Symbiosis Institute of Business Management, Hyderabad

Name of the Faculty Dr. K. Sripathi

Course Corporate Social Responsibility (CSR)

Semester – III Batch of 2021-23

Assignment Date 12/10/22

Submission Date 15/10/22

Student Name John Joseph

PRN 21021141061

Assignment
 The Future of CSR and the New Ecosystem for CSR 4.0

This essay explains why innovation is crucial for achieving the Sustainable
Development Goals (SDG). Corporate social responsibility has evolved across the
business world in several phases, with CSR 1.0, CSR 2.0, CSR 3.0, and CSR 0.4
being the most recent.

Phase 1: CSR Transitioning to Strategic CSR

• Corporate philanthropy was at the heart of the first wave in the 1960s.
• The corporates participated in CSR initiatives whose reasons had nothing to do
with their primary businesses.
• As a result of the harsh criticism that followed, a more strategic strategy was
adopted.
• Strategic CSR effectively captured value for the company.
• Strategic CSR was primarily driven by the fact that businesses sacrificed
earnings to benefit society.
• They devised a strategy to provide the corporation a direct cut of the profit. It's
crucial, nevertheless, that the business maintains its competitive advantage.
• This stage was additionally referred to as the "Cash-Cheque gifting" approach.
• Microsoft, Toyota, and Urbi are a few examples of businesses that employ
strategic CSR.

Phase 2: An Interpretation of CSR 1.0 Relative to CSR 2.0

• In the 1980s, the second wave of CSR created a strategic plan.

• This stage concentrated on CSR from a business case standpoint. Through
CSR practises, operations, and policies, they benefited the company and its
major stakeholders.
• It called into question the conventional form of CSR and suggested that we
switch to a more transformational CSR.
• The New Era of Corporate Sustainability and Responsibility is what CSR 2.0 is
known as.
• This was the era of systematic CSR, which concentrates its efforts on finding
and addressing the underlying reasons of our current lack of sustainability and
irresponsibility.
• CSR 2.0's five principles–
• Creativity – refers to innovation and creativity
• Scalability – refers to producing the idea at scale
• Responsiveness – not just to disasters, also lobbying, greater
transparency, taking more active roles
• Glocality – refers to global localization
 • Circularity – the recent release of the documentary Closing the Loop
(2018) by Visser is an example

• People might analyse each of these principles to see how organisational

transformation through time relates to social change and expectations.

Phase 3: The Development of CSR 3.0

• We arrived at CSR 3.0 by combining innovation with CSR. This concept or

stage overlaps with the CSR 2.0 theme.
• The word "social innovation" refers to moving beyond new goods, services, or
modes of production to provide ideas on social innovation as an expression of
idealism, of law, of social movements, or of any mix of these.
• In order to address social concerns and create value for both business and
society, social innovation involves transforming ideas into solutions that benefit
stakeholders and shareholders.
• By tackling societal issues, CSR 3.0 enables businesses to create value.
• Although some writers still dispute it, it helps businesses remain morally upright
and avoid doing harm to society and the environment.
• The major danger is that social innovation turns into a new fad that people
believe will disappear in a few years.
• Collaboration and creativity are both essential for achieving the Sustainable
Development Goals (SDG).

Integrated Value Creation

• IVC encompasses corporate sustainability, corporate social responsibility, and

corporate ethics.
• The simultaneous development of non-financial capitals such as infrastructure,
technology, social, ecological, and human capital through synergistic innovation
across the economy is known as IVC.
• The world would become safer, smarter, more shared, sustainable, and
pleasurable as a result.
• IVC aspires to the same things as many other value creation theories, including
shareholder value, stakeholder value, triple bottom line, blended value, five
capitals, shared value, and integrated value.
• This contributes to the company's overall success as it focuses on infrastructure
expansion, job growth, and talent development.
• IVC is a tool for innovation and transformation, two things that are necessary for a
business to do in order to stop being a component of the problem and start being
a part of the solution.
• IVC emphasises the potential for innovation that are present more.
 ▪ Five forces of fragmentation –
o Disruption (any instability that threatens life)
o Disconnection (any form of isolation that prevents communication)
o Disparity (inequities that increase social friction)
o Destruction (production and consumption that leads to decline and
disruption)
o Discontent (unhealthy lifestyles and toxic environments that impair well-
being)

• Innovation ought to be safe, clever, shared, sustainable, and fulfilling.

