CSR

Evolution of CSR in India 

• The refers  to  changes  over  time  in India  of  the  cultural  norms  of corporations' engagement  of corporate social responsibility (CSR).

Shared value

• Creating  economic  value  in ways that also create value for society.

Assigning CSR activities has 3 theatre/ window

PhilanthropyWindow 1

operational effectiveness through Sustainable InitiativeWindow 2

Transforming into modelWindow 3

Theatre / window one

• Focusing on philanthropy.• Programs  in  this  theatre  are  not  designed  to 

produce profits or directly improve business performance.

• Examples:  include  donations  of  money  or equipment  to  civic  organizations,  engagement with community initiatives.

• Tata in India, Bimbo in Mexico

Theatre two / window 2

• Improving operational effectiveness.• Programs  in  this  theatre  function  within 

existing business models to  deliver  social  or environmental benefits in ways that support a company’s  operations  across  the  value  chain, often improving efficiency and effectiveness. 

Window 2• Examples  include  sustainability initiatives

that reduce resource use, waste, or emissions,  which  may  in  turn  reduce  costs; and  investments in employee working conditions, health care, or education, which may enhance productivity, retention, and company reputation.

Initiative for recycling waste sand from sand casting mold

• Panasonic appliances refrigerators devices Singapore manufacture cast components for compressors. 

• The  casting  procedure  including  pouring  melted  iron between a mold made of sand and a sand core that is used  to  create  a  hollow  space,  and  removing  the component after is has cooled.

• The  core  become  unnecessary  after  the  casting complete and the company conventionally carried it by crushing into sand and sending the sand to landfill.

Panasonic example

• Now  it  has  started  recycling  this waste  sand. Now  breaking  down  the  cast  core  and additionally  treating  and  sorting  it  as  core sand, it is reused in the production process.

• Effective  use  of  resources  has  enabled  a significant  reduction in the amount of waste and material procurement cost, waste sand disposal costs.

Panasonic's solar lanterns being used in evening classes in villages without electricity in 

Cambodia 

Example of window 2 sustainability initiatives • Blue Bag Project

• In  line  with  our  global sustainability  approach, IKEA Indonesia offer the environmentally friendly IKEA Blue Bag to customers in place of plastic bags.

People – planet - profitCSR urges corporate giants to work according to the triple bottom line.

That means that company's must be concerned with their profits but at 

the same time they should also keep in consideration how they impact

the people around them and whether their activities affect the planet

in a harmful way or not.

The  triple bottom-line is a wide set of economic, environmental and

social parameters used to encourage and then observe how valuable a

firm is as a corporate citizen. The  concept  basically  gives  us  a 

mechanism to measure what value businesses add to the world

around them.

Window 3• Transforming the business model:

• This  theatre  create  new  forms  of  business specifically to address social or environmental challenges.

• Improved  business  performance—a requirement  of  initiatives  in  this  window  —is predicated on achieving social or environmental results. 

Hindustan Unilever’s Project Shakti (“empowerment”)

•     earlier  business  model  followed  by  HUL  customary wholesaler-to-retailer distribution model .

• to  reach  remote  villages,  the  company  recruits  village women,  provides  them  with  access  to  microfinance loans, and trains them in selling soaps, detergents door-to-door. ( home care, health care and hygiene care)

• More  than  65,000 women entrepreneurs now participate,  nearly doubling their household incomes, on average, while  increasing  rural  access  to  hygiene products and thus contributing to public health.

Project Shakti

Project Shakti

• These  social  gains  have  been met  by  business  gains  for  the 

company: As of 2012 Project Shakti had achieved more than

$100 million in sales. 

• As Project Shakti demonstrates, window three programs need 

not  be  comprehensive.  Most  are  narrow  initiatives 

undertaken with a focused market segment or product line in

mind, but with significant potential to alter the company’s

social or environmental impact and financial performance.

