Background

Historical perspective: Ancient literature cites the examples of helping the poor and the disadvantaged group. In global context , it goes back to 1790s when England witnessed the first g g g large scale boycott of the slave harvested sugar. In India too ,in post independence era, pioneers of industrialization set up charitable foundations, educational and healthcare institutions , and trusts , for community development. Evolution: The idea of welfare state Growth of democracy Concern for respect for human dignity

Meaning and Definition ea g a d e o

CSR is the continuing commitment by business to behave g y 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 large. The term social responsibility refers to two types of business obligations: (a) socio-economic obligation-to see that the economic consequences of business do not adversely affect the public welfare (b) socio-human obligation-to nurture and develop human ( p ) values( such as morale , co-operation , motivation etc.)

Rationale a o ae
1. Globalization-Increased concerns regarding HRM practices, environmental protection, and health and safety among other things. Financial investors are increasingly incorporating social and environmental criteria when making decisions about where to place their money. International Legal Instruments & Guidelines- ILO, UN, OECD etc. have developed, guidelines, principles etc. for abiding with social norms. Corporate Image- Adopting an effective approach to CSR provides corporate a Unique Selling Proposition(USP) to differentiate themselves from their competitors. Public opinion- stressing on business morality and integrity to be observed by all organizations in all fields of human endeavor. Collaboration agreements also involve social welfare terms .

2. 3.

4. 5.

Scope of CSR p Environment Community Suppliers Health & Safety Workforce Human rights Standards of business conducts

Types o CS ypes of CSR

Cause related marketing g Cause Promotion Socially responsible business practice Community volunteering Corporate Social marketing

Responsibilities towards groups p g p 1. Towards Human Resources Fair treatment No discrimination Fair Wages Fair appraisal Healthy and safe working environment Opportunities for growth Participation in managerial decision making Training and development Family Welfare

Towards Co su e s owa ds Consumers

Providing proven quality products Check black marketing Charge reasonable prices Provide required after sale service Provide sufficient information regarding the product including its adverse effects, risks etc. Redress the genuine grievances of the customers Avoid any type of cartel formation and monopoly profits

Towards S a e o de s owa ds Shareholders

To increase shareholders profits p Give good returns of investment Give dividends at proper time To protect the interests of even small shareholders To regularly invite shareholders to participate in decision making ki

Towards Co owa ds Community u y

Prevent environmental pollution and ecological imbalance Contribute to research and development Development of backward areas Promotion of small scale industries Development of regions they are operating in Conserving scarce resources and developing alternatives

Responsibility to Prospects espo s b y o ospec s

Prospects are the probable customers. Companies identify its existing customers and make a forecast p y g about expected customers. Welfare programs which benefit the prospective customers may convert potential customers to actual customers. t t ti l t t t l t Taking into account the needs, wants , tastes and preferences g p of the existing market and the expected market would offer maximum satisfaction to buyers.

Responsibility to Government espo s b y o Gove e

Business firms constructively cooperate with the government in their social policies and programmes . Firms pay their taxes, duties etc to the government and thus taking into consideration organizations commitment to the gove government. e t. Firms also abide by various laws viz. trade law, labor law, anti-pollution law etc. in an endeavor to fulfill their responsibilities. ibili i

Responsibility to Global Business Environment espo s b y o G oba us ess v o e

Global business environment provides for free market p operation with a perfect competition. A firm operating globally has to appreciate the mechanisms of a global business environment. l b lb i i t Companies operating globally have to maintain global quality, g oba y co pet t ve p c g, g oba y app oved tec o ogy globally competitive pricing, globally approved technology etc. Giant multinationals are more likely to make larger allocations to social welfare projects with the objective of gaining greater i l lf j i h h bj i f i i corporate image and penetration.

