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Corporate Social Responsibilities Growing Challenges and Strategies with reference to Public sector and Private Sector in India.

Type: Literature review/ Conceptual Paper Name of Research Scholar: Santosh Basavaraj, Research Scholar, Anna University of Technology, Coimbatore. Research Supervisor: Dr.B.Rajasekaran, Principal, RKKR School of Management Studies Ettimanickampatty,Coimbatore Road, SALEM 637 504

Abstract
Purpose of the research The purpose of this research paper is to identify and gain an insight in to the set of challenges faced by Public sector and Private sector companies in implementing and sustaining good Corporate Social Responsibility practices and exploring the conceptual solution to face the challenges. Design/methodology/approach This is an exploratory research design and it is used to seek insight in to challenges faced in implementing and sustaining Corporate Social Responsibility (CSR). Various CSR models has been considered for the study, here an attempt is made to explore the conceptual strategies to meet these challenges. This research is aimed at very wide exploration of view and this research is interactive in nature and also open ended. Findings This research gains an insight of various challenges faced by Public sector and Private sector Industries in India and these Challenges are posed by external and as well as internal environment. Conceptual strategies are evolved in a view to implement and sustain challenges which enables organizations to cope up. Practical implications The findings of this research paper will enable the managers to consider the various options available to face the Challenges of Corporate Social Responsibility. The output of this research paper is useful for academic purpose also. Originality/value Changing scenario has brought many changes in the operation of both public and private organizations and today organizations are realizing the importance of Corporate social responsibility and this research is an effort to identify various challenges faced in the area of Corporate Social Responsibility and explores the various strategies to optimally meet these challenges. These strategies are originally conceptualized by this research scholar with a strong literature review as the bases of study Keywords: Challenges, conceptual Solutions, Definitions, Literature review

Corporate scandals Proactive role

Terms are interchangeable Intergrated Dynamic and challenging,shaping future

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Epistemological Nonetheless, corporate responsibility in emerging markets, while more extensive than commonly believed, is less embedded in corporate strategies, less pervasive and less politically rooted than in most high-income OECD countries (p. 46). RegionalCSR performance varies greatly between countries in Asia, with a wide range of CSR issues being tackled (e.g. education, environment, employee welfare) and modes of action (e.g. foundations, volunteering, and partnerships). nearly threequarters of large companies in India present themselves as having CSR policies and practices versus only a quarter in Indonesia. My review also found that, in contrast to the socially oriented focus of the

literature on CSR in developing countries more generally, business ethics dominates as a research topic in the region, accounting for 42% of all articles on CSR in Africa over the past decade. Latin Americans as the hope for positive change in the face of persistent poverty, environmental degradation, corruption, and economic aimed at addressing the socio-economic development challenges of the country, including poverty alleviation, health-care provision, infrastructure development, and education. This, they argue, stands in stark contrast to many Western CSR priorities such as consumer protection, fair trade, green marketing, climate change concerns, or socially responsible investments. poverty and tax avoidancedeforestation, unemployment, income inequality, and crime, mining conglomerate, administered citizenship rights, for example, improving working conditions in sweatshops, ensuring for employees a living wage, and financing the schooling of child laborers in the absence of legislation requiring this. Stagnation poverty alleviation. The corporate response to the Asian tsunamiindustrial accidents, Baskin (2006) identifies competitive advantage in international markets as one of the key drivers for CSR As already noted, Baskins (2006) survey of CSR practices in emerging markets indicates growing adoption rates of ISO 14001 and the Global Reporting Initiatives Sustainability Reporting Guidelines. role of women in the workplace local NGOs, media is also emerging as a key stakeholder civil regulation, litigation against companies, and international legal instruments. of economic multipliers, including the capacity to generate investment and income, produce safe products and services, create jobs, invest in human capital, establish local business linkages, spread international business standards, support technology transfer and build physical and institutional infrastructure It is worth re-emphasizing as a caveat that economic responsibility has two faceseconomic contribution on the one side and economic dependence on the other.When communities or countries become overly dependent onmultinationals for their economic welfare, there is the risk of governments compromising ethical, social, or environmental standards in order to retain their investment, or suffering huge social disruption if those businesses do decide to disinvest, as occurred with Anglo American in Zambia.

Legal Responsibilities
In developing countries, legal responsibilities generally have a lower priority than in developed countries. This does not necessarily mean that companies flaunt the law, but there is far less pressure for good conduct. This is because, in many developing countries, the legal infrastructure is poorly developed, and often lacks independence, resources, and administrative efficiency.

Ethical Responsibilities
Crane andMatten (2007a) suggest that ethical responsibilities enjoy a much higher priority in Europe than in the United States. In developing countries, however, ethics seems to have the least influence on the CSR agenda. Similarly, the 2002 revised King Report was the first to include a section on integrated sustainability reporting, covering social, transformation, ethical, safety, health, and environmental management policies and practices (IoD, 2002).

I would argue that improved ethical responsibilities, incorporating good governance, should be assigned the highest CSR priority By contrast, if we are to work towards an ideal CSR Pyramid for CSR in developing countries, I would argue that improved ethical responsibilities, incorporating good governance, should be assigned the highest CSR priority in developing countries. It is my contention that governance reform holds the key to improvements in all the other dimensions, including economic development, rule of law, and voluntary action. Hence, embracing more transparent, ethical governance practices should form the foundation of CSR practice in developing countries, which in turn will provide the enabling environment for more widespread responsible business.

Conclusions
......................................................................................................................................... To summarize, I have argued that CSR in developing countries has the following distinctive characteristics (Visser et al., 2007): _ CSR tends to be less formalised or institutionalized in terms of the CSR benchmarks commonly used in developed countries, i.e. CSR codes, standards, management systems and reports. _ Where formal CSR is practiced, this is usually by large, high profile national and multinational companies, especially those with recognized international brands or those aspiring to global status. _ Formal CSR codes, standards, and guidelines that are most applicable to developing countries tend to be issue specific (e.g. fair trade, supply chain, HIV/AIDS) or sector-led (e.g. agriculture, textiles, mining). csr in developing countries 493 _ In developing countries, CSR is most commonly associated with philanthropy or charity, i.e. through corporate social investment in education, health, sports development, the environment, and other community services. _ Making an economic contribution is often seen as the most important and effective way for business to make a social impact, i.e. through investment, job creation, taxes, and technology transfer. _ Business often finds itself engaged in the provision of social services that would be seen as governments responsibility in developed countries, for example, investment in infrastructure, schools, hospitals, and housing. _ The issues being prioritized under the CSR banner are often different in developing countries, for example, tackling HIV/AIDS, improving working conditions, provision of basic services, supply chain integrity, and poverty alleviation. _ Many of the CSR issues in developing countries present themselves as dilemmas or trade-offs, for example, development versus environment, job creation versus higher labour standards, strategic philanthropy versus political governance. _ The spirit and practise of CSR is often strongly resonant with traditional communitarian values and religious concepts in developing countries, for example, African humanism (ubuntu) in South Africa and harmonious society (xiaokang) in China. _ The focus on CSR in developing countries can be a catalyst for identifying, designing and testing new CSR frameworks and business models, for example, Prahalads Bottom of the Pyramid model and Vissers CSR Pyramid for Developing Countries. Research into CSR in developing countries is still relatively underdeveloped and tends to be adhoc with a heavy reliance on convenience-based case studies or descriptive accounts. The focus is often on high profile incidents or branded companies