The Four Phases of CSR Development in India• The First Phase

• In  the  first  phase charity and philanthropy were  the  main 

drivers of CSR. 

• Culture,  religion,  family  values  and  tradition  and 

industrialization had an influential effect on CSR.

•   In  the  pre-industrialization  period,  which  lasted  till  1850, 

wealthy  merchants  shared  a  part  of  their wealth with the

wider society by way of setting up temples for a religious

cause

•  

The First Phase

• With  the arrival of  colonial  rule  in  India  from the 1850s onwards, the approach towards CSR changed.  The  industrial  families  of  the  19th century such as Tata, Godrej, Bajaj, Modi, Birla,  Singhania  were  strongly  inclined  towards economic as well as social considerations. 

The Second Phase

• In  the  second  phase,  during  the independence movement,  there  was  increased stress on Indian Industrialists to demonstrate their dedication towards the progress of the society. 

• This  was  when Mahatma Gandhi introduced  the notion  of  "trusteeship",  according  to  which  the industry leaders had to manage their wealth so as to benefit the common man. 

The Third Phase• The  third  phase  of  CSR  (1960–80)  had  its relation  to  the  element  of  "mixed economy", emergence  of Public Sector Undertakings (PSUs)  and  laws  relating  labour  and environmental standards. 

The Fourth Phase

• In  the  fourth  phase  (1980  -  2013)  Indian companies  started  abandoning  their traditional  engagement  with  CSR  and integrated  it  into  a  sustainable  business strategy. 

Current State of CSR in India

• The basic objective of CSR in these days :1.  to maximize the company's overall impact on the society and stakeholders. 

2. Integrate  CSR  policies,  practices  and programs with business practices.

3. important  for  protecting  the  goodwill  and reputation

4. defending  attacks  and  increasing  business competitiveness.[

comprehensive method of development is adopted by some corporations

•  Bharat Petroleum Corporation Limited, • Maruti Suzuki India Limited. 1. Provision of improved medical and sanitation facilities, 

2. building schools and houses3. empowering  the  villagers  and  in  process making  them  more  self-reliant  by  providing vocational training 

Five Dimensions of Corporate Social Responsibility

• Traditionally, companies have had one responsibility: to make a profit. But the concept of corporate social responsibility holds that companies should be responsible to more than just their owners. Corporate social responsibility holds that there are multiple dimensions that should affect a company's actions. Understand these dimensions when planning your own company's corporate social responsibility efforts.

• Environmental• The environmental dimension of corporate social responsibility refers to your business's impact on the environment. The goal, as 

a socially responsible company, is to engage in business practices that benefit the environment. For example, you might choose to use recycled materials in your packaging or ad renewable energy sources like solar power to your factory.

• Social• The social dimension of corporate responsibility involves the relationship between your business and society as a whole. When 

addressing the social dimension, you should aim to use your business to benefit society as a whole. This could involve sourcing fair trade products, for example, or agreeing to pay your employees a livable wage. It could also involve taking on endeavors that benefit society, for instance using your resources to organize charitable fundraisers.

• Economic• The economic dimension refers to the effect that corporate social responsibility has on the finances of your company. In an ideal 

world, where corporate social responsibility had no costs, there would be no reason to limit it. But in the real world it is important to recognize the financial impact that these actions have and to balance being a good corporate citizen with making a profit.

• Stakeholder• The stakeholders are all of the people affected by your company's actions. These include employees, suppliers and members of 

the public. When considering the stakeholder dimension of corporate social responsibility, consider how your business decisions affect these groups. For example, you might be able to increase your output by having employees work more, but you should consider the impact it will have on them, not just your bottom line.

• Voluntariness• Actions that fall into the voluntariness dimension are those that you are not required to do. These actions are based in what your 

company believes is the correct thing to do. They may be based in specific ethical values that your company holds. For example, you may believe that using organic products is the right thing to do even if you are not required to do so.