Professional Documents
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Project Report
On
Submitted by:
Submitted to,
University of Mumbai
In Partial Fulfilment of
Kudal
(2018-2019)
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Corporate social responsibilities
DECLARATION
I, the undersigned hereby declare that I have carried out Project on the topic entitled
“Corporate Social Responsibility” is genuine & benefited work prepared by me under
the guidance of Asst. Prof. Sonali Angchekar is my original work. The empirical findings
in the report are based on the data collected by me. The matter presented in this project.
This work has not copied from any way the university authorities deem to be fit.
I further declare that this project work is based in my original work & no part of this
project has been published or submitted to anybody.
This work is humbly submitted to University of Mumbai for the award of the Bachelor of
Management Studies.
Date:
Place:
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business are to produce goods and services that society needs and wants at a price that can
perpetuate the continuing existence of the business, and also satisfy its obligations to
investors; ethical responsibilities are those behaviours or activities expected of businesses
by society and other stakeholders such as employees.
Considered at the organisational level, CSR is generally understood as a private firm
policy. As such, it must align with and be integrated into a business model to be
successful. With some models, a firm's implementation of CSR goes beyond compliance
with regulatory requirements and engages in "actions that appear to further some social
good, beyond the interests of the firm and that which is required by law". The choices of
'complying' with the law, failing to comply, and 'going beyond' are three distinct strategic
organisational choices. While in many areas such as environmental or labour regulations,
employers may choose to comply with the law, or go beyond the law, other organisations
may choose to flout the law. These organisations are taking on clear legal risks. The
nature of the legal risk, however, changes when attention is paid to soft law. Soft law may
incur legal liability particularly when businesses make misleading claims about their
sustainability or other ethical credentials and practices. Overall, businesses may engage in
CSR for strategic or ethical purposes. From a strategic perspective, the aim is to increase
long-term profits and shareholder trust through positive public relations and high ethical
standards to reduce business and legal risk by taking responsibility for corporate actions.
CSR strategies encourage the company to make a positive impact on the environment
and stakeholders including consumers, employees, investors, communities, and
others. From an ethical perspective, some businesses will adopt CSR policies and
practices because of ethical beliefs of senior management. For example, a CEO may
believe that harming the environment is ethically objectionable.
CSR is titled to aid an organization's mission as well as serve as a guide to what the
company represents for its consumers. Business ethics is the part of applied ethics that
examines ethical principles and moral or ethical problems that can arise in a business
environment. ISO 26000 is the recognized international standard for CSR. Public sector
organizations (the United Nations for example) adhere to the triple bottom line (TBL). It
is widely accepted that CSR adheres to similar principles, but with no formal act of
legislation.
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company. It may also forego cumbersome paperwork that is required to set up projects if
it thinks that this project is going to help the community to improve.
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During 2004-06, Microsoft launched two programs, ‘Partners in Learning,’ and ‘Partners
in Learning Grants.’ Both these programs were involved in providing technology and the
necessary training to operate such technology in schools. This was provided mainly to
those schools that did not and could not get access to such technologies and education.
The Learning Grants program had invested $253 million in the training of teachers and
students to make them efficient in handling technology.
Microsoft also helps to provide technology and training to schools that are
underdeveloped or are a part of underdeveloped and neglected areas.
In 2012, Microsoft launched a program called ‘YouthSpark,’ which was an organizational
initiative that aimed to equip students with the tools to achieve success. As a part of this
initiative, Microsoft provided special software for the purpose of learning enhancement.
For example, they provided accessibility options in their applications to help the visually
impaired. The ‘Job Access With Speech (JAWS)’ screen-reading feature allowed blind
students like Ignacia Picas to read without getting text converted to Braille. This helped
her cope up with her visually unimpaired peers. This also saved her teachers a lot of time
as well because now they did not have to convert text to Braille for Ignacia to study.
In 2013, Microsoft began distributing its software like ‘Office 365’ to eligible Non-Profit
Organizations for free. It distributed $55 million worth of software in 92 countries around
the world at a nominal price or even no fee at all.
Effects: Microsoft’s CSR activities have had a huge impact on community development
and employee happiness. According to a study, 86 percent of its employees would
recommend people to work at Microsoft. The same study reveals that 94 percent of
Microsoft’s employees believe they are treated justly by their superiors and that the
company is a good corporate citizen due to its efforts to improve human life in general.
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4)Pervasive Activity:
Social responsibility is not just the obligation of top level managers. Managers at all levels
are involved in social responsibilities.
5)ContinuingActivity:
Social responsibility is not catering to the interests of society once or twice.it is important for
organizations to continiuosly engage in all social issues if they want to survive in the long
run. The economic and social issues,infact,go hand in hand.
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LEVELS OF SOCIAL RESPONSIBILITY:
A hierarchy of the extent to which business houses discharge social responsibilities is
developed by R. Joseph Monsen.
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Starting from the lowest level, there are four levels of hierarchy:
1)Obey the law:
Managers feel discharging social responsibility is merely obeying the law.
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1) Profit maximization:
Historically,public viewed business enterprises as institutions which mainly looked after the
interests of owners. Social responsibility was discharged to the extent of maximising profits
within the boundaries of legal framework.
