Corporate Responsibility Corporate Social Responsibility CSR CSR policy

Corporate Responsibility

Corporate Social Responsibility (CSR) • CSR policy would function as a built-in self regulating mechanism whereby business would monitor and insure its support to law, ethical standards, and international norms. • According to Cannon, “Corporate social responsibility means devising corporate strategies and building a business with the society’s needs in mind.

Nature CSR • Positive Approach • Multi Dimensional Concept • Not an alternate Scope of CSR Net income contribution Human resource contribution Public contribution Environmental contribution Product of service contribution

Need of CSR • • • To provide sense of responsibility To fulfill long-run self-interests To improve public image To avoid Government regulation or control To avoid misuse of national resources & economic power • To avoid class conflicts • To convert resistance into resources • To minimize environmental damage

Type of CSR • Environmental CSR • Human rights CSR • Financial CSR • Political CSR Strategies: Obstructionist stance Defensive stance Accommodative stance Proactive stance (Highest)

Integrating CSR into Business Approval of top management Gather and examine information Develop strategies Implement commitments Reporting and verification

Significance of CSR Improves Public Image Helps in survival and growth Facilitates changes consumer expectations Attracts better human resources Fulfills changed public expectations of business Provides better environment for business Helps in avoiding government regulation Maintains balance of responsibility with power

Limitations of CSR Profit maximization Society has to pay the cost Lack of social skills Business has enough power Social overhead cost Lack of accountability Lack of board support

Indian Examples of CSR • • • • Reiance Industries Tata group firms Tata motors IBM HSBC Max New York Standard Charterted Bank Navratna Company , Coal India BHEL Reddy’s Lab Hindustan Unilever ICICI Bank ITC SAIL TCS & Wipro