(Submitted By)

Harshada Patil (MMS)

Sushmita Dhamankar (MMS)

Brief Question:

Q.8] Explain the new CSR Paradigms with key issues and drivers
Paradigm means a conceptual framework- an established thought process. CSR Paradigm-Current
CSR approaches are focused largely on voluntarily reducing negative environmental and social
impacts, for example, by lowering pollution and selling lower-impact products. But flawed
economic and political systems compel all companies to degrade the environment and society. They
are the root causes of the major environmental, social and economic problems addressed by the
United Nations Sustainable Development Goals (SDGs). Current CSR approaches are focused on
symptoms instead of root causes. They provide many benefits, but ultimately will not achieve
sustainability. Addressing symptoms instead of causes is like trying to put out a fire while
simultaneously throwing gasoline on it.

The New CSR paradigm, i.e. Whole System Sustainability, is based on the reality that
companies ultimately cannot prosper apart from the larger systems that sustain them. It shifts the
focus from maximizing the well-being of business to maximizing the well-being of society. Whole-
system thinking shows that because system change is the most important sustainability issue, it
should be a major focus of CSR strategies. The rationale and mechanics of business involvement in
system change

System change is the only way to reverse environmental and social degradation. Sustainability has
become mainstream in the corporate and financial sectors over the past 20 years. Many companies
value their leading CSR position. They gain substantial reputational, competitive and financial
benefits from it. Going forward, proactive system-change strategies increasingly will be necessary
for maintaining CSR leadership.

Key Issues:- some issues are as follows

1. Integration of CSR into mainstream business: the business processes and systems
needed to manage the complexities of social and environmental performance—specifically
the coordination across functions responsible for environmental impact, legal issues,
procurement, HR, government relations, and community affairs—are still lagging. Looking
ahead, the full integration of CSR into business strategy, functions, and operations by
international and national/local companies alike will be critical for successful capital
project development and execution.
2. Collaborative approaches to cumulative sustainability impacts: The cumulative
environmental and social impacts of Industrial projects—as well as the combined activities
 from other sectors such as agriculture and manufacturing—are leading policymakers and
many companies to think differently about their contributions to sustainable development.
From air quality and carbon emissions to demands on biodiversity, climate adaptation, and
land and water use, there are significant opportunities for companies to partner with
government and civil society in 2013. It’s also important for companies to consider
partnering with local government to smooth the “boom and bust” cycles of energy
3. Changing expectations about human rights issues: The energy and mining industries’
large-scale projects have substantial physical and economic impacts on host countries—
often affecting entire national economies as well as localized individual communities. Given
this, as well as the social, economic, and political stakes associated with these projects, it’s
important for companies to consider human rights—not only to mitigate downside risk
(such as preventing abuses by security forces), but also to enhance social-investment
programming and corresponding delivery of local benefits that help companies secure and
maintain social license. Considering these aspects of human rights requires engaging
company management, employees and contractors, government officials, local communities,
and civil society. The Guiding Principles on Business and Human Rights provide a useful
framework.
4. Accountability and responsibility for social and environmental performance in
Industries: CSR performance can significantly impact the operational, reputational, and
financial success of their customers. There is more pressure than ever for companies to
implement practices that promote transparency, avoid corruption, advance environmental
sustainability, protect human rights, and facilitate “local content” objectives in the industry.
In response, more companies are grappling with how to set clear expectations, establish
assurance mechanisms, and balance cost implications of managing their business. While
this is leading to contract amendments and new procedures for monitoring, oversight, and
reporting, greater coordination between customer and supplier will be required to achieve
intended outcomes and benefits.
5. Revenue transparency and corporate and government accountability: Corruption and
lack of government accountability are considered the biggest obstacles to growth in many
resource-rich nations. While there are different views on the effectiveness of regulatory and
voluntary mechanisms, NGOs and companies both agree that greater transparency is
necessary to hold authorities accountable for providing essential services like clean water,
health care, and education. Companies see support for multi-stakeholder initiatives such as
the Extractives Industry Transparency Initiative as critical to moving forward.
Transparency will continue to be a critical item on the business and sustainability agenda.

