RESEARCHES ON CORPORATE SOCIAL RESPONSIBILITIES

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RESEARCH-1

DEFINITION OF CSR:-

Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.

OBJECTIVE OF CSR:-The objectives of CSR implementations are to adhere to the Ministry of Corporate Affairs CSR Bill to meet objectives of businesses  to achieve business and strategic objectives through CSR implementations in the areas:

Corporate Social Responsibility implementation across India as implementation NGO.

Scope, approach, planning and project management for Corporate Social Responsibility (CSR) Programs

Corporate Social Responsibility (CSR) Frameworks for business in India including Results and Tracking Frameworks

Risk Mitigation for Corporate Social Responsibility (CSR)

Baseline and Identification of Geographic areas for Corporate Social Responsibility (CSR)

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Needs-based activities and implementation of Corporate Social  Responsibility (CSR)

Monitoring & Evaluation including reporting based on CSR Bill of MCA India

Focussed research for identification of short term and long term objectives of CSR

Advocacy and Communications for CSR HR and Personnel Training for CSR

implementations Support for Government integration and scaling of

CSR Programs Implementation Partners for CSR Activities due

diligence and process support Third Party Audit for CSR implementation outputs

and outcomes CSR Reporting as per Companies Act 2013

guidelines Sustainability Reporting as per GRI guidelines

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RESEARCH-2

WHY ANY COMPANY NEED CSR:-CSR is a way for companies to benefit themselves while also benefiting society. CSR is a way to push the following business processes into the organization: 1. Innovation  -In the context of CSR, innovation is a

huge benefit to a company and society. For example, I recently watched a video of a brief talk by Geoff McDonald who is the Unilever Global VP for HR, Marketing, Communications and Sustainability. Using the “lens of sustainability” as McDonald described it, Unilever was able to innovate new products such as a hair conditioner that uses less water. Without sustainability, the company’s research and development efforts possibly wouldn’t have led to such a product.

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2.Cost savings  – One of the easiest places for a company to start engaging in sustainability is to use it as a way to cut costs. Whether it’s using less packaging or less energy, these savings add up quickly. According to its 2011 CSR report, after installing energy monitoring meters on several pieces of equipment at its Covington, Ga. plant, the company saved $600,000.

3. Brand differentiation  – In the past, brand differentiation was one of the primary reasons companies embraced CSR. However, as CSR has become more commonplace, using it to differentiate your brand is getting harder to do. For example, the “Cola Wars” is one of the longest running rivalries in business. Coke and Pepsi are constantly looking to grab as much market share as they can from each other. Yet they are both adopting similar, although slightly different, approaches to CSR. Both Pepsi and Coke are pursuing strategies of zero net water usage. Both companies offer water bottles made from sustainable packaging as well. In the end, although neither company is necessarily going to see strong differentiation benefits, I see the diminishing returns on brand differentiation as a sign that CSR is taking hold and is not just a fad.

4. Long-term thinking  –It is a shift from worrying about the next fiscal quarter’s financial results to the impact

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business decisions today have on financial (and social) results ten years from now.

5. Customer engagement  –Using CSR can help you engage with your customers in new ways. Since the message is about something “good,” it can often be an easier way to talk to your customers. This is an underused tool for business-to-business company communication

.6. Employee engagement  – Along similar lines, if

your own employees don’t know what’s going on within your organization, you’re missing an opportunity. Companies like Sara Leecreated a cross-functional, global Sustainability Working Team to help create a strategy for sustainability. At a more grass roots level, the Solo Cup Company created the Sustainability Action Network to activate employees in community service focused on the company’s CSR priorities.

To be clear, these are the reasons why most companies should enact CSR. This isn’t to say that CSR is the panacea to the world’s problems. But it certainly does start to move the needle toward an economy that is much closer to one where I would like to conduct business.

