Concept of CSR
Corporate social responsibility (CSR) is a concept which has many interpretations and typically has
economic, social and environmental dimensions (This three-dimensional framework is often called as the
triple bottom line of CSR). The concept has increasingly gained interest among businesses and
Governments and other stakeholders and has triggered a vivid discussion on its meaning among a
number of scholars (cf., Carroll, 2004; Dahlsrud, 2006; Robins, 2005). The increase in interest is primarily
a result of efforts made by international organizations [in particular UNGC- The objectives of the Global
Compact centre around four issues, namely labour condition, human rights, environment and anticorruption. Over 7,000 businesses have signed on to this Compact (UNGC, 2012)], Governments [e.g.
China’s green growth strategy- This strategy, formulated as part of the five-year development plan
(2011-2015), particularly focuses on the increased use of renewable energy in China (KPMG China,
2011)] and civil society organizations. These efforts have contributed to improved labour standards,
enhanced use of renewable energy and practical anti-corruption measures (UNGC, 2012)
CSR (Carrol, 1979) Firms have responsibilities to societies including economic, legal, ethical and
discretionary (or philanthropic).
Social Contract (Donaldson, 1982; Donaldson and Dunfee, 1999) – There is a tacit social contract
between the firm and society; the contract bestows certain rights in exchange for certain
responsibilities.
Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is
affected by the achievement of an organisation’s purpose.” Argues that it is in the company’s strategic
interest to respect the interests of all its stakeholders.
Development of CSR concepts
Period
1950s
Name of Concept
Social Responsibility of
Businessmen
Description
Literature
The obligations of
Bowen (1953)
businessmen to
pursue policies, to make
decisions or
to follow lines of action
which are
desirable in terms of
the objectives
and values of society
Some socially
Davis (1960)
responsible business
decisions can be
justified by the
long-run economic gain
of the firm,
thus paying back for its
socially
responsible behaviour.
1960s–1970s
Stakeholder Approach
Three dimensional
model
1980s-1990s
Three-dimensional
model of principles,
policies and
processes
Private contribution to
society’s
economic and human
resources and a
willingness on the part
of business to
see that those
resources were utilized
for broad social ends
Instead of striving only
for larger returns to its
shareholders, a
responsible enterprise
takes into
account the interests of
employees,
suppliers, dealers, local
communities
and the nation as a
whole.
The concept consists of
corporate
responsibilities (i.e.,
economic, legal,
ethical and
philanthropic), social
issues of business (e.g.,
labour
standards, human
rights,
environment protection
and anticorruption)
and corporate
actions
(e.g.,
reactive,
defensive,
accommodative
and proactive).
Integration of the
principles of corporate
responsibility, the
policies
of social issue
management and the
process of action into
an evolving
system
Frederick (1960)
Johnson (1971)
Carroll (1979)
Wartick and Cochran
(1985)
Institutional
framework and
extended corporate
actions
2000s
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Three-domains approach
Four types of corporate
responsibilities (i.e.,
economic, legal,
ethical and
philanthropic) were
linked to three
institutional levels
(i.e., legal,
organizational and
individual), while
corporate actions
are extended to
assessment,
stockholder
management and
implementation
management.
Three domains of
corporate
responsibilities:
economic, legal and
ethical.
Wood (1991)
Schwartz and Carroll
(2003)
The contribution of CSR to sustainable development has recently attracted more attention.
Sustainable development is defined as development that meets the needs of the present
without compromising the ability of the future generations to meet their own needs (Strategis,
2003). In this sense, sustainable development is inextricably linked to environmental issues in
addition to social and economic issues (Sachs, 2012). For instance, the environmental damage
caused by business (e.g. water pollution and deforestation) has an impact on local communities
which, in turn, becomes a barrier to their long-term socio-economic development. As such, CSR
activities in the context of sustainable development could reverse or mitigate the adverse
impacts of business (Carroll, 2006).
