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Business Ethics Journal Reviewby Chris MacDonald & Alexei MarcouxBringing Values Back into CSR

Group Members NAMEReg NoNikhil Singh112070Rushikesh Kardile112085S Navneeth 112086Sameer Ahmed 112090Shobhit Mathur 112097Siddharth Rohilla 112102Thomas Tom112109Vipasha Taneja 112115

INTRODUCTIONCHRISTIAN R. THAUER is the latest in a string of authors seeking to explain what drives corporations to pursue corporate social responsibility (CSR).The topic is increasing timely given the growing role of corporations in global governance and the stagnation of inter-state attempts to confront pressing issues like climate change and poor labour conditions in the developing world.

Thauers ThinkingThauer takes a novel approach by focusing on the intra-organizational determinants of CSR.Despite more than two decades of optimism about the potential of CSR to revolutionize global business, take-up remains erratic both within and across industrial sectors.Thauer correctly recognizes that focusing on the external determinants of CSR can only take us so far. He seeks to move beyond theories that look outside the firm by holding external conditions constant while examining the inner workings of eleven South African firms in the textiles and automotive sectors.

The Pursuit of CSR as per Thauer

Thauer defines CSR as, firms voluntarily reintegrating negative externalities of production or contributing to the common good by adhering to environmental, health, or social standards.In short, his argument is that firms pursue CSR to resolve internal managerial dilemas.He takes a novel approach by focusing on the intra-organizational determinants of CSR but leaves out the importance of managerial values.

CONTINUE..He associates CSR to dilemmas faced by corporates in certain fields, such as:Labour-related CSR as a response to the human resources dilemma -He says that a firm that invests in labour related CSR is better positioned to reduce turnover and mitigate social problems that could affect productivity.Environmental CSR as a response to the technological specialization dilemma-by implementing an environmental management system, can better control production process standards and introduce strict monitoring and sanctioning mechanisms to ensure production goals are met.These dilemmas are associated to the investments made by the firm in job-specific training or highly specialized equipment.

Shortcomings of Thauers Work

Thauers proposal would result in problems at the managerial level as the leveraging power reduces because of the non-transferable investments made by the firm.van der Ven offers the following critiques:The theory offered in Thauers paper has limited generalizability.The hypothesized causal relationships presented are indeterminate.The assumptions underlying his analytic model do not pass an empirical correspondence test.The lack of acknowledgement of the managerial roles is lacking in the theory.Moreover, the value system of managers and how these values affect the decision-making of the managers should have been highlightedAccording to the author, the above two points form the key to what motivates CSR.

Continue.Thauers theory says little about some of the greatest advances in labour-related CSR in the developing world.van der Ven refers to the burgeoning movement towards Fair trade certification.Most of the industries involved in this movement, namely the coffee, cotton and cocoa industries, principally employ unskilled labour. Asset specificity theory cannot explain why firms would invest in CSR that benefits unskilled labourers.

Thauer and Environmental CSRAccording to Thauer, firms opt for environmental CSR as a result of technological specialization dilemma.The dilemma arises when the rm invests asset specic resources and focuses in a single production unit.This leaves the management vulnerable to informa=on as the expertise and machinery specialization has been focused on asingle sub unit.As a result, once theproduction-specifcassets have been created, the management suggests Environmental CSR as a solution to distribute the benets to other sub units, incontrast to solely focusing on a single sub unit.These include standards with strict monitoring and sanctioning mechanisms such as ISO 14001 & VDA 6.1

The Underlying AnomalyThe fact why rms would choose environmental CSR over a range of other options is unclear.Thauers approach leads to two solutions in order to prevent opportunism by the incentivizedsub-unit:Implementing a quality management system check. Eg: ISO & VDA standards.Monitoring the production unit under a strict supervision.Since there appears to beno linkin the actualEnvironmental impact and the measures adopted as stated above, there appears to beno environmentalismin Thauers theory of environmental CSR.

