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CHAPTER-1

INTRODUCTION TO CORPORATE SOCIAL


RESPONSIBILITY

Corporate social responsibility (CSR) is a business approach that contributes to


sustainable development by delivering economic, social and environmental benefits for
all stakeholders. CSR is a concept with many definitions and practices.
Over the past few years CSR, as a concept, has been the focus of many
deliberations and research. It has grown in importance both academically as well as in the
business sense. It captures a spectrum of values and criteria for measuring a company’s
contribution to social development. As the term “CSR” is used continually, many
complementary and overlapping concepts, such as corporate citizenship, business ethics,
stakeholder management and sustainability, have emerged. These extensive ranges of
synonymously used terms indicate that multiple perspectives and by those in facilitating
roles such as the corporate sector, government agencies, academics and the public sector
context has been given by the European Union (EU). It describes CSR as “the concept
that an enterprise is accountable for its impact on all relevant stakeholders. It is the
continuing commitment by business to behave fairly and responsibly, and contribute to
economic development while improving the quality of life of the work force and their
families as well as of the local community and society at large.
In other words, CSR refers to ensuring the success of the business by inclusion of
social and environmental considerations into a company’s operations. It means satisfying
your shareholders’ and customers’ demands while also managing the expectation of other
stakeholders such as employees, suppliers and the community at large. It also means
contributing positively to society and managing your organization’s environmental
impact.2 Hence, CSR is a contribution to sustainable development, implying the way a
company balances its economic, environmental and social objectives while addressing
stakeholder expectations and enhancing shareholder value.CSR not only includes the
activities that a company undertakes development, but also includes the methods that a
company responsible investments, and transparency to various stakeholders among
others. Realizing the importance and the have incorporated socially responsible business

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practices. The basic objective of CSR is to maximize the company’s overall impact on
the society and stakeholders while considering environment and overall sustainability.
EVOLUTION IN INDIA

The industrial families of the 19th century had a strong inclination toward charity
and other social considerations. However, the donations, either monetary or otherwise,
were sporadic activities of charity or philanthropy that were taken out of personal
savings, which neither belonged to the shareholders nor did it constitute an integral part
of business. During this period, the industrial families also established temples, schools,
higher education institutions and other infrastructure of public use. The term CSR itself
came into common use in the early 1970s. The last decade of the twentieth century
witnessed a shift in focus from charity and traditional philanthropy toward more direct
engagement of business in mainstream development and concern for disadvantaged
groups in the society. In India, there is a growing realization that business cannot succeed
in isolation and social progress is necessary for sustainable growth. An ideal CSR
practice has both ethical and philosophical dimensions, particularly in India where there
exists a wide gap between sections of people in terms of income and standards as well
socio-economic status.
CSR FUNDING
Corporate Social Responsibility (CSR) is the funding and grants process under
which Non-Profit Organisations (NGOs) can get financial and other support from the
corporate sector. Under the Companies Act, 2013 it is a mandatory provision to provide a
contribution of 2 percent of the average net profits of companies. CSR is required and
applicable according to Sub-Section 1 of Section 135 of Companies Act, 2013.
According to the Companies Act, the CSR provision is applicable for a company having
a net worth of rupees 500 crores or more, or a turnover of rupees 1000 crores or more or a
net profit of rupees 5 crores or more during any financial year. The company also has a
Corporate Social Responsibility Committee of the Board.

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NEED OF CSR
CSR is a broad term used to describe a companys efforts to improve society in some
way.These effots can range from donating money to non profits to implementing
environmentally friendly policies in the wits to implementing environmentally friendly
policies in the workplace.

TYPES OF CSR

According to Geoffrey lantons mainly there are three types of CSR

1.ETHICAL CSR: Its about the responsibility to avoid harms or social injuries.

2.ALTRUISTIC CSR: Contributing to the common good at the possible expenses of the
business for altruistic,humanitarian or philanthropic causes.

3.STRATEGIC CSR: Its about firms social welfare responsibilities that benefit both the
corporation and stakeholders.

BENEFITS OF CSR

 better brand recognition.


 positive business reputation.
 increased sales and customer loyalty.
 operational costs savings.
 better financial performance.
 greater ability to attract talent and retain staff.
 organisational growth.
 easier access to capital.

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OBJECTIVES OF CSR

 Effective management of environmental impacts.


 To build and maintain high levels of employee management
 Meet customers expectations in social and environmental management of
business
 Ensure the high ethical standards in the conduct of our business

TOP FIVE COMPANIES OF CSR

Top f ive companies who practice and implement CSR are

1.Tata chemical limited: It spends around 12.76crores according to 2017 year flag ship
programee of saving the whale shark depleting due to slaughter by fishermen.

2.Tata steel limited: It spends 171.46 crores for society and specially for MANSI
program.

3.Tata power company limited: It spends 31.1 crores per annum. And for Eco
restoration and development project.

4.Infosys: Healthcare, supply primary education and for Akshaya patra.

5.Mahindra and Mahindra limited: Trained 13,000 youth and sponsors of Life line
trains, planted 7.9million tress.

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ABSTRACT
The concept of ‘Corporate Social Responsibility’ (CSR) has today become a key
aspect of business philosophy and practice world over. CSR has been part of Indian
business for long. There have been efforts, both in the remote and recent past, on the part
of business community and government to make responsible business practices part of
our business ethos. All the same, such efforts have been unsystematic, individual/
institution specific in orientation and, in certain cases, lacking a well-defined direction
and purpose. Of late, there are indications that the scenario is changing. A host of factors
such as globalization of business operations, the rise to prominence of climate change
agenda, adoption of Millennium Development Goals and so on has contributed to an
enhanced level of concern and commitment to the idea corporate social responsibility.
As for the government’s initiatives are concerned, these are reflected in the new
Companies Act passed in 2013, which mandates CSR spend for a defined category of
corporate entities. This has given fillip to corporate CSR initiatives in a big way, which
have, in many cases, gone beyond the requirements of the law. There have also been
efforts, in tune with the global practice, to make CSR part of the corporate strategy and as
a tool for attaining and sustaining competitive edge in the market place.
The proposed paper will trace the evolution of CSR in India, Government
initiatives to make CSR a part of corporate functioning in the country and the emerging
trends in Indian business sector which look at CSR as a tool for competitive strategy.

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