Drivers , Barriers and Impacts

Presented By,
Arun Jose (09AC02)
Kaja Hussain (09AC16)
Kowsalya Suganthi (09AC19)
Krishnadas Krishnankutty (09AC20)
 Presentation Outline
• Introduction about CSR

• Focus of CSR
• Drivers of CSR

• Barriers of CSR

• Impact of CSR

• Conclusion
 Introduction about CSR ( 1 of 3 )

• Meaning:–
Transparent business practices that are based on ethical
values, compliance with legal requirement, and respect for
people, communities, and the environment.
 It is a form of corporate self-regulation integrated into a
business model.
 “Corporate Citizenship” – Business Community – ‘Good
Neighbor’ within host community
 Introduction about CSR ( 2 of 3)

• Definition:-
 No universal definition
 World Business Council for Sustainable Development
defines Corporate Social Responsibility (CSR) as “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.”
 Introduction about CSR ( 3 of 3 )

• Explanations:-
 “The needs of the present without compromising the ability
of future generations to meet their own needs”
 Voluntary contribution by business organizations to social
(including environmental) welfare.
 CSR is considered to be the business contribution to
Sustainable Development .
 Focus of CSR
• CSR-focused businesses would proactively
promote the public interest by encouraging
community growth and development, and
voluntarily eliminating practices that harm the
public sphere, regardless of legality.
• CSR – emphasizes obligation and accountability
to society.
 Why CSR?
• To stay
 Productive,
 Competitive and

 Relevant in a rapidly changing business world.

• For tax deduction

• To have favorable public image
• To avoid labor disputes
• To gain efficiency through economies

of scale.
 Drivers of CSR in a company
Drivers

Internal External
Drivers Drivers

Relates to practices internal to

company which need to be Relates to practices concerning
modified to incorporate CSR external stakeholders.
practices
 Internal Drivers

• Employee awareness (competition for human

capital)
• Risk management which includes public opinion
and environmental impacts caused by climate
change.
• Depends on the size of the organization .
 Internal Drivers
• Difference in the perception of internal drivers
and barriers between SMEs (Small and Medium
Enterprises) and large organizations.
-Due to organizational characteristics
such as resources, industry competition, media
scrutiny, and customer and supplier bargaining
power.
 Internal Drivers
• The lack of resources.
- The failure to delegate responsibility with sufficient
resources or power to implement change.

• Managerial support.
- Top-level managerial support is vital .

- Employees criticized the lack of support.

- Complexity of the interrelation of issues and processes

exceeds the routine-based, production-line oriented work.
 Internal Drivers
• Minimum set of environmental skills.
• Importance of the individual .
-Played a key role in the internal development of CSR.
-Interrelationship and interaction.

• Attitudes of the personnel .

-Personal motivation of employees is a key reason for

the organization to engage with environmental issues .
 Internal Drivers

• The quality of the communication between senior

and middle management and the employees.
• Existing practice within organization.

-Difficult to change common and established

practice within organizations.
 Internal Drivers
• Adaption to Change

• Human Resource Management

- CSR can be implemented through precise management
of work force.

• Management of Environmental Impacts

-Optimization of resource utilization and reducing

environmentally damaging effluents can reduce the
environmental impact.
 External Drivers
• Originate from the environment.

• Powerful external factor is globalization.

-Inequities in human living standards.

-Public awareness of sustainability
issues.

-Expectations of customers and the

market.
 External Drivers
• The government and the regulators.

- Have the potentially biggest impact on corporate

behavior.
- Businesses act not necessarily in accordance with
public welfare.

- Pushing for the win-win scenario by promoting

increased efficiency while reducing negative social and
environmental impacts.
 External Drivers
• The Local Communities.

- Develop positive relations with local

community.

- Deep understanding of local community.

- Availability of cheap labour from local

communities.
 External Drivers
• Business Partners.

- Companies should realise their CSR practices will

be judged taking into account the practices of their
partners and suppliers throughout the supply chain.

- Consumer based business strategies would enable

companies to build long lasting relationships with
consumers based on trust.
 External Drivers
• Human Rights.

- Company needs to make sure that people

are not forcibly removed from their homes and
their livelihoods are not endangered.

- Companies can take steps to ensure forced

labour is not used in their own, or their
suppliers’ operations.
 External Drivers
• CSR managerial action tries to preserve the status
quo by acquiring technology and personnel and
to protect the organization against tighter
environmental regulation .
 Drivers of CSR in country
Drivers

National International
Drivers Drivers

Refers to pressures from within

Tends to have a global origin.
the country.
 Drivers of CSR

National
Political Drivers Crisis
reform response

Cultural Socio-economic Governance Market

tradition priorities gaps access

International Supply
standardisation chain
Investment Stakeholder
incentives activism

International
Drivers
 Drivers of CSR
National Drivers Description
Cultural tradition CSR gives importance to business ethics,
philanthropy and community
embeddedness.
Political reform CSR can’t be divorced from political policy
reform.
Socio-economic priorities CSR is directly shaped by the socio-
economic environment.
Governance gaps CSR seen as a way to plug “governance
gaps” left by weak governments.
Crisis response CSR responses can be catalysed by
economic, social or environmental crisis.
Market access CSR is seen as an enabler for companies in
 Drivers of CSR
International Drivers Description

International standardization CSR codes, guidelines and standards are

key drivers for companies wishing to
operate globally.
Investment incentives CSR is given incentive by trend of SRI
(Socially Responsible Investment).

Stakeholder activism CSR is encouraged through stakeholder

activism.

Supply chain CSR activities among SMEs are boosted by

requirements imposed by multinationals
on their supply chains.
 Barriers of CSR

Barriers

Country/Society
Corporate Level
Level
 Barriers of CSR
• Corporate Level:
– Lack of leadership and vision
– Too much focus on short-term goals
– Inability to recognize opportunities
– Lack of entrepreneurial spirit and innovation
 Barriers of CSR
• Country/Society Level:
– Lack of creative pressure from the government and civil society
– Lack of support from the consumers
– Lack of peer support through business associations – reluctance of
other companies to follow
– Lack of economic/market incentives
 Impacts of CSR
Impacts

Customers

Employees

Shareholders

Communities

Environment
 Conclusion

• Social Responsibility

• Interaction with external environment

• Doing good is good business

• No business is worthwhile unless it serves the
need of its country and its people.
 References
• http://www.aviva.com/library/pdfs/cr/csr_policy.pdf
• http://eventos.ipleiria.pt/gecamb2010/PT/IMPLEMENTING_CSR_Schwedler_Lewis
_Birkin_4thGECAMB.pdf
• http://en.wikipedia.org/wiki/Corporate_social_responsibility
• http://www.waynevisser.com/article_waynevisser_csr_drivers.pdf
• http://www.scribd.com/doc/38155645/Csr
• http://www.scribd.com/doc/40997491/Csr
• http://www.scribd.com/doc/40304243/Csr
• http://www.scribd.com/doc/20629623/Csr
• http://www.scribd.com/doc/22277561/CSR-Business-Ethics