Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more ➡
Standard view
Full view
of .
Add note
Save to My Library
Sync to mobile
Look up keyword
Like this
0 of .
Results for:
No results containing your search query
P. 1
CSR gulam

CSR gulam

Ratings: (0)|Views: 272|Likes:
Published by sunny1106

More info:

Published by: sunny1106 on Jan 10, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, DOC, TXT or read online from Scribd
See More
See less





INTRODUCTION Your business doesn’t exist in isolation, simply as a way of making money. Your employees depend in your business. Customers, suppliers and the localcommunity are all affected by you and what you do. Your products, and the wayyou make them, have an impact on the environment.Corporate social responsibility (CSR) takes all this into account and canhelp you create and maintain effective relationships with your stakeholders. Itisn’t about being “right on”, or mounting an expensive publicity exercise. Itmeans taking a responsible attitude, going beyond the minimum legalrequirements and following straight forward principles that apply whatever thesize of your business. This guide explains how you can exploit the benefits thatCSR can bring to your bottom line.
CSR:‘Corporate’, ‘Social’ and ‘Responsibility’. In broad terms, CSR relates toresponsibilities corporations have towards society within which they are basedand operate, not denying the fact that the purview of CSR goes much beyondthis. CSR is comprehended differently by different people.Phillip Kotler and Nancy Lee:
“A commitment to improve community well being through discretionary business practices and contributions of corporate resources” 
Mallen Baker:“Corporate Social Responsibility is the continuing commitment by business tobehave ethically and contribute to economic development while improving thequality of the workforce and their families as well as of the local community andsociety at large.
 The concept of CSR in India is not new, the term may be. The processthough scclaimed recently, has been followed since ancient times albeitinformally. Philosophers like Kautilya from India and pre-Christian eraphilosophers in the West preached and promoted ethical principles while doingbusiness. The concept of helping the poor and disadvantaged was cited in muchof the ancient literature. The idea was also supported by several religions whereit has been intertwined with religious laws. “Zakaat”, followed by Muslims, isdonation from one’s earnings which is specifically given to the poor anddisadvantaged. Similarly Hindus follow the principle of “Dhramada” and Sikhsthe “Daashaant”. In the global context, the recent history goes back to theseventeenth century when in 1790’s, England witnessed the first large scaleconsumer boycott over the issue of slave harvested sugar which finally forcedimporter to have free-labour sourcing. In India, in the pre independence era, thebusiness which pioneered industrialisation along with fighting for independencealso followed the idea. They put the idea into action by setting up charitablefoundations, educational and healthcare institutions and trusts for communitydevelopment. The donations either monetary or otherwise were sporadicactivities of charity or philanthropy that were taken out of personal savingswhich neither belonged to the shareholders nor did it constitute as integral partof business. The term CSR itself came in to common use in early 1970’s althoughit was seldom abbreviated. By late 1990s, the concept was fully recognised;people and institutions across all sections of society started supporting it. Thiscan be corroborated by the fact that while in 1977 less than half of the fortune500 firms even mentioned CSR in their annual reports, by the end of 1990,approximately 90 percent Fortune 500 firms embraced CSR as an essential
element in their organisational goals and actively promoted their CSR activitiesin annual reports.
 The role of corporate by large has been understood in terms of commercialbusiness paradigm of thinking that focuses purely on economic parameters of success. As corporate have been regarded as institutions that cater to themarket demand by providing products and services, and have the onus forcreating wealth and jobs, their market position has traditionally been a functionof financial performance and profitability. However, over the past few years, asa consequence of rising globalisation and pressing ecological issues, theperception of the role of corporate in the broader societal context within which itoperates, has been altered. Stakeholders (employees, community, suppliers andshareholders) today are redefining the role of corporate taking into account thecorporatesbroader responsibility towards society and environment, beyondeconomic performance, and are evaluating whether they are conducting theirrole in an ethical and socially responsible manner. As a result of this shift (frompurely economic to ‘economic with an added social dimension’), many forums,institutions and corporates are endorsing the term Corporate SocialResponsibility. They use the term to define organisation’s commitment to thesociety and the environment within which it operates. The World BusinessCouncil on Sustainable Development’s (WBCSD) report was titled CorporateSocial Responsibility:Making Good Business Sense and the OECD Guidelines for 1 Multi-NationalEnterprises which includes a discussion on how CSR is emerging as a globalbusiness standard. Further, there is a global effort towards reinforcing CSRprogrammes and initiatives through local and international schemes that try toidentify best-in-class performers.
