CORPORATE SOCIAL

RESPONSIBILITY (CSR)
A Key Aspect of Audit and Corporate Governance
 Introduction to CSR
◦ Definition of CSR: Corporate Social Responsibility refers to a company's commitment to
operating in an economically, socially, and environmentally sustainable manner while
balancing the interests of stakeholders.
◦ Importance of CSR in Corporate Governance: CSR is integral to maintaining trust,
reputation, and legitimacy in the eyes of stakeholders, including shareholders, employees,
customers, communities, and regulatory bodies.
 Evolution of CSR
◦ Historical Context: CSR has evolved from a philanthropic activity to a strategic business
imperative.
◦ Milestones: Discuss key milestones in the evolution of CSR, such as the development of
CSR frameworks, regulatory changes, and shifting societal expectations.
 Frameworks for CSR
◦ Global Reporting Initiative (GRI): GRI provides a comprehensive set of standards for
reporting on economic, environmental, and social performance, enabling companies to
measure and disclose their impacts transparently.
◦ United Nations Global Compact (UNGC): UNGC principles offer guidance for responsible
business practices in areas such as human rights, labor, environment, and anti-corruption,
encouraging companies to align their strategies and operations with universal principles.
◦ ISO 26000: ISO 26000 provides guidance on social responsibility, helping organizations
address societal expectations and stakeholder needs by integrating social, environmental,
ethical, and economic considerations into their governance and operations.
 Benefits of CSR
◦ Financial Benefits: CSR initiatives can lead to enhanced brand
reputation, increased customer loyalty, and improved financial
performance, as socially responsible companies are perceived
as more trustworthy and desirable by consumers and investors.
◦ Non-Financial Benefits: CSR efforts contribute to positive
employee morale, attraction and retention of talent,
strengthened stakeholder relationships, and reduced
regulatory risks, fostering long-term sustainability and resilience
for the organization.
 Challenges in Implementing CSR
◦ Resource Constraints: Balancing CSR initiatives with limited financial resources can
be challenging, particularly for small and medium-sized enterprises that may face
competing priorities and budgetary constraints.
◦ Stakeholder Engagement: Engaging diverse stakeholders with varying interests
and expectations requires effective communication, collaboration, and
relationship-building efforts to ensure alignment and transparency.
◦ Measurement and Reporting: Evaluating the impact of CSR initiatives and
effectively communicating results to stakeholders necessitates robust
measurement frameworks and transparent reporting practices, yet measuring
social and environmental outcomes can be complex and subjective, posing
challenges for companies.
 Case Study - Tata Group
Implementation & Outcome:
◦ Tata Trusts, the philanthropic arm of Tata Group,
spearheads CSR initiatives across the
organization's diverse portfolio of companies.
Initiatives include Tata Steel's community
development programs, Tata Power's renewable
energy projects, and Tata Consultancy Services'
digital literacy and skill development programs.
Focus on long-term sustainability and scalability,
leveraging the group's resources, expertise, and
network to drive meaningful impact.
◦ Positive social impact, including improved access
to education, healthcare, and livelihood
opportunities for marginalized communities.
Environmental stewardship through initiatives like
afforestation, water conservation, and renewable
energy adoption. Enhanced reputation and
stakeholder trust, positioning Tata Group as a
responsible corporate citizen committed to
sustainable development.
 Regulatory Landscape
Overview of regulatory frameworks and guidelines governing CSR practices in India, including:

◦ Companies Act, 2013: Section 135 mandates certain companies to spend a

portion of their profits on CSR activities and requires disclosure of CSR policies
and activities in their annual reports.
◦ National Voluntary Guidelines on Social, Environmental, and Economic
Responsibilities of Business: Provide a framework for responsible business
conduct, encouraging companies to integrate social, environmental, and
economic considerations into their operations and decision-making processes.
 Conclusion and Future Outlook
Conclusion:
◦ Corporate Social Responsibility (CSR) is
integral to maintaining trust, reputation,
and legitimacy in the eyes of
stakeholders, including shareholders,
employees, customers, communities, and
regulatory bodies.
◦ Through the examination of case studies
such as Patagonia and Tata Group, we
have witnessed the tangible impact of
CSR initiatives in fostering positive social,
environmental, and economic outcomes.
Future Outlook:
◦ As we look to the future, the role of CSR in
corporate governance is expected to
continue evolving, with increasing
emphasis on environmental, social, and
governance (ESG) factors.
◦ Emerging trends such as ESG investing,
stakeholder capitalism, and the
integration of CSR into business strategy
highlight the growing recognition of the
interconnectedness between business
success and societal well-being.
Thank You!
Created By : Nikhil
Roll No : 20212090
Bcom Hons Sec - B