty reduction and sustainable development will not be
achieved through government action alone . Policy makers are paying increasing
attention to the potential contribution of the private sector to such policy
objectives.The concept of CSR is sometimes used as shorthand for businesses
contribution to sustainable development. A number of core development issues are
already central to the international CRS agenda.
They include labour standards, human rights, education, health, child labour, poverty
reduction, conflict and environmental impacts. CSR has even on occasion attracted
criticism for being insensitive to local priorities and the basic livelihood needs of people
in developing countries, particularly where CSR codes of conduct are perceived as
barriers to market access for some producers. But the CSR agenda needs to be locally
owned if it is to make a significant contribution to local development priorities and it
must be relevant to local enterprises, whether large or small.This means creating a
space to explore the relationship between business and society at a regional, national or
local level and finding the appropriate language for these discussions.