CSR-AIESEC-Different-Strokes

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Workshop Presentation given by PwC at Youth to Business Forum

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www.pwc.com CSR Different Strokes

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Contrarian Views In Perspective 2

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Counterpoint - Misery Loves Company 4 • A business organization is organized and carried on primarily for the profit of the stockholders 1 • 200 years’ worth of work in economics and finance indicate that social welfare is maximized when all firms in an economy maximize total firm value. 2 • In responding to calls for socially responsible practices, executives take money and resources that would otherwise go to owners, employees, and customers. 3 1 Dodge Brothers v. Ford Motor Company, 1919 2 Jensen (2002: 239) 3 Friedman (1970) 4 Misery Loves Companies : Rethinking Social Initiatives

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The Question remains... • Does the successful business try first to profit or to serve? 1 • Can there be a happy convergence between what your shareholders want and what is best for millions of people the world over ? 2 1 Merton (1976: 88) 2 United Nations’ Secretary General Kofi Annan (2001)

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Ray of Hope • A positive connection between corporate social performance (CSP) and corporate financial performance(CFP) after 127 studies. • If social performance is contributing to financial performance, then the firm is being used to advance the objective for which it is considered to be best suited, maximizing wealth. • Studies of the link between CSP and CFP reveal little evidence that CSP destroys value, injures shareholders in a significant way, or damages the wealth-creating capacity of firms.

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Anatomy of a CSR • Features of the problem • Features of the company • Features of the impact the company’s response would have

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Why do CSR? • Reduced Costs • Enhance brand image and reputation • Increased sales & customer loyalty • Increase ability to attract and retain employees

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Case Study : Microsoft • The company’s Unlimited Potential programme is the biggest scheme aimed at CSR. Its about helping individuals around the world have access to affordable technologies in order to transform education, foster local innovation and enabling job opportunities. • The goal is to create a cycle of sustained social and economic growth for everyone and not just the most economically developed countries. • “It took about 35 years to get about 1 billion people access to computersIt can't take us another 35 years to reach another 1 billion.” - VP. • Student Innovation Suite - highly subsidized package.

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Communication Challenges Open House Discussion 9

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CSR Communication

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CSR Communication

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CSR Focus Areas 12

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CSR : Types • Organisational Focus • Environmental Focus • Customer Focus • Employee Focus • Stakeholder Focus • Social Focus

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CSR Riddles 15

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Case 1 : Life on Tracks • Raju was first found at KGP railway by Praajak staff during outreach activity. • After that he was associated with Muktangan programme since last 4 years. • He never returns back to his family due to violence of father and he felt disrespect from his family members except mother. He feels that after earning huge money he wants to go back to his family. He dreams one day he will stay with his wife in a family. • He has been through numerous counselling & into many odd jobs. • He accepted the challenges in railway station but now not able to handle the new challenges out side the railway station.

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Case 2 : EMPLOYABILITY OF DIFFERENTLY ABLED PERSON Distribution of disabled population in the Country/ State India West Bengal % figures Total 21,906,769 1,847,174 8.43 Males Females 12,605,635 9,301,134 1,058,685 788,489 8.39 8.47 Source : Census of India 2002

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Case 2 : EMPLOYABILITY OF DIFFERENTLY ABLED PERSON • Public sector : 0.54 % of total staff strength • Private sector : 0.28 % • MNCs : 0.05 % The right to work is one of the most basic of all our cherished rights. Work gives an individual not only economic self-sufficiency, but also a sense of dignity, self worth, and the satisfaction of making a contribution to society. How can organizations ensure this ?

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Case 3 : Organized Retail & Inclusive Growth • Currently, organized retail accounts for 7 percent of India's roughly $435 billion retail market and is expected to reach 20 percent by 2020. • Retail is the 2nd largest sector after agriculture in the number of people it employs. • There is no fair estimate about the size of the unorganized retail sector in the country, implying that vast majority may face a hidden suffering.

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Thank You Niraj Agarwal Program Coordinator, PwC India Foundation niraj.agarwal@in.pwc.com Facebook | LinkedIn | 9830881557 This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Private Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2011 PricewaterhouseCoopers Private Ltd. All rights reserved. “PwC”, a registered trademark, refers to PricewaterhouseCoopers Private Limited (a limited company in India) or, as the context requires, other member firms of PwC International Limited, each of which is a separate and independent legal entity.