CSR Lecture 3

STAKEHOLDER MANAGEMENT
Key Issues in CSR
 Labour rights:
 child labour
 forced labour
 right to organise
 safety and health

 Environmental conditions
 water & air emissions
 climate change

 Human rights

 Poverty Alleviation
 job creation
 skills and technology
STAKEHOLDER Theory
Those groups without whose support the
organization would cease to exist
(Stanford Research Institute, 1963)

Any group or individual who can affect or is

affected by the achievement of the
organization objectives
(R.E. Freeman, 1984)
The stakeholder approach to CSR
• Suggests that business’s responsibilities extend
beyond shareholders to include the company’s
stakeholders

• In general, stakeholder theory is focused on those

interests and actors who affect, or in turn are
affected by, the corporation (Freeman, 1984)
Who are the actual stakeholders of a
corporation?
– Those who make explicit (formal) contracts with the
corporation
– Those who are directly affected by the acts of a
corporation
– Anyone who can directly affect the corporation
(Freeman, 1984)
– Those groups that can presently damage a firm or its
reputation in some important respect (Freeman, 1984)
Stakeholder Theory
Stakeholder theory implies that it can be beneficial for
the firm to engage in certain CSR activities that
stakeholders define as important
The objectives of using Stakeholder
Management - a corporate perspective

 Give support to an overall goal of increasing

production in existing or new fields to
– Increase profit, shareholder trust and ability to invest in
new areas
 Get access to the most interesting areas by
– Getting endorsement from local players/decision makers
– Influence other decision makers
– Increasing support from the public
- Communicate and build trust
 Maintain and build a good reputation – Being the
preferred company (Hansen, 2008)
“You cannot talk about CSR unless you
love your people and your country”
Corporate Social Responsibility and
Wipro
WATIS (Wipro Applying
Thought in Schools)
 Teacher Programme

 Leadership Programme

 Curricular Research

 Holistic School / System Engagement

 Contd….

 Basic Infrastructure at School

 CSR during disaster

- During Tsunami
- Other calamities in Orrisa
and Gujrat
Seven Goals for Eco Action

1 To become a carbon-neutral organization within a specified

timeframe (and then to become a carbon-positive
organization within a defined time frame)
2.To become a water-positive organization within a specified
timeframe.
3. To set new standards in recycling of waste

4. To achieve a defined level of biodiversity footprint within

Wipro’s campuses by a defined timeline to facilitate the
preservation and spread of biodiversity outside Wipro
through appropriate partnering
Contd…

5. To achieve transparency in Wipro’s sustainability

reporting in line with globally accepted reporting
frameworks

6. To incorporate the expected effects of climate change and

other areas of environmental degradation into Wipro’s risk
strategy. Wipro’s risk planning and mitigation must have a
distinct section on the above.

7. To facilitate and help employees achieve a higher

ecological footprint in their personal lives.