Corporate Social Responsibility

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The Business and Society:

1 The Business and Society 0 Mahesh Khatwani Mayur Bore Manish Agrawal Megha Agrawal Mayurkant Jain Minal Jain

Business & its Stakeholders:

2 Business & its Stakeholders All those who participate in some way in the activities of the organisation

Types of Stakeholders:

Types of Stakeholders 3

Responsibility towards Shareholders :

Responsibility towards Shareholders Return on their investment Providing relevant information Incresing their assets Request suggestions 4

Responsibility towards Employees:

Compensation Working condition Communication & sharing information Avoid discriminatory practices Protect from injury & illness Developing skills & listening their request 5 Responsibility towards Employees

Responsibility towards consumers:

Producing according consumers need Supplying quality goods Reasonable price Proper service to consumer Health and safety of consumer 6 Responsibility towards consumers

Responsibility towards suppliers:

Proper supply from supplier Cost reduction Avoid unethical supplier Pay supplier on time 7 Responsibility towards suppliers

Responsibility towards community:

Respecting human rights Supporting public policies Improving standard of living Preserving & conserving the earth’s natural resources 8 Responsibility towards community

Public Policy:

Public Policy Public policy can be generally defined as the course of action (or inaction) taken by the state with regard to a particular issue. A system of "courses of action, regulatory measures, laws , and funding priorities concerning a given topic spread by a governmental entity or its representatives." 9

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10 What is Public Policy? A set of defined or at least definable values; A clear vision of a desirable future that is based on these values that should foresee positive change in life of population. Appropriate strategies that can be implemented in order to realize that vision.


Approaches Although various approaches to policy analysis exist, three general approaches can be distinguished Analycentric Policy process Meta-policy approach 11

Analycentric Approach:

Analycentric Approach It focuses on individual problems and its solutions; its scope is the micro-scale and its problem interpretation is usually of a technical nature. The aim is to identify the most effective and efficient solution in technical and economic terms (e.g. the most efficient allocation of resources). 12

Policy Process Approach:

Policy Process Approach It puts its focal point onto political processes and involved stakeholders; its scope is the meso-scale and its problem interpretation is usually of a political nature. It aims at determining what processes and means are used and tries to explain the role and influence of stakeholders within the policy process . 13

Meta-Policy Approach:

Meta-Policy Approach It is a systems and context approach; i.e., its scope is the macro-scale and its problem interpretation is usually of a structural nature. It aims at explaining the contextual factors of the policy process; i.e., what are the political, economic and socio-cultural factors influencing it. 14

Models to analyze Public Policy:

Models to analyze Public Policy Many models exist to analyze the creation and application of public policy. Analysts use these models to identify important aspects of policy, as well as explain and predict policy and its consequences. Institutional model Process model Rational model 15

Institutional model :

Institutional model Public policy is determined by political institutions, which give policy legitimacy. Government universally applies policy to all citizens of society and monopolizes the use of force in applying policy. 16

Process model :

Process model Policy creation is a process following these steps: Identification of a problem and demand for government action. Formulation of policy proposals by various parties (e.g., congressional committees, think tanks, interest groups). Selection and enactment of policy; this is known as Policy Legitimation. Implementation of the chosen policy. Evaluation of policy 17

Rational model:

Rational model The rational model of decision-making is a process for making logically sound decisions in policy making in the public sector, although the model is also widely used in private corporations. 18



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“A non-governmental organization (NGO) is a legally constituted organization created by natural or legal persons that operates independently from any government and a term usually used by governments to refer to entities that have no government status.”

