Other definitions

The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition. 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 The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government from Ghana, through to CSR is about business giving back to society from the Phillipines. My own definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society. Traditionally in the United States, CSR has been defined much more in terms of a philanphropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because: 1. Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. 2. When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove. But as with any process based on the collective activities of communities of human beings (as companies are) there is no 'one size fits all'. In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues. For instance, the CSR definition used by Business for Social Responsibility is: Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. On the other hand, the European Commission hedges its bets with two definitions wrapped into one:

A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. When you review each of these, they broadly agree that the definition now focuses on the impact of how you manage your core business. Some go further than others in prescribing how far companies go beyond managing their own impact into the terrain of acting specifically outside of that focus to make a contribution to the achievement of broader societal goals. It is a key difference, when many business leaders feel that their companies are ill equipped to pursue broaders societal goals, and activists argue that companies have no democratic legitimacy to take such roles. That particular debate will continue.

April 2011 Monthly Feature

Definition of Corporate Social Responsibility

By

Michael Hopkins So many people ask me about the definition of CSR, and many more don't seem to have a clue. The biggest challenge comes from those who encourage 'Sustainability' and then only focus on purely environmental measures. Curiously there are those, especially in the USA, who think anything 'Social' means socialising corporations. Nonsense! The whole

point of this movement is to encourage companies to make profits while subjecting the 'process' to responsible behaviour, i.e. it is not profits at any cost but how profits are made. Moreover I can buy the term 'Corporate Responsibility' (i.e. CSR without the 'S' )as long as it means the same as my translation of social as in 'social sciences' at most Universities into social, economic and environmental fields of study (plus others). My own definition is:

1. Michael Hopkins' Definition of CSR

3.Corporate Social Responsibility is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner. Ethically or responsible' means treating key stakeholders in a manner deemed acceptable according to international norms. 4.Social includes economic and environmental responsibility. Stakeholders exist both within a firm and outside. 5.The wider aim of social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporation or the integrity of the institution, for peoples both within and outside these entities. 6.CSR is a process to achieve sustainable development in societies. Original Source: Michael Hopkins (MHCi): A Planetary Bargain: Corporate Social Responsibility Comes of Age (Macmillan, UK, 1998) Updated by author July 2011 (point 4 based upon suggestion by Nadine Hawa, student in my class at University of Geneva) Briefly, 'CSR is about treating all stakeholders responsibly or ethically.' This definition is discussed further below but, first, let's have a quick look at other definitions.

2. Other popular definitions of CSR

[Carroll, 1979; 2008, 500]: "The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that a society has of organizations at a given point in time." EU Definition of CSR: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."

Mallenbaker Definition: "CSR is about how companies manage the business processes to produce an overall positive impact on society" The World Business Council for Sustainable Development (WBCSD): "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"

Some comments on these definitions and Sustainability:

Carroll: This describes well what society might expect of a business but, simply, ignores external stakeholders.

Carroll's definition is often pictured in the above CSR Pyramid, and is where many CSR practitioners and theoreticians start. As can be seen above, he argued that companies should have economic responsibilities. Obviously, without making a profit then a company will cease to exist and CSR dies. However, the key issue is that CSR is not anti-profits, simply is all about how profits are made! Carroll then goes on to mention legal responsibilities but doesn't consider those countries where the law is ignored (corrupt Governments for instance) or has been modified to support cronyism. No easy guide here,

