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 Corporate social responsibility (CSR):
j An obligation, beyond that required by the law and
economics, for a firm to pursue long term goals that are
good for society .
j 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 that of the local community and society
at large.
j About how a company manages its business process to
produce an overall positive impact on society.

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x Conducting business in an ethical way and in the interests

of the wider community
x Responding positively to emerging societal priorities and
expectations
x A willingness to act ahead of regulatory confrontation
x Balancing shareholder interests against the interests of the
wider community
x Being a good citizen in the community

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In broad terms, CSR relates to responsibilities
corporations have towards society within which they are
based and operate, not denying the fact that the purview of
CSR goes much beyond this. CSR is comprehended
differently by different people.

³A commitment to improve community well being through

discretionary business practices and contributions of corporate
resource´

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³A way companies manage the business processes to produce
an overall positive impact on society.´

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³Corporate 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´.

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CSR(corporate social responsibility) is a concept in which
organizations consider the interests of society by taking
responsibility for the impact of their activities on
customers, suppliers, employees, shareholders,
communities other stakeholders, future generation and on
environment. The organizations voluntarily taking
advance steps to improve the quality of life for employees
and their families as well as for the local community and
society.

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In India, CSR has evolved to encompass employees,
customers, stakeholders and sustainable development or
corporate citizenship. The spectrum of CSR includes a number
of areas as human rights, safety at work, consumer protection,
climate protection and caring for the environment, and
sustainable management of natural resources. From the
perspective of employees, CSR activities include providing
health and safety measures, preserving employee rights and
discouraging discrimination at workplace. This helps in
fostering a healthy environment within the company.
x For example, after 1945, TATA implemented social
welfare provisions for its employees that have since
become the legislative norm. From the perspectives of
customers, CRS activities may include commitment to
product quality, fair pricing policies, and so.
x TVS Electronics was involved in CSR during the Tsunami
to provide relief measures to the victims. They have also
participated with the government to improve sanitation in
a village called Tiruvidenthai. Such initiatives will help in
improving the conditions of rural people.

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Ñovernance

Business
Ethics

Human
Evironment
Rites

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x Focus on nation building

x Socio-economic development
x Rural development
x Employment
x Education
x Health care
x Community support

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Ô The purpose of Corporate Social Responsibility (CSR) is
to make corporate business activity and corporate culture
become sustainable in its three dimensions: economic,
social and environmental.

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CSR behaviour can benefit the firm in several
Ways:
Ô It aids the attraction and retention of staff
Ô It attracts green and ethical investment
Ô It attracts ethically conscious customers
Ô It can lead to a reduction in costs through re-cycling
Ô It differentiates the firm from its competitor and can be a
source of competitive advantage
Ô It can lead to increased profitability in the long run

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Ô There is clearly an overlap between CSR and business

ethics
Ô Both concepts concern values, objectives and decision
based on something than the pursuit of profits
Ô And socially responsible firms must act ethically
Ô The difference is that ethics concern individual actions
which can be assessed as right or wrong by reference to
moral principles.

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