and a few select countries (e.g. Brazil, China, India, South Africa), with a general lack of comparable benchmarking data. Hence, there is an urgent need for further research on CSR in developing countries at the international, regional, national and sectoral levels, as well as on theoretical constructs. There is a dearth of international research which surveys the nature and extent of CSR in developing countries, as compared with developed countries. Next to this need for more data in general, there is need for more comparative work which analyses CSR between regions (e.g. Africa, Latin America, Asia) and between countries within regions. On a more national or regional level, there is need for detailed national research on CSR, especially on the more than 100 developing countries that appear to have had no academic papers published about them in CSR journals. Alongside these efforts there seems to be a specific need for more sectoral research on CSRcodes and practices, especially for the lesser 494 csr in global context covered industries like chemicals, financial services, infrastructure (including construction), manufacturing (including motor), media, retail, telecommunications, and travel and leisure. Finally, all these different streams of empirical research should inform more conceptual work on CSR conceptions, frameworks, or models that are more applicable to developing countries. What is clear fromthis chapter, therefore, is that CSR in developing countries is a rich and fascinating area of enquiry, which is becoming evermore important in CSR theory and practice. And since it is profoundly under-researched, it also represents a tremendous opportunity for improving our knowledge and understanding about CSR. Every WPP company is a distinctive brand in its own right; all have their own identities and own areas of expertise. a fast moving creative environment made more challenging by the need to balance commercial goals with changing social expectations. Sustainable development will increasingly shape consumer products. Some far-thinking companies are already building sustainability into strategies and products. Unilever, for example, has three sustainability initiatives in agriculture, fish and water. informing consumers of the social and environmental significance of their purchase decisions. Business leaders know now more than ever they must establish and maintain a reputation for social responsibility and good governance. leading socially responsible investment indexes, the Dow Jones Sustainability World Index and the FTSE4Good Sustainability Index, whilst recognising that we will have to work to maintain this position. In the long term, successful companies will be those that have a strong reputation for corporate responsibility and respond creatively to the challenges of sustainable development. This Review explains what WPP is thinking and

By donating our time, money and intellectual capital to charities we can make a positive contribution to society.

doing about CSR. We welcome your comments.


In 2001 our Groups total social investment, including pro Charity Total 3.6 million ($5.8 million) _ Local community 1,019,947 _ Health 735,241 _ Education 637,084 _ September 11 413,605 _ Other causes 403,543 _ Arts 307,002 _ Environment 86,523 _ Drugs/Alcohol

and community donations by cause

Employee volunteering
Our operating companies encourage their people to participate in community projects and charity work.

Social marketing
Social marketing is the fee work we do for governments, charities, corporations and other organisations working on social issues. Like our pro bono projects, this is an opportunity for our people to use their creativity to make a difference on some of todays biggest issues. WPP companies work on social marketing campaigns covering a diverse range of issues from child labour to literacy and air pollution. Below are just two examples Ogilvy Outreach in India developed a campaign for client Castrol India to help drought-affected regions and boost sales of Castrol CRB Plus, a tractor lubricant. The company invested in water harvesting initiatives, including dam and canal repairs and the construction of water tanks. To mobilise local communities, the initiatives were introduced in partnership with local NGOs. Messages about the importance of water conservation and the role Castrol was playing were promoted through a diverse communications program, including puppet shows, banners and community meetings. The results? Over 100 hectares of canals and 47 hectares of dams were repaired; 42 farm bunds, 48 water tanks and two ponds were constructed. Top-of-mind recall for Castrol CRB Plus shot up from 45% to 91% during the campaigns first year. Consumers see community involvement as important for a business; they are prepared to change their buying habits for a product or service linked with a charity or cause.

Nurturing talent We know that our business depends on talent


the diversity of people, their skills and creativity. Yet, But oddly, a focus on talent isnt the norm

across the industry. Theres so much focus on the work but theres a strange neglect of the talented people who do the work. Thats not good for the industry or its people, but it is an opportunity for WPP. What a privilege, and what an awesome responsibility professionalism, caring, and affirming. These can make people wince, but, when practiced forthrightly and consistently, make a company an excellent place to work and a place that brings out the best in all its people. Often it comes down to a self-fulfilling prophecy. When managers expect little of their people they get it. Conversely, when they respect, mentor and challenge people, they are usually surprised by the good results.

o business, no matter how big or small, no matter whether it has one office or hundreds, no matter what products or services it sells, can or should escape its responsibility to society at large. Certainly businesses are responsible to their owners and employees, but they are also responsible to the communities in which they operate. This social responsibility is magnified for international businesses operating across the globe. sensitive to the environmental impact of our operations. proper relationship with the governments business, is measured not only in financial results but also in how we conduct ourselves Does marketing to children exploit the innocence of young people and encourage them, for example, to adopt unhealthy eating habits? _ Should we represent a country cited by respected non-governmental organisations (NGOs) for human rights abuses? _ Are there products which, while lawful, should nonetheless not be marketed to certain segments of the population, or perhaps not marketed at all? _ Are the political activities and fund-raising of those employed in our public affairs companies consistent with law and accepted standards of ethical conduct? _ Should WPP public relations agencies pay for news coverage in markets where it is common practice? Ducking the hard questions, then, is not the answer. But if we cannot avoid the hard questions

we must make sure they are asked thoughtfully, and disposed of correctly. life is not so accommodating. There are many shades of grey. But the difficulty of the decision does not permit us to walk away from it. We believe that this approach has served us well until now. But the increased focus on CSR, in particular by the investment community, means that we can no longer simply say, trust us to make the right decisions. We now need to be able to demonstrate how we ensure that consistent standards are applied throughout the Group and what procedures are used when difficult cases arise.
marketing inevitably involves questions of ethics Establish a CSR committee across major Group companies to oversee policy and coordinate activity. _ Ensure each company nominates a senior CSR representative. _ Ensure Group audit identifies risks and confirms management practices. _ Require companies to report annually to the parent company via a strengthened CSR survey. _ Track worldwide infringements of regulatory codes of practice or regulations.

