Drivers , Barriers and Impacts

Presented By, Arun Jose (09AC02) Kaja Hussain (09AC16) Kowsalya Suganthi (09AC19) Krishnadas Krishnankutty (09AC20)

Presentation Outline
‡ Introduction about CSR ‡ Focus of CSR ‡ Drivers of CSR ‡ Barriers of CSR ‡ Impact of CSR ‡ Conclusion

Introduction about CSR
of 3 )


‡ Meaning:± 
Transparent business practices that are based



values, and

compliance respect






communities, and the environment. 
It is a form of corporate self regulation

integrated into a business model. 
ÒCorporate CitizenshipÓ ± Business Community ±

ÐGood NeighborÑ within host community

Introduction about CSR ‡ Definition:  No universal definition  World ( 2 of 3) Business Council for Sustainable Social Development Responsibility defines (CSR) as Corporate ÒThe continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local .

Introduction about CSR of 3 ) (3 ‡ Explanations:  ÒThe needs of the the present of without future compromising ability generations to meet their own needsÓ  Voluntary contribution by business organizations to social (including environmental) welfare.  CSR is considered to be the business .

and voluntarily eliminating practices that harm the public sphere. regardless of legality.Focus of CSR ‡ CSR focused businesses would proactively promote the public interest by encouraging community growth and development. ‡ CSR ± emphasizes obligation and .

. ‡ For tax deduction ‡ To have favorable public image ‡ To avoid labor disputes ‡ To gain efficiency through economies of scale.  Competitive and  Relevant in a rapidly changing business world.Why CSR? ‡ To stay  Productive.

practices external .Drivers of CSR in a company Drivers Internal Drivers Relates to practices internal to company which need to be modified to incorporate CSR practices External Drivers Relates to concerning stakeholders.

‡ Depends on the size of the organization . .Internal Drivers ‡ Employee awareness (competition for human capital) ‡ Risk management which includes public opinion and environmental impacts caused by climate change.

industry competition.Internal Drivers ‡ Difference in the perception of internal drivers and barriers between SMEs (Small and Medium Enterprises) and large organizations. media scrutiny. and customer and supplier bargaining . Due to organizational characteristics such as resources.

The failure to delegate responsibility with sufficient change.Internal Drivers ‡ The lack of resources. Top level managerial support is vital . Complexity of the interrelation of issues and processes exceeds the routine based. Employees criticized the lack of support. . resources or power to implement ‡ Managerial support.

Interrelationship and interaction.Internal Drivers ‡ Minimum set of environmental skills. ‡ Attitudes of the personnel . Played a key role in the internal development of CSR. ‡ Importance of the individual . Personal motivation of employees is a key reason for the organization to engage with .

‡ Existing practice within organization. Difficult to change common and established practice within organizations. .Internal Drivers ‡ The quality of the communication between senior and middle management and the employees.

. ‡ Management of Environmental Impacts Optimization of resource utilization and reducing environmentally damaging effluents can reduce the environmental impact.Internal Drivers ‡ Adaption to Change ‡ Human Resource Management CSR can be implemented through precise management of work force.

‡ Powerful external factor is globalization. Expectations of customers . Public awareness of sustainability issues. Inequities in human living standards.External Drivers ‡ Originate from the environment.

Pushing for the win win scenario by promoting increased efficiency while reducing negative social and environmental impacts. . Businesses act not necessarily in accordance with public welfare.External Drivers ‡ The government and the regulators. Have the potentially biggest impact on corporate behavior.

. Develop positive relations with local community.External Drivers ‡ The Local Communities. Deep understanding of local community. Availability of cheap labour from local communities.

External Drivers ‡ Business Partners. Companies should realise their CSR practices will be judged taking into account the practices of their partners and suppliers throughout the supply chain. Consumer based business strategies would enable companies to build long lasting relationships with consumers .

Companies can take steps to ensure forced labour is not used in their own.External Drivers ‡ Human Rights. Company needs to make sure that people are not forcibly removed from their homes and their livelihoods are not endangered. or their suppliersÑ .

.External Drivers ‡ CSR managerial action tries to preserve the status quo by acquiring technology and personnel and to protect the organization against tighter environmental regulation .

Drivers of CSR in country Drivers National Drivers Internation al Drivers Refers to pressures from within the country. Tends to have a global origin. .

Drivers of CSR Politica l reform Cultural traditio n National Drivers Crisis respons e Market access Supply chain Stakehold er activism Socio economic priorities Governance gaps International standardisati Investment on incentives International Drivers .

CSR seen as a way to plug Ògovernance gapsÓ left by weak governments. CSR is directly shaped by the socio economic environment. philanthropy and community embeddedness. CSR canÑt be divorced from political policy reform.Drivers of CSR National Drivers Cultural tradition Description CSR gives importance to business ethics. social or environmental crisis. CSR responses can be catalysed by economic. CSR is seen as an enabler for companies in developing countries trying to access markets in Political reform Socio economic priorities Governance gaps Crisis response Market access .

guidelines and standards are key drivers for companies wishing to operate globally.Drivers of CSR International Drivers International standardization Description CSR codes. CSR is encouraged through stakeholder activism. Investment incentives Stakeholder activism Supply chain . CSR activities among SMEs are boosted by requirements imposed by multinationals on their supply chains. CSR is given incentive by trend of SRI (Socially Responsible Investment).

Barriers of CSR Barrie rs Corporate Level Country/Soci ety Level .

Barriers of CSR ‡ Corporate Level: ± Lack of leadership and vision ± Too much focus on short term goals ± Inability to recognize opportunities ± Lack of entrepreneurial spirit and innovation .

Barriers of CSR ‡ Country/Society Level: ± Lack of creative pressure from the government and civil society ± Lack of support from the consumers ± Lack of peer support through business associations ± reluctance of other companies to follow ± Lack of economic/market incentives .

Impacts of CSR Impacts Custome rs Employe es Shareholde rs Communiti es Environm ent .

with external .Conclusion ‡ Social Responsibility ‡ Interaction environment ‡ Doing good is good business ‡ No business is worthwhile unless it serves the need of its country and its people.

com/library/pdfs/cr/ http://www.pdf http://www.pdf http://www.References ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ http://www.aviva.pdf http://www.

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