CSR

(CORPORATE SOCIAL
RESPONSIBILITY)

Companies Act 2013 (Companies

Act) has introduced several new
provisions which change the face
of Indian corporate business. One
of such new provisions is

CONCEPT AND
DEFINATION
CONCEPT
The concept of CSR rests on the ideology of give and
take. Companies take resources in the form of raw
materials, human resources etc from the society. By
performing the task of CSR activities, the companies are
giving something back to the society.

DEFINATION

"Corporate Social Responsibilityis a management

concept whereby companies integratesocialand
environmental concerns in their business operations. It is
the continuing commitment by business to contribute to
economic development as well as of the community and
society at large."

The idea behind corporate social responsibility is that

companies have multiple responsibilities to maintain.
These responsibilities can be arranged in a pyramid,
with basic responsibilities closer to the bottom. As a
business meets lower-level responsibilities it can move
on to the higher level responsibilities.

SR CARROLL PYRAMID
Philanthropic

(Be a good

corporate citizen)

(To Be Ethical)
(To obey the
laws set forth
by society).
(To be

profitable.)

Economic Responsibilities
A company's first responsibility is
its economic responsibility -- that is
to say, a company needs to be
primarily concerned with turning a
profit. This is for the simple fact
that if a company does not make
money, the company won't even be
able to think about taking care of
its social responsibilities. Before a
company thinks about being a good
corporate citizen, it first needs to
make sure that it can be profitable.

Legal Responsibilities

A company's legal responsibilities

are the requirements that are
placed on it by the law. Next to
ensuring that company is profitable,
ensuring that it obeys all laws is the
most important responsibility,
according to the theory of
corporate social responsibility. Legal
responsibilities can range from
securities regulations to labor law,

Ethical Responsibilities

Ethical responsibilities are ones

that a company puts on itself
because its owners believe it's
the right thing to do -- not
because they have an obligation
to do so. They could include being
environmentally friendly, paying
fair wages or refusing to do
business with oppressive
Philanthropic
countries, for Responsibilities
example
If a company is able to meet all of its other
responsibilities, it can begin meeting
philanthropic responsibilities. Philanthropic
responsibilities are responsibilities that go
above and beyond what is simply required
or what the company believes is right.
They involve making an effort to benefit
society -- for example, by donating
services to community organizations,
engaging in projects to aid the
environment or donating money to
charitable causes.

YES TO CSR!

Public Image:Socially responsible firms gain more customers and

employees feel
proud to work for such organizations
Long run profits: Socially responsible businesses tend to have more
and secure long run profits. This is the normal result of the better
community relations and improved business image that responsible.
Stockholder interests: Social responsibility will improve the price
of a businesss stock in the long run. The stock market will view the
socially responsible company as less risky and open to public attack.
Therefore, it will award its stock a higher price earning ratio.
Discouragement of further government regulation:
Government regulation adds economic costs and restricts
managements decision flexibility by becoming socially responsible,
business can expect less government regulation.

Better environment: Involvement by business can solve difficult

social problems, thus creating a better quality of life and a more
desirable community in which to attract and hold skilled employees.

As a Token of Gratitude:Business units benefit from society. Based

on the commonly accepted principle, that one owes debts of

ARGUMENTS AGAINST CSR

VIOLATION OF PROFIT MAXIMIZATION: This is the

essence of the classical viewpoint. Business is most socially
responsible when it attends strictly to its economic interests
and leaves other activities to other institutions.

DILUTION OF PURPOSE: The pursuit of social goals dilutes

businesss primary purpose: economic productivity. Society
may suffer as both economic and social goals are poorly
accomplished.

BURDEN ON CONSUMERS: Many socially responsible

activities do not pay their own way. Someone has to pay these
costs. Business must absorb these costs or pass them on to
consumers in higher prices.

LACK OF SKILLS: The outlook and abilities of business

leaders are oriented primarily toward economies. Business

AND

Forbes magazine decided to separately rank and honor the

corporations with the best CSR. Through an online
questionnaire, consumers were asked to evaluate to what
extent they agree with the following three statements:
Company is a good corporate citizen it supports good
causes and protects the environment; Company is a
responsibly-run company it behaves ethically and is open
and transparent in its business dealings; and Company is
an appealing place to work it treats its employees well.
It turns out the corporation with the very best CSR
isMicrosoft: the Washington-based software giant.