Marketing ethics targets


new recycling project Energy consumption. Recycling of other materials including toner cartridges, cans, glass and computer equipment.

The Topsy Foundation: Supporting families affected by AIDS WPP company Ogilvy & Mather, South Africa
Home-based care and community outreach for over 1,200 families in South African townships, including food, social welfare, clothing and medical services. _ In-house care for children who have lost their families The alleviation of poverty through skills training and employment in Topsy projects such as brick-building, pottery, ceramics, glassware and candle-making, as well as a beadwork and sewing initiative for women who have become the main breadwinner due to AIDS and need income to support their families. Creative ideas have the power to change the world. The company is helping to bring poetry and the arts to a wider audience as well as raise money for the homeless. The Forward Poetry Prizes an annual poetry competition that honours established and up and coming poets. _ Big Arts Week helping professional artists to volunteer their time and share their skills with local schoolchildren. _ Bedtime Reading Week a national campaign to inspire more parents to read with their children.

World Vision:

Educating the street children of Kenya Cross-Group support for healthy babies Partnership Against Drugs: Communicating a stronger message University Partnerships: Developing tomorrows leaders National Campaign to Prevent Teen Pregnancy: Breaking the silence Right To Play: Supporting every childs right to play The American Cancer Societys Hope Lodge: A home away fromhome for cancer patients
bono work and charitable donations, was worth 12.3 million ($19.7 million), equivalent to 0.3% of revenue or 2.9% of our pre-tax profits.
_

approach

In this Review we set out to be transparent and candid about our performance, We have assessed the full range of CSR issues in the context of our business and believe that the most significant areas for us are: _ Social investment, including donations and pro bono work. _ The development of our people. _ Marketing ethics. _ A small environmental impact

How we manage Corporate Social Responsibility


CSR Policy in 2002Code of Business ConductCode of Business ConductTo track and improve our performance we need to know how our companies are managing social, ethical and environmental issues, and how they perform. Since adopting our CSR Policy, we have begun to collect performance information from our operating companies annually.

But by and large So if there was ever a time when Corporate Social Responsibility was thought to be a sort of optional accessory, useful for casting the holding companys board of directors in a flattering light but with no serious commercial implications, that time has gone for ever. Western media. Today, an e-mail to a pressure group is all thats needed to turn a local factory issue into a major threat to the reputation of a multinational company. With the firewalls down, deserved and adverse publicity can no longer be safely contained within some remote corporate silo but will wash freely around every product they make and every enterprise they own. The investment made now by companies that are establishing reputations for CSR leadership will be handsomely repaid by brand sales in the future. In a world more pure and saintly than our own, it could perhaps be expected for companies to

behave with consistent social responsibility even when incurring additional cost and gaining no commercial advantage from doing so. Happily, however, when it comes to CSR, a reputation for decency, if honestly earned, really does seem to offer tomorrows companies an invaluable (and technologically unchallengeable) competitive advantage.

CSR remains a very relevant strategic Marketing tool. Adam Lindgreen, et al (2009), observed that CSR practices are more prevalent in organizations that employ relational marketing practices. Business cannot escape from society and society cannot exist without business (Davis and Frederick, 1985). Thus, there is a twoway relationship between business and society, Cannon (1994) holds the view that business is expected to create wealth, supply market, generate employment, innovate and produce a sufficient surplus to sustain its activities and improve its competitiveness while contributing to the maintenance of community in which it operates. SA8000 may emerge as the international social accountability standard. Consumers consider switching to another company's products and services, speak out against the company to family/friends, refuse to invest in that company's stock, refuse to work at the company and boycott the company's products and services in case of negative corporate citizenship behaviours (Edenkamp, 2002). CSR practically has the same effects as advertisements, because it sheds a positive light on a brand or product. That is why CSR can also be seen as an expression of marketing. People want to be engaged with companies that share their values (Scott Beaudoin, 2009). As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. while some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising (Fry, Keim & Meiners, 1986). CSR has shifted decisively from the realm of `nice to do' to the realm of `need to do' not just because it is a serious and sustained interest of consumers but also because opinion leaders recognise the fact and will act accordingly. In 1970, Milton Friedman of New York Times rightly wrote: the social responsibility of business is to increase profits. The concept of CRM is a very effective tool for earning a profit while at the same time being socially responsible. This will be expected and demanded -while becoming another point-of-entry hygiene factor. In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. If companies do not inform consumers properly about the CSR

initiatives they take, they will not reap the benefits of their investments in CSR. like education, health, livelihood creation, skill development, and empowerment of weaker sections of the society. Notable efforts have come from the Tata Group, Infosys, Bharti Enterprises, ITC Welcome group, Indian Oil Corporation among others. The 2010 list of Forbes Asias 48 Heroes of Philanthropy contains four Indians. The 2009 list also featured four Indians. India has been named among the top ten Asian countries paying increasing importance towards corporate social responsibility disclosure norms. creating rural entrepreneurs. Coca-cola India worked hard towards water conservation and community development has been given Golden Peacock Global award 2008 for CSR. successful in restoring water conservation programme. Many companies use CSR as a way to burnish their image, generate brand equity, and increase employee loyalty. goodwill associated with being a good corporate citizen into their marketing initiatives in efforts to gain sustainable competitive advantages. A number of studies conducted in past arrived at positive association between CSR and financial performance (Ruf et al, 2001). Hindustan Unilever Ltd. (HUL) through its Surf Excel brand gained immeasurable reputation in the course of its campaign of education to poor children. Companies going for CSR find it comparatively easy to recruit and retain the skilled employees for a sufficient long period of time which are vital for the success of business (Krishna, 1992). Consumers expect firms to conduct business ethically, and they also showed their willingness to reward ethical behavior and punish the unethical behavior of firms through their purchase behavior. Customers prefer to purchase from the companies which are conscious about CSR. Corporate social responsibility ensures that corporations promote corporate citizenship as part of their culture. Venu Srinivasan (2007) highlighted that Corporate Social Responsibility is more than philanthropy and must not mean giving and receiving. Therefore the focus of CSR could be unlocking the last mile connectivity. Industry must be a catalyst for social development. They must provide the leadership, know-how, training, etc. The future of marketing is full of CSR (Harish Bijoor, 2008). Companies are beginning to realise the fact that in order to gain strategic initiative and to ensure continued existence, business practises may have to be moulded from the normal practise of solely focusing on profits to factor in public goodwill and responsible business etiquettes (Raynard and Forstater, 2002). by demonstrating a commitment to improving the quality of life in the communities in which they operate. consumers expect corporations to be actively involved in activities of CSR. In todays competitive market environment, corporate social responsibility

