CORPORATE SOCIAL
RESPONSIBILITIES OF BUSINESS
PRADEEP P
I-MBA
Social Responsibility of Business
• Dependence of business on society (Law of
Responsibility)
• Achievement of Long-term Objectives
• Change in public expectations
• Concept of corporate citizenship
• Fear of loss of goodwill and reputation
• Pressure from different groups
CSR
• The voluntary actions that business can take,
over and above compliance with minimum
legal requirements, to address both is own
competitive interests and the interests of wider
society.
• An organisation’s obligation to maximise its
positive impact and minimise its negative
impact on society.
Definition of CSR
• A wide variety of definitions have been developed,
but with little consensus. Part of the definition
problem has arisen because of the different interests
represented. A business person may define CSR as a
business strategy, an NGO activist may see it as '
greenwash' while a government official may see it as
voluntary regulation.
CSR defines the social responsibilities of a
corporation which, if implemented, will lead to the
corporation being sustained. CSR may be considered as
a tool and way of doing business towards sustainable
development.
Pillars of Corporate Sustainability:
Economic Sustainability
Social Sustainability
Environmental Sustainability
CSR and Corporate Governance
Corporate governance is concerned with holding
the balance between economic and social goals and
between individual and communal goals. The
governance framework is there to encourage the
efficient use of resources and equally to require
accountability for the stewardship of those resources.
The aim is to align as nearly as possible the interests of
individuals, corporations and society……Cadbury
Committee
Corporate Social Responsibility (CSR)
Understanding the Four Components
Responsibility Societal Expectation Examples
Economic Required Be profitable. Maximize
sales, minimize costs,
etc.
Legal Required Obey laws and
regulations.
Ethical Expected Do what is right, fair
and just
Discretionary Desired/ Expected Be a good corporate
(Philanthropic) citizen.
CSR in India
Every company having net worth of Rs 500 crore or
more, or turnover of Rs 1000 crore or more or a net profit of Rs
5 crore or more during any previous financial year shall
constitute a Corporate Social Responsibility Committee of the
Board consisting of three or more directors, out of which at least
one director shall be an independent director. Formulate and
recommend to the Board, a Corporate Social Responsibility
Policy which shall indicate the activities to be undertaken by the
company; and monitor the Corporate Social Responsibility
Policy of the company from time to time.
CSR Activities
• Eradicating extreme hunger and poverty
• Promotion of education;
• Promoting gender equality and empowering women;
• Reducing child mortality and improving maternal health;
• Combating human immunodeficiency virus, acquired immune
deficiency syndrome, malaria and other diseases;
• Ensuring environmental sustainability;
• Employment enhancing vocational skills;
• Social business projects;
• Contribution to the prime minister's national relief fund or
any other funds.
