Corporate social responsibility (CSR)

also known as corporate responsibility, corporate

citizenship, responsible business, sustainable responsible
business (SRB), or corporate social performance
It is a form of corporate self-regulation integrated into a
business model.

CSR is the deliberate inclusion of public interest into

corporate decision-making, and the honoring of a triple
bottom line:
People
 Planet
 Profit.

Business would embrace responsibility for the impact of

their activities on the environment, consumers, employees,
communities, stakeholders and all other members of the
public sphere.
The multiple responsibilities of business

Economic Legal
Responsibility Responsibility

Social
Responsibility
 Social Responsibility...

an organization’s obligation to maximize its positive

impact on stakeholders and to minimize its negative
impact
includes legal, ethical, economic, and philanthropic
(discretionary) dimensions
refers to obeying governmental laws and
regulations
civil law: rights & duties of individuals and
organizations
criminal law: prohibits specific actions and
imposes fines and/or imprisonment as
punishment for breaking the law
behaviors and activities that are expected or
prohibited by organizational members, the
community and society .
standards, norms, or expectations that reflect
the concern of major stakeholders
how resources for the production of goods and
services are distributed within the social
system
Do you think consumers favor socially
responsible companies or are they most
enamored with companies that maximize
profits?
 Charity Principle Stewardship
Principle
Definition • Business should give • Business, acting as a public
voluntary aid to trustee, should consider the
society’s needy persons interests of all who are
and groups affected by business
decisions and policies
Type of • Corporate philanthropy • Acknowledging business
• Voluntary actions to and society interdependence
activity promote the social good • Balancing the interests and
needs of many diverse
groups in society
Examples • Corporate philanthropic • Enlightened self-interest
foundations • Meeting legal requirements
• Private initiatives to • Stakeholder approach to
solve social problems corporate strategic planning
• Social partnerships with
needy groups
 The pros and cons of corporate
social responsibility
Arguments for corporateArguments against corporate
social responsibility social responsibility
Balances corporate power Lowers economic
with responsibility. efficiency and profit.
Discourages government Imposes unequal costs
regulation. among competitors.
Promotes long-term profits Imposes hidden costs passed on
for business. to stakeholders.
Responds to changing Requires social skills business
stakeholders’ demands. may lack.
Corrects social problems Places responsibility on business
caused by business. rather than individuals.
 Two views of corporate social
responsibility
The shareholder view
• The only social responsibility of business is to create shareholder
wealth.
• Corporate management cannot decide what is in the social
interest.
• The costs of social responsibility which do not increase the value
of stock, will be passed on to consumers.

The multiple stakeholders view

• All customers and employees are treated with dignity.
• Relationships with suppliers must be based on mutual trust.
• Belief in fair economic competition.
• Business can contribute to social reform and honor human rights.
 A three-stage model of corporate
social responsiveness
STAG
EOrganizational
Degree of responsiveness to a specific issue

High Policy Learning Commitment

• Organizational
changes
• Administrative learning
• Specialized
learning
• Formulate policy
• Identity problem

Low Time (years)

Human resources
A CSR programme can be an aid to recruitment and retention
particularly within the competitive graduate student market. CSR
can also help to improve the perception of a company among its
staff, particularly when staff can become involved through
•payroll giving
• fundraising activities
• community volunteering.

Risk management
Managing risk is a central part of many corporate strategies.
Reputations that take decades to build up can be ruined in hours
through incidents such as corruption scandals or environmental
accidents. These draw unwanted attention from regulators, courts,
governments and media. Building a genuine culture of 'doing the
right thing' within a corporation can offset these risks.

Brand differentiation
In crowded marketplaces, companies strive for a unique selling
proposition that can separate them from the competition in the
minds of consumers. CSR can play a role in building customer
Corporate Social Responsibility is about two aspects.
To reduce the negative effects caused by its products and processes
on the environment,
Positive steps a company takes using its resources and core
competence for the benefit of society.

FACTS:
The results of the ratings for 2008 show that 49% of the companies
are not doing any CSR activity.
Just 1% or 10 of the 1000 largest Indian companies studied have
got the highest rating of Level 4.