CSR Drivers: There are numerous drivers in the marketplace that have encouraged larger
companies to be more socially responsible, but the key drivers for firms becoming more
socially responsible are:

 Government legislation- In many countries across certain industries, the government

has imposed legislation that requires companies to conform and behave in a certain
 manner. In this case, however, the organizations impacted by this legislation are only
complying with various requirements because of regulation.
 Customer expectations of firms- Consumers are becoming more aware of social and
environmental issues and the consideration of the future is becoming slightly more
important when consumers consider purchase decisions. As a result, some consumers will
have an expectation that certain companies behave in an appropriate manner, relative to
society and the communities.
 Consumer lobby groups- Consumers are becoming more aware of social and
environmental issues and the consideration of the future is becoming slightly more
important when consumers consider purchase decisions. As a result, some consumers will
have an expectation that certain companies behave in an appropriate manner, relative to
society and the communities.
 The extent of costs involved- A shift to increase social responsibility may come at a
reasonable cost to the organization. For example- a bank can shift its customer bank
statements from paper-based to electronic (known as e-statements) on the basis that they
are saving lots of paper – but this has the impact of reducing costs for the organization.
Therefore, where the social responsibility initiative represents a win-win scenario, an
organization is far more likely to implement it.
 The type of industry in which they operate- There are a number of more significant
industries where there is greater pressure an expectation on the firms to become
responsible corporate citizens. Following the Global Financial Crisis, there has been in
increased expectation on banks and other financial institutions to be more transparent and
ethical in their business operations.
 The potential for competitive advantage- There are some companies that are
attempting to build their core image, or at least parts of their brand association around their
socially responsible behavior. In this case, these types of organizations are truly practicing
the societal marketing concept. They are foregoing some profitability in order to contribute
to society or to certain communities.
 Top-level corporate culture- Corporate social responsibility is also a reflection of the
overall corporate culture and of top management values. In other words, how important is
making a contribution to society to the senior management of the organization? This will
guide how embedded social responsibility is the overall strategy.

Short Note:

Q .8] CSR Charter & CSR Codes of Conduct

Ans: Corporate social responsibility Charter:

CSR Charter Code of Conduct that sets forth the code of conduct that all group
executives and employees should follow and includes principles of conduct based on
corporate philosophy. Putting it into practice in areas including compliance, human rights,
product liability, and the supply chain, thereby fulfilling our social responsibility as a
corporation and responding to the expectations of society. Constantly educating
employees about the CSR Charter / Code of Conduct. Through this training, there will be
increase of awareness of the importance of diversity, and of respect for diversity of
factors such as nationality, race, faith, gender, and sexual orientation/gender identity. The
corporate social responsibility is integral to meeting strategic objectives as it will ensure
maintaining social license to operate, enhance reputation with all stakeholders, improving risk
management, reducing cost of production and both directly and indirectly benefits the
communities.

Purpose and aim is to contribute to making products, processes, organizations, living and working
environments as clean, healthy, safe and sustainable as possible. In doing so, we create trust,
transparency and a level playing field for all parties involved, both private and public. Thus, by
embodying these principles we aim to improve and sustainably develop society, both globally and
locally.

Corporate social responsibility Codes of Conduct :

1. Hiring local, regional and national residents and use goods and services from local
communities wherever possible, without compromising quality and efficiency standards
2. Uphold fundamental human rights and do not interfere or take sides in politics or social
issues
3. Working with unified local committees to identify and priorities community development
projects intended to promote long-lasting livelihood improvements
4. No tolerance of any unethical behavior by any stakeholder involved.
5. Provision of Products and Services Beneficial to Society.
6. Respect for Human Rights and Friendly Work Environment
7. Establishment of Friendly Environment for People and Our Planet
8. Sound and Effective Corporate Governance.
9. Compliance with Laws and Regulations, and Standards of Ethics
10. Appropriate Management and Utilization of Information and Intellectual Property
11. Corporate Social Responsibility as Good Corporate Citizen
12. Exclusion of Anti-Social Forces