Corporate Social

Responsibility
 To be covered
• Base Case for understanding
• What is CSR?
• Why CSR?
• Benefits of CSR?
• CSR & Strategies used by
organizations
• Corporate Citizenship
• Why corporate citizenship is
valuable?
• How the organizations can
become better corporate
citizens?
 What PepsiCo did and how they did it?

• Socially responsible organization….

• Initiatives..
1. Anchor your transformation in a view of the future
2. Ensure that the board is your ally
3. Be thoughtful about the language you use to communicate your transformation
4. Model the necessary new behaviours with early actions
5. Develop the capabilities that advance the purpose – Driven strategy
6. Localize the execution of the strategy
7. Find support outside the company
8. Embed purpose in the organizational DNA
 What is CSR?
• “the responsibility of enterprises for their impacts on society”. To completely
meet their social responsibility, enterprises “should have in place a process to
integrate social, environmental, ethical human rights and consumer concerns
into their business operations and core strategy in close collaboration with
their stakeholders”
• http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_ en.htm

• The CSR approach is holistic and integrated with the core business
strategy for addressing social and environmental impacts of businesses.
• CSR needs to address the well-being of all stakeholders and not just the
company’s shareholders.
• Philanthropic activities are only a part of CSR, which otherwise
constitutes a much larger set of activities entailing strategic business
benefits.
 Why CSR?
• SDGs or Global Goals are a collection of 17 interlinked global goals designed to
be a "blueprint to achieve a better and more sustainable future for all".
• The SDGs (2015) – UN General Assembly to be achieved by 2030 (Agenda
2030).
• The SDGs were developed on the framework of Millennium Development
Goals (8 Goals) ended in 2015.
• The Millennium Development Goals (MDGs) established in 2000 based on the
OECD DAC International Development Goals agreed by Development Ministers
in the “Shaping the 21st Century Strategy”.
• India- Clause no. 135 of the Companies act, 2013 applicable from 2014-2015
applicable to the companies with
• Annual turnover of 1,000 Crore INR and or more
• Net worth of 500 Crore and more
• Net profit of 5 crore INR or more
Benefits of CSR?

• Communities provide
the licence to operate
• Attracting and
retaining employees
• Communities as
suppliers
• Enhancing corporate
Reputation
 CSR & Strategies used by organizations
• Developing a CSR strategy & Policy
• Frame working CSR Strategy
• Operationalizing the institutional
Mechanism
• Due diligence of the implementation
partner
• Project Development
• Project Approval
• Finalizing the arrangement with the
implementing agency
• Progress monitoring and reporting
• Impact Measurement
• Report Consolidation and
communication
 Corporate Citizenship
• Global Citizenship/ corporate
citizenship
• Its about taking an interest in how
your organization interacts with the
world as a whole.
• Corporate Citizenship focuses on the
importance of social responsibility.
• All the stakeholders are responsible
for meeting legal, economic and
ethical standards.
• Thus the corporations rally together
their people and resources to improve
the society’s quality of life.
 Why corporate citizenship is valuable?
• Better Brand recognition
• Better Business reputation &
Growth
• Increase in sales
• Increased customer loyalty
• Reducing operational cost
• Improved financial performance
• New opportunities to attract
talent
 How the organizations can become better
corporate citizens?
• Create a Business code of ethics
• Commit to environmental
protection
• Screen Suppliers before contracting
• Donate money wisely
• Encourage innovation &
Participation
• Foster Diversity & Inclusion
• Improve Customer Experience
• Following a workplace health &
safety program