corporate social responsibility- s

8/6/2019 Corporate Social Responsibility- s

1/50

SADHNA

ROLL NO. 0921001506

PRESENTED BY


2/50

Corporate Social Responsibility


3/50

Corporate Social Responsibility(CSR)Preliminary definitions of CSR

The impact of a companys actions on

society

Requires a manager to considerhis acts

in terms of a whole social system, and

holds him responsible for the effects ofhisacts anywhere in that system


4/50

CSR Management:Plan, Do, Check, Act method Plan

Consult stakeholders Establish code of conduct

Set targets


5/50

Main Concepts of CSR

CSR = political economy The rights and

responsibilities assigned to privateindustry.


6/50

DoEstablish management systems

and personnel

Promote code complianceAct

Corrective actionReform of systems


7/50

CheckMeasure progress

Audit

Report


8/50

Context Globally Liberalisation of markets reduction of the regulatory

approach

Emergence of global giants, consolidation of market

share

Development of the embedded firm and the global

value chain

Development of supplier networks in developing countries


9/50

K

ey drivers of CSR

Around the world

NGO Activism

Responsible

investment Litigation

Gov & IGO initiatives

Developing

Countries

Foreign customers

Domestic consumers

FDI Government & IGO


10/50

Selected KeyT

erms Business for Social

Responsibility

Community obligations Corporate Citizenship

Corporate social

responsibility Corporate

social responsiveness

Corporate social

performance

Economic, legal,

ethical and

discretionaryresponsibilities

Paternalism

Philanthropy

Pyramid of CSR

Socially conscious

investing


11/50

Corporate Social Responsibility (CSR)

Arguments Against

Restricts the freemarket goal of profit

maximization Business is not

equipped to handlesocial activities

Dilutes the primaryaim of business

Increase business

power

Limits the ability tocompete in a global

marketplace


12/50

Key Issues in

CSR

Labour rights:

child labour

forced labour

right to organise safety and health

Environmental conditions

water & air emissions

climate change

Human rights

cooperation with paramilitary forces

complicity in extra-judicial killings

Poverty Alleviation

job creation

public revenues

skills and technology


13/50


14/50


15/50

Key Drivers: NGO Activism

Facilitators: IT (esp Internet),media, low cost travel

Boycotts, brand damage,influence legislation, dominoeffect

e.g. Shell in Nigeria, Exxon in

Cameroon, Sinopec in Sudan,Apparel Industry (Nike, Gap),GMO, Wood Products, etc.


16/50


Arguments For

Addresses social

issues business

caused and allowsbusiness to be part of

the solution

Protects business

self-interest

Limits future

government

intervention Addresses issues by

using business

resources and

expertise

Addresses issues by

being proactive


17/50


Business Responsibilities in the 21stCentury

Demonstrate a commitment to societys valuesand contribute to societys social, environmental,

and economic goals th

rough

action. Insulate society from the negative impacts of

company operations, products and services.

Share benefits of company activities with key

stakeholders as well as wit

hshare

holders.

Demonstrate that the company can make moremoney by doing the right thing.


18/50

RECENT ACTIVITY WAS ORGANISED BY DAINIK

BHASKAR HINDI DAILYNEWSPAPER

The Hindi Daily Newspaper i.e. Dainik

Bhaskar recently organized the activity in

favour of Society. They not published anyGutkha and Tobacco adsin their esteemed

newspaper.


19/50

In Context

Community in a pre-modern,modern and postmodern world

Or why we expect more frombusiness and how the game is

played


20/50

Modern

COMMUNITY OFRATIONAL RULES

i) BUREAUCRATIC

ii) SCIENTIFIC MANAGEMENT

iii) RELIANCEON "EXPERTS"iv) COMPREHENSIVE RULES

Power goes to those who make the rules. Relies onexpertise

Authority goes to those who can enforce their rules Reachfor the top

Ethics are based on fairness and programs based onrules


21/50

Postmodern

COMMUNITY OF FLEETING EXCHANGES

i) NEED TO INTERPRET

ii) NEED TO BUILD CONSENSUS

iii) LOOSE CONNECTIONS

iv) SUSPICIONOF AUTHORITY

Power goes to those who can make the deal throughnetworking and can handle uncertainty

Authority goes to those who see and can sell coalitions anddeals regardless of other levels of authority

Ethics are situational; programs emerge to be responsive


22/50

Take a guess

This is from the "Ottawa Citizen":

Can you imagine working for a company that has a little more than 300employees, and has the following statistics:

30 have been accused of spousal abuse9 have been arrested for fraud24 have been accused of writing bad cheques95 have directly or indirectly bankrupted at least 2 businesses4 have done time for assault55 cannot get a credit card due to bad credit12 have been arrested on drug related charges

4 have been arrested for shoplifting16 are currently defendants in lawsuits62 have been arrested for drunk driving in the last year aloneCan you guess which organization this is?