represents a high profile notion that has strategic importance to many companies. CSR contributes positively to firms market value. Managers can obtain competitive advantages and reap more financial benefits by investing in CSR. Bharath Petroleum Corporation Limited, Maruti Suzuki India Limited, and Hindustan Unilever Limited, adopt villagesCorporates have the expertise, strategic thinking, manpower and money to facilitate extensive social change. Effective partnerships between corporates, NGOs and the government will place Indias social development on a faster track ( Ramya Sathish,2010). One of Intels key programmes, called Intel - Teach to the future, targets teachers in schools, colleges and teacher training institutes to make them adept at handling technology in the classroom and importing digital learning to future generations (Preeti Mehra, 2004). GE had adopted an NGO called Vidya which has been educating underprivileged children for the past 18 years at New DelhiGlaxoSmithKline Pharmaceuticals CSR programs primarily focus on health and healthy living. They work in tribal villages where they provide medical check-up and treatment, health camps and health awareness programs. They also provide money, medicines and equipment to non-profit organizations that work towards improving health and education in under-served communities. SAP India in partnership with Hope Foundation, an NGO that works for the betterment of the poor and the needy throughout India, has been working on short and long-term rebuilding initiatives for the tsunami victims. The SAP Labs Center of HOPE in Bangalore, a home for street children, where they provide food, clothing, shelter, medical care and education. (Ramya Sathish, 2010)._ Benefits of CSR A new era of social consciousness is evolving throughout the world. fostering dialogue with their customers. Today companies with the help of CSR reaping the benefits that are proactively and strategically building their "Social Brand Capital".CSR helps in increased market share and new market penetration and also helps understand and transform public perception of a company and industry. In fact companies can successfully make a business case for improving profitability through higher market share and increased customer loyalty if they can demonstrate their CSR practices as unique differentiator (Balasubramanian, 2007). it has historically not been a very lucrative approach for them to involve in these activities. The business of the 21-st century will have no choice but to implement CSR. Like any successful management strategy, a CSR process needs both high level management vision and support, and buy-in at all levels of the company. CSR does not give immediate results. . The same CSR initiative will also not work for all types of organisations. Designing CSR initiative requires careful planning and implementation mechanism. Corporates should integrate the innovative CSR strategies into different marketing communication strategies to build and sustain a competitive advantage.

Social Audit

Risk associated with business strategies,some time makes sense and some time not D Voge

Issues and concerns Cultural and temporal


Having sketched a broad overview of the ways in which the literature on CSR in developing countries can be classified, as well as giving a flavour of CSR in a regional context,The picture for small and medium-sized enterprises (SMEs) is slightly different. Although they are not all unique to developing countries, together they build up a distinctive picture of how CSR is conceived, incentivized, and practiced in emerging economies. I have identified ten major drivers for CSR in developing countries, as illustrated in Figure 21.2 and discussed below. Internal drivers refer to pressures from within the country, while external drivers tend to have a global origin. INTERNAL
DRIVERS EXTERNAL DRIVERS
Socio-economic priorities Political reform

Governance gaps Crisis response International standardization CulturalCompanies

consider themselves as an integral part of the society and act in a socially responsible way (European Commission, 2001) Though the earlier decades are referred to as false dawns wherein CSR had a regional, personcentered philanthropic focus, it is now viewed to be inclusive, broad and diverse (Silberhorn and Warren, 2007). Companies facing the challenges of globalization are aware that CSR can be of direct economic value. They view these activities not as a cost but an investment, as a long term strategy minimizing risks linked to uncertainty. (European Commission, 2001). Developed countries like USA and UK have long seen CSR as a practice that benefits both organizations and society (Etang, 1994). It is predicted that in the times to come companies will be judged more by their social policies than on their delivery of products and services (Juholin, 2004). Many theorists have also argued about the economic impact of CSR, some relating it positively with the profit (Adenekan, 2007; Joyner and Payne, 2002) and some feeling that no such relationship exists (Aupperle et al., 1985) Since CSR and corporate reputation are the two sides of the same coin (Hillenbrand and Money, 2007) European Commission (2001) defines CSR as a concept whereby companies decide voluntarily to contribute to a better society and cleaner environment and as a process by which companies manage their relationship with stakeholders. In a study of German and UK companies it was found that the largest corporations project CSR as a comprehensive, sustainable business strategy and recognizes the business-society interdependence (Silberhorn and Warren, 2007). The twenty six chosen companies were from different industrial sectors like metals, chemicals and fertilizers, consumer durables, FMCG, services, and InfoTech. The content analysis of the web pages . (Kirti Dutta, M. Durgamohan) For the sake of easeof analysis the initiatives were classified under five heads, namely: Rural development,health, education, environment and social causes. CSR is a multidimensional concept (Stanwick and Stanwick, 1998) and is comprised of a number of variables. These variables include: firms profitability, charitable giving, environmental emissions, women and minority members on the board of directors, women and minority members within the firm, and annual salary and monetary bonus of the Chief Executive Officer. CSR is not an occasional act of charity or contribution to a school, hospital or an environmental NGO, but an ongoing commitment that is integrated into the core business objectives and strategy, Even though they have not spelled out the initiatives, the approach is similar to Hindustan Unilever Ltd. Organizations are increasingly realizing that CSR is no longer a collection of discreet practices or occasional gestures motivated by marketing or public relations. It is rather a

comprehensive set of practices and policies that should be integrated into the organizations operations and activities. (Kirti Dutta, M. Durgamohan) We can conclude that CSRinitiatives should form part of the overall business strategy so that they are taken in the right earnest by firms and successfully implemented. . (Kirti Dutta, M.