but remember that rules are made for the guidance of wise men, and the observance of fools'! Ethical responsibilities come next, but it seems that ethical behavior (see, for instance, ..... Business Ethics [Paperback, 2009, Prentice Hall], by Andrew Wicks, R. Edward Freeman, Patricia H. Werhane, Kirsten E. Martin and the discussion below) is not so easy to define. Perhaps the best is 'do unto others as you would wish to be treated yourself'. At the top of the pyramid is philanthropy'. Prof. Donna Wood, one of the early pioneers in CSR [Adele Santana & Donna J. Wood (2009). Information, Corporate Social Responsibility, and Wikipedia. Ethics and Information Technology, 11 (2), 133-144], has had a fascination with Carroll's pyramid and cites her student who, famously, put the pyramid on its head. In this way, philanthropy is seen as a first step toward CSR. Nevertheless, in my above model I would exclude philanthropy (see my thoughts on [INTERLINK]Philanthropy and CSR) and then not treat any of the levels as superior, or inferior, to any of the remaining others. EU: Here we have a consideration of both internal and external stakeholders. But it does not say how social values are to be addressed i.e. responsibly or ethically, simply says to interact. This could mean simply reading a newspaper to a full-fledged approach. But, the main issue is the word voluntary'. In early discussions of CSR, the fear was that CSR meant that there would be a new set of standards followed by laws on all aspects of CSR. Today, there is concern that too many standards could bring industry to a halt. What we believe (see section below on should CSR be compulsory') is that each law (or standard)needs to be carefully treated so as to ensure that serious abuses are illegal while others do not interfere with local customs and culture. Clearly, such a statement raises a whole host of questions as to whether, for instance, women should be forced to wear headscarves or forced not to in some countries? What do you think? Mallenbaker Model: Mallen Baker is included here because of his interesting blog and discussion on CSR definitions (see: http://www.mallenbaker.net/csr/definition.php). His graph, below, has also appeared quite frequently as well. His definition is limited in that he only looks at the impact on' society. But his graph extends his shorter view, as does the text on his website, where he states that Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on society in the various areas.'Yet he does not explore his graph further in terms of internal

stakeholders, preferring to note that Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance.'

The

World

Business

Council:

(see:

http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?MenuID=1) is a CEO-led, global association of some 200 companies dealing exclusively with business and sustainable development. It simply mentions ethics and contribution to economic development as two key components of CSR. Thus most of its members tend to see CSR as promoting economic development, particularly in emerging (developing) countries. Which is one of the reasons why CSR tends to be sometimes misunderstood as essentially focusing upon development.

http://www.projectguru.in/p ublications/importance-ofcorporate-socialresponsibility-to-societies/
Importance of corporate social responsibility to societies
Article by Priya Chetty on May 18, 2012 Discuss now (1) Go to comments Corporate social responsibility generates direct and indirect business benefits and advantages to the corporation that adopt it (Bueble, 2009). In synthesis, the benefits and advantages that corporations adopting Corporate social responsibility initiatives may obtain are the following (Campbell, 2007):

7. 8. 9. 10. 11.

Increased employee loyalty and retention; Gaining legitimacy and access to markets; Less litigation Increased quality of products and services; Bolstering public image and reputation and enhanced brand value; 12. Less volatile stock value; 13. Avoiding state regulation; and 14. Increased customer loyalty; Corporate social responsibility (CSR) activities amongst various corporations and its stakeholders could contribute to the macroeconomic development of a developing country through sustainable benefit to all. At the same time, optimum national impact, cooperation, and communication would be encouraged and socialized. The following are the various benefits of corporate social responsibility to the society

Local community and society

improved quality of life and Changed habits, Capacity building creates wealth and employment.

The world and environment

Balanced ecosystems Waste management Clean and Green environment.

Corporations
Goodwill and Community acceptance Profit, Growth, competitive edge and image Genuine dialog with stakeholders Spiritual and Pride values to their families and employees.

Thus it can be understood that, corporate social responsibility helps in building a reputation as a responsible business and as a good citizen.

The Benefits of Corporate Social Responsibility

88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society. - Better Business Journey, UK Small Business Consortium

Why do we need CSR?

Consumers increasingly don't accept unethical business practices or organisations who act irresponsibly. Advances in social media (giving everyone a voice) mean that negative or destructive practices quickly fuel conversations online. Organisations are accountable for their actions like never before.

The Business Benefits of CSR

CSR should not be viewed as a drain on resources, because carefully implemented CSR policies can help your oragnisation: 15. 16. 17. 18. 19. 20. 21. Win new business Increase customer retention Develop and enhance relationships with customers, suppliers and networks Attract, retain and maintain a happy workforce and be an Employer of Choice Save money on energy and operating costs and manage risk Differentiate yourself from your competitors Generate innovation and learning and enhance your influence

22. 23.

Improve your business reputation and standing Provide access to investment and funding opportunities

Generate positive publicity and media opportunities due to media interest in ethical business activities

http://www.ehow.com/info_7819014_corporate-social-responsibilityobjectives.html

Corporate Social Responsibility Objectivesand customers.

