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Defining C.S.

Corporate social

responsibility (CSR) is a
form of business selfregulation to incorporate
social and environmental

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: Its 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.
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.

Key Issues in CSR

Labour rights:
child labour
forced labour
right to organise
safety and health

Environmental conditions
water & air emissions
climate change

Human rights
cooperation with paramilitary forces
complicity in extra-judicial killings

Poverty Alleviation
job creation
public revenues
skills and technology

Need for Corporate Social

The brands that will be big in the future will be those that

tap into the social changes that are taking place. - Sir
Michael Perry, Chairman of Centrica PLC

On the basis of legal provisions, companies have to concentrate

on social problems. For example an industrial organization in

India must obtain a certification from Pollution Control Board.

Corporate donations of social welfare projects of approved

NGOs are exempted from income tax in India.

An organizations commitment to social responsibility creates a

good corporate image, and there by a better business


Social responsibility of business enables the organization to improve its

product positioning and thereby improve its market share.
Very often situations demand due to natural calamities, accidents and
soon. For example, gas leak at the Union Carbide plant in Bhopal,
wherein the company had to monetarily compensate through medical

Companies Bill passed with

mandate on CSR spending
The bill rule for


Sachin pilot on CSR