Companies that have got a Level 4 rating are:

•ACC
• Ballarpur Industries
• HDFC
• Infosys Technologies,
•Jubilant Organosys
•Kansai Nerolac
• Moser Baer
•TCS
• Tata Steel
• Titan Industries.
There are 3 mandatory recommendations
flowing from the premise that 'every
company must do CSR’,

1) A company must spend a minimum of

0.2% of annual sales on CSR

2) A company must publish its CSR

activities in the annual report, or in a
separate Sustainability Report

3) International guidelines for Environment,

Health and Safety as well as for industry-
specific processes exist, and a company
must adopt these along with using its core
competence for CSR, and must link CSR to
its physical location and reach.
A US $28 billion corporation, the Aditya Birla Group is in the league of
Fortune 500. It is anchored by an extraordinary force of 100,000
employees, belonging to 25 different nationalities. In India, the Group has
been adjudged "The Best Employer in India and among the top 20 in
Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007.
Over 50 per cent of its revenues flow from its overseas operations.

The Group operates in 25 countries — India, UK, Germany, Hungary,

Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada,
Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore,
Myanmar, Bangladesh

Beyond business — the Aditya Birla Group is:-

:: Working in 3,700 villages
:: Reaching out to seven million people annually through the Aditya Birla
Centre for Community Initiatives and Rural Development, headed by Mrs.
Rajashree Birla
:: Focusing on: health care, education, sustainable livelihood,
infrastructure and espousing social causes
:: Running 41 schools and 18 hospitals
A message "We care".
Sales (2007-2008) =Rs.25700 crores. (rounded off)
Net profit after tax =Rs.6200 crores. (rounded off)
2008 CSR Rating:   3/5

At Bharti, CSR is a way of life-

‘Corporate Values’ These Values are:

To be responsive to the needs of our customers

To trust and respect our employees
To continuously improve our services – innovatively and expeditiously
To be transparent and sensitive in our dealings with all stakeholders
 We encourage our employees to take decisions and design business
processes, keeping in mind the following:

Ethics, fairness and being correct

Showing respect and sensitivity towards stakeholders and communities,
and
Nurturing the environment
Community Initiatives
 Blood donation camps are organized for the welfare of the
underprivileged community.
 Bharti constantly searches for new, innovative ways of reducing the
consumption of resources, with the aim of leaving a better and
greener earth for future generations.

Bharti Airtel’s response to Tsunami Disaster:

 Donated Rs. 1 Crore to the Prime Minister’s Relief Fund,
 Created 29 Airtel Crisis Communications centres in Tamil Nadu
 Raised resources for Tsunami victims by initiatives such as a ‘Benefit
Cricket Match’
 Employees
 A ‘Material Collection Drive’
 Bharti Airtel during Mumbai Floods:
 Bharti Airtel’s response to Kashmir earthquake:
 Airtel Ashiana for underprivileged children at the Mohali.

Bharti FoundationBharti Foundation in 2000 with a vision, “To help

underprivileged children and youth of our country realize their
potential.
 
Income 2005-2006 =  Rs 1700 Cr (rounded off) Net profit after  tax (05-06)
= Rs  150 Cr (rounded off)
CSR Rating- 2/5

CSR activities:
The involvement of the Wadias in community welfare began:
Set out to construct low cost baugs or housing colonies in Bombay for
lower and middle-class Parsis.

Health care facilities was another area:

Build hospitals in Bombay.

welfare of its workers.

First housing projects for mill workers was started by the Wadia mills.
The trustees have disbursed funds to causes from scholarships for
the disabled to drought relief in Bombay.
Latur earthquake in India saw the Wadia Group rebuild an entire village
and in the process, rehabilitate thousands of families.
Income 2005-2006 =  Rs 815 Cr (rounded off) Net profit after tax
(05-06) = Rs 75  Cr (rounded off) CSR Rating- 3/5

CSR activities: 
Mangrove conservation has been the key focus of the Environment Cell.
The  residential township and community
Focusing on environmental education
Godrej  has successfully oriented thousands of school, college,through
their Mangrove Awareness Programs.

Godrej  has formed specialist group:, for example

The Envirotech Group – for pollution-reduction.

