Corporate Social Responsibility - [1].ppt

corpoarte social resposibility

1. WhatisCSR?
DefinitionbyMichaelHopkins
•Concernedwithtreatingstakeholdersofthe
firmethicallyorinaresponsiblemanner
•itincludessocialandenvironmental
responsibility
•wideraimofsocialresponsibilityistocreate
higherandhigherstandardsofliving,while
preservingtheprofitabilityofthecorporation
forpeoplewithinandoutsidethecorporation.

2. Questionsarisingoutofabovedefinition-
•Whoarethestakeholders?
•Whatismeantbyethical?
•Whyinclude‘social’wordincorporate
responsibility?
•Whatdoesresponsibilityactuallymean?
•Doessocialincludeeconomicsand
environment?
•WhyshouldCSRbeinvolvedincreating
higherstandardsoflivingforpeopleoutside
thecorporation?

3. Sustainabledevelopmentmeetsthe
needsofthepresentwithout
compromisingtheabilityoffuture
generationstomeettheirownneed.
ThusCorporatesustainabilitycanbe
definedas meeting society’s
expectationsthatcompaniesadd,
social,economicandenvironmental
valuefromtheiroperations,products
andservices.

4. WordsocialshouldbeincludedinCSR
becausewithoutit,thedefinitionwillbe
equivalenttocorporategovernance,agreeing
toobeylaw.
Wordsocialshouldincludeeconomicand
environmental.
Meaningofthewordresponsibilitymeans
corporationsaremorallydutyboundand
accountableforsocialgood.

5. OtherdefinitionsofCSR
HSBC-Definition
CorporateSocialResponsibility
meansmanagingourbusiness
responsiblyandsensitivelyforlong
termsuccess.Ourgoalisnotand
neverhasbeenprofitatanycost
becauseweknowthattomorrow’s
successdependsonthetrustwe
buildtoday.

6. DefinitionbyCSRAsia
Acompany’scommitment to
operatinginaneconomically
sociallyand environmentally
sustainablemannerwhilebalancing
the interestsof diverse
stakeholders.

7. CorecharacteristicsofCSR
•Voluntary
•Internalisingormanagingexternalities
•Multiplestakeholderorientation
•Alignmentofsocialandeconomic
responsibilities
•Practisesandvalues
•beyondphilanthropy
Thesesixcorecharacteristicscapturethemain
thrustofCSR

8. CorporateGovernanceandCSRasasystems
approach.
CorporategovernanceisapartofCSRsystem.
Thisisclearfromthefollowingquotationfrom
AdrianCadbury.Corporategovernanceis
concernedwithholdingthebalancebetween
socialgoalsandbetweenindividualand
communalgoals.Thecorporategovernance
frameworkistheretoencouragetheefficient
useofresourcesandequallytorequire
accountabilityforthestewardshipofthose
resources.Theaimistoalignasnearlyas
possibletheinterestofindividuals
corporationsandsociety.

9. Caseagainst
•Businessofbusinessisbusiness
•CSRhasnolife(Friedman)
•Onlypeoplecanhaveresponsibility
•Itispurerhetoric
•Inpractice,thedoctrineofsocial
responsibilityisfrequentlyacloakforactions
thatarejustifiedonothergroundsratherthan
areasonforthoseactions.

10. •Doctrineofsocialresponsibility
takenseriouslywouldextendthe
scopeofthepoliticalmechanism
toeveryhumanactivity.Itdoesnot
differinphilisophyfromthemoot
explicitlycollectivedoctrine.M
Friedman

11. •Corporatestructureprecludes
socialresponsibility
•Corporationshavenorightto
pursuesocialgoals.
•Itisdifficultforbusinessmento
determinewhatissocially
responsible.

12. Thecentralpointoftheargumentagainst
CSRisthatthechiefarbiterofwider
welfareofthesocietyisthegovernment
ofthecountry.Thedecisiononwhich
socialcausesshouldbemet,what
labourstandardsareconsidered
adequateorwhateducationshouldlook
like-isthedomainofthegovernment.
Privateactors,notablycorporationdo
nothavemandatetodecideonthese
issues.

13. Case for CSR.
•Enlightened self-interest
•sound investment
•avoiding interference
•social responsibility is the noble way for
corporations to behave
•it only makes the company sustainable
•it creates reputation and allows the
growth of the company.

14. •Itprovidesthebasisformeaningful
corporatesocialinvestment.
•Ittherebyhelpsdevelopment,
becomeseffectiveinstrumentsin
theprocessdevelopmentand
removalofpoverty.
•TherebyCSRhelpsincreating
betterqualityoflifeforall.

15. •Corporation’sdonotworkinmoralfree
zones.
•Government’scapabilitytoenforcelegal
frameworkislimited.
•Similarlygovernmenthaslimitedscopeto
enforceethicallyandsociallyresponsible
organisationalbehaviour.
•Businessshouldtodaybeengagedinawar
withtheevilsofourtime,awaritmustwin.
•Duetoliberalizationandglobalization
Government’sabilitytosteerabilitiesinmany
sectorshasdiminished.

16. Themoreimportantsocialresponsibility
becomestoasocietyoffreeindividualthe
morethatsocietyhavetoquestionthe
presentsystemofincreasedbureaucracyand
stressanindividualistic,sociallynon
responsiveattitude.
Socialresponsibilityofcollectionofindividuals
representingbusinessrepresentsourbest
hope,perhapstheonlyrealhopeofreversing
thepresenttrend.Withoutresponsibilityand
ethicalpeopleinimportantplaces,thesociety
weknowandwishtoimprovewillnever
survive.