Corporate social responsibility, CSR, is a popular business ideology in the 21st century. It expands on common business ethics to address broader and stronger standards of social and environmental accountability placed on companies following the Enron scandal, and others. The government uses regulations and the public uses the information economy to hold companies to the standards of CSR. Companies that adhere to these expectations typically seek strong customer relationships and sustainable operations.

Customer Loyalty
Customer retention and loyalty have long been primary objectives of companies building for long-term success. Business strategist Robert Moment points out in his WebProNews article "The 7 Principles of Business Integrity" that the foundation of CSR is honesty and integrity. Thus, companies that want to develop strong customer relationships must proves themselves to questioning and cautious consumers. This means consistent and ethical actions and transparent communication that avoids misleading and misinterpretation.

Strong Supplier Relationships

Supplier relationships are one of the core stakeholder relationships that CSR companies focus on. In the 21st century, many large organizations have reduced the total number of suppliers they work with so they can build stronger partnerships. This enables them to improve the value of the delivery to the end customer. It also allows these distribution channel partners to cooperate in reduction of transportation inefficiency and waste.

Improved Employee Productivity

Leveraging the capabilities of your most important assets -your employees -- is another primary objective of CSR, which is highlighted by the As You Sow Foundation. Incorporating employees into business decisions is one of the main ways managers can show trust in employees. Managing diversity is also very important. CSR company leaders establish a work culture that values equal hiring opportunities and a nondiscriminatory work environment. Diversity can create better ideas and results if employees are trained to work together. Otherwise, tension and low morale result.

Better Community Relations

Moment emphasizes the importance of community involvement to fulfill the social requirements of CSR. This means participating in community activities and giving back through employee volunteer programs and charitable contributions. This demonstrates consideration for your role in the community, beyond just profiting from it to give stronger returns to shareholders. Additionally, companies are closely monitored by the government and environmental groups for green-friendly operations. This includes recycling programs, efficient use of natural resources and reduction of waste.

http://www.management-issues.com/2006/5/25/opinion/csr-an-introduction.asp

CSR - an introduction
Corporate social responsibility (CSR) is also often referred to as business responsibility and an organisation's action on environmental, ethical, social and economic issues. The terms in the area can seem confusing if you don't know the jargon but don't be put off by this.

A well-run business is transparent in its decision-making and processes and this makes for good governance.

You need to think of CSR simply as ensuring that your business is aware of its impacts, is accountable for its actions, and that it undertakes these actions in a responsible manner. Furthermore, a well-run business is transparent in its decisionmaking and processes and this makes for good governance. CSR can be described as an approach by which a company does the following: Recognises that its activities have a wider impact on the society in which it operates, and that developments in society in turn impact on its ability to pursue its business sustainably. Actively manages the economic, social, environmental and human rights impact of its activities both locally and across the world, basing these on

principles which reflect both international values and the organisations own values (ethics), reaping benefits for both its own operations and reputation as well as the communities in which it operates. Seeks to achieve these benefits by working closely with other groups and organisations local communities, civil society groups, other businesses and home and host governments.

Where did it come from?

In the 1970s and 80s environmental concerns such as loss of the rainforest and the effects of pollution led to a recognition that something had to be done to change the way we were using the planet resources. As a result, heads of state came together at Rio, Brazil in 1992 for what was called the Earth Summit. At Rio, governments pledged action to stop the unsustainable use of resources and to promote sustainable development. Put simply, sustainable development is about society growing in such a way that future generations are not compromised and have access to the same resources that we have. For this to happen social, environmental and economic considerations should be assessed together and not in isolation. The Earth Summit produced various United Nation conventions including conventions on biological diversity and climate change. CSR is now sometimes considered as the business response to the challenge of sustainable development. The 1990s saw social concerns come to the fore. Poverty and disease became global concerns, as did examples of poor business practice in dealing with social issues such as child labour, bribery and corruption that were exposed by the media. Society began to recognise that governments alone could not solve these problems. Indeed the outcomes from the Earth Summit's successor the World Summit for Sustainable Development in 2002 focused on partnerships. There appeared to be a role for everyone governments to provide fair and socially just laws, business to behave responsibly and consumers to think about their actions

