You are on page 1of 18

CONCEPT OF CSR

CSR is defined as economic,


ethical, legal and discretionary
expectations that society has
of organizations at a given
point of time.
Firms have moral, ethical and
philanthropic responsibilities
along with their duty to earn a
fair return for investors and to
comply with law.
CSR policy would function as a
built in, self regulating mechanism
where by company would monitor
and ensure their adherence to
law, ethical standards and
international norms.
Deliberate inclusion of public
interest into corporate decision
making and honoring of triple
bottom line: People, planet and
profit.
CSR includes not only stakeholders
but also employees, suppliers,
customers, local community, local,
state and federal governments,
environmental groups and other
special interest groups.
Economic aspect of CSR is
concerned with production of
goods and services desired by
customers at reasonable
prices.
Firms are require to be
efficient, profitable and keep
shareholders interest in mind.
LEGAL ASPECT OF CSR
Legal aspect of CSR is concerned
that a company will fulfill all its
legal compliances necessary to
govern competition in the market
place.
A company already has several
laws governing its operations like
consumer and product laws,
environmental laws and
employment laws.
s

CSR expects organizations to be


good citizens. It expects firms to
do proactive efforts to anticipate
and meet the norms of society,
even if they are not formally
enacted in the law.
CSR IS NOT NEW TO INDIA

CORPORATE:- Means organised


business
SOCIAL:- Meaning every thing
dealing with people.
RESPONISIBILITY:- Means
accountability between the two.
CSR involves various voluntary
efforts:-
Involves providing innovative
solutions to societal and
environmental.
Acting in a socially responsible
manner will create value for
company.
Firm committed to social cause give
sense to employees that it will look
after welfare of employees as well.
DEFINATIONS OF CSR
Operating a business in a manner that
meets or exceeds the ethical, legal,
commercial and public expectations that
society has of business.
A concept whereby companies decide
voluntarily to contribute to a better society
and a cleaner environment. A concept
whereby companies integrate social and
environmental concerns in their business
operations and in their interaction with
their stakeholders on a voluntary basis
Corporate social responsibility must
not be defined by tax planning
strategies alone. Rather, it should be
defined within framework of a
corporate philosophy, which factors
needs of community and the region in
which corporate entity functions.

-Prime minister Mr.


Manmohan Singh.
HISTORY OF CSR:-
The concept of CSR is relatively a new
one-it is in use from 1960s.
In 18th century Adam Smith expressed
classical economic model of business.
This model suggests that needs and
desires of society could best be met
by the unfettered interactions of
individuals and organizations in
market place.
HISTORY OF CSR:-
A century after Smith, industrial
revolution brought many technological
changes leading to huge production of
goods and more employment.
Large organizations developed and
acquired power and their founders
became richest and most powerful men in
the world.
In the 19th century the concept of social
darwinism was in practised.
HISTORY OF CSR
At the beginning of 20th century, big
business houses were criticized as being too
powerful and for practicing anti social and
anti competitive practices.
Laws and regulations were enacted to
protect employees, consumers and society
at large.
In the 1960s and 1670s, the civil right
movement, consumerism, and
environmentalism affected societys
expectations of business.

You might also like