CSR CSR “CSR is a concept which suggests that

Transcript:CSR CSR “CSR is a concept which suggests that:
CSR CSR “CSR is a concept which suggests that commercial corporations must fulfill their duty of providing care to the society” Ethical behavior of a company (or business) towards society. Promoting activities like engaging directly with local communities, identifying their basic needs, and integrating their needs with business goals and strategic intent. The government perceives CSR as the business contribution to the nation’s sustainable development goals. Essentially, it is about how business takes into account the economic, social and environmental impact of the way in which it operates. International organizations on CSR EU Definition of CSR: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.“ Mallenbaker Definition: "CSR is about how companies manage the business processes to produce an overall positive impact on society“ The World Business Council for Sustainable Development (WBCSD): "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" Csr initiatives Market focused Product Focused Employee focused Society Focused Environment Focused Arguments for csr Balances corporate power with responsibility Discourages government regulation. Promotes long term profit for business. Responds to changing social demands Corrects social problems caused by business. Arguments against csr Lowers economic efficiency and profit. Imposes unequal costs among competitors. Imposes hidden costs passed on to stakeholders. Places responsibility on business rather than individuals Requires social skills business may lack. Ground realities in india Inequity and Poverty a driver for CSR Inadequate infrastructure faced by businesses Reactive; not Proactive CSR Good Legislation but Poor Implementation Corruption Variance in Governance CSR not trickled down to SME sector Variation in approach MNC Driven by global standards SME’s Work under pressure of global market for complainace Corporate Sometimes pushed by FI’s/Global Markets Focus on stakeholder engagement and business linked CSR PSU’s Mandatory allocation of 2-5% of profits Progressed from donations towards work in core business areas Variation in approach (sector wise) IT Employee Engagement Transportation Environment & Climatic Changes Manufacturing Labour & Environment Service Raising Human Development Index Corporate social responsibility - Triple bottom line People planet profit, also known as the triple bottom line, are words that should be used and practiced in every move an organization makes. People + Profit +