by reducing waste or asking questions about how and where their goods came from. How and why is it relevantAs CSR is all about values and accountability then it is also about the behaviour of your people and the behaviour of your suppliers. In this sense virtually everything that is found within the HR remit - from training, recruitment, staff retention, policies, procedures and strategy - involves CSR. Traditionally HR and CSR have been led by the need for compliance and keeping up with new laws on employment as well as environmental, ethical and social issues. Increasingly HR managers are crucial to the delivery of training to deal with these issues in terms of organisational objectives and strategy. Equally important is the importance CSR has to recruitment: 75% of UK professionals take social or ethical considerations into account when changing employment. Whilst over half of graduates will not work for companies they believe to be unethical. Corporate governance is a board level hot topic - you only have to look at how much publicity the Higgs report on the role of non-executive directors received and it will continue to develop, as there is increased recognition that how an organisation is run is key. This can cover many areas such as financial integrity, transparency and accountability, leadership from the board and being employer of choice. It is central to the implementation of policies and programmes. Having good corporate governance means that these areas are embedded in the organisation and deliver to the business and to stakeholder objectives, and are not just nice-to-have. The HR manager has become central to this role in helping deliver culturally open and transparent organisations where dialogue is celebrated not feared.

For a business being CSR compliant is also an exercise in future-proofing its business as risks and opportunities are identified. Quite often changes lead to performance improvements such as increased staff retention and customer satisfaction. Adding this value is one of the main reasons why CSR is of increasing relevance to the HR manager. CSR is a crosscutting topic under which numerous issues can be grouped including training and education, capacity building, leadership, health and safety, working conditions, human rights, stakeholder engagement and corporate governance. Large multi-national companies were the first to identify CSR as a potential tool to improve performance and now through their supply chain they are asking suppliers to comply to their standards. It is here to stay. In the UK there is a minister responsible for CSR within the Department for Trade and Industry and there are a plethora of guidelines, indices, benchmarks, standards and legal codes. The HR function is becoming central in the delivery of CSR and governance in organisations, and this series will help you understand why.

http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/rs00128.html

Introduction
Responsible business is good business
There is growing recognition of the significant effect the activities of the private sector have on society -- on

employees, customers, communities, the environment, competitors, business partners, investors, shareholders, governments and others. It is also becoming increasingly clear that firms can contribute to their own wealth and to overall societal wealth by considering the effect they have on the world at large when making decisions. Report on Business Magazine recently noted that "many business leaders now believe that doing good for others means doing good for shareholders as well."1 Corporate social responsibility activities that integrate broader societal concerns into business strategy and performance are evidence of good management. In addition to building trust with the community and giving firms an edge in attracting good customers and employees, acting responsibly towards workers and others in society can be in the long-term interest of firms and their shareholders. "There is no way to avoid paying serious attention to corporate citizenship: the costs of failing are simply too high. ... There are countless win-win opportunities waiting to be discovered: every activity in a firm';s value chain overlaps in some way with social factors-- everything from how you buy or procure to how you do your research-- yet very few companies have thought about this. The goal is to leverage your company';s unique capabilities in supporting social causes,and improve your competitive context at the same time. The job of today';s leaders is to stop being defensive and start thinking systematically about corporate responsibility." Michael Porter, Professor, Harvard Business School, at the April 2005 Business and Society Conference on CorporateCitizenship, sponsored by the University of Toronto';s Rotman School of Management Businesses are an integral part of the communities in which they operate. Their success is based on continued good relations with a wide range of individuals, groups

and institutions. As Michael Sabia, President and Chief Executive Officer of BCE Inc., has said, "Corporations are also social institutions. What they do and how they act and the role they play in the community they operate in is important. ... We can build better communities, stronger communities and, frankly, better places to operate business. The opportunity we have is compelling."2 Canadians have high expectations of the private sector for responsible behaviour. Consumers expect goods and services to reflect socially and environmentally responsible business behaviour at competitive prices. Shareholders also search for enhanced financial performance that integrates social and environmental considerations. For example, according to a 2003 Environics poll conducted for Environment Canada, 9 out of 10 Canadian shareholders wanted fund managers to take environmental and social performance into account when valuing companies. In a 2004 GlobeScan survey, while 17 percent of Canadian respondents indicated that they had read a corporate social or environmental report, 77 percent indicated an interest in learning more about corporate social responsibility. In addition, 71 percent noted their belief that consumers can make a difference in how responsibly a company behaves.3 Research by global organizations, including the World Economic Forum, the International Institute for Management Development, and Transparency International, indicates that Canadian business leaders are considered to be among the most credible, most ethical, least corrupt and most value-driven in the world.4 At the same time, leading industry associations, such as the Canadian Council of Chief Executives, have suggested Canada might gain a competitive advantage from corporate social responsibility: "The very turmoil that has created so much market uncertainty therefore creates an opportunity for Canada to establish another important advantage in the global competition for people and investment. Establishing Canada's reputation as the location of choice for well-run and responsible enterprises would represent a powerful contribution to our broader goal of making this country the best place in the world for people to live and to work and for

