Dr Govindappa Venkataswamy,
Founder of Aravind Eye Hospitals,
Is an example of a social entreprenur
Who works to provide the gift of
Sight to the poor.
In 1976, Dr Venketaswamy, after
retirement from government service,
decided to dedicate the rest of his life to
curing people from eye disease of
various types, most notably cataract. He
first set up a trust, which was later
Meaning of CSR
A companys sense ofresponsibilitytowards
thecommunity
andenvironment(both ecological and social) in which
itoperates.Companiesexpress thiscitizenship
(1)through
theirwasteandpollutionreductionprocesses,
(2)by contributing educational and socialprograms,
and
(3)byearningadequatereturnson
theemployedresources. See alsocorporate
citizenship.
Scope of CSR
Corporate Social Responsibility (CSR) as under the Company's Act 2013 - YouTube[via torchbrowser.com].mp4
Environment
Community
Suppliers
Health and safety
Work force
Human rights
Standards of business conduct
NEED OF CSR
InnovationJust typing the word into Amazon
will bring up nearly 150,000 items. But in the
context of CSR, innovation is a huge benefit to
a company and society.
For example, Geoff McDonaldwho is
theUnileverGlobal VP for HR, Marketing,
Communications and Sustainability. Using the
lens of sustainability as McDonald described
it, Unilever was able to innovate new products
such as a hair conditioner that uses less water.
Without sustainability, the companys research
and development efforts possibly wouldnt have
led to such a product.
NEED OF CSR
Cost savings One of the easiest places for a
company to start engaging in sustainability is to
use it as a way to cut costs. Whether its using
less packaging or less energy, these savings
add up quickly.
For example,General Mills is on a path to
reduce its energy savings by 20% by 2015.
According to its 2011 CSR report, after installing
energy monitoring meters on several pieces of
equipment at its Covington, Ga. plant, the
company saved $600,000.
http://en.wikipedia.org/wiki/General_Mills
NEED OF CSR
Brand differentiation Companies such as Timberland
http://shop.timberland.com/home/index.jsp
Were able to find their voice and incorporate the companys values into
their business model. However, as CSR has become more
commonplace, using it to differentiate the brand is getting harder to
do.
For example, the Cola Wars is one of the longest running rivalries
in business. Coke and Pepsi are constantly looking to grab as much
market share as they can from each other. Yet they are both adopting
similar, although slightly different, approaches to CSR.
Both Pepsi and Coke are pursuing strategies of zero net water usage.
Both companies offer water bottles made from sustainable packaging
as well. In the end, although neither company is necessarily going to
see strong differentiation benefits, it seems the diminishing returns on
brand differentiation as a sign that CSR is taking hold and is not just a
fad.
NEED OF CSR
Long-term thinking The only reason were
doing sustainability is to drive the growth of
Unilever, McDonald said. Indeed, CSR is an
effort to look at the companys long-term
interest and ensuring that the companys future
is well sustainable.
It is a shift from worrying about the next fiscal
quarters financial results to the impact
business decisions today have on financial (and
social) results ten years from now.
NEED OF CSR
Customer engagement Whats the point of
doing CSR if no one knows about it? For the past
few years, Walmart has established itself as a
leader on environmental efforts. Yes, lets read
that correctly, Walmart is a leader in
environmentalism.
In 2008, Walmart ranan ad campaign designed to
raise awareness about the environment and the
product choices consumers could make. Using
CSR can help cos., engage with their customers
in new ways. Since the message is about
something good, it can often be an easier way
to talk to customers. This is an underused tool for
business-to-business company communication.
NEED OF CSR
Employee engagement Along similar lines, if
your own employees dont know whats going on
within your organization, youre missing an
opportunity.
Companies likeSara Lee
http://en.wikipedia.org/wiki/Sara_Lee_Corporation
(American consumer-goods company)created a
cross-functional, global Sustainability Working Team
to help create a strategy for sustainability. At a
more grass roots level, theSolo Cup Company
http://en.wikipedia.org/wiki/Solo_Cup_Company
created the Sustainability Action Network to activate
employees in community service focused on the
companys CSR priorities.