17. TheoriesandModelsofCSR
•AtpresentCSRtheoriesarefocussedon
followingfourmainaspects
•Theseare:-
i.Meetingobjectivesthatproducelongterm
profits
ii.Usingbusinesspowerinaresponsibleway
iii.Integratingsocialdemandand
iv.Contributingtoagoodsocietybydoingwhat
isethicallycorrect

18. •Thetheoriesdealingwith(I)are
calledinstrumentaltheoriesofCSR
•theoriesdealingwith(ii)arecalled
politicaltheoriesofCSR
•theoriesdealingwith(iii)are
integrativetheoriesofCSR
•theoriesdealingwith(iv)arecalled
valuetheoriesofCSR

19. •Instrumentaltheorybelievesthatonlyone
responsibilityofbusinesstowardssocietyis
maximisationofprofitoftheshareholderswithinthe
legalframeworkandethicalcustomofacountry.
•However,concernforprofitdoesnotexcludetaking
intoaccounttheinterestofallwhohaveastakein
thefirmsatisfactionoftheseinterestscanoften
contributetomaximisingshareholdervalue
•insteadofshorttermprofitorientationCSRonly
stressesattentiontowardenlightenedselfinterest.
•ByCSRactivities,wemaycreateandconquernew
markets-thusCSRisabusinessopportunity

20. •Politicaltheory
Corporationisasocialinstitution.It
mustusecorporatepower
responsibly
•Coursethatgeneratepowerare
bothinternalandexternal.
•Socialresponsibilityofbusinesses
arisesfromtheamountofsocial
powertheyhave.

21. Useofpower
•Whoeverdoesnotusehis/herpower
responsiblywillloseit
•thisiscalledtheironlawofresponsibility
•soifacorporationdoesnotuseitssocial
power,itwillloseitspositioninsocietyand
othergroupswilloccupyit.
•Thelimitsoffunctionalpowercomesfrom
differentconstituencygroups.Thisrestricts
organisationalpowerinthesamewaythata
governmentalconstitutiondoes.Inviewof
thisitiscalled“CorporateConstitutionalism”.

22. Integrativetheory:-
•Thereisasortofimplicitsocialcontract
betweenbusinessandsociety.
•Thissocialcontractimpliessomeindirect
obligationsofbusinesstowardssociety
•socialresponsibilitiescomefromconsent.

23. Inthisconnection,itispertinentto
understandtheconceptof
corporatecitizenship.
•Corporatecitizenshiporbusiness
citizenshipconceptsconveya
strongsense ofbusiness
responsibilitytowardsthelocal
communityandforconsideration
towardsenvironment.

24. Integrativetheoriesarefocussed
onthedetectionandscanning
ofandresponsetosocial
demandsthatachievesocial
legitimacygreatersocial
acceptanceandprestige.

25. CorporateSocialPerformance(CSP)
CSPincludesasearchforsocial
legitimacywithprocessesforgiving
appropriateresponses;model
corporatesocialperformanceis
composedof(i)principlesofCSR,
(ii)processesofcorporatesocial
responsivenessand(iii)outcomes
ofcorporatebehaviour

26. CorporateSocialPerformanceevaluation
willthereforeincludeanalysisof
principlesofCSR,expressedon
institutional,organisationaland
individuallevels,processesofcorporate
responsivenesssuchasenvironmental
assessment,stakeholdermanagement
andoutcomesofcorporatebehaviour
includingsocialimpacts,social
programmesandsocialpolicies.

27. •Corporationsneedtobeincreasingly
consciousoftriplebottomline,andonlyon
singlebottomlineoffinancialprofit.
•Businessimpactssocietyinthreedimensions
(TBLapproach)
•Environmentaldimension-workdonein
mattersrelatedtopollutionandemission
control,productlifecyclestrategies,energy
conservation,climatechange
•Socialdimension-dealswithsocialimpactin
termsofemploymentgenerationandcreating
equalopportunities,inclusivedevelopment,
communityregenerationandothersuch
socialissues.

28. CriticismofTBLapproach
•Thoughenthusiasticallyadvocatedthe
approachdifficultmeasurementproblems
•thereisdoubtfulutilityoftheconceptat
practicallevelthoughitisdesirableatabroad
aspirationallevel.
•Financialbottomlineisnormallyclearly
definedandisbasedonrigourousaccounting
andreportingstandards
•othertwobottomlinesarevaguelydefined
andoftenarenotpreciselyderived.

29. •InspiteofabovecriticismstheFBLapproach
isveryusefulinhighlightingtheimperatives
ofmanagingallstakeholdersinbuiness
beforeachievingtheobjectiveof
maximisationofshareholderswealth.
•Largenumberofcorporationabroadandin
Indiaareadoptingthisapproach.
•CIIhasissuedguidelinesregardingthisfor
Indiancorporations.

30. ETHICALTHEORIES
•Thesegrouptheoriesfocussonethical
requirementsthatcementrelationships
betweenbusinessandsociety.
•Theyarebasedonprinciplesthatexpressthe
rightthingtodoorthenecessitytoachievea
goodsociety
Theseinclude
a.Normativestakeholdertheory
b.Universalrights
c.Approachtosustanabledevelopment
d.Thecommongoodapproach

31. Sevenpillarsofsustainedcorporate
reputation.
PILLAR1-Integrity
PILLAR2-Trust
PILLAR3-SocialResponsibility
PILLAR4-CorporateGiving
PILLAR5-BusinessEthics
PILLAR6-Transparencyand
Communication
PILLAR7-CorporateCitizenship