Corporate Social Responsibility (CSR)

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CSR: Definition
Corporate Social Responsibility (CSR), is a form of corporate selfregulation integrated into a business model. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and honoring People, Planet and Profit.

CSR: Its importance

United Nations Millennium Development Goals lists increased contribution of large organizations to help to alleviate poverty, hunger and being more aware of their impact on society . The Indian government will make it mandatory for companies with turnover of Rs 1,000 crore or net profit of Rs 5 crore to allocate 2% of their profit towards CSR

Drivers of CSR
Enlightened Self-interest Creation of 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 Contribution to physical infrastructure and social capital is increasingly seen as a necessary part of doing business

Drivers of CSR
Transparency and Trust Business has low ratings of trust in public perception. There is increasing expectation that companies will be more open and accountable. 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 Pyramid

Economic Responsibilities
How resources for the production of goods and services are distributed within the social system Efficient operation to satisfy economic needs of the society and generation of surplus for rewarding the investors and further development

Ethical Responsibilities
Behaviors and activities that are expected or prohibited by organizational members, the community, and society (not codified into law) Standards, norms, or expectations that reflect the concern of major stakeholders

Philanthropic Responsibilities...
Voluntary contributions of business to the society like involvement in community development or other social programmes Examples-(1) Shiksha program of Proctor & Gamble (2) Indian Institute of Science (IISc) and the Tata Institute for Fundamental Research (TIFR)

Parties To CSR

CSR In India

Tata Steel Ltd spends an average of Rs150 crore as part of its annual revenue expenditure. Steel Authority of India Ltd (SAIL), the country's largest steel company, spent Rs100 crore on CSR last year; this was 2% of its Profit After Tax (PAT) TCS has its adult literacy program which aims to address the issue of illiteracy

ITC Limited

Leveraging Information-Technology through its trailblazing 'e-Choupal' initiative Creating livelihoods by helping poor tribal Investing in rainwater harvesting to bring muchneeded irrigation Empowering rural women by helping them evolve into entrepreneurs There are 6,500 e-Choupals today. ITC Limited plans to scale up to 20,000 e-Choupals by 2012 covering 100,000 villages in 15 states, servicing 15 million farmers

Mahindra & Mahindra

The K. C. Mahindra Education Trust was established in 1953 by late Mr. K. C. Mahindra with an objective to promote education Envisages transforming lives of people in India through education, financial assistance The Trust has provided more than Rs. 7.5 Crore in the form of grants, scholarships and loans.. The Nanhi Kali project has over 3,300 underprivileged children under it.

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