2) Trusteeship management:
During later years, the concept of social responsibility got widened from mere satisfaction of
owners’ interests to the interests of other stakeholders also, like employees, consumers,
creditors etc. Providing good working conditions, goods of the right quality and quantity,
timely repayment of loans etc. Were the essential aspects of social responsibility. Managers
were trustees of business property, holding it in trust for the welfare of society.
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2) Stakeholder involvement:
Companies must engage in dialogues with stakeholders (workers, suppliers, local population,
consumers, social organisations, public authorities etc.) to know their concerns regarding
consequences of company behaviour. There should be ongoing exchange of information
between company and its stakeholders regarding CSR policies where mutually accepted
agreements about company norms, values, rights and obligations are reached.
4) Independent verification:
Companies must verify, that is, internally monitor the CSR policies, quality of its reports,
management systems and processes. This verification should be carried out by organisations
not linked to companies and have full trust of shareholders involved. Outcome of the
verification procedures should be made public in a proper manner.
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1. Shareholders
2. Employees
3. Customers
4. Community
5. Organizations
6. Government
(1)Shareholders:
To which their interests are secured.Shareholders bring capital for the business enterprise
and facilitate its smooth functioning.The business enterprise, in turn, owes the following
responsibilities to shareholders:
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3) Safety of investment:
Equity shareholders are the last claimants of assets in the event of winding up. Companies
must maintain sufficient assets to ensure safety of their investment during winding up.
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4) Disclosure:
Companies must disclose their financial position in the annual reports so that shareholders
know the progress of the company and the extent
(2) Employees:
Employees help in smooth administration of business and effective conversion of inputs into
outputs.The business organizations must, therefore, discharge the following obligations
towards employees:
2) Financial benefits:
Financial benefits like pension, provident fund and perquisites like medical and recreational
facilities must be provided in the organization for fulfillment of their physiological needs and
a secured future.
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5) Recognition of rights:
Management should recognize the right of workers to form trade unions and bargain with
managers about the wages,working hours and working conditions.
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Management should obey labour laws with respect to wages, settlement of industrial
disputes; payment of bonus, gratuity, compensation etc. Adherence to legislative measures
ensures protection of workers’ rights.
7) Job security:
Not only should organizations protect workers’ rights; they must also provide them job
security. Secured jobs promote satisfaction and greater output.
(3) Customers:
“Customer is the king” in the marketing world. Unless the customer buys goods, the company
cannot exist.
2) Complete information:
Complete information about use and quality of goods should be given in the advertisement.
The advertisement must express both, positive and negative features of the product.
3) Customer service:
After-sales services like installation, repair, warranty etc. promote goodwill and sale in the
market.
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4) Need-based products:
Companies should produce goods that satisfy needs of the customers rather than those that
maximize their profits.
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6) Safety of products:
The products should conform to health and safety standards. Their consumption should be
safe and not lead to health hazards.
(4) Community:
Various resources (financial and non-financial) are provided by the community and,
therefore, their interests should be protected by the business organisations:
1) Pollution-free environment:
The industrial machinery may produce noise and air pollution against health and safety of the
community. Business firms should conform to pollution standards and provide clean and
healthy environment to the community at large.
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5) Employment opportunities:
Though capital-intensive technology develops an organization, it must also ensure enough
employment opportunities for the people of its community.
7) Social programmes:
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Business organizations should conduct social programmes like career counselling and
provide career opportunities to people.
(5) Organizations:
organizationsof the same trade compete for scarce resources.
2)Sharing of resources:
The resources being scarce, organisations should share them to carry their productive and
administrative processes smoothly.
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(6) Government:
Government provides numerous facilities to business enterprises like transportation,
electricity, water and sewerage, police and fire protection etc. Business organisations should
also be responsible towards the Government.
1)Pay taxes:
Firms should submit their yearly returns of income and pay taxes judiciously. Taxes are a
source of revenue for the Government used for promoting business interests.
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Human Rights
An enterprise’s responsibility to respect human rights relates to internationally
recognised human rights, particularly those of the United Nations. Human rights due
diligence enables enterprises to identify any adverse effects resulting from its activities
and in its value chain in good time and to prevent or reduce them. The shape it takes in
practice depends above all on the size of the enterprise and on certain risk factors such as
the region and sector.
Working Conditions
By ensuring the best possible employment conditions based on the applicable
statutory provisions and international labour standards, in particular those of the
International Labour Organization, enterprises can play a role in creating high-quality
jobs. This primarily concerns the granting of trade union rights, the abolition of child and
forced labour and the elimination of employee discrimination (e.g. based on where they
come from, their social background, skin colour, religion or political views). Constructive
cooperation with social partners is also an important part of this.
The Environment
Responsible environmental management aims to continuously improve an
enterprise’s impact on the environment. This includes a progressive internal
environmental management system based on high standards, environmental due diligence,
an environmentally friendly strategy with closed cycles, consistent reduction of
greenhouse gas emissions and a contingency plan for reducing harmful effects on the
environment.
Combating Corruption
Corruption has an extremely harmful effect on democratic institutions, good
corporate governance, investments and international competition. Enterprises can play a
key role in combating corruption by introducing internal control mechanisms to avoid and
expose it. It is also important to publish the policy on combating corruption supported by
the management and to train employees.
Disclosing Information
As part of a transparent reporting process, enterprises inform the public about their
business activities and their effects in terms of the economy, society and the environment.
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Conclusion
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