Corporations have been increasingly aware of the shareholders’ consideration over CSR
initiatives and performances to be supplementary to traditional financial criteria for investment
decision-making. Such shareholders’ consciousness on CSR is called social (or impact)
investment (cf., Calvert Foundation, 2012). They typically inject the interest of social and
environmental concerns into investment activities so that their commercial behaviours can
influence business practices while making adequate profits. By implementing social investment
practices, shareholders (or investors) can give pressure on firms to operate reasonably and
ethically in order to ensure business continuity (ESCAP, 2009).
CSR instruments, which are voluntary regulatory measures for CSR activities, have also taken
centre stage in international frameworks. Those international CSR instruments include UNGC,
OECD Guidelines for Multinational Enterprises, ISO 26000 and the ILO Tripartite Declaration of
Principles concerning Multinational Enterprises and Social Policy (cf., ESCAP, 2009). UNGC is a
strategic policy initiative for businesses that are committed to align their operations and
strategies with ten principles in the area of human rights, labour, environment and anticorruption. The OECD Guidelines for Multinational Enterprises provide a framework for business
conduct covering various areas of business ethics, such as tax, competition, disclosure, anticorruption, labour, human rights and environment. While ISO 26000 is the sole international
CSR standards, providing guidance for businesses to translate CSR agenda into effective
corporate actions, the ILO Tripartite Declaration of Principles offers guidelines to enterprises,
Governments and employers’ and workers’ organizations in such areas as employment, training,
conditions of work and life and industrial relations. Under increasing globalization and
bandwagon effect, each country is expected to follow the international instruments and make
them link effectively with the national regulatory framework. As a result, the country naturally
becomes more concerned with the CSR agenda and receptive to cooperate with the private
sector for the promotion of the CSR concept.
British Companies in India-CSR
GlaxoSmithKline Pharmaceuticals Limited: Established in the year 1924 in India
GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company and
employs over 4500 people. Globally, its a £ 26.5 billion, leading, research-based healthcare and
pharmaceutical company. In India, its one of the market leaders with a turnover of Rs. 2640 crores and a
share of 3.48%*. *[Source: IMS, TSA, DEC MAT 2014]
Being a premier pharmaceutical company in the country, GSK's core value is to be a good corporate
citizen. It is committed to the communities in which it works. Support to the community through various
social development initiatives is the way through which it invests in society. This is done by supporting
social projects in partnership with not for profit organizations both in rural and urban areas.
Its initiatives are primarily focused towards women, children and the aged and are directed in the areas
of Health, Education and Livelihood. GSK believes that these areas are related and of direct concern to
GSK.
If there is proper education, one will eventually learn to be hygienic, and if one is hygienic, will one
remain healthy. The organization facilitates in educating masses on good practices of healthy living.
Rural Projects: https://www.gsk-india.com/corporate-ruralprojects.html#top
Tribal welfare projects in Peth Taluka, Nashik, Maharashtra: GSK India undertakes a number of Rural
Development initiatives through its trust GRAMIN AAROGYA VIKAS SANSTHA (GAVS), a Rural Health
Development Organization. GAVS is a registered public charitable trust established and promoted by the
heritage company Glaxo India in April 1997.
The project began in the year 2005 in partnership with Nirmaya Health Foundation in 150 villages in
Peth Tehsil / Block of Nashik District. The project runs on an objective of providing primary level curative
and preventive health services in this tribal area. Project also lays emphasis on health seeking behaviour
in the areas of Tobacco de-addiction, Nutrition, common illnesses with a special emphasis on different
types of fevers and diseases of joints, HIV/AIDS infections, skin diseases, Tuberculosis, water-borne
diseases and Respiratory Tract Infections, etc. Mobile clinics with doctor and trained health facilitator
visit 150 villages every week to provide curatives services. The project has also created a cadre of Health
facilitators within the communities and has formed a referral network for admission and treatment of
patients through other secondary and tertiary level government and private Health care facilities in
Nashik.
Over 1.26 lakhs villagers have benefited by this healthcare initiative directly or indirectly.
Shelter home for children - Behraich, Uttar Pradesh: In 2008, GSK India in collaboration with Pratham, a
Non Government Organization, started a Shelter home for children under the age of 16. The Shelter
home is located in the eastern part of India at Behraich, Lucknow, which is one of the highest child
sending regions in the country. This project supports 50 children by way of providing them education,
food and shelter in addition to psycho-social support.