enterprises to invest and to grow."5 But while Canadian firms may have a good reputation on the whole, they risk losing their hard-earned good name when they fail to put systematic approaches in place to ensure continued positive performance. The effect of a tarnished reputation often extends far beyond that one firm: entire sectors and, indeed, nations can suffer. There are several notorious examples of corporations losing their footing as a result of questionable behaviour, with many others subsequently being the victim of the collateral damage. These firms frequently expend considerable time and money attempting to regain their reputation, with mixed results. So what can be done to increase the likelihood that Canadian firms will enhance their good reputation, and continue to demonstrate positive social and environmental performance? One thing that governments are well placed to do is share information about best practices and provide guidance to firms concerning systematic approaches to meeting economic, environmental and social objectives in a balanced manner. These are the key objectives of this guide.

http://businessthatcares.blogspot.in/2010/08/corporatesocial-responsibility-and.html

Introduction Corporate social responsibility (CSR), also known as sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure their adherence to law, ethical standards, and internati onal norms. Business would embrace responsibility for the impact of their activities on the environment, consumers, employees, communities,

stockholders and all other members of the public sphere Corporate Social Responsibility is a very well known concept in the present day world. Infact the corporate giants are very conversant with corporate social responsibility or corporate sustainability in today's parlance.. The responsibility they have towards the society and the community as a whole cannot be denied. A tremendous surge and then a sustained consistency in the progress of the concept of CSR has been witnessed over a span of quite a number of years, elevating it to the highest pedestal of importance in all aspects of business and production, be it private or public. In the modern times the concept CSR incorporates and strives to explain and clarify numerous co related and uncorrelated issues peculiarly, particularly or especially pertinent to SOCIAL and environmental interests and welfare, keeping in full view the financial interests and benefits of the shareholders. Responsibility has more or less taken the shape of accountability and obligation. Business ethics has also been brought into the arena of corporate social responsibility. Infact an ethical business performance acts as a positive catalyst in hastening the process of corporate success via motivating the employees and the underlying system. Corporate Social Responsibility (CSR) is a commitment to improve community well-being through discretionary business practices and contributions of corporate resources. However it is not charity but it is a core business strategy of an organization. It is not a common term,infact many Indian companies talked about responsible business or triple P(People, Planet and Profit).Some others of corporate citizenship or stewardship, responsible entrepreneurship and triple bottom line. Responsible competitiveness is nothing other than CSR.

Towards developing a rationale for Corporate Social ResponsibilityCSR goes by many names, which include: corporate citizenship, corporate philanthropy, corporate giving, corporate community involvement, community relations, community affairs, community development, corporate responsibility, global citizenship, and corporate societal marketing. It makes no difference what this social commitment of companies is called. It is a NEW way of doing business to cater to the needs of the market and its stakeholders. Social responsibility is the

responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that is consistent with sustainable development and the welfare of the society; takes into account the expectations of stakeholders ; is in compliance with applicable law and consistent with international norms of behavior and is integrated throughout the organization.This is a working definition by ISO 26000 working group on social responsibility (Sydney, February 2007) CSR is the way in which an organization strikes a balance between economic, social and environmental imperatives on the one hand and the expectations and welfare of the shareholders on the other. This implies that social responsibility or rather its execution involves a well planned strategy. Assessment of the social environment, formulation of objectives, devising operational plans and programmes, monitoring social progress, assessment of social and economic impact and summary of outcomes and performances are of utmost importance.In other words CSR implies that the profits of corporate houses should be diverted to socially responsible activities for the benefit of the society. Companies can exert an emphatic influence over the quality and credibility of its products in the market through its CSR activities, which has a great impact on society and also provides better synergy returns to their business. In fact CSR is the impact of organizational activity on society. CSR is becoming an increasingly important activity to businesses nationally and internationally. As globalization accelerates and large corporations serve as global providers, these corporations have progressively recognized the benefits of providing CSR programs in their various locations. CSR activities are now being undertaken throughout the globe. The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities, which again necessitate all business houses whether private or public to carry out CSR activities. The government has declared it compulsory for industries to be socially responsible. They cannot ignore the society while carrying out production and amassing profit. A vibrant association or a high degree of correlation can be revealed between CSR and good public governance. Earlier this was neither specified nor executed, as the industrial policy resolutions failed to point out the real role of industries in society. Infact the real costs that the society incur, are primarily due to the presence and operation of the industrial houses. Public sector units may have to shell out 2-5% of profit in CSR. CSR for a PSU may no more be a photo opportunity for its chairman but would involve people-centric projects to be funded by 2-5% of the company's net profit.