Durgamohan)
CSR is often understood only from the perspective of business generosity to community projects and charitable donations. . (Kirti Dutta, M. Durgamohan)
tradition Investment incentives Market access Stakeholder activism Supply chainsocio-economic

development challenges of the country, including poverty alleviation, health-care provision, infrastructure development, and education. This, they argue, stands in stark contrast to many Western CSR priorities such as consumer protection, fair trade, green marketing, climate change concerns, or socially responsible investments. Fig. 21.2

Evolutionary Pyramid Empirical test

Nevertheless Proliferate

Proceedings of ASBBS Volume 18 Number 1 ASBBS Annual Conference: Las Vegas 681 February 2011

CORPORATE SOCIAL RESPONSIBILITY A TOOL TO CREATE A POSITIVE BRAND IMAGE


Kaur, Maneet Lovely Professional University, Jalandhar, India. Agrawal, Sudhir. Symbiosis International University, Noida, India
The present study is based on secondary data, information collected from authentic sources such as books, journals, magazines and research reports and electronic data gathered through related web sites. Explanation and exploration of different types of conceptual information presented in the study is the result of observation, in depth reading, experiences and rational judgement of the author and co-author of the paper. According to research carried out by Cone Inc. In 2009, 79% of consumers would switch to a brand associated with the good cause. After a year economic misery and banking crisis, consumers want to get associated with the brands that believe more than a profit. Survival of the company depends upon how responsible company is towards society. Though there are hidden costs but the difference made by such initiatives is huge and there is always a challenge for corporate to identify Corporate Social Responsibility. That is, if the company is well known in its community, its Corporate Social Responsibility activities will strengthen its brand image more than they would if the company were less well known. In fact, as Paul Abhram, COO, Induslnd Bank, puts it, If you dont start from within, the entire Corporate Social Responsibility programme would turn out to be meaningless. the central government is working on a framework for quantifying the Corporate Social Responsibility initiatives of companies to promote them further. public-private partnerships to build and maintain schools and hospitals in return for a fixed annuity payment. When a brand promotes a high-fit social-cause, it may be more likely to be viewed by some consumers as opportunistic and seeking commercial gain. Enriching a brand with ethical and social questions increases its value. Corporate Social Responsibility initiatives are not only about philanthropy but translating these ideas into practical business strategies. With the increase in Corporate Social Responsibility awareness some companies promote a very elementary understanding of corporate governance and ethical standards. The most important one is that it helps to build a brands reputation and is a point of differentiation.

Corporate Social Responsibility initiatives can be extremely effective at forging deep meaningful connections with its consumers that transforms the loyalty of the consumer to them as a promoter of the company within their social networks. Though a number of companies websites and their annual reports include information on these practices but it is seen that either this information does not reach the consumers or the current communication strategy is not strong enough to link the Corporate Social Responsibility actions to brands.

Corporate responsibility and the movement of business


Peter Utting
Development in Practice, Volume 15, Numbers 3 & 4, June 2005 Nevertheless, it figures prominently in the discourse of some business leaders and management gurus. Four claims, in particular, are made: . CSR can enhance a companys competitive advantage; . some forms of CSR, such as eco-efficiency or recycling, can actually reduce costs; . CSR is good for staff morale and motivation; and . CSR is a proxy for competent management and associated qualities related to innovation, the ability to anticipate and deal with risks, and learning and using knowledge effectively.

Emerging trends and future challenges


Convergence and co-regulation The emerging forms of NGObusiness collaboration referred to above have been consolidated and institutionalised since the turn of the millennium. distinctions between civil society and business, NGOs and companies, or not for profit and for profit are becoming increasingly blurred (Deacon 2003; Stubbs 2003). Second, a new set of regulatory institutions has emerged, involving so-called multistakeholder Initiatives together to promote standard setting, monitoring, reporting, auditing, certification, stakeholder dialogues, and best practice learning. schemes such as ISO 14001 and SA8000. Owing to the recent origin of these initiatives it is difficult to assess their impact. Some have also revived the notion that international labour, environmental, and human rights law applies not only to states but also to TNCs, A growing number of NGOs that form part of the new CSR industry are being drawn into both the financial circuits and corporate culture of TNCs. From corporate responsibility to corporate accountability Some of these demands have been articulated by a subset of the alternative globalisation movement, which has been called the corporate accountability movement (Broad and Cavanagh 1999; Newell 2002; Bendell 2004). First, CSR allows ample scope for free-riding (whereby economic agents benefit from a particular initiative without bearing the costs) and greenwash (Greer and Bruno 1996), i.e. the ability of companies, through PR and minimal adjustments to policy and practice, to project an image of reform while changing little, if anything, in terms of actual corporate performance. Many instances have been documented of companies saying one thing and doing another, or adopting but not effectively implementing environmental policies or codes of conduct. Hence corporate responsibility policy and practice is often characterised by piecemeal and fragmented reforms and window dressing. Furthermore, the mainstream discourse on CSR often gives the impression that

Corporate responsibility and the movement of business

the corporate sector in general is seriously engaged. The reality is very different. For example, of the worlds 65,000 TNCs, an estimated 4000 companies produce reports dealing with a companys social and/or environmental performance (Holliday et al. 2002), and probably fewer have codes of conduct. Second, reforms in corporate policies often take place in a context of double standards or counter-trends. Reported examples of the latter include Monsantos influence on the international debate and policy on GMOs; the tobacco industrys attempt to influence WHO and governments; the resistance of pharmaceutical companies to attempts to promote cheaper generic drugs; A third major criticism of CSR relates to so-called regulatory or institutional capture, i.e. the increasing penetration and influence of large corporations in the public-policy process through PPPs, formal and informal consultation and dialogue, secondment, and other mechanisms. These concerns have arisen, for example, in relation to the UN summits and the recent wave of PPPs, notably those involving UN agencies and TNCs and corporate foundations (Richter 2001). This reaction is heightened when TNCs and business organisations use their voluntary association with the UN as a tool for resisting attempts by other parts of the UN to consider other regulatory approaches. Fourth, the CSR agenda, based as it is largely on voluntary approaches and a critique of government regulation, is often perceived as an alternative to law. A series of recent proposals are attempting to construct a post-voluntarist agenda in which CSR is articulated with (a) complaints procedures associated with a variety of regulatory institutions (Utting 2002b), and (b) soft or hard law, which lays down obligations, international standards, rewards, and penalties in relation to corporate transparency, accountability, and performance (Kamminga and Zia-Zarifi 2000; ICHRP 2001; Ward 2003). The rights and freedoms of companies must be balanced not just by responsibilities and voluntary initiatives but also obligations. While standard-setting and other regulatory action associated with CSR are often undertaken by self-appointed entities whose accountability to external agents may be very limited or non-existent, corporate accountability highlights issues of legitimacy and governance, including the question of who decides and who speaks for whom. the corporate accountability agenda suggests a re-articulation of voluntary and legal approaches. Environmental Management Centre May 2005

Res e a r c h C a p s u l e : T h e S t a t u s o f Cor p o r a t e S o c i a l R e s po n s i b i l i t y i n IndiaANote Effective CSR aims at achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment. Simply put it means what you do, how you do it, and when and what you say.

