Csr Sunil and Siva

8/19/2019 Csr Sunil and Siva

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CORPORATE SOCIAL RESPONSIBILITY AND

SUSTAINABLE DEVELOPMENT PROCESS

P.Krishna SunilAssistant professor

Department of Business Administration

Narasaraopeta Institute of Technology, Narasaraopetasunil.palvadigmail.com, !!"!!##$#".

B.Siva %eddyAssistant professor

Department of Business Administration

Narasaraopeta Institute of Technology, Narasaraopeta

Shiva&uthu'urigmail.com, "())*+$!)

Abstract In recent years, the discussion a&out sustaina&ility has risen a&ove average and a huge

amount of different terms have &een esta&lished. This leads to a very &road and unspecifieddiscussion a&out this topic, especially in economic and &usiness management.

The aim of this paper is to find out - due to an etended literature study - /here the

focus in the discussion of Sustaina&le Development 0SD1 and 2orporate Social %esponsi&ility

02S%1. 2lusters have &een identified /hich intend to clarify /hether 2S% correlates /ith the

social dimension of SD as defined &y Brundtland3 /hether 2S% represents SD on a corporate

level3 /hether SD and 2S% are used synonymously3 or /hether articles eist /hich focus

especially on the social dimension of SD &ut do not use terms such as 2S%.

Sustaina&le development /as defined &y Brundtland commission as 4 development that

meets the needs of the present /ithout compromising the a&ility of future generations to meet

their o/n needs5 The supreme court in 6ellore citi7en8s /elfare forum v union of India and

others held sustaina&le development is the &alancing concept &et/een ecology and development

A frame/or' is presented in /hich the relationship &et/een SD and 2S% is defined to

ease further research in SD and 2S%, moreover, to enhance the development of ne/

methodologies and instruments to/ards the implementation of SD 9 2S% strategies intocompanies.

Keywords: Ssta!"ab#e De$e#o%&e"t' Cor%orate Soc!a# Res%o"s!b!#!ty' Cor%orate

Ssta!"ab!#!ty

mailto:[email protected]:[email protected]:[email protected]:[email protected]


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I"trodct!o"

2orporations around the /orld are struggling /ith a ne/ role, /hich is to meet the needs

of the present generation /ithout compromising the a&ility of the net generations to meet their

o/n needs. :rgani7ations are &eing called upon to ta'e responsi&ility for the /ays their operations impact societies and the natural environment. They are also &eing as'ed to apply

sustaina&ility principles to the /ays in /hich they conduct their &usiness. Ssta!"ab!#!ty refers

to an organi7ation;s activities, typically considered voluntary, that demonstrate the inclusion of

social and environmental concerns in &usiness operations and in interactions /ith sta'eholders.

To understand and enhance current efforts, the most socially responsi&le organi7ations

continue to revise their short and longsuch as customers, investors, suppliers, pu&lic and governmental officials,activists, and communities>is crucial to its success, as is its a&ility to respond to competitive

conditions and corporate social responsi&ility 02S%1.

These ma?or transformations re=uire national and glo&al companies to approach their

&usiness in terms of sustaina&le development, and &oth individual and organi7ational leadership plays a ma?or role in this change.

2orporate responsi&ility or sustaina&ility is therefore a prominent feature of the &usiness

and society literature, addressing topics of &usiness ethics, corporate social performance, glo&al

corporate citi7enship, and sta'eholder management.

The follo/ing paper /ill present the 'no/ledge related to 2S% and sustaina&le

development. The field addresses comple and critical issues, such as human rights,environmental protection, e=ual opportunities for all, fair competition, and the interdependencies

that occur &et/een organi7ations and society 0@uinn, *))"1. :ngoing research reveals that a

variety of strategies, alliances and partnerships, and approaches are &eing used around the glo&e.The literature also reveals that although the aspiration of many corporations to contri&ute to a &etter /orld is great, translating that aspiration into reality proves to &e some/hat of a challenge.

Cor%orate Soc!a# Res%o"s!b!#!ty (CSR)

2orporate Social %esponsi&ility 02S%1 refers to operating a &usiness in a manner thataccounts for the social and environmental impact created &y the &usiness. 2S% means a

commitment to developing policies that integrate responsi&le practices into


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Daily &usiness operations, and to reporting on progress made to/ard implementing these

practices.

