CSR is a win- win opportunity for companies, financial investors and society at large

Social Responsibility: Definition and Debate Social Responsibility

The idea that business has social obligations above and beyond making a profit. Business has an obligation to constituent groups in society other than stockholders and beyond that prescribed by law.

Purpose of CSR
To engage with the internal and external stakeholders Treating the stakeholders ethically To create high standards of living To protect society and environment To take care of shareholders Philanthropic contributions to society

Factors Leading to CSR Drivers

Globalization and competition Increased size and influence of companies Repositioning of governments and its roles War for talent Growth of global civil society activism

Generations of CSR
Social Betterment responsiveness
First GenerationCompanies can be responsible in ways that do not detract from commercial success.

Social

Second GenerationFocusing on CSR as an integral part of long term business strategy.

Third GenerationSignificant contribution to address issues such as poverty, environmental degradation.

A Continuum of Social Responsibility Strategies

Social Responsibility Strategies

Reactive Strategy
Denying responsibility while striving to maintain the status quo by resisting change.

Defensive Strategy
Resisting additional social responsibilities with legal and public relations tactics.

Social Responsibility Strategies

(contd)

Accommodation Strategy
Assuming social responsibility only in response to pressure from interest groups or the government.

Proactive Strategy
Taking the initiative in formulating and putting in place new programs that serve as role models for industry.

Corporate Social Responsibility (CSR) Arguments For

Balancing corporate power with corporate responsibilities Protects business selfinterest Limits future government intervention Addresses issues by using business resources and expertise Addresses issues by being proactive

Corporate Social Responsibility (CSR) Arguments Against

Business is not equipped to handle social activities Dilutes the primary aim of business Organization may get power over society Increase business power
Lack of expertise to handle social issues

How do we do it?
Key CSR Steps Commitment and Vision Planning Implementation Monitoring Reporting Continuous Improvement

Limitations of Approaches to CSR

Lack of clarity of the definition of CSR Models of CSR not adopted properly by companies Lack of measures to innovate and evolve new CSR models Unidentified segment- need to identify the
areas of interest & capability to take up CSR in a focused manner.

Organisations
IISD (International Institute of Sustainable Development) BSR (Business for Social Responsibility) WEF (World Economic Forum) BSD (Business for Social Responsibility) WBCSD (World Business Council for Sustainable Development