CORPORATE SOCIAL

RESPONSIBILITY

NMIMS-04 APRIL 2010

 PART I

WHAT IS CSR?
WHY IS IT REQUIRED
IMPACT OF GLOBALIZATION
INTEGRATION OF FINANCIAL MARKETS
CHANGES IN GOVERNANCE STRUCTURES
IT REVOLUTION
MULTI COUNTRY PRODUCTION OF GOODS
EFFECT ON SMES
MIGRATION OF WORK FORCE
INJUDICIOUS USE OF RESOURCES
CLOUT DISPLAYED BY FINANCIAL INSTITUTIONS
IRRESPONSIBLE BEHAVIOUR BY MNCS
 ROLE OF BUSINESS IN
SUSTAINABLE DEVELOPMENT
COLLABORATION WITH SOCIETY AND
GOVT TO CREATE A QUALITATIVELY
BETTER WORLD TO LIVE IN
BUSINESS IS DEPENDENT ON
SOCIETY FOR GROWTH AND
PROSPERITY
STAKEHOLDER CONCEPT
SYSTEMS APPROACH
OWNERSHIP CONCEPT
 STAKEHOLDER TYPES
LATENT-DORMANT, DISCRETIONARY
AND DEMANDING
EXPECTANT-DOMINANT,DANGEROUS
DEPENDENT.
DEFINITIVE
NON-STAKEHOLDERS
 CHALLENGES IN STAKEHOLDER
ENGAGEMENT
ASSESSING KEY STAKEHOLDERS AND
THEIR CONCERNS
EFFECTIVE MANAGEMENT
PROGRAMMES,MEASUREMENT AND
COMMUNICATION OF PERFORMANCE
RESPONSE TO STAKEHOLDER VIEWS
COMMUNICATION OF VALUES
CONSISTENT AND ACCURATE
INFORMATION
COMMITMENT AND ACCOUNTABILITY
MILLENNIUM DEVELOPMENT
GOALS
ERADICATE EXTREME POVERTY AND HUNGER
ACHIEVE UNIVERSAL PRIMARY EDUCATION
PROMOTE GENDER EQUALITY AND EMPOWER
WOMEN
REDUCE CHILD MORTALITY
IMPROVE MATERNAL HEALTH
COMBAT HIV/AIDS,MALARIA AND OTHER
DISEASES
ENSURE ENVIRONMENTAL SUSTAINABILITY
GLOBAL PARTNERSHIP FOR DEVELOPMENT
 THE TRIPLE BOTTOM LINE

SOCIAL

ECONOMIC

ENVIRONMENTAL
 WHAT IS CSR?
CORPORATE SOCIAL RESPONSIBILITY
ENCOMPASSES THE ECONOMIC,
LEGALETHICAL AND PHILANTHROPIC
EXPECTATIONS PLACED ON
ORGANIZATIONS BY SOCIETY AT A GIVEN
POINT OF TIME
CORPORATE SOCIAL RESPONSIVENESS
REFERS TO THE CAPACITY OF A
CORPORATION TO RESPOND TO SOCIAL
PRESSURES
 WHAT IS CSR
CSR 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.
WORLD BUSINESS COUNCIL FOR SUSTAINED
DEVELOPMENT
 SOME FACTS
WHILE 94% OF THE COMPANIES BELIEVE
THAT DEVELOPMENT OF CSR STRATEGIES
CAN DELIVER REAL BUSINESS BENEFITS
ONLY 11% MADE ANY SIGNIFICANT
PROGRESS IN IMPLEMENTING STRATEGY
IN THE ORGANIZATION
CEOS ARE FAILING TO RECOGNIZE THE
BENEFITS OF IMPLEMENTING CSR
STRATEGIES DESPITE INCREASING
PRESSURES TO DO SO
CSR PROGRAMMES INFLUENCE 70% OF ALL
CUSTOMER PURCHASING DECISIONS
 EMERGING TRENDS
DRIVERS ARE PHILANTHROPY, IMAGE BUILDING,
EMPLOYEE MORALE AND ETHICS(IN THAT ORDER)
CSR AN EXTENSION OF PHILANTHROPY
FOUR MODELS CO-EXIST IN INDIA- THE ETHICAL
MODEL, THE STATIST MODEL,THE LIBERAL MODEL
AND THE STAKEHOLDER MODEL
BRAND QUALITY MORE IMPORTANT THAN CSR
BANKING TOPS IN THE LIST OF CSR ACTIVITIES
WHILE CONSTRUCTION IS AT THE BOTTOM
INCLUSIVE GROWTH
 THEORIES OF CSR
FRIEDMAN
CONTRACT THEORY
SOCIAL JUSTICE THEORY
RIGHTS THEORY
DEONTOLOGICAL THEORY
STAKEHOLDER THEORY
TRUSTEESHIP THEORY
 CASE FOR CSR
•GOVERMENTAL FAILURE/DECREASE IN
GOVERNMENTAL INFLUENCE
•INCREASING POWER AND INFLUENCE
OF CORPORATIONS
•NEED FOR CORPORATE
ACCOUNTABILITY
•NEED FOR TRANSPARENCY
•CORPORATE CITIZENSHIP
 THE STAKEHOLDER
CONCEPT
•LEGALLY BINDING CONTRACTS
•RIGHTS AND CLAIMS TO
CORPORATIONS
•PROTECTION OF EMPLOYEE
RIGHTS
•SPECULATIVE INTERESTS OF
SHAREHOLDERS
•STAKEHOLDER’ S ABILITY TO
INFLUENCE CORPORATE
DECISIONS
•CORPORATE GOVERNANCE
CARROLLS 4 PART MODEL