1.3 How do organizations pledge their commitment towards CSR? Typically, an organization interested in making a pledge towards CSR, will start by first outlining a commitment towards the concept. Given the gravity of the action and its huge responsibility, this commitment will be deliberated on extensively by the top management of the business, before it is made public. This declaration is somewhat analogous to a Quality Policy of an ISO 9000 organization. Such a declaration is followed by the development of a CSR management and reporting framework. CSR risks, opportunities and impacts, Once the reporting and management system of the CSR is put into motion, regular audits and Board / top management level reviews need to be conducted to ensure that the system is performing as intended3. Finally, organizations may report on their CSR practices in their annual performance report under a different section, or may even produce an exclusive report focusing on CSR practices and issues relevant to the organization. This is a cyclic process one of continual improvements. The learning curve is never-ending.
3 See

Developing a CSR Management and Reporting Framework at http://www.bba.org.uk/pdf/forgepart2.pdf

5.2 The Challenges to CSR Having said that, there are a number of challenges to the implementation of CSR. They are

enumerated below. Maintaining continuous improvements in safety performance throughout the organization. Building a more robust safety culture Achieving significant reductions in resource use. Reducing waste arising and improving recycling rates.
18 Why

Corporate Social Responsibility? by The European Business Campaign. Available at: http://www.csrcampaign.org/why/default.aspx The Status of CSR in India Environmental Management Centre 9
Integration

of environmental considerations into supply chain management and purchasing decisions. To strengthen the people management framework to develop a positive and productive working environment. To achieve greater consistency in the management of people processes across the business. To communicate effectively the organizations goals and direction. To improve the employee attitude survey ratings. To achieve greater diversity in the workforce. Build the relationship with business in the community and with Local Authorities. To integrate consideration of environmental and social issues into the purchasing process. But perhaps the biggest challenge posed by CSR is its very definition some organizations see CSR as an off-shoot of fair / ethical trade, while others see it as a recognition of employee aspirations at the work place, while yet others see it as a business element with a philanthropic bent. Clearly, the verdict on what exactly constitutes CSR is still out. For the broader picture - which is not as rosy as it seems - Christian Aid, a respected NGO based in the UK and Ireland, notes that CSR is a wholly inadequate response to the sometimes devastating impact that multinational companies can have in an ever more globalized world - and that CSR is actually used to mask that impact. Shell in Nigeria claims that it has turned over a new leaf there and strives to be a 'good neighbour'. Yet it still fails to quickly clean up oil spills that ruin villages and runs 'community development' projects that are frequently ineffective and which sometimes even widen the divide in communities living around the oilfields19 Coca-Cola emphasizes 'using natural resources responsibly'. Yet a wholly owned subsidiary in India is accused of depleting village wells in an area where water is notoriously scarce and has been told by an Indian court to stop drawing ground water Those who suffer the most as a result are the poor and vulnerable people in developing countries and the environments in which they live.
19 This

quote and the next from Behind the Mask: The Real Face of CSR by Christian Aid, UK. (Source http://www.christian-aid.org.uk/indepth/0401csr/) 20 Responsibility Breeds Success by Nigel Twose and Ziba Cranmer. Available at: http://www1.worldbank.org/devoutreach/march03/article.asp?id=193

Box D: Challenges to CSR20 Some of the challenges that have emerged over the course of development

and expansion of business-to-business CSR over the last decades are as follows: (a) The first challenge is one of inefficiencies and confusion. Inefficiencies have emerged as a result of industry structures characterized by shifting contractual relationships among suppliers and buyers with a lack of longterm business relationships, and suppliers with multiple buyers. Increasingly, each buyer has its own code of conduct, CSR training Requirements, buyer monitoring and external verification audits. The result is overlap and repetition, with unnecessary burdens on both the buyers, who generally cover the cost of monitoring, and the suppliers who have to allocate time. (b) The second challenge is insufficient business justification for making the required CSR investments. Some issues can be addressed through a cost-benefit analysis framework, but it is likely that for some actors, the business case does not exist - the risk of market sanction and the benefits of CSR implementation are not sufficient. (c) The third challenge is an evolution away from top-down enforcement by buyers to strategies that incorporate empowerment, capacity building and training. The top-down policing approach to CSR compliance is insufficient and a supplier who is only implementing CSR standards because of buyer insistence can find ways to evade compliance without too much fear of detection. A number of buyers have now acknowledged the need for shared ownership of CSR standards throughout the supply chain, including: a focus on the business rationale; capacity-building support at the factory level, for management and workers alike; and an emphasis on the role of workers as guarantors of CSR implementation. In time, the public is likely to become increasingly discriminating, less willing to take general claims on trust, and more keen to see specific action.
To understand the challenge of execution of CSR initiatives in a rural developing economy To elucidate how businesses are trying to combat global warming implications To discuss the role of regulations in reducing emissions To discuss the challenges for companies in going green.

International Conference on Technology and Business Management March 28-30, 2011

101

Corporate Social Responsibility Issues and Challenges in India


Nilesh R. Berad nileshb_iom@bkc.met.edu MET Institute of Management, Nasik
In India CSR is in a very much budding stage. A lack of understanding, inadequately trained personnel, coverage, policy etc. further adds to the reach and effectiveness of CSR programs. Large no. of companies are undertaking these activities superficially and promoting/ highlighting the activities in Media. That is to say, public and private organizations will need to come together to set standards, share best practices, jointly promote CSR, and pool resources where useful. An alliance of interested stakeholders will be able to take

collective action to establish CSR as an integral part of doing business this is not a passing fad. A new Trend has started in Corporate is the establishment of special committees within the board of directors to oversee CSR activities. According to the Indian Corporate: Sustainable development implies optimizing financial position while not depleting social and environmental aspects and CSR implies supporting issues related to children, women and environment. The 2010 list of Forbes Asias 48 Heroes of Philanthropy contains four Indians. Today, CSR in India has gone beyond merely charity and donations, and is approached in a more organized fashion. It has become an integral part of the corporate strategy. Companies have CSR teams that devise specific policies, strategies and goals for their CSR programs and set aside budgets to support them. These programs, in many cases, are based on a clearly defined social philosophy or are closely aligned with the companies business expertise.

