CORPORATE
SOCIAL
RESPONSIBILIT Y
S H I VA N I T I WA R I
EDTECH ENTREPRENEUR
P O S T G R A D U AT E : I I T M A D R A S
CONTENT
MEANING OF CSR
C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y T H E O R I E S
PYRAMID OF CSR
C O N T E M P O R A RY C S R C O N C E P T S
C O R P O R AT E S U S TA I N A B I L I T Y
R E P U TAT I O N M A N A G E M E N T
S O C I A L I M PA C T M A N A G E M E N T
T R I P L E B OT TO M L I N E
CSR AND BUSINESS ETHICS
C S R A N D C O R P O R AT E G O V E R N A N C E
E N V I R O N M E N TA L A S P E C T O F C S R
CSR MODELS
DRIVERS OF CSR
MEANING
• Corporate social responsibility is a gesture of showing the
company’s concern & commitment towards society’s
sustainability & development.
• CSR is the ethical behaviour of a company towards society.
Responsibility
towards
Consumers
RESPONSIBILITY TOWARDS:
SOCIETY EMPLOYEE CONSUMERS
• Carrying on business with • To provide a healthy working • Supplying socially harmless
moral& ethical standards. environment.
• products.
• Prevention of environmental • To grant regular & fair wages.
• Supplying the quality, standards,
pollution.
• To provide welfare services.
• as promised.
• Minimizing ecological imbalance.
• To provide training & promotion
• Contributing towards the • Adopt fair pricing.
facilities.
development of social health, • Provide after sales services.
• To provide reasonable working
• education standard & norms. • Resisting black-marketing &
• Making use of appropriate profiteering.
• To provide efficient mechanism to
technology. • Maintaining consumer’s
redress worker’s grievances.
• Overall development of locality. grievances cell.
• Proper recognition of efficiency &
hard work. • Fair competition.
RESPONSIBILITY RESPONSIBILITY
TOWARDS TOWARDS
GOVERNMENT SHAREHOLDERS
• Obey rules & regulations.
• To ensure a reasonable rate of
• Regular payment of taxes.
return over time.
• Cooperating with the Govt to
• To work for the survival & the
promote social values.
growth of the concern.
• Not to take advantage of
• To build reputation & goodwill
loopholes in business laws.
of the company.
• Cooperating with the Govt for
• To remain transparent &
economic growth &
accountable
development
CORPORATE SOCIAL RESPONSIBILITY (CSR)
BUSINESS RESPONSIBILITIES IN THE 21 ST CENTURY
• Demonstrate a commitment to society’s values and contribute to
society’s social, environmental, and economic goals through action.
• Insulate society from the negative impacts of company operations,
products and services.
• Share benefits of company activities with key stakeholders as well as
with shareholders.
• Demonstrate that the company can make more money by doing the
right thing.
CSR EXAMPLES
IBM UK - Reinventing Education Partnership programme
Interactions and sharing of knowledge through a web-based
technology - the “Learning Village” software. Culture of
openness and sharing of good practice
AVON - a partnership with Breakthrough Breast Cancer, and
its Breast Cancer Crusade has raised over 10 million pounds
since its launch 12 years ago
TOI’s Lead India campaign, campaign for contribution
towards educating the poor
NEED FOR CORPORATE SOCIAL
RESPONSIBILITY*
1:To reduce the social cost.
2: To enhance the performance of employees.
3: It is a type of investment.
4: It leads to industrial peace.
5: It improves the public image.
6: Can generate more profit.
7: To provide moral justification.
REPUTATION
MANAGEMENT
Reputation management refers to the influencing and controlling of
an individual's or group's reputation..
Reputation management (sometimes referred to as online reputation
management or ORM) is the practice of attempting to shape public
perception of a person or organization by influencing online
information about that entity.
1: Customer trust: A positive online reputation can increase customer trust and
loyalty. Customers are more likely to do business with brands that have good
reviews and ratings, and that respond to feedback and complaints in a
professional and timely manner. A negative online reputation can erode
customer trust and confidence and make them switch to competitors.
2:Recruitment and retention: A positive online reputation can help businesses
attract and retain top talent. Job seekers often research potential employers
online before applying for positions, and they prefer to work for companies that
have a good reputation and a positive work culture.