CSR 4.0

• Key principles and themes for CSR 4.0 –

1) Purpose: as an essential priority
2) Innovation, Inclusion, and Collaboration: with all partners
3) Identification, Engagement, and Co-creation: with all stakeholders
4) Shared and Integrated value: at a deeper level
5) Deeply Transformed and Networked: in a new ecosystem
6) Measurable SDGs: ongoing assessment and renewal
7) Systems Orientation: at the C-suite and employee level
8) Circular Social missions: with environmental loops

The overall theme for CSR 4.0 is to embrace ‘purpose’ within a deeply transformed
value system (CTV). In doing so, it must also embrace innovation, inclusion,
collaboration, co-creation, and engagement, in a shared, integrated, and deeply
transformed networked system, which is sustainable, Global Goal related, agile,
measurable, authentic and systems orientated, with a circular social and
environmental mission at its core.

Conclusion

CSR 1.0 – pushing the message out, building awareness passively.

CSR 2.0 – beginning engagement with dialogue and interaction, building

communities with transparency and accountability.

CSR 3.0 – is involving communities across geographical, age and socio-economic

boundaries, reducing lag time, sustaining stakeholders’ interest and taking
ownership.

The main idea of CSR 4.0 is to embrace "purpose" within a significantly revised set of
values. Business leaders have come to understand that social concerns provide both
significant hurdles to their operations and tremendous opportunities for growth,
regardless of the system. Nevertheless, many people are having trouble finding out
how to apply these solutions, whether through CSR 2.0, CSR 3.0, CSV, or IVC. The
success of CSR 2.0 and CSR 3.0 is attributable to the systems change that Visser
referred to as an IVC approach. This possibility is boosted by globalisation 4.0, which
associates CSR with a "system shift" that necessitates even more transformation and
the creation of a deeply transformed value (CTV) systems approach. It is predicted
that this will result in a more substantial systemic transformation and a higher level of
CSR. The confluence of CSR 4.0 and Globalization 4.0 is argued for in this work.
According to the Preface of this book, if we consider of CSR as being akin to
Globalization 4.0 and as a journey through several eras, then its evolution and that of
its complimentary, surrogate, and alternative topics are both still evolving and a part
of this evolution. The Fourth Industrial Revolution and the Globalization 4.0 era both
place innovation at its core. In some of the risks associated with this, resilience is
crucial. Instead of asserting that CSR 1.0 (or 2.0) is no longer relevant, there is a
progression from past CSR into CSR 3.0 and now CSR 4.0, which is mapped on to
significant social movements in society surrounding new periods of change and
globalisation (Globalization 4.0) as part of the next Industrial Revolution (the fourth).

Integrating and advancing earlier value creation tactics under a more fundamentally
altered value systems approach will be essential to develop transformed value (CTV).
As a starting point for CSR 4.0 growth, CTV proposes an eight-part framework.
Examining these unique ideas will open up a wealth of new research possibilities.

So, based on this scenario, I concluded that CSR moved through many phases across
various timeframes. CSR is a must for all businesses since it rewards them not with
money but with social recognition. CSR will aid in the growth and improvement of the
company's brand. CSR 1.0, 2.0, and 3.0 are all about strategic CSR, boosting social
innovation, and engaging in cross-organizational cooperation, which improves the
organisation internally and helps to enhance the relationship of the business with local
authorities. CSR is no longer viewed in the corporate sector as an expenditure, but
rather as a potential opportunity for business success. CSR opens up new business
opportunities and opportunities for growth. Therefore, I believe that CSR is essential
for a firm to develop and expand.