2ommon 2S% policies include

Adoption of internal controls reform 3

2ommitment to diversity in hiring employees and &arring discrimination3

anagement teams that vie/ employees as assets rather than costs3

Cigh performance /or'places that integrate the vie/s of line employees into decision<

ma'ing processes3

Adoption of operating policies that eceed compliance /ith social and environmental

la/s3

Advanced resource productivity, focused on the use of natural resources in a more

productive, efficient and profita&le fashion 0such as recycled content and productrecycling13 and

Ta'ing responsi&ility for conditions under /hich goods are produced directly or &y

contract employees domestically or a&road.

2orporate Social %esponsi&ility 02S%1 strategy, &ased on sound ethics and core values,

offers clear &usiness &enefits. Sustaina&le development rests on three fundamental pillarseconomic gro/th, ecological &alance, and social progress.

Business is not divorced from the rest of society. It is &ut one constituent part of society.The t/o are interdependent and it must &e ensured, through mutual understanding and

responsi&le &ehavior, that &usiness;s role in &uilding a &etter future is recogni7ed and

encouraged &y society.

As an engine for social progress, 2S% helps companies live up to their responsi&ilities as

glo&al citi7ens and local neigh&ors in a fast


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A similar &ut more general definition says 2S% is a&out the interaction of the corporation /ith

the legal and social o&ligations of the societies in /hich it operates, and ho/ it accounts for thoseo&ligations.

The follo/ing, more formal definition emerged from an international meeting of theB2SD. E2orporate social responsi&ility is the continuing commitment &y &usiness to &ehave

ethically and contri&ute to economic development /hile improving the =uality of life of the

/or'force and their families as /ell as of the local community and society at large. B2SD‖

Sta'eholder Dialogue on 2S%, The Netherlands, Sept +


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Thus the goals of economic and social development must &e defined in terms of sustaina&ility in

all countries developed or developing, mar'et


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Re#at!o" betwee" CSR + Ssta!"ab#e De$e#o%&e"t

2S% is an integral part of sustaina&le development. Factly /here it fits in is vigorously de&ated,mainly &ecause the concept of sustaina&le development also has many different interpretations.

This diagram, illuminates 2S%;s relationship /ith sustaina&le development

,!-. /: Re#at!o"s0!% betwee" SD a"d CSR.

The &asic idea to incorporate the sustaina&ility aspect into &usiness management should

&e grounded in the ethical &elief of give and ta'e to maintain a successful company in the long<term. As the company is em&edded in a comple system of interdependences in< and outside thefirm, this maintaining character should &e fulfilled due to the company;s commitment in

protecting the environment or reducing its ecological footprint and due to the general acceptance

of its corporate &ehaviour &y society in< and outside of the firm.

It is recommended that 2S% is to &e used as social strand of the SD


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,!-. 1: Re#at!o"s0!% betwee" SD' Cor%orate Ssta!"ab!#!ty a"d CSR.

The concept of SD on a corporate level is stated as 2orporate Sustaina&ility /hich is

&ased on the three pillars economic, ecological and social issues, therefore, the social dimension

is named 2S%. The corporate orientation on sustaina&ility is specially affected &y eternalinfluences due to the specific sustaina&ility orientation on a macro


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should &e the main focus on an institutional level, /ithin N:;s or other organi7ations 0B2SD

vs. F1.

CSR !s abot Co&%a"y Core $a#e

According to the orld Business 2ouncil for Sustaina&le Development 0B2SD1 report

for 2orporate Social %esponsi&ility3 Issues /hich have emerged strongly from the /or' group

are as follo/s

2&a" R!-0ts:

Cuman %ights are the universal rights that every person is entitled to en?oy and to have protected. The underlying idea of such rights - fundamental principles that should &e respected

in the treatment of all men, /omen and children - eists in some form in all cultures and

societies.

Such rights are enshrined in the niversal Declaration of Cuman %ights, adopted &y the

nited Nations in #!". The declaration covers t/o &road sets of rights 2ivil and Political%ights3 and Social and 2ultural %ights.

B2SD dialogue Identified these su&


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satisfy a &roader group of interested parties, commonly called sta'eholders. These include not

only shareholders, &ut also employees, customers9consumers, suppliers, communities andlegislators. Such sta'eholders are seen to have &oth influence and rights, /hich although

different in 'ind and degree from those of shareholders, still demand respect.

E&%#oyee R!-0ts:

Fmployee rights are em&odied in the International Ma&or :rgani7ation;s

Declaration on the Lundamental Principles and %ights at or'. These include freedom of

association and the right to collective &argaining3 elimination of all forms of forced and

compulsory la&or3 a&olition of all child la&or3 and the elimination of discrimination in respect of employment and occupation.

