Introduction to CSR.pdf
- 1. Management of Corporate Social Responsibility Presented by- Asst Prof. Shrutika S Khole
- 2. Chapter: 1 Introduction to CSR 1.1Meaning and Definition 1.2Sustainability and Stakeholders Management 1.3 Concept of Charity 1.4 Corporate Philanthropy 1.5 Relation between CSR and Corporate Governance 1.6 Evolution of CSR in India 1.7 Models of CSR in India 1.8 Carrolls Model 1.9 Initiatives in India
- 5. Introduction • Corporate social responsibility (CSR) can be simply and broadly defined as the ethical role of the corporation in society. The aim of CSR is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions. • Corporate Social Responsibility (CSR) is becoming an increasingly important activity to business and internationally.
- 6. Definition of CSR • By Mallen Baker: Corporate Social Responsibility (CSR) is how companies manage their business process to produce an overall positive impact on society. • The concept of social responsibility of shareholder states that a business entity whether it is state government, corporation, organization, or Individual has a responsibility to society. • Mr. Narayan Murthy, Infosys founder stated that “Social responsibility is to create maximum shareholder value working under the circumstances, where its fair to all its stakeholder, worker, consumers, the community, Government and the Environment.”
- 7. Importance of CSR The importance of CSR can be discussed with the help of the following points: • Good relationships with all their stakeholders (Employee, Government, Suppliers, Distributers, Customers, Consumer, Investors- (Bank, Developmental Banks, Financial Institutions, Share holder, Bond Holder, Debenture Holder etc), Competitors, Environment etc. • Sustainable development • Promotion of organizations Goodwill • Helps to improve the public image • Social development and environmental protection •Consumer is aware
- 8. Sustainability and stakeholders management A) Stakeholder Management The purpose of stakeholder management is to: 1.Consider the perspective of stakeholder, and 2. Act on inputs and concerns in a strategic sense. B) Stakeholder C) Stakeholder Relations Management D) Potential Challenges
- 9. Concept of Charity • Charity is the act of extending love and kindness to others unconditionally, Which is a conscious act but the decision is made by the heart, without expecting a reward. When Charity is carried out selflessly, it is a one-way act where a person gives but the decision is made by heart, without expecting a reward. A) Purpose of Charity • Charity is essential and therefore meant to be done for public benefit, relief and to assist people at times of need in any world, especially those who are the victims of war, natural war, natural disaster, catastrophe, hunger, disease, poverty, orphans by supplying them with food, shelter, medical aid and other fundamental needs.
- 10. B) Importance of charity in our Society 1. Giving to charity makes you feel good. 2. Charity harnesses the power of community. 3. Charity teaches the next generation about generosity. 4. The charity helps communities become sustainable. 5. Charity reduces poverty. 6. The charity benefits donors. 7. Charity brings attention to the most serious issues. 8. Charities protect public health. 9. The Charity ensures that human rights are respected. 10. Giving to Charity strengthens personal values.
- 11. Corporate Philanthropy A) Meaning of the concept • Philanthropy is defined as promoting and attempting to bring about social change by majorly making generous financial contributions. A philanthropist is someone who decides to invest in a social sector a portion of their wealth, time or knowledge for a cause that they believe in. • Corporate philanthropy can be understood as contributions by firms that benefit stakeholders (Government, Employees, investors, Consumers, Customers, Distributors) and the community, usually through financial or in-kind donations to nonprofit organizations. (rendered services) (Government Hospitals, Government College )
- 12. • On the corporate level, philanthropy is practiced in many different ways. Many corporations simply donate money to cause that are intended to bring about social change. • Corporate philanthropy is the act of corporation or business promoting the welfare of others, generally through charitable donations of funds or time. Example: Azim Premji Endowment fund owns 13.6% of the promoters shareholding in Wipro and has the right to receive all money earned from promoter shares. On 1st April 2020 Azim premji foundation(Rs 1,000 Crores) and Wipro (100 Crore) Wipro enterprises (Rs 25 Crore) have together committed Rs 1,125 Crore towards the Covid pandemic outbreak. These are in addition to the Azim Premji Foundation. On 30th March 2020, Reliance Industries announced a donation of Rs 500 Crore to the PM CARES Fund and Rs 5 Crores each to the Chief Ministers Relief Fund of Maharashtra and Chief Ministers Relief Fund of Gujarat to support their fights against the Covid-19.
