INTRODUCTION

CORPORATE SOCIAL RESPONSIBILITY INTRODUCTION

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance is a form of corporate self regulation integrated into a business model.

CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms.

CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.

The term "CSR" came in to common use in the early 1970s, after many multinational corporations formed, Corporate social responsibility is not a new concept in India. However, what is new is the shift in focus from making profits to meeting societal challenges. Now-a-days, employees are actively participating in the social activities even on holidays. This is mainly because employees feel a sense of pride when they are involved in such activities. Moreover, companies are having dedicated departments for CSR.

Firms can no longer continue to exploit environmental resources and escape from their responsibility by acting as separate entities regardless of the interest of the society. Organizations, now, are realizing the need to shift their focus on the interest of society. The sense of being socially responsible has to come from within. CSR involves various voluntary efforts in which companies engage themselves in order to give something back to the society. It involves providing innovative solutions to societal and environmental challenges. Organizations generally believe that acting in a socially responsible manner will create value for them. The fact that an organization is committed to social causes, also gives employees a sense that the company would also be committed to the welfare of its employees as well.

Today, Corporate Social Responsibility has become a worldwide concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees shareholders, communities and the environment in all aspects of their operations. It is one of the most important global issues with serious challenges and implications on almost all sectors.

CONCEPT OF SOCIAL RESPONSIBILITY

Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society. The assumption of social responsibilities by business enterprises implies that they respect the aspirations of society and would try their best to contribute to the achievement of these aspirations along with their profit interests. This idea is in contrast to the common notion that business exists only for maximizing profits for its owners and it is irrelevant to talk of public good.

In this sense social responsibility is broader than legal responsibility of business. Legal responsibilities may be fulfilled by mere compliance with the law. On the other hand, social responsibility involves an element of voluntary action on the part of business people for the benefit of society.

NEED FOR SOCIAL RESPONSIBILITY

What is the right thing to do when it comes to social responsibility? Should a business enterprise be run for the benefit of its owners who may desire to get as much profit as is possible or else, it needs to be responsible for serving the interest of other sections of society such as customers, employees, suppliers, government and community? The very concept of social responsibility implies that it is essentially an ethical issue, since it involves the question of what is morally right or wrong in relation to the firms responsibilities. Social responsibility also has an element of voluntary action on the part of business person who may feel free to perform or not to perform such responsibilities. They may also exercise their freedom for deciding the extent to which they would like to serve various sections of society. In fact all business people do not feel equally responsible towards society. There has been a debate in which some people strongly believe that a firms only social responsibility is towards its owners. Some other however hold an opposite view and argue that the firm has a social responsibility to serve all sections of society who are affected by its decision and actions.ARGUMENTS FOR SOCIAL RESPONSIBILITY

Justifications for existence and growthLong term interest of the firmAvoidance of government regulationMaintenance of societyAvailability of resources with businessConverting problems in to opportunitiesBetter environment for doing businessHolding business responsible for social problems

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY

Violation of profit maximization objectiveBurden on consumersLack of social skillsLack of broad public support

CSR: Definition

The totality of CSR can be best understood by three words: corporate, social, and responsibility . In broad terms, CSR to responsibilities corporations have towards society within which they are based and operate, not denying the fact that the purview of CSR goes much beyond this. CSR is comprehended differently by different people.Corporate Social Responsibility is just about two aspects:

The steps taken by the company to neutralize, minimize or offset the negative effects caused by its processes and product-usage.

The further positive steps a company takes using its resources, core competence, skills, location and funds for the benefit of people.

Definition given by Philip Kotler and Nancy Lee define CSR as: a commitment to improve community well being through Discretionary business practices and contributions of corporate Resources whereas Mallen Baker refers to CSR as a way Companies manage the business processes to produce an Overall positive impact on society.

Definition given by World Business Council for Sustainable Development Corporate Social Responsibility is the Continuing commitment by business to behave ethically and Contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

KINDS OF SOCIAL RESPONSIBILITY

ECONOMIC RESPONSIBILITYL LEGAL RESPONSIBILITYETHICAL RESPONSIBILITYPHILANTHROPIC RESPONSIBILITY

ECONOMIC RESPONSIBILITY: - A business enterprise is basically an economically entity and therefore its primary social responsibility is economic i.e. produce goods and services that society wants and sells them at a profit.LEGAL RESPONSIBILITY: - Organizations must ensure every employee knows and observes relevant laws for example its illegal for sales people to lie to customers or mislead them about the advantages of buying a product. Sales peoples statements legally must match advertising claims.