Arguments for socially-responsible behaviour
It is the ethical thing to do
It improves the firm’s public image
It is necessary in order to avoid excessive regulation
Socially responsible actions can be profitable
Improves social environment will be beneficial to the firm
It will be attractive to some investors
It helps to correct social problems caused by business
CSR behaviour can benefit the firm in several ways
It aids the attraction and retention of staff 
It attracts green and ethical investment
It attracts ethically conscious customers
It can lead to a reduction in costs through re-cycling
It differentiates the firm from its competitor and can be source of competitive advantage
It can lead to increased profitability in the long runCorporate Social Responsibility (CSR) is a concept whereby organisationsconsider the interests of society by taking responsibility for the impact of theiractivities on customers, employees, shareholders, communities and theenvironment in all aspects of their operations. This obligation is seen to extendbeyond the statutory obligation to comply with legislation and sees organisationsvoluntarily taking further steps to improve the quality of life of employees andtheir families as well as for the local community and society at large.With businesses focussing on generating profits, sustainability was not apopular concern among companies up until recently. Now, in an era of globalisation, multinational corporations and local businesses are no longer ableto conduct destructive and unethical practices, such as polluting the
environment, without attracting negative feedback from the general public. Withincreased media attention, pressure from non-governmental organisations andrapid global information sharing, there is a surging demand from civil society,consumers, governments, and others for corporations to conduct sustainablebusiness practices. In addition, in order to attract and retain employees andcustomers, companies are beginning to realise the importance of being ethicalwhile running their daily operations. The corporate response has often meant anadoption of ‘a new consciousness’ and this has been known as Corporate SocialResponsibility since the 1970’s. As stated by the department of Trade andIndustry in the United Kingdom, CSR represents “the integrity with which acompany governs itself, fulfils its mission, lives by its values, engages with itsstakeholders, measures its impact and reports on its activities”. Although mostpeople appreciate the recent advancement of CSR, some argue that corporationsare still not doing enough or are only acting in self interest. These people saythat multinational corporations are acting ethically in areas that are highlyregulated, such as North America, but at the same time, they are in an oppositemanner in other parts of the world (such as using cheap or child labour). Inaddition, while corporations must have good CSR policies in order to maintaintheir reputation, they are also expected to maximise profits for stakeholderssuch as shareholders, employees and customers. Therefore, people argue thatbusinesses do not put in a sufficient amount of resources to achieve what theyhave promised in their CSR policies. In any case, companies are now expected toperform well in non-financial areas such as human rights, business ethicsenvironmental stewardship, and contributions to community groups andcharities. The practice of CSR is subject to much debate and criticism.Proponents argue that there is a strong business case for CSR, in thatcorporations benefit in multiple ways by operating with a perspective broaderand longer than their own immediate, short-term profits. Critics argue that CSRdistracts from the fundamental economics role of businesses; others argue thatit is nothing more than superficial window-dressing; still others argue that it is anattempt to pre-empt the role of governments as a watchdog over powerfulmultinational corporations.
What is CSR or Corporate Social Responsibility?
CSR was a buzzword created in the early 1970’s although it was seldomabbreviated back then. Corporate Social Responsibility (CSR, also calledcorporate citizenship, corporate responsibility, responsible business andsometimes corporate social opportunity) is a concept whereby a businessorganisation considers the wider social and environmental effects that it has as atrading entity outside of its direct trading environment. For example, a miningcompany destroys the natural landscape when mining so part of its responsibilityto the community where they are mining could be to invest in reforestationprojects.
Advantages of corporate social responsibility
 Japanese companies often have 100 year business plans. If you areplanning to be around in business for the long-run then making sure ALLyour stakeholders are looked after is wise. If you mess the environmentup, people notice. If you mess people around people remember. If youmistreat people they never forget. And yet when you care for people youare awarded. You are rarely forgotten when you genuinely care. Abusiness enterprise is no different to a human – people will have feelingsabout it and that impacts business positively or negatively.
Many companies say they care and yet they may not take actions of caring. Going beyond what is expected becomes exemplar and noted. Anenterprise’s actions are noted the most by its employees and staff. The

You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->