J.R.D TATA, the founder of TATA STEEL, stated, Every company has a special continuing responsibility towards the people of the area in which it is located and in which its employees and their families live.' The aspect of social responsibility of a company is mainly concerned with the role of the company in addressing issues of societal benefit and of reduction in social costs. There have been different instances where businesses originate in social awareness and welfare. Corporate Social Responsibility is a growing movement and to sustain it, it is necessary to improve and promote the interest in investment and the competence of both the society in general and of the governments in the individual countries to adjust to the CSR programme. As for example the Grameen Bank which started by providing loans to the low income groups has now been able to provide financial returns which are reasonable in nature and helped improve lives of many people. The Grameen Bank and Grameen Foundation USA (GFUSA) have coordinated with big companies or corporate houses to expand their activities. Always there is interdependence between the society and the organization in question or rather a cycle of relationship exists between the two in which the society supports and sustains the organization while the latter is totally committed to the sustenance and development of the former. A one sided picture distorts the entire concept of CSR- which is conceptually a one way process of social accountability. One must not forget that a flow in one direction cannot last long until and unless backed by other reciprocating flows. This implies that the role played by society is not a passive one or a neutral one. The growing responsibility of the society and the community in general cannot be denied at all. The awareness level of the society, which in turn is correlated with the literacy level, the standard of living, the preference pattern is a major determinant in this area- which helps individuals to voice their demands and grievances in a systematic manner ensuring that organizations in that locality practice CSR in a way that truly benefits society. The aim of every organization is to produce and distribute goods and services in such a way that income exceeds cost. Society expects the organization to be socially responsible as the economic environment of the society is dependant on the business environment. Socially responsible business is a common term today as business and societies are unthinkable without each other. Cisco takes an entrepreneurial or venture-capital approach to social investing. They address important social issues through multiyear initiatives that can have an immediate impact, but that also can scale in

size and scope, be replicated in other environments, and support a mechanism for achieving sustainability over time. These initiatives generally take the form of public-private partnerships that respond to a broad range of stakeholder perspectives and make the most of Cisco's core competencies, including their technologies, expertise, and collaborative approach. They apply a four-stage "Cycle of Innovation" model to each of their social investments, remaining engaged through some or all of these cycles: 1. Identify innovative opportunities that address issues in their areas of focus. 2. Develop a framework for action, then test or pilot a solution and assess the results. 3. Scale the successful implementation and replicate it to fit similar situations. 4. Operate and maintain the initiative to the point where it can sustain itself, then adjust our engagement and look for another promising opportunity. They believe that in the long run, education provides the strongest foundation for lasting social and economic progress. By applying effective 21st century educational techniques in schools and other institutions, communities worldwide can prepare students to enter the local talent pool and provide the skills needed to bolster economic growth. Cisco's education initiatives, including what may be the largest e-learning program in the world, help fill our own talent pipeline and those of our business partners, while also helping to close the technical skills gap that exists in many areas of the world. But beyond that, Cisco's many education-oriented engagements create trusted relationships and seed the workforces of many types of organizations with knowledgeable people who are capable of building and maintaining the infrastructures upon which societies everywhere depend. In this way, we are contributing to a sustainable economic environment that will reward our corporate stakeholders and our fellow citizens alike. Conclusion Thus Corporate Social Responsibility (CSR) is about how companies manage the business processes to produce an overall positive impact on society. Thus companies consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees shareholders, communities and other stakeholders, as well as the environment. This is seen to extend beyond the statutory obligation to

