Corporate Social Responsibility

Presented by,
Subhash Kumar Mba 1st sem

What is Corporate Social Responsibility?

Corporate Social Responsibility (CSR), can be described as, the continuous commitment by corporations towards the economic and social development of communities in which they operate, which advances a corporations reputation and long term health.

CSR is closely linked with the principles of Sustainability, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on :

Immediate and Long term social consequences Environmental consequences Economic consequences

Why Corporate Social Responsibility?

Adam smith had written in The Wealth of Nations, it is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner but from their regard to their own interest.

If the firms are not selling goods and services that public desires, then it wouldnt enjoy strong and sustained performance.

The conceptualization of CSR till the 1990s was purely in terms of philanthropy or charity.

Birla Institute of technology by Birlas. Setting up of primary schools by several major industrial groups for their workers children. Funding of TATA in many philanthropic works.

CORPORATE GOVERNANCE.
It is about promoting fairness, transparency and accountability. -World bank.

ETHICS.

We define it as the principles, values and beliefs that define right and wrong decisions and behaviour. Stage of moral development Individual characteristics Structural variables Organizations culture Issue intensity

CSR in present scenario:

Now the corporations have moved themselves away from giving financial grants directly and are focusing on people-centric initiatives with active community participation.

Farm to Factory Gate

How e-choupal helped the farmers?

It made the decision making information based. Eliminates wasteful intermediation and multiple handling. Access to high quality input at fair prices. Enhanced farm productivity and higher prices.

How e-choupal helped ITC ?

Raw materials at lower cost. Enhanced Brand value and Corporate image. Improved relationships with the local community. Improved customer loyalty. Development of better work culture within organization and increased employee satisfaction.

Leading areas of CSR.

Livelihood promotion Education Health Environment Womens empowerment Agriculture Child Labour

Corporate social responsibility must not be defined by tax planning strategies alone. Rather, it should be defined within the framework of a corporate philosophy which factors the needs of the community and the regions in which a corporate entity functions. This is part of our cultural heritage. Mahatma Gandhi called it trusteeship.I invite corporate India to be a partner in making ours a more humane and just society We need a new Partnership for Inclusive Growth based on what I describe as a Ten Point Social Charter...first, we need to have healthy respect for your workers and invest in their welfare .

MANMOHAN SINGH

10 Point Social Charter by Manmohan Singh:

1. Have healthy respect for your workers. 2. CSR mustn't be defined by tax planning activities alone. 3. Industry must be proactive in offering employment to the less privileged. 4. Resist excessive remuneration to promoters and senior executives and discourage conspicuous consumption. 5. Invest in people and in their skills.

6. Desist from non-competitive behaviour. 7. Invest in environment-friendly technologies. 8. Promote enterprise and innovation, within your firms and outside. 9. Fight corruption at all levels. 10. Promote socially responsible media and finance socially responsible advertising.

LAWS AND REGULATIONS ENFORCING CSR.

Denmark has made mandatory for the largest Danish companies to include information on CSR in their annual financial reports. The Corporate Responsibility for Environmental protection (CREP) had been initiated by Govt. of India in 2003, but there is no real pressure for implementation. The CSR driven tax system gives companies a tax discount of up to 50% based on their CSR rating, where every product has its CSR rating based on its carbon footprint. Carbon emissions trading.

What is Carbon Trading?

Carbon trading is a market based mechanism for helping mitigate the increase of CO2 in the atmosphere. Carbon trading markets are developing that bring buyers and sellers of carbon credits together with standardized rules of trade.

Who are the buyers of Carbon credits?

Any entity, typically a business, that emits CO2 to the atmosphere may have an interest or may be required by law to balance their emissions through mechanism of Carbon sequestration. These businesses may include power generating facilities or many kinds of manufacturers.

Who are the sellers of Carbon credits?

Entities that manage forest or agricultural land might sell carbon credits based on the accumulation of carbon in their forest trees or agricultural soils. Similarly, business entities that reduce their carbon emission may be able to sell their reductions to other emitters.

GOING GREEN.
In 2007, in a speech about global warming, Jairam Ramesh, then Minister of State for Power, asserted, If India wants to be a global super power, it must also take on global super responsibilities.
Despite increasing awareness Indian Companies are still lagging behind countries such as US, Brazil, Italy, Germany and China, which focus more on the production process.

According to a Global survey, Indian Companies while focusing on producing a final product that is environment-friendly have often ignored the production process.
Infosys, Indias leading IT company, conducted its first carbon footprint analysis in 2007 and found that 49 percent of its energy demand came from air conditioning.

The company decided to work towards a new goal of carbon neutrality with plans for green buildings, clean electricity purchases, and energy conservation measures within the company.

USING ECO-FRIENDLY PRODUCTS.

(REUSABLE AND RECYCLEABLE.)

USING WIND ENERGY.

USING POLLUTION FREE AUTOMOBILES.

Conclusion
The business of business is business.

Corporate social responsibility is a hardedged business decision. Not because it is a nice thing to do or because people are forcing us to do it because it is good for our business Niall Fitzerald, Former CEO, Unilever.

THANK YOU.