Shwetha MKrishnappa

CORPORATE SOCIAL
RESPONSIBILITY
INTRODUCTION
Learning Objectives

 Understand Basic concept of CSR

 Define CSR
Corporate Social Responsibility

“The extent to which businesses meet the

legal, ethical, economic, and voluntary
responsibilities placed on them by their
stakeholders”.
 Corporate Social Responsibility
 CSR is an extended model of corporate governance
based on the fiduciary duties owed to all the firm’s
shareholders.
 CSR is about how companies manage the business
processes to produce an overall positive impact on
the society.
 CSR is the responsibility of corporations to go above
and beyond what the law requires them to do.
 CSR is the responsibility of corporations to
contribute to a better society and cleaner
environment
Key Concept of CSR

CSR (Carrol, 1979)

Firms have responsibilities to societies including
economic, legal, ethical and discretionary (or
philanthropic).
- See also DeGeorge (1999) on the “Myth of the
Amoral Firm”
 Social Contract (Donaldson, 1982; Donaldson and
Dunfee, 1999) – There is a tacit social contract
between the firm and society; the contract bestows
certain rights in exchange for certain responsibilities.
Key Concept of CSR....

 Stakeholder Theory (Freeman, 1984) – A

stakeholder is “any group or individual
who can affect or is affected by the
achievement of an organization's
purpose.”
 Argues that it is in the company’s strategic
interest to respect the interests of all its
stakeholders.
Economist, Milton Friedman

 “ The social responsibility of business is to

increase its profits.” “
 What does it mean to say that business has
responsibilities? Only people can have
responsibilities.”
 “… in a free society there is one and only one
social responsibility of business – to use its
resources and engage in activities designed to
increase its profits so long as it stays within the
rules of the game, which is to say, engages in
open and free competition without deception or
fraud.
 Key Issues in CSR
 Labour rights:
 child labour
 Forced labour
 Right to organise
 Safety and health
 Environmental conditions
 Water & air emissions
 Climate change
 Human rights
 Cooperation with paramilitary forces
 Complicity in extra-judicial killings
 Poverty Alleviation
 job creation
 public revenues
 skills and technology
Nature of CSR

4 Dimensions
1. Economic
2. Legal
3. Ethical
4. Voluntary (philanthropic)
Pyramid of CSR
Examples

 CANON is a Japanese multinational

corporation specialized in manufacture of
imaging and optical products. Canon has
regional headquarters in japan America ,Asia
,Europe, middle east ,Africa ,etc. The csr
conflict, the workers are not allowed to sit
during working hours , then should work all
day long . The main moto only to make profit
and increase efficiency of company.
 Reliance industries limited is an Indian
holding company headquartered in Mumbai
.the group is present in many business sectors
across India including petrochemicals, health
care ,retail ,textiles, etc. The csr conflicts
 Business with suppliers those using child
labor.
 Asian paints limited is an Indian chemical
company headquartered in Mumbai. It
manufacture paints for decorative and industrial
use. It is India's largest and Asia's third largest
paint company.
 The CSR conflict
 The toxic chemicals which are removed by the Asian
paints industries caused the death of thousand of fishes
.
 Its chemical pollutes surrounding water more faster
than any other company.
Examples
 ALCOA: The Aluminium company, was rated as one ofthe
most ethical companies by Ethisphere magazine in2007.
 Corporate knights and Innovest rated ALCOA as global 100
most sustainable corporations in the world.
 General Electric Corporation’s Ecomagination strategyfor
developing a variety of green investment initiative sand eco-
friendly products such as solar panels, waterpurification
systems and energy saving light bulbs.
 Coca-Cola: A leading manufacturer of beverages,
emphasizes global water stewardship, sustainable packaging
,climate protection, energy management andeco-innovation
in packaging .
Examples
 Innovation in alternative transportation such as hybrid
vehicles and electric vehicles by companies like Toyota,
Nissan, Honda and Tesla Motors in order to curb the
greenhouse gas emissions and reduce theenvironmental
hazards.
 Many companies like IBM, Staples and BP are purchasing
Renewable Energy Credits (RECs) in order to support the
clean energy projects.
 Companies such as Ben & Jerry, IKEA, The Body Shop are
promoting Biodiversity conservation, sustainable forestry
initiative, organic farming and fair trade in order to balance
the need for both business growth, sustaining and preserving
the depleting natural resources.
Examples

 There are 1.28 billion mobile phone users across

the globe and over 342 million phones in UK
alone.
 UK consumers get rid of their mobile phones on
average every 18 months leaving behind
environmental hazards due to lithium ,platinum,
copper and plastics.
 Fonebak is the largest recycling company in UK
that collects such mobile phones from operators,
retailers and corporations for recycling and has
earned highest accolades for its environmentally
friendly business practices.
Thank You