Chittagong Independent University

Assignment on

CSR- examples of CSR bring implements in various

countries/companies 3 good impacts and 3 bad impacts failed to
ensure to CSR.

SUBMITTED TO:

Ms. Ramisa Jahan

Lecturer
School of Law
Chittagong Independent University

SUBMITTED BY:

Meher Nigar
Id: 21154021
Semester: Summer-2022
Course: Corporate Governance
Course Code: LLMHR 520

Date: 22.08.2022
 CSR- examples of CSR bring implements in various
countries/companies 3 good impacts and 3 bad
impacts failed to ensure to CSR

1. Introduction

“What corporations do to society is far more important than what corporations can do for society”
-Peter Druker

Corporate Social Responsibility(CSR) is how companies manage their affairs to produce an

overall positive impact on the society. It covers sustainability, social impact and ethics about core
business – how companies make their money – not just add-on extras such as philanthropy.

The Concept of Corporate Social Responsibility for firms and businesses has undergone a radical
change since its early days and has evolved from a mere slogan to the present day situation where
it is considered no longer a fashion but as the part and parcel of a company’s functioning to be
socially responsible. Companies need to answer 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.

The reason that the firms should put their heart and soul while carrying out CSR activities is that
humanity finds itself in the second decade of the 21st century and taking into considerations of all
the political, economic, social, and environmental problems that the humans are facing,
corporations have a serious responsibility of playing their role in contributing to the well-being of
mankind and society.
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CSR has become an integral part of a company’s functioning and today it has become
indispensable that a firm demonstrates such responsibility. Although, earlier it was not a legal
compulsion that had to be walked through by any firm, but following it was considered as a good
practice for taking into account social and environmental issues.
In recent times, Corporate Social Responsibility has been considered vital for the success of any
firm. The 2015 Cone Communications/Ebiquity Global CSR study found that a staggering 91%
of global consumers expect businesses to operate responsibly to address social and environmental
issues. Furthermore, 84% say they seek out responsible products wherever possible. Above stats
show that the consumer is getting more aware of the CSR with each passing day and they tend to
buy products only from those businesses that follow ethical rules. Since, CSR depicts that a
corporate follows ethics and thus cares about the society, rather than just minting profits. This
helps in attracting customers who share the same values and interests

Companies with Good CSR

Corporate Conscience is all about returning the favour to the society that keeps the business on
the move, maybe even when the same is beyond the reach of the company. Having such a culture
in the company helps the employees to know, that there is something bigger than themselves for
which they are burning the midnight oil; their business is not one dimensional and most
importantly it cares about the people. Companies, nowadays are encouraging their employees to
break a sweat for the society also and thus try to amplify the intentions of the employees and the
mission of the company.

Examples of Companies fulfilling the CSR

Tata Group: The Tata Group conglomerate in India carries out various CSR projects, which are
mostly aimed at the upliftment of the poor strata of the society. It also engages itself in the
women empowerment activities, income generation, rural community development, and other
social welfare programs. Apart from this, the company also engages itself in the field of
education i.e. by providing scholarships to various students and institutions and healthcare
services such as facilitation of child education, immunization and creation of awareness of AIDS.
Ultratech Cement: India’s biggest cement company also plays its part in social activities by
carrying out philanthropic activities across 407 villages in the country. Their main focus is on
health care and family welfare programs, education, infrastructure, environment, social welfare,
and sustainable livelihood.
Mahindra & Mahindra (M&M): strives for the promotion of education. The company focuses on
assisting various economically backward sections of the society in the field of education and
further provides investment in scholarships and grants livelihood training, healthcare for remote
areas, water conservation, and disaster relief programs.
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CSR: A Failure
Mandating CSR for businesses will not do any good unless there are proper mechanisms for its
enforcement. One of the main hindrances that stand in the way of effective CSR enforcement is
finding credible projects that the corporates can support. According to Guardian, bigger charities
are being flooded with money, while the smaller charities have to seek their way for finding of
funds due to which they lack the resources and capacity to cope up with the company’s
bureaucratic and operational demands. According to KPMG Report, geographic bias with respect
to the company’s funding of CSR activities is also prevalent, as firms tend to fund those projects
that are closer to where they are based. This results in industrialized areas getting preference over
the poorer and underdeveloped areas that are truly in need of some development and aid.
A survey by accountancy firm KPMG found that 52 of the country’s largest 100 companies failed
to spend the required 2% last year. The fact that about 50% children in India are malnourished
due to acute poverty, relief and care only appears as a distant dream to them. It is the
government’s duty to determine and fulfil the needs of the society by channelizing the funds of
the public. With the CSR law, the government has failed in one of its primary functions

