Concept and meaning of CSR

Presented By:
Rajbir Singh
 Introduction
The term "corporate social responsibility" came in to common use
in the late 1960's and early 1970's, after many multinational
corporations formed. The term stakeholder, meaning those on
whom an organization's activities have an impact, was used to
describe corporate owners beyond shareholders as a result of an
influential book by R. Edward Freeman, Strategic management: a
stakeholder approach in 1984. Proponents argue that
corporations make more long term profits by operating with a
perspective, while critics argue that CSR distracts from the
economic role of businesses. Others argue CSR is merely window-
dressing, or an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.

12/08/21 xidas 2
Corporate Social Responsibilities (CSR)

Corporate social responsibility (CSR):

 An obligation, beyond that required by the law and
economics, for a firm to pursue long term goals that are
good for society .
 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 that of the local community and
society at large.
 About how a company manages its business process
to produce an overall positive impact on society.
 Meaning of CSR

• Conducting business in an ethical way and in the

interests of the wider community
• Responding positively to emerging societal
priorities and expectations
• A willingness to act ahead of regulatory
confrontation
• Balancing shareholder interests against the
interests of the wider community
• Being a good citizen in the community
 Definitions:
‘Corporate,’ ‘Social,’ and ‘Responsibility.’
In broad terms, CSR relates to responsibilities
corporations have towards society within which they are
based and operate, not denying the fact that the purview
of CSR goes much beyond this. CSR is comprehended
differently by different people.

“A commitment to improve community well being through

discretionary business practices and contributions of
corporate resource”
 Contd…
Millen Baker:
“A way companies manage the business processes to produce
an overall positive impact on society.”

World Business Council for Sustainable Development:

“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”.
 Concept of CSR
CSR(corporate social responsibility) is a concept in which
organizations consider the interests of society by taking
responsibility for the impact of their activities on
customers, suppliers, employees, shareholders,
communities other stakeholders, future generation and
on environment. The organizations voluntarily taking
advance steps to improve the quality of life for
employees and their families as well as for the local
community and society.
 CSR in India

In India, CSR has evolved to encompass employees,

customers, stakeholders and sustainable development or
corporate citizenship. The spectrum of CSR includes a
number of areas as human rights, safety at work, consumer
protection, climate protection and caring for the
environment, and sustainable management of natural
resources. From the perspective of employees, CSR activities
include providing health and safety measures, preserving
employee rights and discouraging discrimination at
workplace. This helps in fostering a healthy environment
within the company.
• For example, after 1945, TATA implemented social
welfare provisions for its employees that have since
become the legislative norm. From the perspectives of
customers, CRS activities may include commitment to
product quality, fair pricing policies, and so.
• TVS Electronics was involved in CSR during the Tsunami
to provide relief measures to the victims. They have also
participated with the government to improve sanitation
in a village called Tiruvidenthai. Such initiatives will help
in improving the conditions of rural people.
 CSR: In a developed country

•governance,
•Business ethics,
•Human rights and
• Environment
 CSR in a Developing Country( India):

 Focus on nation building

 Socio-economic development
 Rural development
 Employment
 Education
 Health care
 Community support
The purpose of CSR

• The purpose of Corporate Social Responsibility

(CSR) is to make corporate business activity
and corporate culture become sustainable in
its three dimensions: economic, social and
environmental.
 Benefits
• A good reputation makes it easier to recruit employees.
• Employees may stay longer, reducing the costs and disruption of recruitment
and retraining.
• Employees are better motivated and more productive.
• CSR helps ensure you comply with regulatory requirements.
• Activities such as involvement with the local community are ideal opportunities
to generate positive press coverage.
• Good relationships with local authorities make doing business easier. See the
page in this guide on how to work with the local community.
• Understanding the wider impact of your business can help you develop new
products and services.
• CSR can make you more competitive and reduces the risk of sudden damage to
your reputation (and sales). Investors recognize this and are more willing to
finance you.
 Is CSR the same as business ethics?

