Concept and meaning of CSR : Concept and meaning of CSR Presented By:
Dharmavir Singh Choudhary
Durga Nand Yadav 10/2/2009 Xidas 1 Slide 2: “CSR is about how companies manage the business processes to produce an overall positive impact on society.” 10/2/2009 xidas 2 Corporate Social Responsibilities (CSR) : Corporate Social Responsibilities (CSR) Corporate social responsibility (CSR):
An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society .
The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large.
About how a company manages its business process to produce an overall positive impact on society. 10/2/2009 xidas 3 Meaning of CSR : Meaning of CSR Conducting business in an ethical way and in the interests of the wider community
Responding positively to emerging societal priorities and expectations
A willingness to act ahead of regulatory confrontation
Balancing shareholder interests against the interests of the wider community
Being a good citizen in the community 10/2/2009 xidas 4 Definitions: : Definitions: ‘Corporate,’ ‘Social,’ and ‘Responsibility.’
In broad terms, CSR relates to responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of CSR goes much beyond this. CSR is comprehended differently by different people.
“A commitment to improve community well being through discretionary business practices and contributions of corporate resource” 10/2/2009 xidas 5 Contd… : Contd… Millen Baker:
“A way companies manage the business processes to produce an overall positive impact on society.”
World Business Council for Sustainable Development:
“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. 10/2/2009 xidas 6 Concept of CSR : Concept of CSR CSR(corporate social responsibility) is a concept in which organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities other stakeholders, future generation and on environment. The organizations voluntarily taking advance steps to improve the quality of life for employees and their families as well as for the local community and society. 10/2/2009 xidas 7 CSR in India : CSR in India In India, CSR has evolved to encompass employees, customers, stakeholders and sustainable development or corporate citizenship. The spectrum of CSR includes a number of areas as human rights, safety at work, consumer protection, climate protection and caring for the environment, and sustainable management of natural resources. From the perspective of employees, CSR activities include providing health and safety measures, preserving employee rights and discouraging discrimination at workplace. This helps in fostering a healthy environment within the company. Slide 9: For example, after 1945, TATA implemented social welfare provisions for its employees that have since become the legislative norm. From the perspectives of customers, CRS activities may include commitment to product quality, fair pricing policies, and so.
TVS Electronics was involved in CSR during the Tsunami to provide relief measures to the victims. They have also participated with the government to improve sanitation in a village called Tiruvidenthai. Such initiatives will help in improving the conditions of rural people. CSR: In a developed country : CSR: In a developed country •governance,
•Human rights and
• Environment 10/2/2009 xidas 10 CSR in a Developing Country( India): : CSR in a Developing Country( India): Focus on nation building
Community support 10/2/2009 xidas 11 The purpose of CSR : The purpose of CSR The purpose of Corporate Social Responsibility (CSR) is to make corporate business activity and corporate culture become sustainable in its three dimensions: economic, social and environmental. 10/2/2009 xidas 12 Benefits : Benefits CSR behaviour can benefit the firm in several
It aids the attraction and retention of staff
It attracts green and ethical investment
It attracts ethically conscious customers
It can lead to a reduction in costs through re-cycling
It differentiates the firm from its competitor and can be a source of competitive advantage
It can lead to increased profitability in the long run 10/2/2009 xidas 13 Is CSR the same as business ethics? : Is CSR the same as business ethics? There is clearly an overlap between CSR and business ethics
Both concepts concern values, objectives and decision based on something than the pursuit of profits
And socially responsible firms must act ethically
The difference is that ethics concern individual actions which can be assessed as right or wrong by reference to moral principles. 10/2/2009 xidas 14 Slide 15: Thank you 10/2/2009 xidas 15