philanthropic Desired by society

Expected by society
ethical

Required by society
legal

economic Required by society

 NOVARTIS
CORPORATE CITIZENSHIP AT NOVARTIS
BEGINS WITH THE SUCCESS OF OUR CORE
BUSINESS.THE MORE WE ARE SUCCESSFUL
IN THE DISCOVERY,DEVELOPING,
MANUFACTURING AND MARKETING OF NEW
MEDICINES,THE GREATER THE BENEFITS WE
CAN OFFER TO ASSOCIATES AND
SHAREHOLDERS, PATIENTS, HEALTH CARE
PROFESSIONALS AND OTHER KEY
STAKEHOLDERS.
ARGUMENTS FOR AND AGAINST
CSR
FOR
 CREATING SHAREHOLDER VALUE
 REPUTATION
 STRATEGICBRANDING
 OP EFFICIENCY
 PRODUCTIVITY AND QUALITY
 ACCESS TO NEW MARKETS
 HUMAN AND INTELLECTUAL CAPITAL
 CONTD---
AGAINST
 MONEY RIGHTFULLY BELONGS TO
SHAREHOLDERS
 POLITICIANS MUST DEAL WITH SOCIAL
ISSUES
 INVESTMENT ON CORE BUSINESS
 MORE A PUBLICITY STUNT
 POWER AND RESPONSIBILITY DO NOT
NECESSARILY GO HAND IN HAND
 THIS IS HALLMARK

WE BELIEVE
THAT OUR PRODUCTS AND SERVICES MUST ENRICH
PEOPLES LIVES AND ENHANCE THEIR RELATIONSHIPS
THAT CREATIVITY AND QUALITY IS ESSENTIAL TO
SUCCESS
THAT THE PEOPLE OF HALLMARK ARE OUR
COMPANY’S MOST VALUABLE RESOURCE
THAT DISTINGUISHED FINANCIAL PERFROMANCE IS A
MUST
THAT OUR PRIVATE OWNERSHIP SHOULD BE
PRESERVED
THE VALUES THAT GUIDE US ARE---

EXCELLENCE IN ALL WE DO
ETHICAL AND MORAL CONDUCT AT ALL
TIMES
INNOVATION IN ALL AREAS OF
BUSINESS AS A MEANS OF ATTAINING
AND SUSTAINING LEADERSHIP
CSR TO EACH COMMUNITY IN WHICH
WE OPERATE
 PART II

DEVELOPING A CSR
STRATEGY
 CSR ASSESSMENT
ORGANIZATION’S VALUES AND ETHICS
EXTERNAL AND INTERNAL DRIVERS
KEY CSR ISSUES THAT COULD AFFECT THE
ORGANIZATION
KEY STAKEHOLDERS
CURRENT CORPORATE DECISION MAKING
STRUCTURE
HUMAN RESOURCES AND BUDGETARY
IMPLICATIONS
EXISTING CSR INITIATIVES
 ASSESS BY---
ASSEMBLING A CSR TEAM
DEVELOP A WORKING DEFINITION OF
CSR
REVIEW CORPORATE DOCUMENTS,
PROCESSES AND ACTIVITIES
IDENTIFY AND ENGAGE KEY
STAKEHOLDERS
DEVELOP STRATEGY BY---
BUILD SUPPORT WITH SENIOR
MANAGEMENT AND EMPLOYEES
RESEARCH WHAT BUSINESS IS DOING
PREPARE A MATRIX OF PROPOSED
CSR ACTIONS
DEVELOP ACTIONS AND THE
BUSINESS CASE FOR THEM
DECIDE ON DIRECTION,APPROACH
AND FOCUS AREAS.
POSSIBLE BUSINESS CASE
LEVERAGING CSR
COMPETITIVE ADVANTAGE
STAKEHOLDER INFLUENCE
SHORT AND LONG TERM GOALS
COSTS VS BENEFITS
CHANGES ORG MAY BE REQD TO
MAKE
RISKS/THREATS
IMPLEMENTING CSR STRATEGY
DEVELOP AN INTEGRATED CSR DECISION MAKING
STRUCTURE
PREPAREAND IMPLEMENT CSR BUSINESS PLAN
SET MEASURABLE TARGETS AND IDENTIFY
PERFORMANCE MEASURES
ENGAGE THOSE TO WHOM CSR COMMITMENTS
APPLY
DESIGN AND CONDUCT CSR TRAINING
ESTABLISH MECHANISMS FOR ADDRESSING
PROBLEMATIC BEHAVIOUR
CREATE INTERNAL AND EXTERNAL
COMMUNICATION PLAN
 AREAS OF CSR IMPLEMENTATION

