KMBHR05 (IHRM) CSR Unit- 5

International Human
Resource Management
(KMBHR05)
Corporate Social
Responsibility
Dr. Pooja Tiwari
ABES EC, Gzb
AKTU Lucknow
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Dr. Pooja Tiwari, ABES EC, AKTU Lucknow

Corporate Social Responsibility
“It takes 20 years to build a reputation and only 5 minutes to ruin it.” (Warren Buffet).
Business should not only be responsible morally to the stakeholders but also to the society,
environment and towards a sustainable planet at large.
CSR requires companies to acknowledge that they should be publicly accountable not only
for their financial performance but also for their social and environmental record.
CSR encompasses the extent to which companies should promote human rights,
democracy, community improvement and sustainable development objectives throughout
the world. (Confederation of British Industry,2001).
CSR is the commitment of businesses to contribute to sustainable economic development
working with employees, their families, the local community and society at large to improve
their quality of life in ways that are both for business and good for international
development. World Bank,24 March 2004).
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Corporate Social Responsibility
 CSR is an evolving business practice that incorporates sustainable development into a
company's business model. It has a positive impact on social, economic and
environmental factors.
 Corporate Social Responsibility is a management concept whereby companies
integrate social and environmental concerns in their business operations and
interactions with their stakeholders.
 CSR is generally understood as being the way through which a company achieves a
balance of economic, environmental and social imperatives (“Triple-Bottom-Line-
Approach”), while at the same time addressing the expectations of shareholders and
stakeholders.
 CSR is the continuing commitment by businesses to behave ethically & contribute to
economic development while improving the quality of life of the workforce & their
families ,local communities and the society at large. (World Business Council)
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Cont…
 A properly implemented CSR concept can bring along a variety of competitive
advantages, such as enhanced access to capital and markets, increased sales and
profits, operational cost savings, improved productivity and quality, efficient human
resource base, improved brand image and reputation, enhanced customer loyalty,
better decision making and risk management processes.
 Key CSR issues: environmental management, eco-efficiency, responsible sourcing,
stakeholder engagement, labour standards and working conditions, employee and
community relations, social equity, gender balance, human rights, good
governance, and anti-corruption measures.
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Purpose of Corporate Social Responsibility
 The purpose of corporate social responsibility is to give back to the community,
take part in philanthropic causes, and provide positive social value. Businesses are
increasingly turning to CSR to make a difference and build a positive brand
around their company.
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Cont…
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Types of CSR
 Corporate Philanthropy
 Corporate philanthropy is the act of a corporation promoting the welfare of others, usually through
charitable donations of funds. Companies can leverage this type of CSR in various ways, though one
of the most popular ways is by matching gifts their employees make to companies.
 Corporations that offer matching gift programs essentially double the donations that their
employees are giving to eligible nonprofits.
 Corporate Volunteerism
 Corporations can leverage corporate volunteerism by encouraging their employees to volunteer.
Many companies allocate hours to go toward volunteering during the workday, and many more
encourage involvement by offering volunteer grants to the nonprofits where their employees
volunteer.
 This kind of socially responsible program is a win-win for every party involved. Employees of
corporations are seen volunteering and donating their time to important causes in the community,
and nonprofits are receiving free time and volunteer work, which is essential for the success of so
many nonprofits.
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Cont…
 Environmental Leadership
 Corporations can demonstrate environmental leadership in several ways. For
example, they can:
 Put forth efforts to reduce their carbon emissions
 Recycle their products
 Give back to environmental causes
 By showing that they care about improving and preserving the environment,
companies can gain more support and business, and also build a solid reputation
as an environmental leader.
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Cont…
 Ethical Labor Practices
 Part of being socially responsible for a corporation means participating in ethical
labor practices. These practices can include:
 Offering more competitive salaries to employees
 Offering more competitive compensation packages
 Providing generous parental leave
 Offering tuition reimbursement
 Following ethical labor practices reflects well on companies and causes more
individuals to want to work with them.
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Cont…
 Economic Responsibility
 In being economically responsible, companies “pay their dues” to society, such as
by:
 Keeping up with their taxes
 Investing back into their communities
 Paying their employees competitive wages
 Companies that take part in economic responsibility are truly paying it forward for
the greater social good. This not only impacts their values as a company but also
their employees and the well-being of the economy overall.
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Four Dimensions of CSR
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Benefits to CSR
 Increased employee loyalty and retention.
 Increased quality of products and services .
 Increased customer loyalty.
 Increased reputation and brand image.
 Greater productivity and quality.
 Reduced regulatory oversight .
 Access to capital and market.
 Product safety and decreased liability.
 Less volatile stock value
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Business impact of CSR
 Shareholder value(Changes in stock price and dividend).
 Revenue(Changes in revenues due to change in market share and new markets
).Operational efficiency.
 Access to debt and equity capital.
 Customer attraction and retention.
 Creation of brand value and reputation.
 Human capital
 Risk management
 Innovation.
 License to operate.
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Top CSR Programs for Companies
 Matching Gift Programs
 Matching gifts are a type of corporate philanthropy in which companies match
donations that their employees make to non-profit organizations.
 When an employee makes a donation, they’ll request the matching gift from their
employer, who then makes their own donation. Companies usually match donations
at a 1:1 ratio, but some will match at a 2:1, 3:1, or even a 4:1 ratio.
 Matching gifts are growing in popularity:
 65% of Fortune 500 companies offer matching gift programs.
 84% of donors say they’re more likely to make a donation if a match is offered.
 1 in 3 donors indicates that they would give a larger gift if matching was applied to
their donation.
 12% of total corporate cash contributions have gone through corporate matching gift
programs.
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Cont…
 Volunteer Grants
 Volunteer grants are a form of corporate giving that encourages employees of
companies to volunteer in their local community. Companies will then provide
monetary grants to the organizations where these employees regularly volunteer.
 Volunteer grants are a great way to turn volunteer time into tangible funds and are
also rising in popularity:
 40% of Fortune 500 companies offer volunteer grant programs.
 80% of companies with volunteer grant programs offer between $8-$15 per hour
volunteered.
 65% of companies that were surveyed provided paid-release time volunteer
programs in 2017.
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Recent News on CSR
 Corporate affairs ministry to count funds spent to tackle Covid-19 under CSR
activity
 “Keeping in view of the spread of novel Coronavirus (COVID-19) in India, its
declaration as a pandemic by the World Health Organisation (WHO), and, decision
of the Government of India to treat this as a notified disaster, it is hereby clarified
that spending of CSR funds for COVID-19 is eligible CSR activity,” the notification
said.
Read more at:
https://economictimes.indiatimes.com/news/company/corporate-trends/corporate-
affairs-ministry-to-count-funds-spent-to-tackle-covid-19-under-csr-
activity/articleshow/74776066.cms?utm_source=contentofinterest&utm_medium=text&
utm_campaign=cppst
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Cont…
 As per the amended Companies Act, the government has made it mandatory for
companies to spend 2% of their average net profit of the last three years on CSR
activities.
 Recently Indian industry bodies like the Confederation of Indian Industry (CII) and
the Associated Chambers of Commerce and Industry of India (ASSOCHAM) had
suggested the government take this measure to direct the pooled resources of the
private sector towards fighting the virus outbreak.
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Thank You
Dr. Pooja Tiwari, ABES EC , AKTU, Lucknow
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KMBHR05 (IHRM) CSR Unit- 5

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KMBHR05 (IHRM) CSR Unit- 5