Responsibility towards
Society
Responsibility towards
Government
Obey rules & regulations.
Regular payment of taxes.
Cooperating with the Govt
to promote social values.
Not to take advantage of
loopholes in business laws.
Cooperating with the Govt
for economic growth &
development.
Responsibility towards
Shareholders
To ensure a reasonable
rate of return over time.
To work for the survival &
the growth of the concern.
To build reputation &
goodwill of the company.
To remain transparent &
accountable.
Responsibility towards
Employee
To provide a healthy working
environment.
To grant regular & fair wages.
To provide welfare services.
To provide training & promotion facilities.
To provide reasonable working standard &
norms.
To provide efficient mechanism to redress
workers grievances.
Proper recognition of efficiency & hard
work.
Responsibility towards
consumers
Supplying socially harmless
products.
Supplying the quality,
standards, as promised.
Adopt fair pricing.
Provide after sales services.
Resisting black-marketing &
profiteering.
Maintaining consumers
grievances cell.
Fair competition.
Nature of social
responsibility
HUMAN RIGHTS
ANTICURRUPTION
CSR
PRINCIPL
ES
ENVIRONMENT
LABOUR
A. HUMAN RIGHTS
Principle 1: Business should support and
respect the protection of internationally
proclaimed human rights
Why human rights are important for
business
Promote the rule of law
Addressing consumer concerns
Value chain management
Increasing worker productivity and retention
Building good community relationships
Respecting human rights.
In the community
By preventing the forcible displacement of individuals,
groups or communities,
By working to protect the economic livelihood of local
communities
By fostering opportunities for girls to be educated to
empower them and also helps a company to have a
broader and more skilled pool of workers in the future
and so on
National Human Rights Commission of India - YouTube[via torchbrowser.com].mp4
A. HUMAN RIGHTS
Principle 2: Make sure that they are not
complicit in human rights abuses
contemporary issues
Globalization
Growth of civil society
Transparency and accountability
Crime
State-owned enterprises
B. LABOUR
Principle 3: Businesses should uphold the
freedom of association and the effective
recognition of the right to collective
bargaining
Freedom of association
Collective bargaining
Strategies for business
What companies can do : in the
workplace ; at the bargaining table & in
the community of operation.
DEVELOPING
COUNTRIES
Light Work
13 Years
Light Work
12 Years
Regular Work
15 Years
Regular Work
14 Years
Hazardous work
18 Years
C. Environment
Principle 7
Business should support a
precautionary approach to
environmental challenges
Precautionary approach?
An systematic application of risk assessment
(hazard identification, hazard characterization,
appraisal of exposure and risk characterization),
risk management and risk communication.
Steps that the company could take in the
application of this approach include the
following:
Develop a code of conduct or practice
Develop a company guidelines
Establish two-way communication with
stakeholders, in a pro-active, early stage and
transparent manner
ENVIRIONMENT
Principle 8
Undertake initiatives to promote
greater environmental responsibility
Environmental responsibility- Business and
industry should increase self regulation,
guided by appropriate codes, charters and
initiatives integrated into all elements of
business planning and decision-making
and fostering openness and dialogue with
employees and the public.
Principle 9
Encourage the development of
environmentally friendly technologies
D. ANTI -CORRUPTION
Principle 10
Business should work against
corruption in all its forms, including
extortion and bribery.
MODELS OF CSR
MODELS OF CSR
There are various models to describe the CSR
complexity. These can be divided in accordance
to time as follows
Pre-modern
Minimalist
Self Interested
Modern
The social contract
Postmodern
Stakeholder (management and stewardship)
MODELS OF CSR
NEED OF CSR
Activities of
mahindra and mahindra education
financial support.
Recognition to rural people.
Empowerment of children.
Satyam computer service ltd.
It aims at transforming and supporting and strengthen
the vulnerable and unprivileged sections in urban
India. Activities of satyam computer service ltd
Empowerment of women and unprivileged
Problem of illiteracy.