4. Research Methodology
Looking into requirements of the objectives of the study the research design employed for the study is of descriptive type. Keeping in view of the set objectives, this research design was adopted to have greater accuracy and in depth analysis of the research study. Available secondary data was extensively used for the study. The investigator procures the required data through secondary survey method. Different news articles, Books and Web were used which were enumerated and recorded. difficulty in making a business case for CSR, difficulty in integrating CSR with organizational values and practices, and the lack of organizational buy-in and commitment to CSR. Other obstacles reported is the lack of time and financial resources to pursue CSR practices are directly related to the above three. CSR or link it to core organizational operations, it will be reluctant to commit and allocate resources or time to such practices. Moreover, these obstacles also point to another set of findings in the report: respondents view CSR more so as a means to manage regulatory impacts, reduce risk, and respond to stakeholders concerns, and to a lesser extent as a strategic source of competitive advantage.

CSR Strategies Focusing on Protection rather than Competitive Advantage


In order to leverage its CSR/sustainability strategy for competitive advantage, an organization needs the advanced capabilities of organizational learning and sustainable innovation. In the article on Corporate Social Responsibility in India Putting Social-Economic Development on a Fast Track by Ramya Sathish mentioned that many CSR initiatives are executed by corporate in partnership with Non-governmental organizations (NGOs) who are well versed in working with the local communities and are experts in tackling specific social problems. In the current social situation in India, it is difficult for one single entity to bring about change, as the scale is enormous. Corporate have the expertise, strategic thinking, manpower and money to facilitate extensive social change. Effective partnerships between corporate, NGOs and the government will place Indias social development on a faster track.6 The survey elicited responses from participating organizations about various challenges facing CSR initiatives in different parts of the country. Responses obtained from the participating organizations have been collated and broadly categorized by the research team. These challenges are listed below: Lack of Community Participation in CSR Activities: There is a lack of interest of the local community in participating and contributing to CSR activities of companies. This is largely attributable to the fact that there exists little or no knowledge about CSR within the local communities as no serious efforts have been made to spread awareness about CSR and instil confidence in the local communities about such initiatives. The situation is further aggravated by a lack of communication between the company and the community at the grassroots. Need to Build Local Capacities: There is a need for capacity building of the local non-governmental organizations as there is serious dearth of trained and efficient organizations that can effectively contribute to the ongoing CSR activities initiated by companies. This seriously compromises scaling up

of CSR initiatives and subsequently limits the scope of such activities. Issues of Transparency: Lack of transparency is one of the key issues brought forth by the survey. There is an expression by the companies that there exists lack of transparency on the part of the local implementing agencies as they do not make adequate efforts to disclose information on their programs, audit issues, impact assessment and utilization of funds. This reported lack of transparency negatively impacts the process of trust building between companies and local communities, which is a key to the success of any CSR initiative at the local level. Non-availability of Well Organized Non-governmental Organizations: It is also reported that there is non-availability of well organized nongovernmental organizations in remote and rural areas that can assess and identify real needs of the community and work along with companies to ensure successful implementation of CSR activities. This also builds the case for investing in local communities by way of building their capacities to undertake development projects at local levels. Visibility Factor: The role of media in highlighting good cases of successful CSR initiatives is welcomed as it spreads good stories and sensitizes the local population about various ongoing CSR initiatives of companies. This apparent influence of gaining visibility and branding exercise often leads many nongovernmental organizations to involve themselves in event-based programs; in the process, they often miss out on meaningful grassroots interventions. Narrow Perception towards CSR Initiatives: Non-governmental organizations and Government agencies usually possess a narrow outlook towards the CSR initiatives of companies, often defining CSR initiatives more donor-driven than local in approach. As a result, they find it hard to decide whether they should participate in such activities at all in medium and long run. Non-availability of Clear CSR Guidelines: There are no clear cut statutory guidelines or policy directives to give a definitive direction to CSR initiatives of companies. It is found that the scale of CSR initiatives of companies should depend upon their business size and profile. In other words, the bigger the company, the bigger is its CSR program. Lack of Consensus on Implementing CSR Issues: There is a lack of consensus amongst local agencies regarding CSR projects. This lack of consensus often results in duplication of activities by corporate houses in areas of their intervention. This results in a competitive spirit between local implementing agencies rather than building collaborative approaches on issues. This factor limits companys abilities to undertake impact assessment of their initiatives from time to time.

Recommendations
serious consideration by all concerned stakeholders for their effective operationalization to deepen CSR in the companys core business and to build collaborative relationships and effective networks with all involved. need for creation of awareness about CSR amongst the general public to make CSR initiatives more effective - various stakeholders including the media to highlight the good work done. It is noted that partnerships between all stakeholders including the private sector, employees, local communities, the Government and society in general are either not effective or not effectively operational at the grassroots level in the CSR domain - often creates barriers in implementing CSR initiatives. It is recommended that a campaign should be launched to both spread awareness on CSR issues amongst the general public as well as to involve SMEs to participate more actively in CSR initiatives. corporate houses and non-governmental organizations should actively consider pooling their resources and building synergies to implement best CSR practices to scale up projects and innovate new ones to reach out to more beneficiaries. It is found that many CSR initiatives and programs are taken up in urban areas and localities. As a result, the impact of such projects does not reach the needy and the poor in the rural areas. It is noted that the Government should consider rewarding and recognizing corporate houses and their partner non-governmental organizations implementing projects that effectively cover the poor and the underprivileged. It is found that there are approximately 250 corporate houses in the country that are directly involved invarious CSR initiatives. accreditation mechanism its noticed that companies end up duplicating each others efforts on similar projects in

the same geographical locations. pooling their efforts into building a national alliance national platform Partnership between the Government and other interest groups translate policy pronouncements into demonstrable action agendas. Transparency and dialogue can help to make a business appear more trustworthy, Strategic Alliances. Strategic alliances are the cooperative relationship between two or more organizations that range from shared information and research to joint ventures where minority partners are subcontracted to provide local market access and distribution channels (Porter, 1980). Integration and Learning. An important step in the integration and learning process is the ability of a company to view itself as something more than a collection of discrete businesses making products (Prahalad & Hamel, 1990).

