Transcript Ms Pinkey N Bhardwaj

Corporate Social Responsibility : Issues & Challenges
Definition
CSR is a new terminology, but its hardly a new concept.
As in third century BC, Kautilya’s has dealt with the
management of people and power commerce and
taxations, standardization of weights and measures,
and more peace.
Definition
 Raksha (protection): risk management
 Vriddhi (growth): stakeholder value enhancement
 Palana (maintenance): compliance with the law
 Yokakshema (well-being): corporate social
responsibility
CSR
 Corporate Social Responsibility is defined as
“achieving commercial success in ways that honor
ethical values, respect people, communities & the
natural environment.”
 We can also say that CSR means addressing the
legal, ethical, commercial & other expectations
society has for business, & making decisions that
fairly balance the claims of all key stakeholders. In
its simplest terms it is a moral check on: “what you
do, how you do it”
Credibility
 Reputation and Brand Enhancement .
 Accountability and Transparency.
 Risk Management .
 Retention of staff
 It attracts green and ethical investment
 It attracts ethically conscious customers
 Reduction in costs through re-cycling
 It differentiates the firm from its competitor and
can be a source of competitive advantage
 Increased profitability in the long run
Issues
 Health
 Environment
 Agriculture
 Microfinance
 Sanitation
 HIV
 Childcare
 Development
 Education
Issues
 Rehabilitation & Resettlement
 Slum Improvement
 Disaster
 Livelihood
 Women Enpowerment
Challenges
 How to measure CSR .
 Lack of Resources
 Accountability.
 Social Compliance
 Cultural Diversity & Understanding of Local Law.
 Lack of Role of Media
 No Guidelines
 No Knowledge
 Lack of consent in implementing the policies.
CSR Index
 A recent survey of 20,000 people in 20 countries offers some fascinating insights
into the way consumers, and societies at large, perceive the social and environmental
responsibilities of business. Corporate Social Responsibility Monitor 2001: Global
Public Opinion on the Changing Role of Companies identifies those aspects of
corporate practice that matter most to the general public. It also reveals some
intriguing differences in priorities between different regions of the world.
 The survey was undertaken by Environics International, and involved interviews
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with around 1,000 people in each of 20 countries including the USA, Canada,
Mexico, Britain, France, Germany, Japan, India, Russia and Nigeria.
The key findings are as follows.
1. Significant numbers of investors take a company's social performance into
consideration when making investment decisions
In the USA, where 61% of people own shares, more than a quarter said they had
bought or sold shares on the basis of a company's social performance. A similar
picture emerged in Canada, Japan, Britain and Italy .
Percentage of share-owners who have bought or sold shares because of a
company's social performance, by country
Conclusion and Suggestions
 Conduct workshops to engage with staff and suppliers to
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explore areas of risk .
Develop interactive intranet sites that show case examples of
good practice, or build in opportunities for promotion of good
practice at staff meetings .
Review company policy and procedures to ensure values are
consistent – procurement, recruitment, training, appraisals and
exit interviews .
Consult and involve staff more in the running of a business .
Provide feedback questionnaires for employees, customers and
suppliers – to show the organization is living its values .
Conclusion and Suggestions
 Employee Practices.
 Encourage Higher standards at Workplace.
 Encourage Community Activities.
CSR - SCORE
In a report titled, 'Ethical Asia', by global research firm
CLSA, Reliance Industries, Australian airline Cathay
Pacific and Japanese conglomerate Mitsubishi UFG
have been named as the companies maintaining the
highest CSR standards in the region and have been
termed the region's 'corporate good guys'.
Conclusion
In conclusion, let me share a quotation from Aristotle:
“We are what we repeatedly do. Excellence, therefore,
is not an act, but a habit.” If ethical leadership, too,
were to become not just an act, but a habit, leaders
could truly make the world a better place to live in.