csr nishmitha

Presented By:Nishmitha P H

2nd year MCOMPoornaprajna P G centre

Corporate Social Responsibility

Introduction:

• The term "corporate social responsibility" became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed.

• It is doing the Right Thing

• CSR for short, is about how your organisation’s existence affects stakeholders beyond your own insular interests, recognising the impact your operations have on the community at large.

• Referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change.

• It is also called as corporate conscience, corporate citizenship or responsible business

Evaluation/ History of CSR:

• The History of CSR dates back many years and in one instance can even be traced back 5000 years in Ancient Mesopotamia around 1700 BC.

• Initiated by King Hammurabi

• The first company to implement CSR was Shell in 1998

• In 1990 CSR was standard in the industry with companies like Price Waterhouse Copper and KPMG.

Key Factors of CSR:

• CUSTOMERS • EMPLOYEES • BUSINESS PARTNERS • THE ENVIRONMENT • COMMUNITIES • INVESTORS

Need For CSR Activity:

• Bridges the company with its consumer and investor

• Shifting paradigm of Consumer awareness

• Legislation

• Globalization

Types of Corporate Social Responsibility

• Economic Responsibilities

• Legal Responsibilities

• Ethical Responsibilities

• Philanthropic Responsibilities

Arguments in Favour and Against Corporate Social Responsibility

(CSR) |Management:

Argument For

• Protect the interests of stakeholders• Long-run survival• Self-enlightenment• Avoids government regulation• Resources• Professionalization

Arguments against CSR

• Business is an economic activity• Quantification of social benefits• Cost-benefit analysis• Lack of skill and competence• Transfer of social costs• Sub-optimal utilisation of resources

CSR in INDIA:

• India has one of the oldest traditions of CSR• But CSR practices are regularly not practiced or done only in

namesake specially by MNCs with no cultural and emotional attachments to India. Much has been done in recent years to make Indian Entrepreneurs aware of social responsibility as an important segment of their business activity but CSR in India has yet to receive widespread recognition

Why India needs aggressive CSR Implementation?

• Changing social expectations

• Increasing affluence

• Globalization

CSR in International Perspective

• CSR for global talent acquisition and retention

• CSR for branding and reputation management.

• CSR as regulatory requirement.

• CSR as philanthropic engagement/initiative

Recent development in CSR

• Global CSR policies will create new challenges and opportunities for internal collaboration

• Employees will have greater influence over CSR efforts • Collaboration with local and city government is on the rise

through civic engagement programs• Companies will align efforts around global intergovernmental

initiatives• Increased transparency will drive industry partnerships and

positive change

Corporate Social Responsibility - Indian Companies Act 2013

• India`s new Companies Act 2013 (Companies Act) has introduced several new provisions which change the face of Indian corporate business.

• Ministry of Corporate Affairs has recently notified Section 135 and Schedule VII of the Companies Act as well as the provisions of the Companies Rules, 2014 (CRS Rules) which has come into effect from 1 April 2014.

Applicability:

• Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a Company i.e. (a) net worth of the company to be Rs 500 crore or more; (b) turnover of the company to be Rs 1000 crore or more; (c) net profit of the company to be Rs 5 crore or more. Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign company in India.

• Every qualifying company requires spending of at least 2% of its average net profit for the immediately preceding 3 financial years on CSR activities.

Top CSR companies

This year’s top 5 companies are•Tata Steel Ltd. •Tata Power Company Ltd. •Ultra Tech Cement Ltd. •Mahindra & Mahindra Ltd. •Tata Motors Ltd.

Issues and challenges faced by CSR

• The Shrinking Role of Government• Demands for Greater Disclosure • Increased Customer Interest• Growing Investor Pressure• Competitive Labour Markets• Supplier Relations• Lack of Community Participation in CSR Activities

Advantage and disadvantage of CSR

• Benefit to Corporate

• Benefit to Society

• Benefit to Environment

Disadvantages Of Compulsory CSR

• Cost and Workload• Business Objective• Staff Morale• Shareholder Interests• Corporate Reputation• Competitive Disadvantages• Expenses

Conclusion

• Corporate social responsibility is a vital element for many business corporations. Social responsibility investment combines investors’ financial goals with their obligation and dedication to factors that ensure the well being of society such as environmental friendly practices, economic growth and justice in society”. These elements are not only aspects of corporate social responsibility, but also a show of the ethical standards of a company. It can be concluded that Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.

Thank You