3:Visibility and ranking: A positive online reputation can improve a business's
visibility and ranking on search engines and social media platforms. Search
engines like Google use online reviews and ratings as signals to determine the
quality and relevance of a website.
Challenges:
1: Fake news
2: Negative
reviews
3: Complaints
CASE STUDY ON ORM
Case studies of successful online reputation management (Travel Agency)
Issue/challenge: A travel agency was facing a decline in bookings and revenue due
to negative online reviews and ratings from unhappy customers. The agency decided
to hire an online reputation management (ORM) company to help them improve their
online image and attract more customers.
The ORM company implemented the following strategies:
1: Monitoring the online reputation of the travel agency on various platforms, such as
Google, TripAdvisor, Facebook, etc.
2: Responding to customer feedback, both positive and negative, in a timely and
professional manner, and offering solutions and incentives to resolve issues and
complaints.
CASE STUDY ON ORM
• Creating and promoting positive content, such as blog posts, videos, testimonials,
etc., that showcased the travel agency's expertise, services, and customer
satisfaction.
• Optimizing the online presence of the travel agency, such as updating their website,
social media profiles, and review profiles, with relevant and appealing information
and features.
Result: As a result of these strategies, the travel agency experienced:
• An increase in positive reviews and ratings, and a decrease in negative ones.
• An improvement in their online visibility and ranking on search engines and review
platforms.
• An enhancement in their brand awareness and trust among potential and existing
customers.
TOP COMPANIES FOR CSR IN INDIA IN
2023
Reliance Industries Limited
SBI Limited
ITC Limited
Hero MotoCorp
JSW Steel
Godrej Consumer
Products
Dabur
Marico
TRIPLE BOTTOM
LINE
• Triple bottom line (or otherwise noted as TBL or 3BL) is an
accounting framework with three parts: social, environmental (or
ecological) and financial.
• Some organizations have adopted the TBL framework to evaluate
their performance in a broader perspective to create greater business
value.
A triple bottom line measures a company's degree of social responsibility,
its economic value, and its environmental impact.
[Link]
• Economic Measures • Environmental Measures • Social Measures
• Personal income • Sulfur dioxide concentration • employment rate
• Cost of underemployment • Concentration of nitrogen • Female labor force participation
• Establishment churn oxides rate
• Establishment sizes • Selected priority pollutants • Median household income
• Job growth • Excessive nutrients • Relative poverty
• Employment distribution by • Electricity consumption • Percentage of population with a
sector • Fossil fuel consumption post-secondary degree or
• Percentage of firms in each • Solid waste management certificate
sector • Hazardous waste management • Average commute time
• Revenue by sector contributing • Change in land use/land cover • Violent crimes per capita
to gross state product • Health-adjusted life expectancy
CSR AND
CORPORATE
GOVERNANCE
• Corporate governance is the system of rules, practices and processes by
which a company is directed and controlled. Corporate
governance essentially involves balancing the interests of a
company's many stakeholders, such as shareholders, management,
customers, suppliers, financiers, government and the community.
• Since corporate governance also provides the framework for attaining a
company's objectives, it encompasses practically every sphere of
management, from action plans and internal controls to performance
measurement and corporate disclosure.
[Link]
BENEFITS OF CORPORATE GOVERNANCE
• Good corporate governance ensures corporate success and economic growth.
• Strong corporate governance maintains investors’ confidence, as a result of which,
company can raise capital efficiently and effectively.
• It lowers the capital cost.
• There is a positive impact on the share price.
• It provides proper inducement to the owners as well as managers to achieve
objectives that are in interests of the shareholders and the organization.
• Good corporate governance also minimizes wastages, corruption, risks and
mismanagement.
• It helps in brand formation and development.
• It ensures organization in managed in a manner that fits the best interests of all.
DRIVERS OF CSR
• Values: a value shift has taken place within businesses, as a result of
which they now not only feel responsible for wealth creation, but
also for social and environmental benefits
• Strategy: being more socially and environmentally responsible is
important for the strategic development of an organisation
• Public pressure: pressure groups, consumers, media, the state and
other public bodies are pressing organisations to become more
socially responsible. organisations are often driven by one of the
above, but see a shift into other spheres over time. In the main, it
has been public pressure centred on three key areas that has driven
the CSR agenda. These comprise the environment, labour standards
and human rights.
