Corporate-Social-Responsibility-CSR-and-Corporate-Governance.pptx

Corporate-Social-Responsibility-

1. Corporate Social Responsibility (CSR) and Corporate Governance Dr Neelam Khanna Assistant Professor M.M. Institute of management Maharsihi Markandeshwar University (Deemed to be University) Mullana , Ambala

2. Corporate Social Responsibility (CSR) and Corporate Governance Corporate Social Responsibility (CSR) and Corporate Governance are two interconnected concepts that have gained increasing importance in the business world. CSR focuses on a company's commitment to operating in an ethical and sustainable manner, while corporate governance addresses the system of rules, practices, and processes used to direct and control a company. Da

3. Defining CSR and Corporate Governance Corporate Social Responsibility (CSR) CSR refers to a company's voluntary initiatives to address environmental, social, and ethical issues beyond its legal obligations. It's about a business's commitment to sustainable practices and positive impact on society. Corporate Governance Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled. It involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. The Relationship CSR and corporate governance are interconnected - effective corporate governance supports a company's ability to be socially responsible, while CSR initiatives can enhance a company's governance practices and long-term sustainability.

4. The Importance of CSR and Corporate Governance Ethical Business Practices CSR promotes ethical and responsible business practices, ensuring companies operate with integrity and transparency to build trust with stakeholders. Effective Risk Management Corporate governance establishes robust systems and controls to identify, assess and mitigate risks, safeguarding the long-term sustainability of the organization. Improved Financial Performance Studies show that companies with strong CSR and corporate governance programs often outperform their peers financially, creating value for shareholders.

5. The Relationship between CSR and Corporate Governance Corporate Social Responsibility (CSR) and Corporate Governance are closely intertwined. CSR focuses on a company's ethical and sustainable practices, while Corporate Governance deals with the systems and processes that govern a company's decision-making. Effective Corporate Governance ensures that a company's CSR initiatives are aligned with its overall strategy and are implemented transparently and accountably. In turn, a strong CSR program can enhance a company's reputation and stakeholder trust, which supports good Corporate Governance.

6. Ethical Considerations in CSR and Corporate Governance Transparency Ethical corporate practices demand openness and accountability, ensuring stakeholders have access to accurate information about a company's operations and decision-making processes. Social Responsibility CSR and corporate governance must prioritize a company's obligations to its employees, community, and the environment, going beyond mere legal compliance. Integrity Maintaining the highest standards of integrity is crucial, as ethical lapses can severely damage a company's reputation and public trust.

7. Practices of Corporate Governance Board Composition Effective corporate governance requires a diverse and independent board of directors. This ensures balanced decision-making and oversight of management. Shareholder Rights Shareholders should have a voice in major corporate decisions through voting rights and access to information. This promotes accountability and transparency. Risk Management The board and management must proactively identify, assess, and mitigate risks that could impact the organization. This safeguards long-term sustainability. Ethics & Compliance Clear codes of conduct, whistleblower policies, and compliance programs ensure the organization operates with integrity and in accordance with laws.

8. Character of Corporate Governance 1 Accountability Corporate governance ensures that companies are accountable to their shareholders, stakeholders, and the broader community. This promotes transparency and responsible decision-making. 2 Oversight It provides oversight and control mechanisms to ensure that management acts in the best interests of the organization and its shareholders. 3 Ethical Conduct Effective corporate governance upholds ethical standards and promotes a culture of integrity, honesty, and fairness within the organization. 4 Risk Management Corporate governance frameworks help companies identify, assess, and mitigate risks, ensuring the long-term sustainability and success of the business.

9. Benefits of Corporate Social Responsibility Community Impact CSR initiatives can positively impact local communities by supporting important causes and improving quality of life. Employee Engagement CSR programs can boost employee morale, retention, and pride, creating a more motivated and productive workforce. Improved Reputation A strong CSR commitment can enhance a company's brand image and reputation, building trust with customers and stakeholders.

10. Evolution of CSR in India 1 Emerging Awareness CSR started gaining attention in India in the 1990s as the globalization of the economy increased. 2 Voluntary Initiatives Many companies began voluntary CSR programs, focusing on community development and environmental sustainability. 3 Legislative Mandates In 2013, India became the first country to legally mandate CSR, requiring large companies to spend 2% of profits on social welfare. The evolution of CSR in India has seen a shift from voluntary initiatives to mandated compliance. This has driven more companies to integrate CSR into their core business strategy, going beyond philanthropy to address social and environmental challenges. The Indian government's role in shaping CSR has been a key factor in this progression.

11. Parties of Corporate Governance Shareholders Shareholders are the owners of a company and have a vested interest in its performance and direction. They play a crucial role in corporate governance by electing the board of directors and approving major decisions. Board of Directors The board of directors is responsible for overseeing the company's strategic direction, ensuring compliance with laws and regulations, and protecting the interests of shareholders. They are the key decision-makers in corporate governance. Management Team The management team, led by the CEO, is responsible for the day-to-day operations of the company and implementing the strategic direction set by the board of directors. They play a crucial role in corporate governance by executing policies and decisions. Regulators Regulatory bodies, such as government agencies and stock exchanges, play a vital role in corporate governance by setting guidelines, enforcing laws, and ensuring transparency and accountability within the business environment.