CSR is a win- win opportunity for companies, financial investors and society at large

Social Responsibility:Definition and Debate

Social Responsibility The idea that business has social

obligations above and beyond making a profit.

Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law.

Purpose of CSR

To engage with the internal and external stakeholders

Treating the stakeholders ethically To create high standards of living To protect society and environment To take care of shareholders Philanthropic contributions to society

Factors Leading to CSR - Drivers

Globalization and competition Increased size and influence of

companies Repositioning of governments and its

roles War for talent Growth of global civil society activism

Generations of CSR

Social Betterment Social responsiveness

First Generation-Companies can be responsible in ways that do not detract

from commercial success.Second Generation-Focusing on CSR as an integral part of long term business

strategy.Third Generation-Significant contribution to address issues such as poverty,

environmental degradation.

A Continuum of Social Responsibility Strategies

Social Responsibility Strategies

Reactive Strategy Denying responsibility while striving to

maintain the status quo by resisting change. Defensive Strategy

Resisting additional social responsibilities with legal and public relations tactics.

Social Responsibility Strategies (cont’d)

Accommodation Strategy Assuming social responsibility only in

response to pressure from interest groups or the government.

Proactive Strategy Taking the initiative in formulating and

putting in place new programs that serve as role models for industry.

Corporate Social Responsibility (CSR)Arguments For

Balancing corporate power with corporate responsibilities

Protects business self-interest

Limits future government interventionAddresses issues by using business resources and expertise Addresses issues by being proactive

Corporate Social Responsibility (CSR)Arguments Against

Business is not equipped to handle social activities

Dilutes the primary aim of business

Organization may get power over society

Increase business power

Lack of expertise to handle social issues

How do we do it?

Key CSR Steps Commitment and Vision Planning Implementation Monitoring Reporting Continuous Improvement

Limitations of Approaches to CSR

Lack of clarity of the definition of CSR

Models of CSR not adopted properly by companies

Lack of measures to innovate and evolve new CSR models

Unidentified segment- need to identify the areas of interest & capability to take up CSR in a focused manner.

Organisations

IISD (International Institute of Sustainable Development)BSR (Business for Social Responsibility)WEF (World Economic Forum)BSD (Business for Social Responsibility)WBCSD (World Business Council for Sustainable Development