Anda di halaman 1dari 14

CORPORATE SOCIAL RESPONSIBILITY(CSR)

WHAT IS CSR

 Corporate social responsibility(CSR) is a concept that suggests that it is


the responsibility of the corporations operating within society to
contribute towards economic, social and environmental development
that creates positive impact on society at large.

Corporate citizenship
Corporate responsibility
Corporate social responsibility
 It is self regulating business model that helps a company be
socially accountable- to itself, its stakeholders, and the public.
 Through CSR programs, philanthropy, and volunteer effects,
businesses can benefit society while boosting their own brands.
 Set standards of ethical behaviour for its peers, competition and
industry.
GLOBAL STORY Before 1947
The concept manifested itself through charity that
was carried out by businessmen and philanthropists
with a strong religious sentiment.

Post 1947
The Gandhian philosophy of trusteeship was
popular. It advocated the role of PSUs as
important elements fulfilling the development
agendas.

Post 1991
The era allowed the entry of global players which enhanced
competition in the market. The global standards of CSR
motivated the local players to respond to the needs and
enhance brand value and meet consumer satisfaction.

Post 2000
The global information sharing allowed the indian
government to incorporate the best practices that
made india the first country to mandate CSR. The
undertone has been focused on partnership and triple
bottom line of engagement.
The Companies Act, 2013.

 As per as Corporate Social Responsibility is concerned, the Companies Act, 2013 is a landmark
legislation that made India the first country to mandate and quantify CSR expenditure. The
inclusion of CSR is an attempt by the government to engage the businesses with the national
development agenda. The details of on corporate social responsibility is mentioned in the Section
135 of the Companies Act, 2013. The Act came into force from April 1, 2014, every company,
private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs
1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the
immediately preceding three financial years on Corporate social responsibility activities. The CSR
activities in India should not be undertaken in the normal course of business and must be with
respect to any of the activities mentioned in Schedule VII of the act.

 The corporations are required to setup a CSR committee which designs a CSR policy which is
approved by the board and encompasses the CSR activities the corporations is willing to
undertake. The act also has penal provisions for corporations and individuals for failure to abide
by the norms. The details of the same are highlighted in the act.
Published Standards for CSR

In 2010, the International Organization for Standardization (ISO) released a set of voluntary standards meant to
help companies implement corporate social responsibility. Unlike other ISO standards, ISO 26000 provides
guidance rather than requirements because the nature of CSR is more qualitative than quantitative, and its
standards cannot be certified. Instead, ISO 26000 clarifies what social responsibility is and helps organizations
translate CSR principles into effective actions. The standard is aimed at all types of organizations regardless of
their activity, size, or location. And, because many key stakeholders from around the world contributed to
developing ISO 26000, this standard represents an international consensus.
Best corporate social responsibility
examples:

 Improve labor policies and embrace fair trade


 Engage in charitable giving and volunteer efforts within your community
 Change corporate policies to benefit the environment
 Make socially and environmentally conscious investments
 Reduce carbon footprints and climate change
Socially responsible companies

 TOMS
TOMS is known for their business model of providing one pair of shoes to a person in need for every
pair of shoes they sell.

 COCA COLA
Coca-Cola continues to make strides toward aiding in the alleviation of environmental issues

 DELL
Dell now contributes to environmental management by shipping their laptops in less wasteful
containers using more eco-friendly materials.

 FORD MOTORS
In an effort to reduce its GHG emissions, an EcoBoost engine was developed to increase fuel
efficiency and the company hopes to offer 13 new electric vehicle models by 2020.
 BOSCH
Bosch invests half of its research and development budget in environmental protection
technology.

 TATA
Over 6 Lakh lives positively touched through CSR Projects during FY 2017-18
40% of the CSR Budget was spend on Affirmative Action programs dedicated for the upliftment
of SC/ST Communities
Reinforced its initiatives on topics related to Health, Education, Employability and the
Environment

 STARBUCKS
Starbucks promises to be a socially responsible company by hiring 25,000 veterans before 2025.
Why CSR is Important

Corporate citizenship matters because companies typically have great resources to enact
real, positive change. But beyond the satisfaction of knowing they’re bettering the world,
what’s in it for the companies? The answer to that question is quite a bit — and a lot of it has to
do with building a great reputation.

The most important benefit of a CSR program is trust.


These CSR statistics are insane

 92 percent of consumers have a more positive image of companies that support social issues
and environmental efforts
 63 percent of the public would give socially responsible businesses the benefit of the
doubt during a crisis..
 87 percent will purchase a product because a company advocated for an issue they cared
about.
 66 percent of consumers are willing to pay extra to patronize companies that are committed to
CSR.
 3.2x increase in trust when a company’s reputation score goes from “average” to “excellent”.
A warning against greenwashing

 Most corporations establish CSR programs to genuinely give back, and they use considerable
resources to make a positive impact on the world. However, there are some that cultivate the image
of a socially responsible organization simply for the marketing benefits.
 This disingenuous form of “giving back” is known as greenwashing, and it’s an example of bad
corporate social responsibility. Rather than actually engaging in social or environmental
improvements, corporations may simply spin their advertising and reputation marketing to make it
seem as if they’re doing a good thing.
Effective ways to promote CSR

 Align your efforts with your brand: Choose CSR initiatives that work authentically with your established brand. Not only is it a more
natural fit, but your activities will directly impact your customer base.
 Don’t overlook local initiatives: Global causes are undoubtedly critical, but don’t neglect what’s happening right in your backyard.
Build strategies around soup kitchens, food banks, homeless shelters, schools and senior citizens. You’ll make a difference and
increase brand visibility among your customer base.
 Advertise charitable efforts online and in your physical storefronts: Post flyers in your windows or near your cash registers. You could
also write a blog post or create a section on your website calling out your charitable giving. Some brands also leverage social
media to amplify giving and positive mentions.
 Involve your customers: Encourage consumers to donate to the good causes you champion. Ask them to give at the point of sale or
donate a certain percentage of your proceeds to charity.
 Focus your attention: Concentrate on just a few charities. This will make you appear more authentic and less like your business is
trying fake goodwill for profit.
 Be more interactive: Encourage word-of-mouth communication by participating in activities that are easily shareable on social
media. Use relatable images and videos to bring awareness to your good deeds.
 Encourage further giving: Ask consumers and other stakeholders to join you in your mission for giving. Gently prompt them to
contribute their time, money, and other resources to the causes and initiatives that you highlight.
THANK YOU!