Q2.

) Write a small note on CSR key principles and Explain any

initiative taken under CSR of any International/Domestic Brand.

Ans.
Corporate Social Responsibility (CSR)
What is Corporate Social Responsibility (CSR)?
Corporate social responsibility (CSR) is a self-regulating business model that
helps a company be socially accountable—to itself, its stakeholders, and the
public. By practicing corporate social responsibility, also called corporate
citizenship, companies can be conscious of the kind of impact they are having
on all aspects of society, including economic, social, and environmental. To
engage in CSR means that, in the ordinary course of business, a company is
operating in ways that enhance society and the environment, instead of
contributing negatively to them.

In today's socially conscious environment, employees and customers place a

premium on working for and spending their money with businesses that
prioritize corporate social responsibility (CSR).CSR is an evolving business
practice that incorporates sustainable development into a company's business
model. It has a positive impact on social, economic and environmental factors.
"What the public thinks of your company is critical to its success," Schmidt told
Business News Daily. "By building a positive image that you believe in, you
can make a name for your company as being socially conscious." As the use of
corporate responsibility expands, it is becoming extremely important to have a
socially conscious image. Consumers, employees and stakeholders are
beginning to prioritize CSR when choosing a brand or company. They are
holding corporations accountable for effecting social change with their business
beliefs, practices and profits. Consumers aren't the only ones who are drawn to
businesses that give back. Susan Cooney, head of global diversity, equity and
inclusion at Symantec, said that a company's sustainability strategy is a big
factor in where today's top talent chooses to work.

Understanding Corporate Social Responsibility (CSR)

Corporate social responsibility is a broad concept that can take many forms
depending on the company and industry. Through CSR programs, philanthropy,
and volunteer efforts, businesses can benefit society while boosting their brands.

As important as CSR is for the community, it is equally valuable for a company.

CSR activities can help forge a stronger bond between employees and
corporations; boost morale; and help both employees and employers feel more
connected with the world around them.

4 corporate responsibility types your business can practice

Recognizing how important socially responsible efforts are to their customers,
employees and stakeholders, many companies now focus on a few broad CSR
categories:

1. Environmental efforts: One primary focus of corporate social

responsibility is the environment. Businesses, regardless of size, have
large carbon footprints. Any steps they can take to reduce those
footprints are considered good for both the company and society.

2. Philanthropy: Businesses can practice social responsibility by donating

money, products or services to social causes and non-profits. Larger
companies tend to have a lot of resources that can benefit charities and
local community programs. It is best to consult with these organizations
about their specific needs before donating. 
 3. Ethical labour practices: By treating employees fairly and ethically,
companies can demonstrate their social responsibility. This is especially
true of businesses that operate in international locations with labour
laws that differ from those in the United States.

4. Volunteering: Attending volunteer events says a lot about a company's

sincerity. By doing good deeds without expecting anything in return,
companies can express their concern for specific issues and commitment
to certain organizations.

Corporate Social Responsibility (CSR) Principles

Eight such principles of CSR necessary for cultivating and sustaining economic
growth in a democratic and free market society.

 I. A Thriving Economy in a Democratic Society

Democratic societies with thriving economies depend upon three primary

components: free enterprise, rule of law, and individual initiative. These three
conceptual components are interrelated in such a way that the absence of one
greatly hinders the effectiveness of the others. Friedman realized this in arguing
that economic freedom begets political freedom and vice versa (7-10). For free
enterprise to exist a rule of law must establish and protect the rights of
individual citizens to possess private property and to employ that property
according to each one’s will. If the rule of law fails to secure individual rights,
then the integrity of free enterprise is undermined and one’s self-reliance is
threatened along with the innovation and virtues entailed therein. As Vásquez
argues, “When personal choice, voluntary exchange, and the protection of
private property are not secure, it is difficult to imagine how political freedom
or civil liberties can meaningfully be exercised” (6). Accordingly, it is of
upmost importance that corporations engaing in CSR practices do so in
accordance with and for the sake of these three primary components.

