PRESENTED BY SANGHAMITRA DHAR PRASUN KANTI GURIA INTRODUCTION
Corporate social responsibility (CSR, also called corporate
conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self- regulation integrated into a business model. GOAL OF CSR The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. WHEN AND HOW CSR CAME INTO EXISTENCE? WHEN AND HOW CSR CAME INTO EXISTENCE? The phrase “Corporate Social Responsibility” originates with H. Bowen, who wrote “Social Responsibility of Businessmen” in 1953. Corporate Social Responsibility (CSR) is used to describe businesses’ integration of social and environmental issues into decisions, goals, and operations. Other terms for CSR and are: Corporate Responsibility Sustainability Corporate Citizenship Ethical Business Practices Social/Environmental Responsibility Triple Bottom Line Environmental and Social Stewardship Models of CSR
The three models offer Model One: The
policymakers a more Traditional Conflict effective way of Model Two: Corporate Social Responsibility organizing thinking Brings In The Cash about the often elusive Model Three: Multiple and multifaceted concept Firm Goals, All Created of CSR. Equal Model One: The Traditional Conflict:
In the traditional neoclassical model, tradeoffs
between social and environmental goals and profits are inevitable.
“Although market forces are increasingly pressing
companies to act responsibly, markets have not succeeded in producing corporations to ‘do the right thing’ everywhere they operate. To some degree, public policies to promote CSR arise from market failures.” To encourage socially responsible behaviour the government should give tax breaks or rebates to companies that meet certain requirements, give out awards or recognition for good behaviour, and the development of social or eco-labels that companies can obtain by meeting relevant standards. Model Two: Corporate Social Responsibility Brings In The Cash
Model two represents the ideology of the majority
of companies that make it into socially responsible investment (SRI) portfolios.
These companies choose to be socially responsible
for a variety of profit-oriented reasons: increased sales, greater innovation, decreased production inefficiencies, decreased future risks, and greater access to capital. Model Three: Multiple Firm Goals, All Created Equal
Model three explains the ideology of firms that
have made commitments to environmental and social goals without evidence that corporate citizenship leads to tangible financial gains. Triple Bottom Line of CSR Tools for issuing a successful CSR report A triple bottom line report is an accounting of business performance in terms of its impacts on the economy, the environment and society.
The term “CSR report” is often used instead of a triple
bottom line report, but the two are interchangeable. The theory behind the triple bottom line is that it is in the interests of a business to act as a steward of the environment, society and the economy. CSR as Strategy, Social Advertising Adidas’s Social and Environmental Affairs Manager, Gregg Nebel, scoffs at the idea of using CSR is as a marketing strategy. He explains, “Why market what you are doing if you are simply doing what is right? The feeling here is that there is an expectation that a company will do the right thing, and there is no reason to advertise that we are fulfilling this obligation.” Newman’s Own is one example of a company with a social purpose. Owner Paul Newman donates all of the company’s profits and royalties after taxes to educational and charitable causes, ensuring that the company will only increase profit margins to increase the firm’s ability to contribute to social welfare. Honda Siel Campaign:Nature rides with Honda Agency: Dentsu Marcom The brief: The company wanted to highlight its 10th anniversary, its commitment to the environment and the values Honda stands for in the ad campaign. The 10-year-old in the advertisement stands for the car’s 10th anniversary, while the ladybird signifies the focus on environment. “We wanted to publicize our corporate brand direction of safety, environment and energy conservation.” —Jnaneswar Sen, Senior general manager, marketing, Honda Siel Cars Indi CSR is not a Philanthropy Corporate social responsibility is no longer just about philanthropy or publicity; it is a critical business tool that needs to percolate down to the level of the small business as well . Corporate social responsibility (CSR) isn’t new to Indian companies and several business houses have been spearheading community initiatives even before independence. In those days philanthropy was the biggest driver of community programmes and perhaps the only other reason companies would initiate welfare schemes was the publicity it fetched for their promoters.
Today, social responsibility is more about how
companies align their values and move towards a social cause taking the investors, suppliers, regulators, employees and the society as a whole. Simply put, CSR today is basically linked to the broader issue of corporate governance