INTRODUCTION

WHAT IS CSR ?

Corporate social responsibility (CSR) is a form

of business self-regulation to incorporate social and environmental concerns. It
represents a business model that adheres to laws, ethical standards, and
international norms.
As part of the business model, businesses have to take into account the impact
of their activities on the environment, employees, communities, stakeholders,
and other members of the public. In short, CSR represents the deliberate
inclusion of the public’s interest in a business’ decision making to ensure a
triple bottom line that considers the planet, people, and profits.
In general, CSR involves some kind of standardized reporting that allows the
business to collect information on how it is making progress on various fronts.
Businesses that engage in CSR typically focus on some or all of the following:
 Environment: This requires a look at the environmental impacts of
products and services, as well as what the business does outside the
company to improve the environment.

 Employees: It’s important to ensure that all employees are cared for
adequately. Businesses usually focus on workplace conditions, benefits,
living wages, and training.

 Communities: Engaging the surrounding communities is an important

part of not just creating good human capital that can serve the business,
but also securing a reputation that can further establish the business.

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  Regulations: Respecting regulations to the fullest and often exceeding
them is part of being socially responsible.

Crisis Preparedness: Being ready to address business crises and ensure safety
for employees and surrounding communities is critical. Having plans ready and
tried are important in ensuring minimal losses during times of crises.

Meaning and Definition

CSR is about how companies manage the business processes to produce an
overall positive impact on society.

Take the following illustration:

Companies need to answer to two aspects of their operations.

1. The quality of their management - both in terms of people and processes (the
inner circle).

2. The nature and quantity of their impact on society in the various areas.

Outside stakeholders are taking an increasing interest in the activity of the

company. Most look to the outer circle - what the company has actually done,
good or bad, in terms of its products and services, in terms of its impact on the
environment and on local communities, or in how it treats and develops its
workforce. Out of the various stakeholders, it is financial analysts who are
predominantly focused - as well as past financial performance - on quality of
management as an indicator of likely future performance.

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