Activities In CSR c v es CS
1. 2. 3. 4. 4 5. 6. 7. 8. 9. 10. 11. 12. 12 Providing Pure and safe drinking water Providing guidelines and support for family planning Helping tribal people Creating awareness regarding diseases Developing infrastructure Imparting education and building schools Building hospitals and providing medical care ildi h i l d idi di l Supporting people affected by HIV/AIDS Home based counseling affected by diseases Clean Environment Skill development of disadvantaged Consumers Protection

CS CSR Initiatives a ves

Tata Group: Integrated Rural Development
The company has adopted several villages around its manufacturing units at Pune, Jamshedpur and Lucknow. Integrated Rural Development aims at meeting basic needs in five broad areas - Health Education, Water, Health, Education Water Environment and Livelihoods. An overview of the activities Health: A Healing Touch lh li h Education: Igniting Minds Environment: Caring for Tomorrow Water: Quenching Arid Areas Livelihood: Infusing Self-Dependence

Healing Touch ea g ouc

CSR Initiatives
1. Tata Group p
Okhai, is a Tata Chemicals Society Rural Development (TCSRD) created handicrafts brand . It leverages the local, traditional handicraft skills inherent to the women tribes g such as mirror work, patchwork, embroidery and appliqu work to supplement womens livelihoods. Sasha (Sarba Shanti Ayog) was started in 1978, primarily to provide marketing assistance to crafts persons all over India. it t ft ll I di Sasha works with more than 150 producer groups and communities to provide them with marketing, product research, design and development, producer awareness, communications, awareness communications networking and participation. participation

O a Okhai

Sasha

TISCOs HR Initiatives SCO s a ves

An eight hour shift introduced in 1912 g Free medical aid for self and family in 1915 Welfare department established in 1917 School for children of TISCO employess Workers Provident Fund and other social security benefits started in 1920 t t di A technical training Institute started Maternity Benefit Scheme in 1921 Bonus introduced in 1934 g y A retirement gratuity introduced in 1937

Bill & Melinda Ga es Foundation e da Gates ou da o Headquarters at Seattle, Washington Controlled by three trustee-Bill Gates Melinda Gates and Warren Buffet Undertakes : 1. 1 Global Health Program 2. Global Development Program 3. U.S.Program 3 U S Program

Global Health Program

Global Development Program p g

US Program og a

Trends in CSR: From Charity to Responsibility e ds CS : o C a y o espo s b y

Conceptualizationp Treat it as separate entity Corporate have vision & mission statements which drive their initiative Deliberations are made to choose specific issues related to their core values Recognize that brands are built around emotions and values that people ascribe to products CSR viewed in terms of increasing accountability taking responsibility of the impact they make on society

Trends in CSR: From Charity to Responsibility e ds CS : o C a y o espo s b y Implementation

Make and implement comprehensive set of programmes that are integrated through business operations Innovative programmes in thematic areas of public health, education, environment, microfinance and related aeas are developed. developed Developed bearing in mind local cultural needs of the people. Expertise in terms of knowledge and human resource is p g allocated apart from devoting funds.

Focus Areas Incorporated in Business Practices ocus eas co po a ed us ess ac ces Community Development Environmental management Workplace

CS CSR Reporting epo g Reporting Practices that inform stakeholders about their CSR practices Indicators such as Global Reporting Initiative s have p g been developed. y g y p g They indicate guidelines and sustainability reporting

Barriers to CSR a e s o CS
Urge for profiteering g p g Desire for an excessive accumulation of wealth Low profitability Collective exploitation by trade unions Frequently changing government mechanisms Need for tackling other internal issues Capital problems, low cash flow, commitments to financial institutions, institutions modernization needs compel to divert funds away from CSR activities

How to implement CSR in y p your organization g

1. Meetings of Board of Members for implementing CSR 2. Every company must clearly define its CSR y p y y philosophy and objectives and state which issues it plans to take 3. Companies must spend at least 2% of its annual income on its CSR activities.

Education a d Training in CS duca o and a g CSR Universities Business Schools depe de t a g ov de s Independent Training Providers

S s o CSR Skills for CS Business Skills People Skills Technical Skills Understanding society Building Capacity Stakeholder relationship Strategic View St t i Vi Harnessing Diversity

Challenges for CSR

Knowledge between social responsibility and business performance Teaching and training about CSR g g Awareness and resources among SMEs Transparency Consumers and investors recognition and e do se e o CS be v o s endorsement of CSR behaviors Coherence in public policy