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



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

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



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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
Social
First GenerationCompanies can be responsible in ways that do not
detract from commercial success.
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
(cont’d)

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
self-interest



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

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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