Corporate Social Responsibility Towards a Sustainable Future A White Paper


KPMG IN INDIA
Definition # 2: According to World Business Council for Sustainable Development Corporate Social Responsibility is the 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 community and society at large. The challenge for us is to apply fundamental business principles to make CSR sharper, smarter, and focused on what really matters. This can be done by: Focusing on priorities Allocating finance for treating CSR as an investment from which returns are expected Optimising available resources by ensuring that efforts are not duplicated and existing services are strengthened and supplemented Monitoring activities and liaising closely with implementation partners such as NGOs to ensure that initiatives really deliver the desired outcomes Reporting performance in an open and transparent way so that all can celebrate progress and identify areas for further action. A long term perspective by organisations, which encom 28 Internal Challenges Skepticism about viability of the Concept Overcome by focused efforts to streamline the processes, attack the issues on hand and hire managerial talent with BPO

experience. All this led to a turn-around in the operations and show-casing of the BPOfor every one to see the success Lack of infrastructure (IT, space, people, etc.) to handle the daily stream of potential candidates Overcome by taking the skills development to the villages via the CALCs, thus building a resource pipeline External Challenges Lower Quality and Throughput Overcome by providing adequate training, dummy projects and hand-holding. With the implementation of a batch tracking software, Individual performance and throughput is also monitored and tracked Hesitation by the village folk to send their women folk away from their villages Overcome by arranging for transport up to the villages and making the BPO an all-women center. 92Global Issues and Challenges 3 9

A) Energy 3 - 5 B) Population 5 - 6 C) Environment 7 - 8 D) Health 8 9Good health is absolutely essential


for social and economic development.
Keeping in view the importance of PSUs in discharging social obligation, a limited review on the initiatives taken by the PSUs in selected sectors viz. Oil and Natural Gas Sector, Coal and Power Sector towards CSR was conducted. The main focus of the review was on the following aspects: CSR Policy System of planning for CSR activities System of fixation of targets for CSR activities Budget allocation and budget utilisation for CSR activities Monitoring mechanism for implementation of CSR activities3.7 Conclusion There is a need to promote a drive in Government Companies towards greater accountability on Corporate Social Responsibility (CSR). In order to attain the social objectives, there is a need for framing a CSR Policy in every company for prioritisation of activities for social spending and allocation of separate funds for this purpose. Moreover, to have an impact of the CSR spending and utilisation of allocated budget, there should be a system of periodical monitoring and reporting to the Board of Directors.

Sandeep K. Krishnan Rakesh Balachandran Doctoral Student, Student, Post Graduate Programme Indian Institute of Management Indian Institute of Management Ahmedabad Ahmedabad Vastrapur Vastrapur Gujarat 380015,INDIA Gujarat 380015,INDIA Ph: +91-79-26327816 +91-79-26327705 Email: sandeepk@iimahd.ernet.in Email: 3rakesh@iimahd.ernet.in Marketing Strategies for Firms in Emerging Markets IIM K NASMEI International Conference the consumers and the environment by these corporations has created large scale public debate and action. negative publicity caused by the actions of MNCs has led to suspicion about their operations in the general public in these markets. The case of Coca Cola also proves without doubt that irresponsible corporate behaviour can have repercussion throughout their global markets. 16 Maratha Mandirs Babasaheb Gawde Institute Of Management Studies

Corporate Social Responsibility as a determinant of market success: An exploratory analysis with special reference to MNCs in emerging markets

CORPORATE SOCIAL RESPONSIBILITY IN INDIA


Dr. Moon Urmila Head Department of Commerce, Ramnarain Ruia College Mumbai, urmilamoon@gmail.com Challenges The biggest problem is of lack of budget allocations followed by lack of support from employees and lack of knowledge as well. Lack of professionalism is another problem faced by this sector. Absence of training and undeveloped staff are additional problems for reduced CSR initiatives. General Public also do not take enough interest in participating and contributing to CSR activities of companies as they have little or no knowledge about it. The increasing demand for more transparency and accountability on the part of the companies and disclosure of information through formal and improved reporting is also inevitable for the companies. Small companies do not take adequate interest in CSR activities and those which undertake them fail to disclose it to the society. In the process they loose out on people and their trust in them. Media can come up with strong support for informing the people at large about the CSR initiatives taken up by the companies. It can sensitize population and also make them aware of the benefits of CSR to them. However, media is not doing enough in this regard. The failure of the government to come up with statutory guidelines to give a definite direction to companies taking up CSR activities, in terms of size of business and profile of CSR activities also results into few companies practicing CSR concept adequately. Suggestions: Companies can set a network of activities to be taken up in a consortium to tackle major environmental issues. Everyone in the organisation needs to recognise their own role in promoting CSR. Training, conferences and seminars could be organised by companies to disseminate and generate new knowledge and information in this sector.

A strong budgetary support would definitely help to grow this sector and research related to respective industry would enhance their organisations contribution further.

Conclusions:
Corporate sustainability is an evolving process and not an end. However, the challenge for the companies is to determine a strong and innovative CSR strategy which should deliver high performance in ethical, environmental and social areas and meet all the stakeholders objectives

Corporate Sociiall Responsiibiilliity iin Indiia


Sunyoung Lee

A Case Study for the Oxford-Achilles Working Group on Corporate Social Responsibility
Global Challenge: Poverty and the Environment

CORPORATE SOCIAL RESPONSIBILITY(CSR) The Indian Perspective October 16, 2008 to HE Mr Hideaki Domichi, Honble Ambassador of Japan & Members of JCCI by Ajay Sethi, Director Corporate Catalyst India Pvt Ltd Traditional Education Health Contemporary Capacity Building skill development, training Sustainable Development environmental protection Community Development education, health, poverty alleviation Social Challenges women's empowerment, girl childInternal (carried out within the organisation) viz. Energy and water conservation Employee welfare training, healthcare Affirmative action employment of backward sections Corporate governance External (within vicinity or for society at large), viz. Community development Capacity building Environmental protection Healthcare Creating awareness - education, health, social issues E-initiatives Online Information, education, etc.

BUILDING AN EFFECTIVE CSR PROGRAMME PHASE 1 - CONCEPTUALISATION Identify key areas of focus viz, skill development, education, health, etc. Define the programme - will it be Internal or External or Both Involve management from various levels in identifying focus areas (maybe create a committee, selecting candidates from top, middle and lower management) PHASE 2 RESOURCE ALLOCATION Define your channel viz, in-house team, NGO, etc. Define budgets Identify key people to implement and monitor the programme Define milestones to achieve Define monitoring mechanism PHASE 3 - Launch Launch the programme Run the programme Obtain necessary registrations PHASE 4 Running the Programme Annual/ bi-annual/ quarterly results and reviews Monitor and report success and/or failure Take corrective action COMMON PITFALLS WHILE PLANNING A CSR PROGRAMME Selecting an inappropriate CSR activity Effective launch, ineffective implementation Spreading resources too thin Weak monitoring mechanism Projected or perceived as a green wash or white wash Often mistaken for a Public Relations exercise CHANNELS OF IMPLEMENTING CSR In-house team Trust or Foundation as an independent arm of the company Non-Governmental Organisation (NGO) Industry consortia Collaboration with on-going Government programmes