Ref: Simon Zadek, P Pruzan & R Evans (1997)
ENVIRONMENTAL
ASPECT OF CSR
According to the concept of CSR, a company must trend to:
• reduce the consumption of raw materials and energy,
• reduce production of hazardous waste and pollution,
• respect, protect and restore natural ecosystems
• identify potential negative environmental effects
• introduce mechanisms to internalize external environmental costs
• take into account environmental objectives at the stage of product
design (eco-design, life cycle analysis )
• implement technologies to reduce harm done to the environment
in production processes
• promote ecological behavior within the company, as well as saving
energy and water in every department of the company
CSR MODELS
MODELS OF CORPORATE SOCIAL
RESPONSIBILITY
Friedman model
Ackerman Model
Carroll Model
Environmental Integrity & Community Model.
Corporate Citizenship Model.
Stockholders & Stakeholders Model.
New Model of CSR.
FRIEDMAN MODEL(1962-73)
A businessmen should perform his duty well, he is performing a social
as well as a moral duty.
A businessmen has no other social responsibility to perform except to
serve his shareholders & stockholders.
ACKERMAN MODEL (1976)
The model has emphasized on the internal policy goals & their
relation to the CSR.
Four stages involved in CSR.
Managers of the company get to know the most common social
problem & then express a willingness to take a particular project which will
solve some social problems.
Intensive study of the problem by hiring experts & getting their
suggestions to make it operational.
Managers take up the project actively & work hard.
Evaluating of the project by addressing the issues.
Six Strategies in the adoption of CSR.
Rejection strategy
Adversary strategy
Resistance strategy
Compliance strategy
Accommodation strategy
Proactive strategy
CARROLL'S CSR PYRAMID
• Carroll's CSR Pyramid is a simple framework that helps argue how and why
organisations should meet their social responsibilities.
The key features of Carroll's CSR Pyramid are that:
• CSR is built on the foundation of profit – profit must come first
• Then comes the need for a business to ensure it complies with all laws &
regulations . Before a business considers its philanthropic options, it also
needs to meet its ethical duties
PYRAMID OF CSR Philanthropic
Responsibilities
Be a good
corporate
Carroll Model(1991) citizen
Ethical
Responsibilities
Be ethical. Do what
is right. Avoid harm
Legal Responsibilities
Obey the law
Economic Responsibilities
Be profitable.
• This is the responsibility of business to be profitable
ECONOMIC • Only way to survive and benefit society in long-term
• This is the responsibility to obey laws and other regulations
LEGAL • E.g. Employment, Competition, Health & Safety
• This is the responsibility to act morally and ethically
ETHICAL • With this responsibility, businesses should go beyond narrow requirements of the
law E.g. Treatment of suppliers & employees
• This is the responsibility to give back to society
PHILANTHROPIC • The responsibility is discretionary, but still important
• E.g. charitable donations, staff time on projects
ENVIRONMENTAL INTEGRITY &
COMMUNITY HEALTH MODEL.
This model developed by Redman.
Many corporate in US adopted this model. Corporate contribution
towards environmental integrity &
human health, there will be greater expansion opportunities.
Healthy people can work more & earn more.
CSR is beneficial for the corporate sector.
CSR in a particular form is welcome.
CORPORATE CITIZENSHIP MODEL
To be a corporate citizen, a corporate firm has to satisfy four
conditions:
Consistently satisfactory
Sustainable economic performance
Ethical actions
Behaviour.
A particular firm’s commitment to corporate citizenship requires the
fulfillment of certain social responsibilty.
STOCKHOLDERS & STAKEHOLDERS
MODEL
Productvists believe that the only mission of a firm is to maximize the profit.
Philanthropists who entertain the stockholders. CSR is dominated by moral
obligations & not self-interest.
Progressivists believes the corporate behaviour basically motivated by self
interest & should have ability to transform the society for good.
Ethical Idealism concern with sharing of corporate profits for humanitarian
activities.