The Encon Group – for energy conservation.
Garden Deparment - which looks after the natural environment.
Simultaneously, engaged in propagation of various species of orchids,
medicinal plants and rare endemic species, amongst others.
Organised tours
Income 2005-2006 =  Rs 12750 Cr (rounded off) Net profit after
tax (05-06) = Rs1950 Cr (rounded off) CSR Rating- 3/5

CSR activities:

Healthcare/medical
Literacy enhancement
Infrastructure  
Community development
Educational aid
Drinking water /sanitation
Environment protection
Sponsorship of 350 reconstructive surgeries for leprosy patients,
Donation of 11 motorized tri wheelers to the physically challenged,
Training orthopedically challenged women in Kerala and Madhya
Pradesh in screw pine craft and mushroom cultivation.
Donation and contribution ,
Helping War widows.
Income 2005-2006 =  Rs  7550   Cr (rounded off) Net profit after tax
(05-06) = Rs   800   Cr (rounded off)
CSR Rating- 2/5

CSR activities:

An Integrated Rural Development Centre has been set up on 40 acres of

land.
Installation of deep bore hand pumps to provide clean drinking water.
Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
Renovating primary school buildings and providing hygienic water and
toilet facilities.
Ensuring a proper drainage system at each of these villages to prevent
water-logging.
Promoting non-conventional sources of energy by providing a 50 per cent
subsidy on biogas plants.
Building Hospitals,Schools, Sports complex, Vocational Training Centre.
Adult Literacy Mission.
Marriages of underprivileged girls..
Income 2005-2006 =  Rs 7000 Cr (rounded off) Net profit after tax (05-
06) = Rs 2000 Cr (rounded off) CSR Rating- 4/5

CSR activities:
Healthcare: constructing hospital wards, donating hi-tech equipment
and organizing health camps, distributes medicines to economically-
weaker sections in remote areas.

Social rehabilitation and rural upliftment:building orphanages, to

distribute sewing machines to destitute women and help them earn a
livelihood.

Learning and education:the Foundation has set up more than 10,150

libraries in rural government schools.

Art and culture

Income 2005-2006 = Rs 14000 Cr (rounded off) Net profit after tax (05-06) = Rs 3500
Cr (rounded off)
CSR Rating-4/5

CSR activities:
Sharing Wealth to Diminish Disparities
 Free medical aid in 1915.
Education.
Income generation for tribals.
Health care.
Health care awareness including eye care, tuberculosis treatment, general health
awareness, HIV/AIDS Awareness and Mother and Child survival programmes.

Ongoing Programmes
•Mother and Infant Survival Programme Population Stabilisation
•Operation Muskaan for cleft lips and palates "YARS" - Youth and Adolescent
Reproductive Services.
•Specifically targeted programmes on HIV and AIDS.
•Project "WATSAN" for Water and Sanitation Free Health Checkups for Women at
Surya Clinics
•Pioneer in Family Initiatives and HIV/AIDS Awareness Ringing the first alarm bell for
Sales (2007-2008) = Rs. 1340 crores (rounded off)
Net profit after tax = Rs. 60 crores (rounded off)
2008 CSR Rating: 3/5

CSR activities:
Mission:
To contribute positively to the community well being.
Objective:
Undertake a comprehensive social development program in the identified areas to
promote.

Primary Education
* Awareness programmes
* Infrastructure for existing schools
* Financing payroll of teachers or support staff appointed
* Providing meals
Primary Health Care
To make primary health care more accessible and affordable.
* Awareness programmes
* Health Camps
* Providing infrastructure to existing dispensaries, clinic
3. Water Availability
Promote conservation of water resources and facilitate access to clean and portable
drinking water. It includes :
* Rain water harvesting
* De-silting of tanks/ponds or other water bodies
* Providing portable drinking water to communities

BOOK DISTRIBUTIONS.
SCHOOL FOR THE BLIND.
LIBRARY INAUGURATED.
MOBILE MEDICAL SERVICE.
MEDICAL CAMP.
 Co’s. Not Performing CSR Activities

Airports Authority of India - New Delhi ,CSR Rating- 0/5

Aurobindo Pharma Ltd - Hyderabad,AP: ,CSR Rating- 0/5

Berger Paints India Ltd - Kolkata,W.b ,Rating- 0/5

Bharat Sanchar Nigam Ltd - New Delhi,Rating- 0/5

City Union Bank Ltd - Kumbakonam,T.N ,Rating- 0/5

Exide Industries Ltd - Kolkata,W.B ,CSR Rating- 0/5

LIC Housing Finance Ltd - Mumbai,Mah, CSR Rating 0/5.

Moser Baer India Ltd – Delhi ,CSR Rating- 0/5

Unitech Ltd - Gurgaon,Har ,Rating- 0/5

THANK YOU