Project for early detection of Cancer with Bhakti Vedanta Hospital: Mira Road, Mumbai: As part of its
effort to reach out to the needy communities, GSK supported a new project embarked by Sri Chaitnaya
Welfare Trust's Bhaktivedanta Hospital in 2010. This project envisages supporting patients at the grass
root level in the area of early detection and prevention of cancer. Under this programme, by December
2011, 190 camps were conducted where around 10000 patients have been screened, 1849 were
suspected with cancer. Out of these 1849 patients, the hospital has operated upon 248 patients thereby
helping them to cure their cancer.
Urban Projects: https://www.gsk-india.com/corporate-urbanprojects.html
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GSK India has been supporting the Mid-day meal program implemented by ISKCON Food Relief
Foundation for Municipal school students since 2005.
GSK India supports Aashirwad School for mentally challenged children at Delhi.
In 2011, GSK India extended its support to Indian Cancer Society's rehabilitation of cancer
patient's project.
GSK India runs a medical centre in Deonar Dumping Ground, the biggest dumping ground in
Mumbai. This center provides Primary healthcare facilities and quality health education to the
children who are rag pickers and their families who work in and around the dumping ground.
This project is implemented in collaboration with Niramaya Health Foundation. It was found that
in addition to the basically unhygienic environment, children in the age group of 5 to 14 are
exposed to waste substances like used needles, syringes, medical equipments, un-segregated
garbage, etc. Due to these conditions there were frequent injuries and long term infections like
respiratory problems and skin diseases. The problems and health issues in this area were largely
neglected; hence the Company stepped in and decided to support this cause.
Shell
It began reporting voluntarily on our environmental performance with the first Shell Report that covered
1997. Shell does it to be open and honest, and to show how its contributing to sustainable development.
The Shell Sustainability Report 2013, published April 9, 2014, is its 17th report.
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All Shell entities in India invest in community development as a part of their commitment to
Sustainable Development.
Shell aims that its business activities should contribute towards benefiting communities.
Shell in India is active in the area of road safety.
The Shell India contribution to mainstreaming the disability movement in India is widely
recognized.
o creating role models in this sector by means of the Shell Helen Keller Awards.
http://www.shell.in/aboutshell/at-a-glance.html
Marks & Spencer: Founded more than a century ago and with 1,000+ stores across 45+
countries, today M&S is one of the UK's leading retailers.
In its Annual Sustainability report, 2013, M& M&S stated that its stores, offices, delivery fleets
and warehouses in the UK and Ireland are now carbon-neutral.
http://www.triplepundit.com/2013/06/marks-and-spencer-2013-plan-a-update/
Nine of the biggest clothing suppliers for Marks & Spencer in India, Sri Lanka and Bangladesh are being
enabled to integrate social and environmental sustainability into their business strategy by integrating
the ISO 26000 Standard for Social Responsibility of Organisations. This includes gap analysis, action plan
and verification for the participating companies. Marks & Spencer has launched the Sustainability
Management Framework (SMF) Project in Mid-November, 2013. The internationally operating retail
company with headquarters in Great Britain, regards human development and the achievement of
human potential as a required economic activity to achieve environmental and social sustainability for
present and future generations. This is part of the highly acclaimed “Plan A” strategy by Marks
&Spencer.
The “Sustainability Management Framework “ (SMF) Project based on ISO 26000 is the first of its kind
worldwide and a great chance for the standard to prove what it can do regarding sustainable
development. The project is expected to be completed by June 2015. Marks &Spencer and their
participating suppliers are aiming towards aligning sustainability into their operations by understanding,
tracking and managing environmental and social impacts across their business, while at the same time
gaining recognition by stakeholders for their pioneering vision. All of this is intended to support
achieving the ambitious goals of Plan A.
http://www.reuters.com/article/2014/06/16/csr-company-idUSnBw155010a+100+BSW20140616
Cairn India Limited