B2SD dialogue session noted

O The 'ey issue is freedom of association and the right to collective &argaining

O It should &e recogni7ed that do/n


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Co&&"!ty I"$o#$e&e"t:

2ommunity issues cover a &road range of activities, including community assistance

programs3 supporting educational needs3 fostering a shared vision of a corporation;s role in thecommunity3 ensuring community health and safety3 sponsorship3 ena&ling employees to do

voluntary /or' in the community3 philanthropic giving.


O 2ommunity relations should include a focus on core &usiness impacts and interactions as /ell as

on more traditional philanthropy

O 2ompanies must deal /ith the tension &et/een the priorities of different communities, such as

those of employees and local residents

O Top management must ma'e a sincere effort to understand community concerns and let the

community 'no/ that their concerns are ta'en seriously &y the company

O Building trust /ith the community demands consistency and long term commitment from thecompany.

S%%#!er Re#at!o"s:

Supply chains are mostly comple interrelationships &et/een a /ide range of companies.2orporations can &e - and are - affected &y the actions of their direct and indirect suppliers.

They can inherit the conse=uences of &ad practices of those higher up the chain, such as the use

of child la&or and polluting production methods.


O Traditional &oundaries of responsi&ility along a supply chain are changing /ith an increase in pressure on companies to apply a full life cycle approach to their products

O Supply chain issues are highly varia&le depending on the industrial sector and percentage of mar'et share

O There is a possi&ility that companies at the high


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in their infancy, &ut much can &e learned from those developed over the past decade for the

management, monitoring and reporting of environmental impacts and performance. This includessystems that can &e independently verified.


O It is not the B2SD;s role to devise ne/ codes or guidelines, &ut to help in the understanding

and use of eisting codes.

Ob4ect!$e o* t0e Stdy

:ver the last decades, sustaina&ility has &ecome very popular in modern economics. All

terms such as 2S%, 2orporate 2iti7enship, 2orporate Sustaina&ility or Social %esponsi&ility

seem to go in the same direction the prime o&?ective is to find out /here the focus in thesustaina&ility discussion is and ho/ the terms SD and 2S% are defined.

Researc0 Met0odo#o-y: Secondary Data from the literature studied concerning 2S% andSustaina&le Development.


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Co"c#s!o"

According to the emergent literature, there is a gro/ing a/areness that &usiness needs to

manage its relationship /ith the /ider society. 2orporate leaders are responsi&le for their corporations; impact on society and the natural environment &eyond legal compliance and the

lia&ility of individuals. ore eperienced leaders can gain ne/ perspectives on ho/ to gro/ in

their approach to sustaina&ility and ho/ to develop innovative &usiness models. 2S% is &ecoming a leading principle of top management and of entrepreneurs.

2F:s have long &een accounta&le to a varied group of sta'eholders - employees andcommunities, as /ell as investors. The nature of these relationships is no/ changing in /ays that

significantly affect corporate performance.

In part due to the emergence of the Internet and continuing glo&ali7ation, companies are

&ecoming accounta&le for la&or issues and /or'ing conditions in their partners; operations as/ell as their o/n.

:rgani7ations can reeamine their &ehaviors and &egin their ?ourney to/ard a sustaina&le

approach that is integrated into their &usiness strategy. And thus for 2S% and sustaina&le

development, companies must

#. Align and incorporate 2S% /ith &usiness strategy and integrate it across all operational

functions. Thus, ma'ing it easy to invest 0not spend1 the funds necessary to achieve itso&?ectives.

*. Implement an open information strategy for more transparent information


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Key Re*ere"ces

Tripathi P2 and %eddy PN 0*))+1. Principles of anagement, Tata cra/ Cill, Ne/ Delhi

#.

Kotler Philip, 2orporate Social %esponsi&ility.

erther R 2handler, Strategic 2orporate Social %esponsi&ility.

orld 2ommission on Fnvironment and Development 0#!"H1. :ur 2ommon Luture. The :ford

niversity Press, :ford.

B2SD 0*))+1. 2orporate Social %esponsi&ility. %M http99///./&csd.org9templates9

TemplateB2SD#9layout.asptypepRenuId7I$Rdo:pen#R2lic'enuMeften

uAlessia D;Amato, Sy&il Cenderson, Sue Llorence 2orporate Social %esponsi&ility and

Sustaina&le Business < A uide to Meadership Tas's and Lunctions

eorge Pohle and Ueff Cittner Attaining sustaina&le gro/th through corporate social

responsi&ility

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