FULFILLING
THE RESPONSIBLITY
Empowering every person and
every organization on the planet to
THROUGH
POLICIES
PRACTICES AND PRODUCTS
EMPOWERING
COMMUNITIES
achieve more

"It takes more than great

products to make a great
company." - Bill Gates

THROUGH POLICIES PRACTICES

AND
PRODUCTS
In meeting the responsibilities as a global corporate citizen, Microsoft seeks to
develop principled, pragmatic business approaches to challenging issues.

Human

Rights:

Our commitment to respect fundamental rights reflects our

company mission to help people and businesses throughout the world realize their full
potential.

Responsible

Sourcing: We ask our suppliers to uphold the high standards of

Citizenship to which we hold ourselves.

Environmental

Sustainability:We seek to unlock innovative ways to

reduce the environmental impact of our operations, products and services and to help others
use the power of technology to address sustainability challenges.

Integrity

& Governance:We are committed to growing our business in and

ethical and responsible way and in compliance with applicable laws and regulatory
requirements.

Political

Engagement: We seek to ensure that our participation in the political

process takes place in the light of day and for reasons that are clear and justifiable to our
shareholders and the public.

Our

People:We are proud our commitment to employees has led to Microsoft being

widely cited as one of the best places to work in the world.

Community Work!

mpowering Youth

Microsoft Youth Spark is a global initiative to increase access for all youth
to learn computer science, empowering them to achieve more for
themselves, their families and their communities.
Three years ago, we launched Microsoft Youth Spark, a cross-company
initiative that created educational, employment and entrepreneurial
opportunities for more than 300 million youth around the world.

mpowering Non-Profits

We empower nonprofits with technology to help them do what they do best:

creating more good in the communities they serve. They offer product
donations and discounts through 3 programs.

Responding to disasters.
The Microsoft Disaster Response program improves disaster preparedness and
response through the delivery of technology and expertise for citizens, lead
responders,
and businesses.
Over the last few decades, Microsoft has provided support for more than 300

2015 Nepal Earthquak

A 7.8 magnitude earthquake struck Nepal on
Saturday April 26, 2015, killing more than 3600
people, and injuring more than 6500. Microsoft
quickly responded, in an effort to reconnect the
communities, and mobilized 100+ local Microsoft
Student Partners and staff, all equipped with
Microsoft Lumia smart phones with Skype call
capabilities to provide free internationalSkype
calling for earthquake victims.Microsoft also
provided charging stations, Wi-Fi hot spots, and
TV White Space equipment to restore
connectivity for numerous displaced people &
responders, enabling them to communicate with
loved ones and access vital information.
Information management and mobile
technologies were developed and deployed to
support services including: education, recovery
operations planning, and debris removal &
reconstruction.To date, Microsoft has provided
$1.4+ million in relief assistance.

ployee Giving Programs

It means Encouraging employees to

contribute is important to the success of
any philanthropic program.
Microsoft employees have donated
more than $1 billion, inclusive of the
corporate match, since 1983.
Microsoft employees in the U.S. have
volunteered more than 2.5 million hours
of their time to causes they care about
since we began our volunteer match
program in 2005.
Since 1983, Microsoft and its employees
have provided more than $8.5 billion in
cash, services and software to
nonprofits around the world.

Microsoft's citizenship mission is to

serve globally the needs of
communities and fulfill our
responsibilities to the public

DEVELOPING A CSR STRATEGY

Senior leadership and management of the

firm, including the board of directors, must
make an authentic, firm, and public
commitment to CSR efforts and engage
with them.
Determine the top three business
objectives of the company and develop
CSR goals that will contribute to the
achievement of those business objectives.
After business objectives are determined ,
align CSR goals with the firms core
competencies.
Fully integrate CSR efforts into the
governance of the company and into
existing management systems.
Finally, develop clear performance metrics,
or key performance indicators, to measure
the impact of your CSR efforts

Efforts by:
Kiranjot Kaur
XI-COMM
Riya Chopra
Sanjam Kanwar