Presented to : Dr. Tejal Shah

Presented by :Hiren VaghasiyaBhargav Vaghani

Sachin Patel Arjun Jat

INTRODUCTION

Corporate Social Responsibility, or CSR, is something that was started by fashionable ‘ethical’ businesses. Realizing that promoting a responsible way of doing business actually improved the bottom line soon received wider interest, and now demonstrating responsibility has become expected when bidding for major contracts. With now being the time to question your organizations value, see the benefits of CSR.

What is corporate social responsibility...???

A company’s sense of responsibility towards the

community and environment in which it operates. Companies

express this citizenship (1) through their waste and pollution

reduction processes, (2) by contributing educational and

social programs and (3) by earning adequate returns on the

employed resources.

Why social Responsibility ?

The business of business is business 'was the motto of businessperson in early times. Narrowly interpreted, it would mean that corporations have only one responsibility, the single –minded pursuit of profit. To economists like Adam smith and Milton Friedman ,in a capitalist society profit maximization by the continued increase of efficiency is the most socially responsible way of conducting business.

Corporate Social Responsibility

Social Responsibility of business refers to what the business does, over and above statutory requirement, for the benefit of the society.

CSR is about how companies manage the business processes to produce an overall positive impact on society.

Corporate Social Responsibility refers to the moral responsibility of the business to the society by the virtue of being a part of society.

SOCIAL RESPONSIBILITIES OF BUSINESS :1. Towards Owners/ shareholders

2. Towards Employees

3. Towards customers

4. Towards Government

5. Towards Society

6. Towards Inter-Business

Towards Owners/Shareholders: To keep the business stable and dynamic.

To provide fair return on capital in the form of reasonable dividend and long term appreciation of share.

To provide the accurate and reliable information about the financial position of company.

To improve the prestige of the company through growth and expansion.

To raise the public image of the company so that shareholders will be proud of their company

Towards Employees:

Meaningful Work

Job Satisfaction

Fair Salaries & Benefits

Best Quality of Work life

Succession Planning

and Developme

nt

Towards Customers:

Fair Price

Superior Service

Superior Product Design

Quick and

complete Informati

on

Towards Society: To generate employment opportunities and to provide

better life and welfare to all members of society.

To contribute towards economic growth, economic stability and national security.

To introduce social audit by professional experts.

To provide financial support to social and culture activities.

To improve the quality of products and look after the welfare of the local community.

To rehabilitate the population affected by the operation of business, if any.

Towards Inter-Business:

Fair Competition

Cooperation for haring of Scarce Resources and Facilities

Collaboration for Maximization of Business Efficiency

Models of corporate social responsibility

Friedman model

Ackerman Model

Carroll Model

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.

Carroll Model(1991)

Carroll Model(1991)

Discriminatory requirements: Donation, gifts, helping the poor. It ensure goodwill & social welfare.

Ethical responsibility: Follow moral & ethical values to deal with all the stakeholders.

Economic responsibility: Maximize the shareholders value by paying good return.

Legal responsibility: Abiding the laws of the land.

Scope of CSR Activities

1. Eradicating hunger, poverty, and malnutrition, promoting preventive health care, sanitation and making available safe drinking water.

2. Promoting education, including special education and employment enhancing vocation skills among children, women, elderly, and differently abled and livelihood enhancement projects.

3. Rural Development Projects.

Scope of CSR Activities

4. Contribution or funds provided to technology incubators located within academic

institutions which are approved by the Central Government.

5. Protection of national heritage, art, and culture including restoration of buildings and sites

of historical importance and works of art, setting up public libraries, promotion and development of traditional arts and handicrafts.

6. Measures for the benefit of armed forces veterans, war widows, and their dependents.

7. Reducing child mortality and improving maternal health.

Benefits of CSR

Benefits of CSR

Winning new businesses

Enhancing your influence in the

industry

Attracting, Retaining and

Maintaining a happy workforce

Increase in customer retention

Differentiating yourself from the

competitor

Saving money on energy and operating cost

Access to funding opportunities

Media interestand goodreputation

Ben

efits

Ben

efits

Enhanced Relationship with

stakeholders

Arguments against corporate social responsibility

o Lowers economic efficiency and profit.

o Imposes unequal costs among competitors.

o Imposes hidden costs passed on to stakeholders.

o Places responsibility on business rather than individuals.

o Requires social skills business may lack.

Arguments in favor of corporate social responsibility

o Balances corporate power with responsibility.

o Discourages government regulation.o Promotes long-term profits for

business.o Responds to changing stakeholders’

demands .o Corrects social problems caused by

business.

Limitations of CSR INAPPROPRIATE FUNDS

A NEW CONCEPT IN INDIA

TRANSFERING COMPETENCIES TO INDIVIDUAL COMPANIES

RAISING FURTHER AWARENESS OF CSR

BUILDING CAPABILITIES

INAPPROPRIATE RESPONSES TO GLOBALIZATION

GAPS IN CSR PRACTICES

CSR in India

CSR in India has traditionally been seen as a philanthropic activity.

And in keeping with the Indian tradition, it was an activity that was performed but not deliberated. As a result, there is limited documentation on specific activities related to this concept.

The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its disclose-or-explain mandate, is promoting greater transparency and disclosure. Schedule VII of the Act, which lists out the CSR activities, suggests communities to be the focal point.

Examples of Corporate Social Responsibility in India

Tata Group

Tata Group in India has a range of CSR projects, most of which are community improvement programs. For example, it is a leading provider of maternal and child health services, family planning, and has provided 98 percent immunization in Jamshedpur. The company also endorses sports as a way of life. It has established a football academy, archery academy, and promotes sports among employees. It offers healthcare services all over the country with programs like rural health development.

Infosys

Infosys is aggressively involved in a variety of community growth programs. In 1996, the company created the Infosys Foundation as a not-for-profit trust to which it contributes up to 1 percent of profits after tax every year. Moreover, the Education and Research Department at Infosys also works with employee volunteers on community development projects.

CONCLUSIONS

ESTABLISHMENT OF GLOBAL CORPORATE CITIZENSHIP INITIATIVE

IMPACT ON ECONOMY, ENVIRONMENT & SOCIETY

NOT ONLY FOR CUSTOMERS BUY ALSO FOR EMPLOYEES

HUMAN RIGHTS & CSR GO HAND IN HAND

CSR GOES BEYOND CHARITY

AN INDUSTRY IN ITS OWN RIGHT AND A PROFESSION AS WELL

THANK YOU