LABOUR/HUMAN
RTS

HR ENVIRONMENT

CG
ECO DEVP

ACCOUNTABILITY
ETHICS
CSR
 CSR AT WORKPLACE
REMUNERATION
ETHICAL HR PRACTICES
HEALTH/SAFETY
WORK LIFE BALANCE
AGE OF EMPLOYEES
DOWNSIZING
DIVERSITY IN WORK CULTURE
PRIVACYCONCERNS FOR FREEDOM
CONSISTENCY ACROSS DIFFERENT WORK
ENVIRONMENTS
TELECOMMUTING/WORKING FROM HOME
WOMEN AT THE WORKPLACE
CSR AND THE ENVIRONMENT
AIR PLOOUTION
WATER POLLUTION
SOIL POLLUTION
DEGRADATION OF THE ENVIRONMENT
DESTRUCTION OF LIVELIHOOD
INDUSTRIAL ACCIDENTS/WASTE
DISPOSAL
E WASTE
 CSR INTERVENTIONS
EMPLOYEE VOLUNTEERING
INFRASTRUCTURAL SUPPORT
FINANCIAL SUPPORT
PRODUCT/SERVICE SUPPORT
IMPORTANCE OF NGO PARTNERSHIPS

INVOLVE GOVT AND NGOS

CHOOSE NGOS DISPLAYING COMPETENCE
AND GOOD RESULTS OVER TIME
CAPABILITY TO ADVANCE PROJECTS ON A
LARGE SCALE
REPUTATION/RELIABILITY
PROFESSIONALLY MANAGED
PREDOMINANT POSITION IN SECTOR
INDEPENDENCE FROM COMPANY AND
AUTHORITIES
 PART III

CSR MONITORING,
MEASUREMENT AND
REPORTING
 MONITORING AND
MEASUREMENT
MONITORING THROUGH NGOS
EMPLOYEE LOYALTY
CSR COMMITTEE
PERFORMANCE
PERFORMANCE INDICATORS
GLOBAL REPORTING INITIATIVES
KPIS
ACCOUNTABILITY 1000 SERIES
TBL
 REPORTING
CORPORATE SUSTAINABILITY REPORT
INTERNAL AND EXTERNAL STAKEHOLDERS
INFORMATION ABOUT CHALLENGES
AND ACHIEVEMENTS
COMMITMENT TO ENVIRONMENTAL AND
SOCIAL RESPONSIBILITY
PERFORMANCE-CODE OF CONDUCT,
CG,MITIGATION OF RISKS
ENVIRONMENT MGT
 MEASUREMENT AND
MONITORING TOOLS
EMPLOYEE AND CUSTOMER SURVEYS
PUBLIC ATTITUDE AND TRUST SVYS
EMPLOYEE SAFETY
WASTE MGT
POSITIVE AND NEGATIVE MEDIA COVERAGE
PEER AND EXPERT EVALUATION
IMAGE AMONG FINANCIAL ANALYSTS AND
REGULATORS
PERCEPTION AMONGST STAKEHOLDERS
 CSR PROGRAMMES
EDUCATION
HEALTH
LIVELIHOOD CREATION
SKILL DEVELOPMENT
EMPOWERMENT OF WEAKER
SECTIONS
ENVIRONMENT
 COMPANIES TAKING CSR
INITIATIVES
TATA GROUP
INFOSYS
BHARTI ENTERPRISES
HCL
ITC WELCOME GROUP
ONGC
SAIL
ORCHID CHEMICALS AND PHARMA
NDTV
AIRCEL
 SOME INITIATIVES
IBM- UPLIFTMENT OF TRIBALS IN SASAN
INDIAN PAINT INDUSTRY MAKING PAINTS MORE
ENVIRONMENT FRIENDLY
FINANCIAL SERVICES-NEASING OF CARBON FOOTPRINTS-
RENEWABLE ENERGY ETC- HSBC, MAX NEWYORK LIFE, SCB
E CHAUPAL
ADOBE, KPMG, PROMOTING ENTREPRENEURSHIP
RELIANCE- PROJECT DRISHTI
NDTV-GREENATHON
AIRCEL-SAVE THE TIGER
COPENHAGEN- ENVIRONMENT ISSUES
E WASTE MANAGEMENT