Corporate Social Responsbility, Csr

CORPORATE SOCIAL

RESPONSIBILITY By:- Rahul Singhal Meerut Institute of Technology, Meerut

Rahul Singhal

 Corporate – means organized business  Social – meaning every thing dealing with

the people  Responsibility – means accountability

between the two

Rahul Singhal

Definition  “Corporate social responsibility is operating a

business in a manner which meets or excels the ethical, legal, commercial and public expectations that the society has from the business”  “the obligation of businessmen to pursue those

policies, to make those decisions, or to follow those line of action which are desirable in terms of objectives and values of society”

Rahul Singhal

CSR Encompasses  Social, economic, ethical and moral responsibility of companies

and managers  Compliance with legal and voluntary requirement for business

and professional practice  Challenges posed by needs of the economy and socially

disadvantages group  Management of corporate responsibility activities

Rahul Singhal

Factors Influencing CSR  Globalization – coupled with focus on cross – border trade,

multinational enterprises and global supply chains 

Governments and intergovernmental bodies

 Advances in communication technology  Increasing interest of consumers and investors in supporting

CSR  Numerous serious and high profile breaches of corporate ethics

Rahul Singhal

 Increasing awareness of the limits of government

legislative and regulatory initiative  Business recognizing that adopting an effective

approach to CSR can reduce risk of business disruption

Rahul Singhal

Difference Between Charity and CSR  CHARITY

 CSR

 Means donating money,

 It is how company align their

goods, time or effort  For poor and needy cause

value to social cause  It can be people centric or

planet centric  It is selfless giving toward

any kind of social need

 It is not self less act,

company derive long term benefit from CSR

Rahul Singhal

Triple Bottom Line Approach to CSR  Coined in 1997 by John Ellington  It is based on the thought that business entities have more to do

than make profit for the owner of the capital  People, Planet and Profit is used to describe the triple bottom

line  Profit is the bottom line shared by all commerce

Rahul Singhal

People Issues  Health  Safety  Diversity  Ethnicity  Education and Literacy  Prevention of Child Labour

Rahul Singhal

Planet Issues  Climate Change  Energy  Water  Chemicals, toxics and heavy metals  Air pollution  Waste Management  Ozone layer depletion  Ocean and fisheries Rahul Singhal

Need to Apply TBL Concept  Increased consumer sensitivity to corporate social     

behavior Increased environmental regulation Concerns over global warming Awareness about and willingness for respecting human rights Media attention to social issues Growing corporate participation in social up liftment

Rahul Singhal