CSR-AN INTRODUCTION

A companys sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources EU Definition of CSR: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." Briefly, 'CSR is about treating all stakeholders responsibly or ethically.'

AIM of CSR
The aim of corporate social responsibility has

given rise to multiple definitions: Have an overall positive impact on society through a socially responsible conduct; Voluntary integration, by the companies, of social and environmental concerns into their commercial activities and their relations with various stakeholders (definition by the European Commission).

CONCEPT
The concept accommodates a wide variety of achievements and initiatives: moral and ethical concerns, good governance in the form of codes of conduct, self-proclaimed charters, social labels, ethical investments, socially responsible investments, social labels whether depending, in Belgium, or not, in Denmark, on a law.

There are 3 levels of CSR :

Level 1 : Compliance Level 2 : Philanthropy/Green wash Level 3 : - Innovations - Key business strategy - Leapfrog
Based on : John Elkington & Stuart Hart, et al.

 CSR

Level 1: Key Question : The least industry can do beyond compliance Polluter pays principle

CSR Level 1

Improve law/ regulations standards Department of environmental management Reclamation (turning ash in to soil) Local Government participation

Whether the regulation poor or good/new or old : that is not the issue.

CSR Levels 2
Key Questions :

Is industry voluntarily giving back something to the society? Are these actions inspired by a sense of guilt to the society, earning good name in market, philanthropy, etc.?

CSR Level 3
Key Questions: Is it part of core business strategy?

Is it adopted by the board?

CSR Level 3
Ash management: ash brick factory Quality Circle: empowering community R&R: land for land Distributed Generation: Regional dev. Center for power efficiency and Env.

Protection (CenPEEP)

The Four Phases of CSR Development in India

In the first phase charity and philanthropy were the main drivers of CSR. Culture, religion, family values and tradition and industrialization had an influential effect on CSR. In the second phase, during the independence movement, there was increased stress on Indian Industrialists to demonstrate their dedication towards the progress of the society. This was when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry leaders had to manage their wealth so as to benefit the common man. The third phase of CSR (196080) had its relation to the element of "mixed economy", emergence of Public Sector Undertakings (PSUs) and laws relating labor , and environmental standards. During this period the private sector was forced to take a backseat. In the fourth phase (1980 until the present) Indian companies started abandoning their traditional engagement with CSR and integrated it into a sustainable business strategy. In 1990s the first initiation towards globalization and economic liberalization were undertaken

ISSUES RELATED WITH CSR

The problem with corporate social

responsibility (CSR) is that nobody is very clear about what exactly it encompasses. The Indian government has been trying to make it mandatory for companies to spend at least 2% of net profits on CSR. If the proposed rule had come into play, the government would have had to spell out what constitutes CSR.

 Companies Bill contains many provisions that

are of great importance to industry , however it's the CSR piece that has created the most debate. The union ministry at one time wanted to make CSR spending compulsory. Industry has been almost totally against a mandatory clause.

 "Corporate philanthropy and CSR are really

two different things, but get blurred, particularly in India," according to KPMG partner (development sector practice) Sudhir Singh. "CSR should actually relate to the way you conduct your business, whereas it gets confused with giving to the local communities in which you operate."

 Apex industry body FICCI has suggested that the government should encourage companies to

invest in corporate social responsibility initiatives by giving tax incentives instead of making it binding.. "If such a compulsion (of CSR) is imposed on companies...it may turn counter productive as companies may resort to camouflaging activities to meet such regulations, particularly, during recessionary periods and economic downturns," the chamber argued.

 One of the most controversial issues that is

debated is whether CSR is a cost or a benefit to the corporate bottom line. Economist argue that , under various conditions of imperfect competition, firms can increase their value with corporate responsibility activities. In short term, CSR may increase costs whilst benefits are more likely to be felt later

CHALLENGES OF CSR IN INDIA

1.Lack of Community Participation in CSR Activities 2. Need to Build Local Capacities. 3.Issues of Transparency. 4. Non-availability of well organized non-governmental organizations. 5. Visibility Factor. 6. Narrow Perception towards CSR Initiatives. 7. Non-availability of Clear CSR Guidelines. 8. Lack of Consensus on Implementing CSR Issues

Case Study- Hindustan Unilever

Reach untapped markets with a Corporate Social Responsibility Business Model India is the second largest country in the world in terms of population. India has also a large number of villages; more than 600.000 villages with poor transport infrastructure making shipments of goods extremely difficult. Most of these villagers dont have access to the very basic hygiene products like soap, toothpaste, shampoo, etc. Hindustan Unilever saw an opportunity in this program and decided to develop a business model accordingly.

 Hindustan Unilever launched the so-called Shakti

Entrepreneurship Program. The value proposition was to create in each village and surrounding a chain of entrepreneurs for Hindustan Unilever products. These entrepreneurs (who are selected women) will not only distribute but also educate these villagers on the use of the different corporal hygiene products provided by Hindustan Unilever. NGOs have supported Hindustan Unilever with selecting these underprivileged women, to become the new Hindustan Unilever distributers and the new promoted entrepreneurs.

 Shakti is a good example of CSR. it created a

whole new way of life for 60.000 to 70.000 women, with the opportunity to gain a good living. It had a direct effect on their social stature. The women entrepreneurs were also educating their communities on hygiene issues while selling their products - for example, by explaining how to brush children's teeth - and through community wide health awareness days.

RECOMMENDATIONS

Need for creation of awareness about CSR amongst the general public to make CSR initiatives more effective.

Appropriate steps be undertaken to address the issue of building

effective bridges amongst all important stakeholders for the successful implementation of CSR initiatives.
Only medium and large corporate houses are involved in CSR

activities.
Many CSR initiatives and programs are taken up in urban areas

and localities.
Government should consider rewarding and recognizing corporate

houses and their partner non-governmental organizations implementing projects that effectively cover the poor and the underprivileged.
CSR as a subject or discipline should be made compulsory at

business schools and in colleges and universities.

Benefits :
CSR behavior can benefit the firm in several Ways:
It aids the attraction and retention of staff . It attracts green and ethical investment . It attracts ethically conscious customers. It can lead to a reduction in costs through re-cycling. It differentiates the firm from its competitor and can be a

source of competitive advantage. It can lead to increased profitability in the long run. Generate innovation and learning and enhance your influence. Improve your business reputation and standing

Conclusion
It is being increasingly recognize that

business is not an end itself. but it is only an means to an end.and that end is man, be it a worker, customer, consumer or any member of society. at last I conclude that business is run by the people and for the people. business is nothing but people..people nothing but society.. so its the basic responsibility and duty of business to take care of society..