II. Three Essential Organizations of a Successful Community

           There are three essential, but distinct organizations that constitute a

successful community: the government, businesses, and nonprofit organizations
(NPOs). Each serves a unique purpose that compliments the roles of the other
two in the community, allowing each to function as efficiently as possible to
achieve their respective objectives without having to submit the whole workings
of society to a single, centralized authority as is the case in totalitarian states
(Mendel 9). Although each sector operates as a separate entity from the others,
within a community they operate together to maximize each’s effective
potential.

These three components of a community work together to meet the most basic
needs of community members. Where one is not able to operate without
inefficient or unjust overreach, another is able to step in to see to it that the void
in the communal welfare is filled. Government works to protect the liberties of
the people. For-profit corporations work to create jobs and stimulate the
economy. NPOs work to meet the needs of the community that arise outside the
immediate purview of the other two. Thus, all CSR practices that a business
implements must not impede the role of the business in the tripartite equilibrium
sustaining the community or else the business runs the risk of undermining the
welfare of the marketplace or the community.

III. Communal Retention and Relocation

           The key to a thriving community is having a vibrant, multigenerational

population that is engaged in social activities and community building
(Mitchell-Brown 12). For communities that plan to grow economically, the
community must able to attract people to the community as well as retain those
already living there. While the three essential organizations of a successful
community form the foundation of every community, there are other elements
of communal living that determine whether or not people consider moving to or
staying in a community. For example, people want to know what activities,
organizations, educational institutions, cultural experiences, and social groups a
community offers. People want to know what is educational and recreational
opportunities are available for their children and what there is available for
adults to do for enjoyment with spouses/partners, family, and friends. If a
community fails to provide social and leisure activities, there is a greater chance
that fewer people will move to the community and that the community will be
unable to retain those community members who already live there.

IV. Human Rights and Social Responsibility

Human rights are the cornerstone of developed democracies and marketplace

activities. A society cannot have free enterprise in which individuals contribute
to the common good through innovation and job creation by means of
individual initiative without a rule of law that protects the rights of the
individual. This is why all members of society, including corporations, must
respect the rights of others. Lynch writes, “Corporations have the capacity to
foster economic well-being, development, technological improvement and
wealth, as well as the capacity to impact harmfully on the human rights and
lives of individuals and communities. Recognizing these impacts and spheres of
activity and influence, particularly as they pertain to the realization of
fundamental human rights [spurs strong public interest]” (5). Accordingly, all
government and business practices ought to observe the inalienable nature of
human rights, especially where CSR is implemented (Arnold 1092-95).

V. Meeting the Needs of the Common Good

           Discourse about the common good are important for democratic societies
because it provides a framework for considering the relationship between
private and communal interests (Smith 625). Classical Greek philosophers such
as Plato and Aristotle argued that a successful society must strive for the
common good, which for them primarily entailed justice and security. Even in
The Federalist Papers, Hamilton, Madison, and Jay cite the “public good” along
with “private rights”—the two are undoubtedly intertwined—as the central
motivators for ratifying the new Constitution of the United States (No. 10). The
notion of the common good serves as a lynchpin for a community; it unifies the
community in the joint pursuit of some goal the community considers to be
essential to the whole and to the well-being of its individual members.

           Businesses have a vested interest in the common good insofar as a

thriving community means a thriving business. They play an intricate part in the
community’s pursuit of the common good by providing the necessary products
and services to the community at the most competitive rates while creating jobs
and spurring innovation that will beget better products and services. But
because businesses play a role in the marketplace and their contribution to the
common good depends upon an efficient and unencumbered market, they must
remain free from undue government interference. Thus, a business’s
contribution to the common good must be self-regulated so that individual
businesses can determine for themselves the most appropriate CSR practices to
engage in without compromising its primary role as an economic actor. Failing
to do so will compromise any other efforts made by the community to achieve
the common good, because without jobs, there will be neither goods and
services nor money to afford them.

     

VI. The Constituency of a Community

           When implementing CSR practices, corporations must take into consider

its constituency or community stakeholders, which is made up of children,
adults, and the elderly. Each age group has its own needs, interests, and
capacities to contribute to the community. Adjusting the scope of CSR practices
to include persons at various stages of life allows a company to meet the needs
of each constituent group indiscriminately. CSR practices that neglect one or
more of these groups would have a negative effect on the whole community,
because a lack of concern for or the trust of one generation will, in the long run,
effect the others.

