Amity Business School

Amity Business School

MBA IB IV Semester GLOBAL CSR AND SUSTAINABILITY MANAGEMENT Awantika Rajauria

CSR Defined
The entire CSR can be discerned from the three words: It covers the relationship b/w
Corporate

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Social

corporations and the societies with which they interact CSR also includes the responsibilities that are inherent on both sides of these relationships
Responsibility

Relevance of CSR

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Growing Affluence Ecological Sustainability Globalization The Free Flow of Information Brands

Evolution of Social Responsibility

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In the US, the idea of corporate social responsibility appeared in the early part of the

twentieth century, amid growing concerns about large corporations and their power
The ideas of charity and stewardship helped to shape the early thinking about CSR in the US The term CSR itself came in to common use in the early 1970s although it was seldom

abbreviated
The term stakeholder, meaning those impacted by an organization's activities, was used to describe corporate owners beyond shareholders from around 1989 As a result of the early ideas about businesss expanded role in society, two broad

principles emerged, viz., charity principle and stewardship principle

They are the historical foundation stones for the modern idea of corporate social responsibility

Principles of CSR
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Charity Principle The principle states that the wealthier members of society should be charitable towards those less fortunate Stewardship Principle According to the principle corporate executives see themselves as stewards or trustees who act in the general publics

When wealthy business leaders endowed

public libraries, supported settlement houses for poor, gave money to educational institutions, and contributed fund to many other community organizations, they were

interest
Although their companies are privately owned and they try to make profits for the stockholders, the company is managed and directed by professional managers who

continuing this long tradition of being my

brothers keeper

believe they have an obligation to see that

every one benefits from the companys action

Modern forms of CSR

The two principles of the charity and the stewardship established the original meaning of corporate
social responsibility Corporate philanthropy is the modern expression of the charity principle The stewardship principle is given meaning today when corporate managers recognize that business and society are intertwined and interdependent

Modern forms of CSR

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Charity Principle Definition Business should give voluntary aid to societys needy persons and group

Stewardship Principle Business should act as a public trustee and consider the interest of all who are affected by business decisions and policies Acknowledge business and society interdependence Balancing the interests and needs of many groups in society

Modern Expression

Corporate philanthropy Voluntary actions to promote the social good

Case

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