Companies with the best CSR Programmes1.Tata Steel:The company uses Human Development Index to keep track of CSR in villages.2.Tata Chemicals:The company spends Rs 12 cr on CSR every year & wildlife conservation tops priority.3.Mahindra Group: CSR is a mix of strategic philanthropy, shared values & sustainability.4.Maruti Suzuki:Community development and road safety propel Maruti's CSR in the fast lane.5.Tata Motors:The company drives CSR through healthcare and education.6. Siemens

CSR programming span SCENARIOSSCENARIO 1: programmes focus on philanthropy, support for local civic organizations, and engagement with community initiatives.

SCENARIO 2: programmes deliver social or environmental benefits in ways that support a company's operations across the business value chain.

SCENARIO 3: programmes create new forms of business to address social or environmental challenges with expectation of business results in the long run

Need of amendment

Company act 2013The 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. CSR needs to go beyond communities and beyond the concept of philanthropy.CSR in India tends to focus on what is done with profits after they are made.

ContRequire companies to set-up a CSR committee consisting of their board members, including at least one independent directorspend at least 2% of their average net profit in the previous three years on CSR activities.net profit as the profit before tax as per the books of accounts, excluding profits arising from branches outside India.set of activities eligible under CSR. set of activities eligible under CSR. .

Slip ways in Corporate Social Responsibility

What Corporate Social Responsibility should be :

And what is it turning to be

The ground reality:Nike's numerous CSR hurdles - sweat-shops, not paying their workers properly etc. Yet with every industry survey, the company tops the best CSR lists. companies like Coca-Cola and Pepsico - if one of the four prongs of CSR is responsibility towards the market place, it can be argued that consumption of their products leads to health problems. Wal-Mart:widely acknowledged as one of the most unsustainable businesses, it is now setting the standards for sustainable business and also forcing its supply chain to become more sustainable.

What to do nowProper counselling and thereby better understanding of CSR activities for top level management of the companyEfficient monitoring of Corporate Social Responsibility activities to bring out the ironical behaviour in Multi National Corporation.Ensuring the interest and motive of the Multi National Corporations and those of NGOs are the same.Promotion of companies with unbiased CSR activities by honouring them in public for their achievementsInput and ideas of subordinates and co-members of the team should be included while planning CSR activities Companys should use social media to make their CSR activity more user friendly at the same time promoting their work.

CONCLUSIONWHAT IS CSR??? CSR is a management concept whereby company achieves a balance of economic, environmental and social imperatives(Tripple-Bottom-Line approach), while at the same time addressing the expectations of shareholders and stakeholders.Key CSR issues: Environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labour standards and working conditions, empoyee and community relations, social equity, gender balance, human rights, good governance and anti-corruption measures.

CONTINUEDA properly implemented CSR concept can bring along a variety of competitive advantages, such as enhanced access to capital and markets, increased sales and profits, operational cost savings, improved productivity and quality, efficient human resouce base, improved brand image and reputation enhanced customer loyalty, better decision making, and risk management processes.CSR is basically based on the Question of Good Business for a Good Society today and tomorrow.

Now, THAUERS Approach for CSR:-He adopted a Novel Approach and focused on the intra-organizational determinants of CSR by holding External conditions, like climate change and poor labour conditions, constant.And While Hamish Van(the reviwer) agrees with the authors approach but the lacking thing is the Role of managerial values that drives CSR and how these Values affect CSR.He contradict with the argument of Thauer and said that There are reasonable grounds to Question the assumptions underlying the bargaining game.

Basically, Thauers article represents a good step towards explaining variation in levels of CSR within similar socio-economic concepts.But the lacking part was that he has not focused on value systems of management which will help in shaping the direction of CSR initiatives.So, we would like to conclude: CSR will only provide with corporate values and corporate citizenship but when it is combined alongwith the shared value, It will help in designing new products and services that meet social and environmental needs while simultaneously delivering a financial return(profits).

NAMESCONTRIBUTION BY EACH MEMBER VIPASHAResearch paper findingConclusion partTHOMASSlip ways in CSRBest examples of companies pursuing CSRSAMEER AHMAD Additional information about CSRDefined set of activities in CSRVideos on CSRSIDDHARTH ROHILLAPersuit of theur theoryS NAVNEETHCompilation of whole presentationEditingRUSHIKESH KARDILECompilation of Suggestions by our group

NIKHIL SINGHVideo compilation SHOBHIT MATHURShortcomings of theur theory

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