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Types of NGOs :

Types of NGOs NGO type by orientation:- Charitable orientation; Service orientation; Participatory orientation; Empowering orientation

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NGO type by level of co-operation:- Community- Based Organisation:-SPORTS CLUB City Wide Organisation; National NGOs International NGOs;


ACRONYMS BINGO :- short for business-friendly international NGO or big international NGO; CITS :- helping scientific community by motivating young talent towards research & development CSO :-short for civil society organization; DONGO :- Donor Organized NGO; ENGO :- short for environmental NGO, such as Greenpeace and WWF GONGOs:- are government-operated NGOs, which may have been set up by governments to look like NGOs in order to qualify for outside aid or promote the interests of the government in question; INGO :-stands for international NGO; Oxfam is an international NGO;

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QUANGOs are quasi-autonomous non-governmental organizations, such as the International Organization for Standardization GSO: Grassroots Support Organization MANGO: short for market advocacy NGO CHARDS:Community Health and Rural Development Society

Legal status:

Legal status Unincorporated and voluntary association Trusts , charities and foundations Companies not just for profit Entities formed or registered under special NGO or nonprofit laws




CORPORATE SOCIAL RESPONSIBILITY 350 possible definitions!!

Corporate Social Responsibility (CSR):

Corporate Social Responsibility (CSR) CSR 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. CSR is the responsibility of business to society to perform its economic function of producing and supplying goods and services in a very efficient manner , so as to maximize its profitability.

Pyramid of CSR:

Pyramid of CSR Discretionary Responsibilities Be a good corporate citizen. Ethical Responsibilities Be ethical. Legal Responsibilities Obey the law. Economic Responsibilities Be profitable.

Corporate Social Responsibility :

Corporate Social Responsibility CSR in Equation Form Is the Sum of: Economic Responsibilities ( Make a profit) Legal Responsibilities ( Obey the law ) Ethical Responsibilities ( Be ethical) Discretionary Responsibilities ( Good corporate citizen ) CSR


NEED OF CSR To fulfill long term self interest To establish a better public image To avoid government regulation or control To minimize environment damage To avoid misuse of the national resource and economic power

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Spectrum of CSR Good CSR Poor CSR No employment No concern for indirect effect (land, water, air) Destruction of agricultural land Not willing to listen to other stakeholders Appropriate of land not being compensated Non compliance of rule of land Taking care of workers Low dependence on non renewable resources High awareness about CSR initiatives Land compensation Increased monitoring system Environment responsibility

Key Issues in CSR:

Key Issues in CSR Labour rights: child labour forced labour right to organize safety and health Environmental conditions water & air emissions climate change Poverty Alleviation job creation public revenues skills and technology


BENEFITS OF CSR Reduced operating cost Enhanced brand image and reputation Increased sales and customers loyalty Increased productivity and quality Increased ability to attract and retain employees


CSR PRACTICES BY COMPANIES Toyota -tree afforestation -human and natural environment -social welfare -education and culture

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Coca-Cola -water conservation -education -fitness and active lifestyle

Environmental Ethics:

Environmental Ethics

Issues & Concern:

Issues & Concern Is it important for us to preserve nature for the future generation? If so, are we even making an effort to do that? Is the human race alone important on the face of this earth? If not, then aren't our actions proving otherwise? What would happen if animals, plants and other species are destroyed or there are more and more endangered species ? Would we be affected or would we care? Is our future generations entitled to a clean and green environment? Do they even have a right ?


Contd …. Is it right for us to be responsible for the extinction of certain species only for the sake of our consumption and greed? Are the guidelines which are drawn to protect the environment and nature any effective? What is causing their failure? Is there a need to reform the way in which we deal with protection laws and clauses? What is environmental pollution and pollution of the air, soil and water doing to the world?

The worst Industrial tragedy till date “BHOPAL GAS TRAGEDY” :

The worst Industrial tragedy till date “BHOPAL GAS TRAGEDY”

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3800 people killed within days 20,000 died slowly 120,000 still suffering (15-20 die each month) 1000 animals killed and 7000 injured

Haphazard dumping of Hazardous Material:

Haphazard dumping of Hazardous Material

Slide 45:

The plant still leaks toxic chemicals such as: -Mercury - Trichloroethane -Chlorinated organics -Lead 1999 analysis of groundwater shows - 20,000 times permissible amount of mercury - 50 times permissible amount of trichloroethane 2002 tests show chlorinated organics, lead and mercury in breast milk of nursing mothers

Slide 46:

20,000 KILLED 120,000 SEVERELY AFFECTED …And you thought only weapons could cause Mass Destruction

Mumbai Oil Spill:

Mumbai Oil Spill

What Happened:

What Happened 7 August 2010: Two ships namely MCS Chitra & MV Khalijia collided with each other. Approximately 879 tonnes of oil had spilt from two of the ship’s eight fuel tanks—almost one-third its overall fuel capacity of 2,662 tonnes . 250 containers, some carrying hazardous chemicals and pesticides got hurled overboard.