VII. Community Service as an Investment

           The community is a CSR cornerstone (Moon 27). If a community thrives,

then its businesses will thrive. But if a community is struggling, then businesses
will face tougher challenges. A successful business employs a CSR model that
identifies opportunities to serve in the community, because doing so allows the
corporation to align its CSR goals with the specific social challenges facing the
community that are consistent with the company’s mission and values. It also
allows the corporation to shape the values of the community by having an
invested social presence, and it empowers the company to determine priorities,
measure results, and create a competitive advantage through a meaningful,
symbiotic relationship with the community. Clarke explains that “community
investment and engagement efforts that are really aligned with firms’ goals,
assets and values can produce demonstrable community and company benefits”
(“Investing in Communities”). This is why CSR is not simply charity. CSR is a
business practice in which a corporation takes responsibility for itself while
claiming a stake in the community. The CSR and community relationship is one
of enlightened self-interest.

           Possible CSR practices could include: assisting in the making of a better

community so as to attract more people to the community; assisting the
educational system to create a better pool of employees; assisting communities
to have better social and athletic programs for children to make the community
more attractive by improving the quality of life for both children and their
families; assisting museums, theaters, and other cultural institutions to attract
people to the community who appreciate the arts; assisting adult education
programs to promote their interests and well-being; or assisting health care
institutions in order to have a healthier community.

VIII. The Benefits of CSR to a Corporation

           CSR practices function as investments that benefit corporations in the

long-term by taking a holistic approach that maximizes returns by calculating
for non-market externalities when implementing business practices (Kauffmann
and Olaru 12). By taking into consideration non-market externalities,
corporations attempt to realize possible non-market returns that are often times
overlooked but have previously unseen market value. Businesses that
implement CSR practices into their business models do so because they
recognize that their assets and market values depend upon social goods outside
the preview of the market and that smart CSR practices benefit those who
implement them. The following are two primary ways CSR benefits a
corporation.

First, CSR creates an improved marketplace that allows for growth, increased
profits, and maximized opportunity for business success by engaging and
capitalizing on social resources that short-term investments have not utilized.
For example, an UNESCO report found that by investing in educational and
cultural opportunities of a community, especially targeting children in low-
income neighborhoods, a corporation can contribute to the eradication of
poverty (Pota “Why Investing”). And a decline in poverty is good for business
because it strengthens the economy and increases the purchasing power of
society by creating more consumers and investors with disposable income.

Second, CSR creates various opportunities for a better quality of life, which is a
fundamental goal for most people. Businesses that promote CSR practices
contribute to a community’s effort to ensure that people can achieve the highest
standard of living possible for themselves, their families, and their friends. In
this way, CSR becomes as a public relations marketing strategy that promotes a
positive public image and makes employees proud to work for an upstanding
corporation, which creates loyalties to the organization from the community and
employees alike. This attracts quality people, reduces employee turnover, and
motivates a greater purpose for the organization (Stinson “Why Paying”). It also
is developmental for employees as it promotes continued learning and self-
fulfillment, which helps to keep employees sharp, engaged, and happy, all of
which are good for productivity (Oswald et al. 806-07). This is important
because productivity contributes to business success, business success
stimulates strong economic growth, and strong economic growth provides the
leisure necessary for persons to engage in democratic and free market activities.
In this way, CSR helps to secure the common good by promoting liberty,
equality, and innovation.

Example of Corporate Social Responsibility

Long before its initial public offering (IPO) in 1992, Starbucks was known for
its keen sense of corporate social responsibility, and commitment to
sustainability and community welfare. According to the company, Starbucks
has achieved many of its CSR milestones since it opened its doors. As per its
2018 "Global Social Impact Report," these milestones include "reaching 99% of
ethically sourced coffee, creating a global network of farmers, pioneering green
building throughout its stores, contributing millions of hours of community
service, and creating a ground-breaking college program for its
partner/employees."

Starbucks’ goals for 2020 and beyond include hiring 10,000 refugees across 75
countries, reducing the environmental impact of its cups, and engaging its
employees in environmental leadership. Today there are many socially
responsible companies whose brands are known for their CSR programs, such
as Ben & Jerry's ice cream and Everlane, a clothing retailer.