comply with legislation as organizations are voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. If a company chooses to follow the way of CSR, it will integrate ethical concerns in its activities and in its interaction with all the. stakeholders. This implies that the corporate units function in such a way that their CSR activities in all likelihood actually reach out to the beneficiaries the society in general. The ethical considerations are aimed at preparing the groundwork for expecting the correct reaction or response of their CSR generated activities It would be useless to even try to initiate action where the response generated would be negative. This is why prior to corporate social responsibility lies the work of preparing the society for the same, which should be the joint efforts of corporates, non-governmental organisations and definitely the monitoring authority, that is the government. Such concerted efforts can expectedly produce the desired results.The groundwork is essential ,since an unresponsive,obstructive ,unwilling,suspicious recipient ,in this case the society,will actually deter all efforts directed towards development and cause unnecessary delay and confusion.Providing employment andspreading literacy will actually see the commencement of CSR.Yes,the question willdefinitely arise that if transport and communication is grossly undeveloped ,how is it possible to spread literacy? The obvious solution would be the involvement of the residents in the construction of roads and other communication networks,which would therefore guarantee them employment. The monitoring authority or the government has a very important role to execute here.Of course organisations like TSRDS (TATA STEEL'S CSR) are laying their own groundwork for successful implementation of their corporate social responsibility, and in this sphere they are the forerunners and the pathfinders.With its headquarters in Jamshedpur TSRDS has been able to establish its credibility inthe society it operates,actually transforming a resistant tribal undeveloped social set up to a group of faithful recipients and respondents who rely wholeheartedly on the csr development drives of the organisation,and it did take time .Therefore a valid conclusion would always be directed at a functional relationship between the corporates and the society, where a third entity ,the government plays the monitoring role. Reference 1.B.Wenther Williams, Chandler David-Strategic Corporate Social Responsbility:Stakeholders In A Global Environment

2.Blake .D.H. ,The Management Of Corporate Social Policy 3Chatterjee N.N ,Social Responsibility Of Business: Some Indian Myths & Realities Decision vol 8, sep 1976 4.Chris C Ganotis,Managerial Attitudes Towards Corporate Social Responsibility, Paper presented at University of California.at Berkley (Nov 9-11, 1972)

http://research-methodology.net/corporate-socialresponsibility-csr-recommendations-for-businesses/

Corporate Social Responsibility (CSR) Recommendations for Businesses

Posted on July 26, 2012

Some of the secondary data authors have formulated their recommendations for businesses in terms of engaging in CSR activities with an increased level of efficiency. Most noteworthy recommendations are proposed by Jonker and Witte (2006), Asongu (2007), Bacher (2007), Schreck (2009), Hawkins (2009), Schwartz (2011) and others. Reasoning about the importance of engaging in CSR activities

for businesses Schreck (2009) states that although beyond compliance firm behaviour might be a good indicator for socially responsible behaviour, it is critical to assume that CSR starts only where the law ends (Schreck, 2009, p.11). Secondary data authors also highlight the importance of sources of CSR principles and policies for businesses. Sources of corporate social responsibilities are, for example, business principles that were developed by supranational organisations or are derived from international conferences, such as the Caux Round Table Business Principles. These Codes of Conduct are not legally binding (Bacher, 2007, p.9). Jonker and Witte (2006) formulate following recommendations for businesses in order to engage in CSR activities with an increased level of efficiency: a) Achieving increased level of cooperation between the various departments of the business in terms of achieving CSR related aims and objectives; b) Engagement in strategic use of social investment budget;

c) Introducing CSR aspects of the business at the initial stages of the project and integrating it with long-term aims and objectives; d) Specifying the activities of stakeholder identification and engagement as a continuous process; e) Ensuring the existence of CSR skills in all employees within the organisation; f) Implementing an effective audit/review system in terms of

improving the quality of CSR. Some of the authors of secondary data sources like Johnson et al (2008) and Mullerat (2010) stress the role of government in regulating CSR-related issues. A specific recommendation formulated in that aspect states that governments have to foster accountability and transparency in CSR practices to prevent them from being used as smoke screens by corporations to hide their malpractices. Governments can do this by, for example, actively encouraging companies to disclose their social and environmental policies in their accounts on voluntary basis (Mullerat, 2010, p.102)