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RESEARCH-3

CSR IN INDIA:-

India has a long rich history of close business involvement in social causes for national development. In India, CSR is known from ancient time as social duty or charity, which through different ages is changing its nature in broader aspect, now generally known as CSR. From the origin of business, which leads towards excess wealth, social and environmental issues have deep roots in the history of business. Since then there is a growing realization towards contribution to social activities globally with a desire to improve the immediate environment. It has also been found that to a growing degree companies that pay genuine attention to the principles of socially responsible behaviour are also favored by the public and preferred for their goods and services. This has given rise to the concept tof CSR. After Independence, JRD Tata who always laid a great deal of emphasis to go beyond conducting themselves as honest citizens pointed out that there were many ways in Proceedings of 21st International Business Research Conference 10 - 11 June, 2013, Ryerson University, Toronto, Canada, ISBN: 978-1-922069-25-2 which industrial and business enterprises can contribute to public welfare beyond the scope of their normal activities. Traditionally, it had discharged its responsibility to society through benefactions for education, medical

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facilities, and scientific research among other objects. The important change at that time was that industry accepted social responsibility as part of the management of the enterprise itself. The community development and social welfare program of the premier Tata Company, Tata Iron and Steel Company was started the concepts of "Social Responsibility."

RESEARCH-4Regulatory Approaches to CSR The regulatory approaches entail the extent to which the government influences CSR behavior of firms in two respects, first with respect to reporting of CSR activity, and second with respect to the amount of spending for CSR activity. Based on this, one gets three types of regulatory regimes, namely (i) voluntary reporting and voluntary spending (ii) mandatory reporting but voluntary spending, and (iii) mandatory reporting and mandatory spending. Much of the policy debates around the world is with respect to whether CSR reporting should be voluntary or mandatory i.e., whether firms should be required by laws and regulations to report their CSR activities. In comparison, the debate on voluntary versus mandatory spending is moot in most countries given that CSR activities, howsoever defined, is voluntary in nature

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RESEARCH-5

Challenges of CSR:

It is important for CSR strategies to become central to business strategy and part of the long-term planning process. Stakeholders are questioning more on CSR initiatives of the companies today. They are challenging the companies‟ decisions-making in this direction. It has become imperative to incorporate stakeholders‟ views.

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In India the CSR managers face number of challenges in managing CSR activities. The biggest problem is of lack of budget allocations followed by lack of support from employees and lack of knowledge as well. Lack of professionalism is another problem faced by this sector. Small companies do not take adequate interest in CSR activities and those which undertake them fail to disclose it to the society. In the process they loose out on people and their trust in them.1.Issues & Challenges Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them.2.The Shrinking Role of Government In the past, governments have relied on legislation and regulation to deliver social and environmental objectives in the business sector.3.Demands for Greater Disclosure There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations. 4.Increased Customer Interest There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers.5. Growing Investor Pressure Investors are changing the way they assess companies' performance, and are making decisions based on criteria that include ethical concerns.6. Competitive Labour Markets Employees are increasingly looking beyond paychecks and benefits, and

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seeking out employers whose philosophies and operating practices match their own principles.7. Supplier Relations As stakeholders are becoming increasingly interested in business affairs, many companies are taking steps to ensure that their partners conduct themselves in a socially responsible manner.

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RESEARCH-6

India's Best 10 Companies For CSR in 2014

. 1. Tata Steel: The company uses Human Development Index to keep track of CSR in villages..2. Tata Chemicals: The company spends Rs 12 cr on CSR every year & wildlife conservation tops priority.3. Mahindra Group: CSR is a mix of strategic philanthropy, shared values & sustainability.4. Maruti Suzuki: Community development and road safety propel Maruti's CSR in the fast lane.5. Tata Motors: The company drives CSR through healthcare and education.6. Siemens7. Larsen & Toubro8. Coca-Cola India9. Steel Authority of India10. Infosys

World's Best 10 Companies For CSR

1.Microsoft2.Google

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3.The Walt Disney Company4.BMW5.Apple6.Daimler(Mercedes-Benz)7.Volkswagen9.Sony9.colgate10.Lego group

Conclusions: Corporate sustainability is an evolving process and not an end. The Companies bill is a good initiative on the part of the government however what would be included in „spending‟ on CSR is unclear and is left for the companies to decide. Across the globe, the concept of CSR has been accepted as an element for success and survival of business along with fulfilling social objectives. However, the challenge for the companies is to determine a strong and innovative CSR strategy which should deliver high performance in ethical, environmental and social areas and meet all the stakeholders‟ objectives.

REFERENCES:-

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csr@responsenet.orgIndian Brand Equity Foundation, www.ibef.org www.global huntfoundation.org

THANKYOU

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