Environmental Threat:

Environmental Threat This accident has not only affected the flora and fauna in and around the coast but also caused losses to local fisherman. Several aquatic species and sea birds have been found dead along the Mumbai coast, as a result of the oil spill. The formation of thick layer of poisonous oil in the seawaters has inflicted a distressing blow to the biological equilibrium by rendering fishes, turtles and other species immobile due to the caused high viscosity.


CASE STUDY Oil & natural gas limited

Case study of ONGC:

Case study of ONGC ONGC, a major public limited company, is also one of the largest companies in India. In 1991, as part of the liberalization initiatives of the Government of India, core sectors like petroleum were deregulated and de-licensed. Consequently, in 1993, the Oil and Natural Gas Commission was converted into a public limited company, ONGC Ltd., under the Company's Act, 1956.


CORPORATE SOCIAL RESPONSIBILITY AT ONGC The mission of ONGC stated that the company would have an "abiding commitment to health, safety, and environment to enrich quality of community life." socio-economic developmental programs like building schools and hospitals, developing agriculture and cottage industry, building infrastructure facilities, etc., around its areas of operation on an ad hoc basis...

Corporate Level Programs :

Corporate Level Programs disaster relief management and water management projects. For example, when a heavy cyclone hit the eastern state of Orissa in 1999, the company provided immediate relief like food, drinking water, temporary shelters, medicine, clothing, etc. ONGC doctors provided medical treatment round the clock. The company also contributed Rs. 80 million toward the Prime Minister's relief fund and took steps to rehabilitate the cyclone victims...

Work Center Level & Community Development Programs :

Work Center Level & Community Development Programs ONGC was involved in various community development programs like promoting literacy and higher education by providing grants or scholarships to the economically disadvantaged. Donating money for the construction and renovation of schools Promoting healthcare by organizing medical camps, eye check up camps, through mobile dispensaries, etc...


ONGC-PURA In 2003, Dr. A. P. J Abdul Kalam, President of India, put forth the concept of PURA - 'Providing Urban Amenities in Rural Areas'. To bridge the urban-rural gap through a balanced socio-economic development program.


Continued …………….. The main idea was to provide four major connectivity's – physical (transportation and power) electronic (communication network through telecom, the Internet, and IT services) knowledge (institutions and vocational training centers), economic empowerment (through overall socio-economic development) - to rural communities...

Environment Protection Programs :

Environment Protection Programs ONGC took several measures to reduce pollution and support conservation of resources through the utilization of waste. The company formulated its Environment Policy as early as 1983 and adopted environment protection as one of its objectives in 1988.


Department of Environment (DoE) The environment policy of the company made it mandatory to submit an "environmental impact assessment report” to the D.o.E at the time of project formulation... Continued ……………..

Safety :

Safety ONGC set up the Institute of Petroleum Safety, Health and Environment management (IPSHEM) in 1989 with the objective of improving the safety, health, and environment standards in the Indian petroleum industry. institute offered training courses in safety and environment management a special training program for off-shore personnel

Other CSR Initiatives :

Other CSR Initiatives ONGC also participated in promoting sports and games like cricket, football, hockey, athletics, basketball, chess, golf, billiards, and volleyball in India. In 2004, it received the "Best Corporate Initiative in Sports award from the Federation of Indian Chambers of Commerce and Industry (FICCI)...

The present Scenario:

The present Scenario The importance of CSR has increased with globalization, as both investors and customers have become highly sensitive to societal and environment issues. According to Dr. Madhav Mehra , President of the UK-based World Environment Foundation and the World Council for Corporate Governance, the importance of CSR would further increase as the future market would be driven by a younger population.

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