Orporate ocial

esponsibility .

Learning Objective:

• What is C.S.R

• Goal Of CSR

• Evolution of C.S.R

• C.S.R Initiatives of different companies

• Five Fast Facts

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business) is a form of corporate self-regulation integrated into a business model. 

CSR policy functions as a built-in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms.

What is C.S.R

….is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, communities, employees, stakeholders and all other members of the public sphere. 

Furthermore, CSR-focused businesses would proactivelypromote the public interest (PI) by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.

The goal of CSR

The term "corporate social responsibility" came in to common use in the late 1960s and early 1970s, after many multinational corporations formed. The term stakeholder, meaning  those on whom an activities organization's have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman  Strategic management: a stakeholder approach  in 1984

Evolution

C.S.R Initiatives of different companies

Aptech Limited, a leading education player with a global presence, has played an extensive and sustained role in encouraging and fostering education throughout the country since inception. As a global player with complete  solutions-providing capability, Aptech has a long history of participating in community activities. It has, in association with leading NGOs, provided computers at schools, education to the underprivileged and conducted training and awareness-camps.

Aptech students donated part of the proceeds from the sale of their art work to NGOs. To propagate education among all sections of the society throughout the country, especially the underprivileged, Aptech fosters tie-ups with leading NGOs throughout the country, including the Barrackpur-based NGO, Udayan, a residential school for children of leprosy patients in Barrackpur, established in 1970.The company strongly believes that education is an integral part of the country’s social fabric and works towards supporting basic education and basic computer literacy amongst the underprivileged children in India.

Aptech Limited

The poor and ignorant of India’s rural population turn to nearest towns and cities for healthcare. They face indifference and exploitation. Hope gives way to despair. This gave inspiration to AVON for locating MATAKAUSHALYA DEVI, PAHWA CHARITABLE HOSPITAL. Mr Sohan Lal Pahwa, AVON's Chairman and Principal Trustee of the hospital, spent a good part of his working life devoted to philanthropy. The hospital, in its 5th year of inception, has risen to serve a model healthcare facility boasting of some bold experiments in its very early years of existence. It’s support since inception has been of the order of Rs. 3 crore to date and it continues uninterrupted. Reaching out to the needy farther afield, the hospital holds regular camps in surrounding villages to propagate scientific approach to healthcare. Recently the hospital took the social responsibility concept a step further and formulated a scheme titled 'Celebrated Female Child' to enable and inspire positive and enduring environment for society's all–consuming passion for 'sons only' to end.

Avon Cycle Limited

The K. C. Mahindra Education Trust was established in 1953 by late Mr K. C. Mahindra with an objective to promote education. Its vision is to transform the lives of people in India through education, financial assistance and recognition to them, across age groups and across income strata. The K. C. Mahindra Education Trust undertakes number of education initiatives, which make a difference to the lives of deserving students. The Trust has provided more than Rs. 7.5 Crore in the form of grants, scholarships and loans. It promotes education mainly by the way of scholarships. The Nanhi Kali project has over 3,300 children under it. they aim to increase the number of Nanhi Kalis (children) to 10,000 in the next 2 years, by reaching out to the underprivileged children especially in rural areas.

Mahindra & Mahindra

General Electric has promised to buy 25,000 electric cars in the next five years. This purchase will help decrease the amount of carbon being emitted.

However

Despite public disapproval, the Vermont Yankee nuclear plant reopened after a small leak. The public is concerned that one day there will be a large problem at the plant, yet production continues. The seriousness and commitment of the CSR plan depends upon the company. Many corporations are moving towards being more earth-friendly, but remember that the main purpose of any corporation is to make money. If production is cheaper and no laws prohibit their production, some may opt to be a little less environmental to keep profits at a maximum, while others are genuinely interested in being as green as possible.

Reality Check… eg

. FIVE FAST FACTS: Why Corporations Invest in

Corporate Social Responsibility

The primary reason (30%) companies invest in CSR is to make an impact on critical issues.

• A similarly high percentage (25%) say the primary reason  is to demonstrate a company’s values in action. • Interestingly, only 15% of executives see customer loyalty as the primary driver of CSR, and a smaller number (4%), cite employee retention and recruitment as the top factor. 

IMPLICATION: Corporations want to be active, substantive partners in addressing social issues. Non-profits, consumers and advocates have an opportunity to leverage and help direct significant resources and expertise from the corporate sector to make a meaningful impact.

1: Making an impact on issues matters most for corporate executives.

Eighty-three per cent of executives report that non-profit partners with expertise and credibility are important to the success of CSR. Seventy-nine per cent say that non-profits are “valuable partners” in their CSR efforts. • Most (59%) executives say they fund non-profit organizations to advance their company’s CSR or pro-social efforts. • A majority (73%) agree that non-profits bring expertise that help CSR programs to thrive, with an identical number finding that non-profits provide the foundation and infrastructure for effective CSR programs. • Many (72%) executives say that funding non-profit partners makes organizations more effective in their CSR efforts. 

IMPLICATION: Non-profits will be vital to CSR in the years ahead, particularly as corporations seek to intensify their CSR efforts on social issues. The real opportunity for both sectors is to build partnerships that create knowledge that can be shared across industry to maximize the impact of CSR.

2: Non-profit partners are vital to the success of CSR.

Ninety-four percent of respondents say that strong and vocal support from senior management is important to successful CSR programs.

• Most executives (91%) say well-defined objectives and clear outcomes are important. • A sizable majority (80%) agree that a focus on a specific issue or area is important. 

IMPLICATION: To facilitate long-term success, corporate teams should engage senior executives early and often – and tackle the tough questions together on objectives and scope. Senior management can help sharpen the focus and desired impact of CSR programs.

3: Senior leadership support drives CSR success.

A significant number of executives (26%) say that the primary focus of their CSR is multi-issue, spanning environmental sustainability, education, global development and more. • The most cited single-issue focus for CSR was environmental sustainability, reported by 22% of executives. • Three other priorities – economic development, education and global development – were each highlighted by 10% of executives as the primary focus of their company’s CSR. • Other top priorities include children and family issues (9%), health and nutrition (7%), and arts and culture (4%). IMPLICATION: It matters less whether a company focuses on a single issue or a broader portfolio of issues, and more whether companies have designed programs to foster genuine change and maximize their impact. The best CSR outcomes result from well-focused efforts that are aligned with a company’s core competencies and business strategy.

4: Most companies tackle multiple issues through CSR programs.

CSR programs have multiple internal and external stakeholders. Among executives, 86% cite employee engagement as an important part of the success of CSR, and 80% point to customer participation. For our Social Impact team, this prompts other key questions: What are the most effective channels for driving participation in CSR? And, what role does crowd sourcing and social media play? In early 2011, we’ll release new survey findings that speak to these questions and offer insights into the role of crowd sourcing and social media in fostering engagement in CSR. 

5: Community engagement and communications work best together.

“We have learned how much a little help can impact the communities that we work in. Additionally, that

people appreciate when large corporations show their human side.” - Survey Respondent