ETHICAL RESPONSIBILITY: - This includes the behavior of the firm that is expected by society but not codified in law for example respecting the religious sentiments and dignity of people while advertising for a product .DISCRETINARY /PHILANTHROPIC RESPONSIBILITY :- This refers to purely voluntary obligation that an enterprise assumes, for instance, providing charitable contribution to educational institutions or helping the affective people during floods or earthquakes. It is the responsibility of the company management to safeguard the capital investment by avoiding a speculative activity and under taking only healthy ventures which give good returns on investments.

SOCIAL RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPSonce the social objective of business is recognize, it is important to know to whom and for what the business and its management are responsible. Obviously, a business unit has to decide in which areas it should carry out social goals. Some of the specific responsibilities and enterprise may be outlined as under: RESPONSIBILITY TOWARDS SHAEHOLDERS OR OWNERS : A business enterprise has the responsibility to provide a fair to the shareholders or the owners on their capital investment and to ensure the safety o such investment. The corporate enterprise on a company form of the organization nust also provide the shareholders with regular, accurate and full information about its working as well as scheme of future growth.

RESPONSIBILITY TOARDS THE WORKERS :- Management of an enterprise is also responsible for providing opportunities to the workers for meaningful work. It should try to create the right kind of working conditions so that it can win the cooperations of workers. The enterprise must respect the democratic rights of the workers to form the union. the worker must also be ensure of a fair wage and fair deal from the management.

RESPONSIBILITY TOWARDS THE CONSUMERS:-

Supply of quality and quantity of goods and services to consumers at reasonable prices constitutes the responsibility of an enterprise towards its customers. The enterprise must take proper precautions against poor quality, lack of desired service, misleading and dishonest advertising and so on. They must also have the right of information about the product , the company and other matters having a bearing on their purchasing decisions.

RESPONSIBILITY TOWARDS THE GOVERNMENT AND COMMUNITY: - An enterprise must respect the laws of the country and pay taxes regularly and honestly. It must behave as a good citizen and act according to the well accepted values of the society. It must protect the natural environment and should avoid bad, smoky- chimneys, ugly buildings, dirty working condition and so on. It must also develop a proper image in society through continuous interaction with various groups of people.

EXAMPLE :-

TATA Motors:-provides desks, benches, chairs, tables cupboards, electrical fittings and educational and sports material to various primary schools in Singur. The company has also planned similar programmes to upgrade school infrastructure and is also planning to set up a computer laboratory in one of the high schools.

TVS:- TVS Electronics was involved in CSR during the Tsunami to provide relief measures to the victims. They have also participated with the government to improve sanitation in a village called Tiruvidenthai. Such initiatives will help in improving the conditions of rural people. Satyam Foundation of Satyam Computer Services Ltd., Infosys Foundation of Infosys Technologies Ltd., GE Foundation of the General Electric Company are exemplary instances of the philanthropic commitment of the corporate sector in India. Irrespective of the profits they make, these foundations are aiming at uplifting of the poor and enhancing the standard of life in the rural sector.

Infosys Technologies LimitedInfosys is actively involved in various community development programms. Infosys promoted, in 1996, the Infosys Foundation as a not-for-profit trust to which it contributes up to 1%PAT every year. Additionally, the Education and Research Department (E&R) at Infosys also works with employee volunteers on community development projects. Infosys leadership has set examples in the area of corporate citizenship and has involved itself actively in key national bodies. They have taken initiatives to work in the areas of Research and Education, Community Service, Rural Reach Programme, Employment, Welfare activities undertaken by the Infosys Foundation, Healthcare for the poor, Education and Arts & Culture.

ITC Limited :-

ITC partnered the Indian farmer for close to a century. ITC is now engaged in elevating this partnership to a new paradigm by leveraging information technology through its trailblazing 'e-Choupal' initiative. ITC is significantly widening its farmer partnerships to embrace a host of value-adding activities: creating livelihoods by helping poor tribals make their wastelands productive; investing in rainwater harvesting to bring much-needed irrigation to parched drylands; empowering rural women by helping them evolve into entrepreneurs; and providing infrastructural support to make schools exciting for village children. Through these rural partnerships, ITC touches the lives of nearly 3 million villagers across India.

Mahindra & Mahindra :-The K. C. Mahindra Education Trust was established in 1953 by late Mr. K. C. Mahindra with an objective to promote education. Its vision is to transform the lives of people in India through education, financial assistance and recognition to them, across age groups and across income strata. The K. C. Mahindra Education Trust undertakes a number of education initiatives, which make a difference to the lives of deserving students. The Trust has provided more than Rs. 7.5 Crore in the form of grants, scholarships and loans. It promotes education mainly by the way of scholarships. The Nanhi Kali project has over 3,300 children under it. We aim to increase the number of Nanhi Kalis (children) to 10,000 in the next 2 years, by reaching out to the underprivileged children especially in rural areas.

THANK YOU