Strategies in Corporate Social Responsibility

Pooja KrishnaNeetu Sharma

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.

Outline• Definition and Importance

• Components

• Basic Principles and strategies

• Strategies in adoption of CSR

• Steps to developing a profitable csr

• New frontier in csr

• Conclusion

World Business Council for Sustainable Development (WBCSD)

“The continuing commitment by business to behave ethically and contribute to sustainable economic development while improving the quality of life of the workforce and their families as well as of the local community and society.”

Synonyms

• Corporate citizenship

• Corporate responsibility

• Responsible business

• Sustainable responsible business

• Corporate social performance

Importance

• Improves public image• Increases media coverage• Boosts employee engagement• Attracts and retains investors• Showing a true commitment• Government relations• Reduces the social cost

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

Bene

fits

Bene

fits

Enhanced Relationship with

stakeholders

Benefits of CSR

Pyramid of CSR

Philanthropic responsibilities

Ethical responsibilities

Legal responsibilities

Economical responsibilities

Examples

• Google• Xerox• Ben and Jerry’s• Starbucks• Tom’s shoes• IBM UK• TOI’S lead campaign

CSR Principles & Strategies.• Respect for human rights.• Respect for the differences of views.• Diversity & non-discrimination should be the guiding

principle.• Make some social contribution.• Enter into e dialogue• Self-realization & creativity.• Fair dealings & collaboration.• Feedback from the community.• Positive value- added• Long term economic & social development.

Social Responsibility strategies

Reaction Defence Accomodation Proaction

•A continuum of possible strategies based on the organisation’s tendency to be socially responsible or responsive

Social Responsibility strategies

• Reaction– An approach to CSR that includes an organisation

denying responsibility for its actions.• Defence

– Organisations that pursue a defence strategy respond to social challenges only when it is necessary to defend their correct position

Social Responsibility strategies

• Accomodation– An approach to CSR that adapts to public policy in

doing more than the minimum required.• Proaction

– An approach to CSR that includes behaviours that improve society.

– Organisations that assume a proaction strategy subscribe to the notion of social responsiveness.

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.

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

1

Productivism

2

Progressivism

3

Philanthropy

4

Ethical Idealism

Self

Duty

Interest

StakeholderModel

Stockholders Model

Moral

ORIENTATION

MOT

IVES

• 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.

Stockholders & Stakeholders Model

New Model of CSR

CSR (+) CSR(-)

CSR(-) CSR(-)

Ethical Rooting

Fina

ncia

l Cap

abili

ty

Strong Poor

Stro

ng

Poor

Steps to developing a profitable CSR

• Define your messaging• Involve your customers• Create a scorecard• Use social media• Partner with a third party• Seek publicity• Repurpose your CSR reports

New frontiers in CSR

• Responsible lobbying

• Promoting spirit of philanthropy

• Transparency in organisation

• More proactive contributions

Implementing CSR strategies

• Develop integrated CSR decision making structure• Prepare and implement CSR business plan• Identify performance measures• Establish mechanisms for addressing problematic

behavior• Create internal and external communication plan

Conclusion

• CSR is an integral part of the business plan

• Improves the perceived image of the company for

the employees, clients, investors and govt.

• CSR strategy has to be tailor-made for the company

• Productivity and profit cannot be compromised

• Giving back to the environment.

THANK YOU