23/50

CSR Models


24/50

Position Responsible to therefore

Minimalist Stockholders/

owners

Maximizing profit

Self interested Stockholders/

owners/ cost

controllers

Do good when

furthers quest for

growth and profit

Social contract Those with social

and legal contract

Goes beyond law

to spirit of

commitment

Stakeholder

Management

Those who

influence directionand fortunes

Develop

responsivestrategies

Stakeholder

stewardship

Society as whole /

future

Solutions for

social problems


25/50

The Case for the Minimalist


26/50

Minimalist CSR

a.k.a.- traditional stockholders model,

fundamentalism, Libertarian

Friedman

PREMISES

-Share

holders 1st

-Obey the law

-Private vs Public [MINIMAL STATE]


27/50

Minimalist critiques of other

models

THEY DISTRACTFROM PROFIT MOTIVE

THEY ARE SOCIALISTIC

"PUBLIC GOOD" IS SUSPECT


28/50

Self-interest

Defining Me


29/50

Self-Interested CSR

PREMISES

GOOD MOTIVES NOTENOUGH

PROFITS & COMMUNITY

CULTIVATING PHILANTHROPY

REPUTATION


30/50

Critiques of other perspectives

MINIMALIST IS TOO

RIGID

ALLOTHERS IGNORE

PROFIT


31/50

Ford:we endeavor to become a leading contributor to a

more sustainable worldThe Ford MotorCompany Fund supports many local andnational programs to affect change, provide forthose in need, and improve quality of life.

Are consumers, especially in North

America, trulyinterested in and willing to pay for newtechnology?

http://www.ford.com/en/ourCompany/corporateCitizens hip/ourLearningJourney/strategicIssuesUpdate/climateC hange.htm


32/50

Social Contract


33/50

SOCIAL CONTRACT CSR

PREMISES

CORPORATION AS "MORALPERSON"

IMPLICIT & EXPLICIT CONTRACT WITH

SOCIETY

WITH POWER COMES

RESPONSIBILITY


34/50

Critique of alternate

1ST 2 MODELS FOCUS TOOMUCH ON

PROFIT


35/50

Example

LEAKY" CONDO PLAYERS LACKED A SENSE

OF "IMPLICIT" CONTRACT WITH SOCIETY

developers put a lot of money into marblecountertops and fancy kitchens because thats

what sells the product. And consequently they

dont spend a lot of time thinking about how it

looks [and functions] from the outside. Itsdesigning inside out.

http://www.myleakycondo.com/com020601.htm


36/50

StakeholderManagement


37/50

3 STAKEHOLDER GROUPS:

*PRIMARY [ECONOMIC]

*SECONDARY [SOCIO POLITICAL]

* TERTIARY [POWERLESS]


38/50

Critiques of alternatives

1ST 2 MODELS TOO PROFIT-FOCUSED

-S-C MODEL IS TOO VAGUE


39/50

Examples

CITIZENSBANK

SHELL


40/50

STAKEHOLDER STEWARDSHIP


41/50

Stakeholder Stewardship

PREMISES

-CARINGFOR TERTIARY

-HELP NON-BENEFICIAL PARTIES

-HOLD INTRUST

-ASPIRETO HIGH IDEALS

*ALLOFTHIS PRESUPPOSES TIME & MONEY


42/50

Critiques of alternate

-1ST 2 MODELS TOO PROFIT-

FOCUSED

-S-C MODELTOO VAGUE

STAKEHOLDER MODEL NOT

AMBITIOUS ENOUGH


43/50

Example

Ben and Jerrys

Ben & Jerrys Head of Social

Mission has returned from a two-

week mission in Cote dIvoire and

Mali on the subject of alleged child

trafficking in West Africa http://www.benjerry.com


44/50

Issues of trust and change:

Minimalist

Participants

Investors/

stockholders Owners /

managers

Change Issues

Hyper

competition globalization

Trust

Trust grows

whenperformance

meets

expectation;

Distrust if failsto meet

expectation


45/50


Self Interested Model

Participants

Program

advocates Owners /

managers

Change Issues

Competition

Reputationenhancement

Trust

Trust grows

whenprogram

advocates

deliver

enhancedcorporate

reputation;

Distrust if do

not


46/50


Social Contract

Participants

Those with

contracts withfirm

Owners /

managers

Change Issues

Need for

flexibility internationaliz

ation

Trust

Trust grows

when keepslegal and

social

contracts

over time;Distrust if do

willing to

violate them


47/50


StakeholderManagement

Participants

Primary and

secondary Owners /

managers

Change Issues

Information

access to firmincreases

Systems

open to

scrutiny

Trust

Trust grows

whenstakeholders

feel included

in decision

makingDistrust if feel

excluded


48/50


Stakeholder Stewardship

Participants

Spokespersons

for tertiaryOwners /

managers

Change Issues

Pressure to

includetertiary

Worry about

environment

Trust

Trust grows when

firm willing tonegotiate with

spokespersons

for tertiary

Distrust if feelexcluded


49/50

Modeling the context

Premodern

Minimalist

Self Interested

Modern

The social contract

Postmodern Stakeholder (management and stewardship)


50/50

THANK YOU

corporate social responsibility- s

Documents