Models for implementation

of CSR
 Learning Outcome

• Understanding models for implementation of

CSR
 Ethical model (1930-1950)

Voluntary commitment to public welfare

Gandhian philosophy of trusteeship

TATA, Birla, Infosys, Dr. Reddy’s Labs, Reliance

industries

Investments in social welfare projects, schools,

hospitals.
 Statist model (1950-1970)

Model based on state owned PSUs.

Mixed economy format. Calls for state ownership and

legal requirements of CSR.

Corporate responsibility relating to community and worker

relationship were enshrined in labour laws and
management principles.

Providing of housing, schools and other amenities to

workers.
 Liberal Model (1970-1990)

Belief that free market will take care of social

responsibility

Model drawn from Milton Friedman’s view- organization’s

responsibility in improving economic bottom line and
increasing wealth of shareholders

Regulating generation of wealth, directed towards social

ends.

Taxation and private charitable choices

 Stakeholder Model

With increasing economic rights, business also has

growing range of social obligations

Citizen campaigns against irresponsible corporate

behaviour along with consumer action and increasing
shareholder pressure
 Test your Understanding!

Q- What does the socio - economic view of social

responsibility talk about?

a. Social responsibility goes beyond making profits to

include protecting and improving society's welfare
b. Encourage business
c. Financial return
d. None of the above
 How can corporations and their stakeholders
measure some of the effects of CSR programs?

TBL is a measure described in 1994 by John Elkington,

a British business consultant and it forces us to
reconsider the very concept of the “bottom line.”
 Concept

The TBL concept recognizes that external stakeholders

consider it a corporation’s responsibility to go beyond
making money.

If increasing wealth damages the environment or makes

people sick, society demands that the corporation revise
its methods or leave the community.
 Ben and Jerry Ice-Cream

Ben and Jerry’s Ice Cream started as a small ice cream

stand in Vermont and based its products on pure, locally
supplied dairy and agricultural products. 

“Our Product Mission drives us to make fantastic ice

cream—for its own sake. Our Economic Mission asks us
to manage our Company for sustainable financial
growth. Our Social Mission compels us to use our
Company in innovative ways to make the world a better
place.”
 With its expansion, however, Ben and Jerry’s
had to get its milk—the main raw ingredient of
ice cream—from larger suppliers, most of which
use confined-animal feeding operations
(CAFOs). 

CAFOs have been condemned by animal-rights

activists as harmful to the well-being of the
animals. 
 Critical Thinking

• Does the use of CAFOs compromise Ben and

Jerry’s mission? Why or why not?

• Has the growth of Ben and Jerry’s contributed to

any form of green washing by the parent
company, Unilever? If so, how?
 Brief introduction to Starbucks

Starbucks is a major global coffee company with its

origins in Seattle, USA, and now has more than 17,000
stores in over 55 countries.

The company is an established brand and a market

leader within coffee and other blend-drinks.

Its mission is “to inspire and nurture the human spirit –

one person, one cup and one neighborhood at a time”
 Starbucks first entered the corporate responsibility
paradigm in 2000, when it developed a partnership with
Conservation International with whom Starbucks created
its ethical coffee-sourcing guidelines.

Organization has expanded its CSR partnership with

several different organizations, as well as it has founded
its own Starbucks Foundation.
 Starbucks’ Stakeholders
Primary stakeholders U.S customers and employees

Shareholders/investors, suppliers

Secondary stakeholders U.S media, activists, NGO, corporate

relationships

Public Stakeholders The U.S Government and local

communities
 Content analysis from website
Stakeholder type Look for in CSR Examples from CSR motive
reports CSR report

NGOs, CSR Integrated “While we know Ethical

experts approach we are not
perfect, and that
the problems we Economic
seek to help solve
are complex, we
are committed to Legal
integrating our
value into our
company strategy,
business practices
and operations”
Stakeholder type Look for in Examples from CSR motive
CSR reports CSR report

Investor/Sharehold Relevance “I have believed in Economic and

ers a strong link ethical
CSR fit between our
company’s
Affect on bottom performance, our
line values, and the
impact we have
on the
communities
where we do
business”
Stakeholder type Look for in CSR Examples from CSR motive
reports CSR report

Activists Transparency “Starbucks is Ethical

concerned about
Commitment climate change
and the long-term
Ethical actions impact it will have
on coffee supplies
and on the health
of the
communities
where we do
business”
Stakeholder type Look for in CSR Examples from CSR motive
reports CSR report

Regulators Indicators of “Our approach is Ethical and legal

standards grounded in
Coffee and
Legal Farmer Equity
infrastructure (C.A.F.E)
Practices, our
comprehensive
set of more than
200 social,
economic and
environmental
indicators”
Launched sustainable living plan in 2010, that includes three goals:

• Improving the health and well being of the company’s customers and consumers.

• Reducing the company’s overall impact

• Enhancing the livelihoods of millions of people around the globe.

 Unilever Practices

More than 55% of Unilever's agricultural raw materials

are now sustainably sourced, which is more than halfway
to the 2020 target of 100%.

The company is also making significant reductions in

CO2 from energy and water in manufacturing, reducing
them by 37% and 32% per ton of production respectively
since 2008.
• Unilever has even achieved one its green goals ahead of
schedule: zero non-hazardous waste to landfill.

• The company is also making significant reductions in

CO2 from energy and water in manufacturing, reducing
them by 37% and 32% per ton of production respectively
since 2008.