Corporate Social Responsibility

Presented By: Alika KirmaniSection- CRoll No- 050153

“A tremendous social responsibility comes with being a successful public performer.” - A. Bartlett Giamatti

Definitions: ‘CSR is about how companies manage the

business processes to produce an overall positive impact on society.’

‘It is the process with the aim to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all the other members of the public sphere.’

Corporate Social Responsibility (CSR)

CSR is the sum total of the following: Economic Responsibilities (Make a profit) +Legal Responsibilities (Obey the law)+Ethical Responsibilities (Be ethical)+Philanthropic Responsibilities (Good corporate citizen) =CSR

Corporate Social Responsibility

Historical Perspective: From the 1950’s to the present, the

concept of CSR has gained considerable acceptance and the meaning has been broadened to include additional components.

CSR basically includes issues

Business Ethics Community

Investment Environment Governance Human Rights, etc.

Why should companies get involved in CSR?

To create a trust among the investors. For becoming a preferred choice of

their customers. For enhancing brand value and their

reputation. Long term sustainability for the

organization and the society.

Pyramid Of CSR

Philanthropic ResponsibilitiesPhilanthropic ResponsibilitiesBe a good corporate citizen.

Ethical ResponsibilitiesEthical ResponsibilitiesBe ethical.

Legal ResponsibilitiesLegal ResponsibilitiesObey the law.

Economic ResponsibilitiesEconomic ResponsibilitiesBe profitable.

CORPORATE SOCIAL RESPONSIBILITY

Business Responsibilities in the 21st 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.

CORPORATE SOCIAL RESPONSIBILITY

Arguments for CSR:

Addresses social issues business caused and allows business to be part of the solution

Protects business self-interest

Limits future government intervention

Addresses issues by using business resources and expertise

Addresses issues by being proactive

CORPORATE SOCIAL RESPONSIBILITY

Arguments against CSR:

Restricts the free market goal of profit maximization

Business is not equipped to handle social activities

Dilutes the primary aim of business

Decreases business power

Limits the ability to compete in a global marketplace

CASE STUDY ITC Limited is the multi-

business conglomerate diversified into FMCG, Hotels, Paperboards and Packaging, Agro Business and Information Technology. Apart from this, it also spends a considerable amount of its earnings towards CSR.

ITC’s POLICY Human Rights

Policy Environment,

Health And Safety (EHS) Policy

Social Investments Policy

E-Waste Policy Food Products

Policy

CSR And Economic Performance At ITC

ITC has crafted innovative business models that augment sustainable livelihoods for the nation.

In 2012-13, the company spent about Rs. 82 crores on CSR.

There was about 1.62% increase in the CSR spending in 2012-13 when compared to 1.29% in the year 2010-11

The big question is whether CSR is justified or not??

And, it is very important to answer this question sincemany big companies do escape from CSR.

Spending considerable amount on CSR is obviously a barrier to profitable enterprises. However, it is very important to have a CSR component since business is personal. A business can impact thousands of people. It affects employees. That’s why we need to turn toPhilanthropy. Companies not only have a financial capitalbut also social capital and natural capital.

It essentially covers 3 P’s: Profit, People and Planet.

THANK YOU!