• There is clearly an overlap between CSR and business

ethics
• Both concepts concern values, objectives and decision
based on something than the pursuit of profits
• And socially responsible firms must act ethically
• The difference is that ethics concern individual actions
which can be assessed as right or wrong by reference to
moral principles.
 CASES
• Amway

• DLF

• Tata steel
 AMWAY
Amway is one of the world’s largest direct sales organizations
with over 3 million Independent Business Owners (IBOs) in
over 80 markets and territories worldwide. It is a family-
owned business with a strong emphasis on family values. Its
IBOs are often couples. Many of these are raising families.
They therefore have a strong bond with children. These
families are more than happy to partner with Amway, who, as
part of its Corporate Social Responsibility strategy, works with
UNICEF, the United Nations Children’s Fund.
 CSR OF AMWAY
• Amway and UNICEF
• Contributed over $2.5 million for children
• ‘Immunization plus’ programme
1. Measles vaccine
2. Vitamin A and B
3. Diphtheria
4. Whooping cough
5. Tetanus
6. Polio
7. TB
 CONCLUSION
Amway is a family business with family values. Its IBOs are people
who want to make a difference to the communities in which they
operate and to the wider world community. This is Corporate
Social Responsibility (CSR) in action. The clue to Amway’s success
is the careful planning of its strategy and its involvement with
many stakeholders in getting the strategy right. Of course, it is
early days in the latest chapter of a strong relationship between
Amway and UNICEF. Evaluation is taking place to measure the
success of the initiative in terms of meeting fundraising goals.
Customer research is carried out to test customers’ views on the
relationship and to find out how aware the general public is about
what Amway is doing in the field of CSR.
 CSR OF DLF

For DLF, ‘Corporate Social Responsibility’

(CSR) is integrated with the company’s
objective of ‘Building India’.
 DLf vocational training centres

1. Objective:
To train and empower the under privileged
youth with permanent skills, enabling them
to earn their future livelihoods. This program
operates with the philosophy of ‘End-to-
End Livelihood Solutions’. Assured job
placements are provided by DLF.
2. Duration:
4 months of theoretical training including
apprenticeship.
Young adults
 DLF rural primary health centre
1. Objective:
To facilitate and manage medical facilities
in the rural areas deficit in health facilities,
particularly but not only around DLF
townships.
2. Location:
Shikohpur village, district Gurgaon, 45 kms
from Delhi. Three additional primary health
centres have been planned for the Gurgaon
district.
3. Operational since:
September 2007
 DLF learning excellence centres
1. Objective:
Facilitating education extensively in the
state of Haryana through specially formatted
learning centers, which impart free education
to more than 2,500 students annually.
2. Location:
DLF-Pratham LECs have been established
in the premises of 30 government primary
schools spread over 25 villages of district
Gurgaon.
3. Operational since:
June 2007
 Hospital on wheels
1. Objective:
To offer on-the-spot diagnostic, medical
and surgical interventions to the disabled
free-of-cost.
2. Camp Location:
Hingoli, Maharashtra
3. Operational Date:
January 15 – February 2, 2008
 Labor care
DLF pioneered in providing all necessary facilities to the labour force on site,
when it shook hands with Laing O’ Rourke for management of its
construction
projects.
1. Objective:
To radically upgrade the living conditions
of the labour force by facilitating basic
necessities at the site itself.
2. Location:
21 construction sites countrywide,
benefiting more than 20,000 workers.
 School of ‘dream fulfillment’
Recognising education as one of the building blocks of development, DLF has
opened doors to ‘Swapana Sarthak’, an informal learning platform for
primary
level children.
1. Objective:
To impart free, informal training to the under
privileged children before routing them
towards mainstream education.
2. Location:
DLF City, Phase V, Gurgaon
 CSR of Tata steel

• Education/scholarship for tribal students

• Camp school
• Women empowerment
• Employment training/employability through
sports
• Improvements of standards of living
• Health and sanitation
• Health and family planning
• Community health provider
• Tejaswini
• Self help groups(SHG)
• Environment
Thank you