- 13. Benefits of Corporate Philanthropy •High employee engagement •Employee retention •Ability to attract top talent in the organization •Positive work environment •Boost the company’s image and brand equity •Enhanced customer relationships and consumer confidence. •Strengthened government relations.
- 14. •CSR- CSR is a business approach that contributes to sustainable development by delivering economic, Social, & environmental benefits for all Stakeholders. • Corporate governance- Corporate governance is the system of Rules, Practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interest of a company’s Stakeholder, such as Shareholder, management, Customers, Suppliers, Investors, Government and the Community. RELATION BETWEEN CSR AND CORPORATE GOVERNANCE
- 15. RELATION BETWEEN CSR AND CORPORATE GOVERNANCE
- 16. Evolution of CSR in India Corporate Social responsibility (CSR) is continuing commitment by businesses to integrate social and environmental concerns in their business operations. Changes in the global environment increasingly challenge business around the world to look beyond financial performance, and to integrate social and environmental concerns into their strategic management. Prior to Companies Act 2013, CSR in India has traditionally been seen as a philanthropic activity. And in keeping with the Indian tradition, it was believed that every company has a moral responsibility to play an active role in discharging the social obligations, subject to the financial health of the company. In the early 90’s Mahatma Gandhi introduced the concept of trusteeship helping socio-economic growth. CSR was influenced by family values, traditions, culture and religion. On 29th August 2013, The Companies Act 2013 replaced the Companies Act of 1956. The New Act has introduced far-reaching changes that affect company formation, administration, and governance, and incorporates an additional section i.e. Section 135 – clause on Corporate Social Responsibility obligations (“CSR”) for companies listed in India. The clause covers the essential prerequisites pertaining to the execution, fund allotment and reporting for successful project implementation. India became the first country to legislate the need to undertake CSR activities and mandatorily report CSR initiatives under the new Companies Act 2013. This is the beginning of a new era for CSR in India.
- 17. Carroll's model
- 18. Initiatives in India • CSR is the obligations • Concept of CSR has been changing • India is the first country in the world to make CSR Mandatory • Even much before the issue became a global concern, India was aware of CSR, due to the efforts of organization such as the TATA group, ITC, IT Companies like TCS and Wipro and so on. Example of CSR in India: TATA Group Infosys M&M ITC
- 19. Thank You.
- 20. Chapter 2:Modules of Corporate Social Responsibility 2.1 Models of CSR- Trusteeship, Stakeholders 2.2 Ethical Model 2.3 International Framework of CSR 2.4 Sustainable Development Goals
- 21. Modules of CSR • Corporate Social responsibility (CSR) refers to the moral and ethical efforts made by a company for the betterment of society in some way. • A company can contribute to different types of corporate social responsibility (CSR) to improve society ranging from donating money to nonprofits or charitable organizations or implementing environmentally-friendly policies in the workplace.
- 22. Modules of CSR Trusteeship Model Stakeholders Model Ethical Model Statist Model Liberal Model
- 23. International Framework of CSR All aspects of doing business like procurement, production and sales are part of globally integrated structures, often putting them outside the influence of exclusively national legislation.
- 24. Sustainable Development Goals (SDGs) • The United Nations Sustainable Development Goals ( UN SDGs, also known as the Global Goals) are 17 Goals with 169 targets that all UN Member State have agree to work towards achieving by the year 2030. they set out a vision for world that is free from poverty, hunger and disease. • The 17 SDGs are integrated they recognize that action in one area will affect outcomes in others and that development must balance social, economic and environmental sustainability.
- 25. The Sustainable Development Goals (SDGs) are as follows: 1. No Poverty 2. No Hunger 3. Good Health and Well- Being 4. Quality Education 5. Gender Equality 6. Clean Water and Sanitation 7. Affordable and Clean Energy 8. Decent Work and Economic Work 9. Industry, Innovation and Infrastructure 10. Reduced Inequalities 11. Sustainable Cities 12. Responsible Consumption and production 13. Climate Action 14. Life Below Water 15. Life on Land 16. Peace, Justice, and Strong Institutions 17. Partnerships
- 27. Thank You.