Transcript Challenges and Issues in Corporate Governance

Role of CSR for achieving controlled
Sustainable Development
By Suhas Chavan
What is Corporate Social Responsibility?
• “Corporate social responsibility on part of the
business organizations is a commitment to function in
an ethical manner and bring significant changes in
the local community and society to ensure sustained
economic development “- World Business Council for
sustainable development
What is sustainable development?
• “Development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs”
Role of CSR in controlled sustainable
development
• The present need for business organizations is to
integrate environmental, ethical and social concerns
in their business activities
The key drivers for CSR are
• Enlightened self-interest - creating a synergy of ethics, a cohesive society
and a sustainable global economy where markets, labour and communities
are able to function well together.
• Social investment - contributing to physical infrastructure and social
capital is increasingly seen as a necessary part of doing business.
• Transparency and trust - business has low ratings of trust in public
perception. There is increasing expectation that companies will be more
open, more accountable and be prepared to report publicly on their
performance in social and environmental arenas.
• Increased public expectations of business - globally companies are
expected to do more than merely provide jobs and contribute to the
economy through taxes and employment.”
CSR & sustainable development- two sides of
the same coin-……..Solutions
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Collective conformation to ethics
Transparency in business & honest disclosure
Introducing workplace diversity initiatives
Ethics in governance in HRM
Encourage background check of employees,
suppliers/investors, etc.
Developing a code of ethics towards the
employees,
CSR & sustainable development- two sides of
the same coin-…….Solutions
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Compliance to organizational mission & vision
statements,
A zero-tolerance attitude towards unethical
behavior,
Decentralization of business.
Inclusive growth & smooth competition.
Broad public participation in decision making
Supply chain monitoring
Financial Ethics
CSR & sustainable development- two sides of
the same coin-…….Solutions
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The ethical marketing practice- integrity in advertising,
distribution & marketing channels
Ethical compliance in the production process, Handling of
issues w.r.t to pollution, environmental & ecological
conformations of emissions etc.
Appointment of Compliance/ Ethical Officers,
Rewards & recognitions for business houses/ government
offices displaying corruption free & transparent business
activities,
Ethics, as a subject, made compulsorily be a part of school
& higher education
Recognition and preservation of needs of shareholders
The emerging model of CSR in India
• Community development:
• Environmental management:
• More emphasis on knowledge and employee wellbeing at work place
 Partnership with NGOs and Government:
Some cases of CSR initiatives in India
• Infosys Technologies Limited• community development programs, corporate citizenship,
Research and Education, Community Service, Rural
Reach Programme, Employment, Welfare activities
undertaken by the Infosys Foundation, Healthcare ,
Education and Arts & Culture.
• ITC Limited• farmer partnerships, creating livelihoods for poor tribal
make their wastelands productive; investing in rainwater
harvesting empowering rural women, providing
infrastructural support to make schools exciting for village
children.
Some cases of CSR initiatives in India
• Mahindra & Mahindra-promote education, financial
assistance and recognition to them. The Nanhi Kali project
• Tata Consultancy Services-The Adult Literacy Program
• ‘LABS’ of Dr Reddy’s Labs-. training the under privileged
youngsters,
• Care Today Foundation- Rehabilitation of the Kargil
soldiers, Rehabilitation of the cyclone and drought victims
in Orissa
Conclusion
• CSR has a significant role to play in controlling
the perils of uncontrolled development, satisfying
the needs of the present generation and at the same
time ensuring that the resources of future
generations are not jeopardized.
• Corporate houses need to act as Responsible
Business Enterprises (RBE's), displaying quality
policies & management practices and a culture of
responsible business conduct, to sustain in this
competitive edge
Thank you