Companies with Bad CSR

Nestle: Nestle is subject to the world's longest running boycott for the irresponsible marketing of
baby milk to mothers in the developing world. The company has also been criticised for a number
of other businesses practices including the use of unsustainable palm oil and genetically modified
ingredients in its foods.
Tesco: From its run-in with the Serious Fraud office to the squeeze it puts on suppliers, Tesco has
long had questionable ethics. The company has begun to take some sustainability issues seriously
with some positive policies on supply chain management and timber sourcing. However,
according to Greenpeace, it is still buying chicken and pork from Brazilian-owned companies
Moy Park and Pilgrim’s Pride. These are UK subsidiaries of the Brazilian meat giant JBS, a
company notorious for its role in forest destruction.
Tesco continues to have one of the lowest scorers on our database.
Coca Cola: Coca Cola has had a long history of workers' rights violations at its bottling plants. It
is currently under two boycott calls linked to this issue at its plants in Colombia. It has also had a
poor record on the environment being accused of taking water supplies from rural communities
and falsifying environmental data.

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Conclusion:
Corporate Social Responsibility has become an innate part of the working of Corporates in recent
times. Though the concept of CSR was prevalent in India since antediluvian times, it is only,
recently that the concept has picked favouritism in the companies.
A new urgency in the backdrop of heightened awareness has single-mindedly changed the focus
of the firms on Corporate Social Responsibility. It is CSR only that helps the environment and
society to be treated the way they should be treated i.e. with respect. Although, CSR, has really
proved to be fruitful and beneficial but to say that it has totally achieved its objectives, would be
to negate the truth. Much needs to be done on this staid and sombre issue. If we have a closer
look to this picture, we will find that the situation is quite antonym and astounding as due to lack
of proper enforcement mechanisms and efficient CSR policies, the success of CSR remains a
distant dream. The government should comprehend that corporates play an important role in the
development of a nation and thereby they should make proper policies for the same and should
ensure that apart from bigger charities, small charity organisations also get their due recognition.
The government should also take initiatives in ensuring that all the areas get benefited from the
social work of companies so that the disparity and bigotry among various regions gets converted
into equality. The root cause of less success rate of CSR is the consideration of CSR as another
form of tax that lingers on the necks of corporate heads. The government should thus safeguard
that the perception and discerning of people gets improved. They must work towards developing
a feeling of empathy in them, as this will not only make them motivated to do the right work but
will also encourage them to report the right CSR expenditure. But, the problem does not finish
there, as a lot of other quandaries still continue to haunt the government and among them, the
most pivotal and fundamental is the lack of knowledge about CSR activities among remote areas
and lack of any penalizing provisions. In order to tackle this oblivion among the companies, the
government should constantly thrive towards promoting the same and thus should try to bring
some penalizing provisions for CSR, as a pocket burn will give the strongest message to the
companies. Apart from this, the government should also ensure that there is enough transparency
and consensus in the whole process of Corporate Social Responsibility. But, a colourful change to
this reprehensible situation can only be brought, when to work for the society comes from one’s
own conscience. Government endeavours will all prove futile, if the yearning and longing to
work for the benefit of the environment and society does not come to companies from innate and
as it is rightly said that you can only bring the horse to the pond but can’t make it drink the water.

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