CSR
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Mohiuddin Babar
► What
is CSR ?
► Why should companies adopt it ?
► How can it be assessed that CSR brings
good for the society ?
► Are there any accepted global yardstick to
measure CSR ?
► Is CSR a new tool of marketing or a new
type of barrier ?
Definition
CSR
Broadly applicable to business sector, CSR
is about meeting the growing social and
environmental expectations for improving
business performance and sustaining it.
Definition
CSR 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.
------------- WBCSD
definition
Being socially responsible means not only
Fulfilling legal expectations but also going
beyond compliance and investing more into
human capital, the environment and relations
with stakeholders.
---- The European Commission
21st century
20th century
17th-18th century
The root and growth of CSR
Philanthropy ---- religious practices
benevolence of the wealthy
Corporate
Philanthropy
---- -
growth of Trust/Foundations
CR/CSR/SR
-----
business strategy
CSR/SA/GRI…----- visible felt contribution
21st century
20th century
17th-18th century
The root and growth of CSR
Philanthropy ---- religious practices
benevolence of the wealthy
Corporate
Philanthropy
---- -
growth of Trust/Foundations
CR/CSR/SR
-----
business strategy
CSR/SA/GRI…----- visible felt contribution
21st century
20th century
17th-18th century
The root and growth of CSR
Philanthropy ---- religious practices
benevolence of the wealthy
Corporate
Philanthropy
---- -
growth of Trust/Foundations
CR/CSR/SR
-----
business strategy
CSR/SA/GRI…----- visible felt contribution
Today’s scenario
Resource management & pollution control prioritized
Health & Safety of workers underlined
Consumer interests addressed
Social needs of host communities served
Trust
Partnership with environmental NGOs
Commitments to international laws,
protocols and guidelines made
Reputation
Convergence of guidelines,
standards & benchmarks
Guidelines
OECD
UN Global Compact
SRI
Surbane Oxly
GRI
ISO standards
The business of business is business
---- Milton Friedman
Business has no responsibilities other than to
maximize profits for the shareholders
The business of business is business
---- Milton Friedman
Business has no responsibilities other than to
maximize profits for the shareholders
CSR
Philanthropy
Donation to
good causes
Workers
welfare
Environmental
Impact
Ethical
Production
Ethical
Accounts
Difference between CSR & Philanthropy
Benefits of CSR
 Reducing risk
 Enhanced reputation
 Competitive edge over business rivals
 Positive impact on society and
environment
How to adopt CSR
► Is
it included in the vision of the company
► Who weaves the CSR action plan -Board/chief executive/top management
(executive committee)/employees/external
stakeholders
► The best is to do it after dialogue with
stakeholders and involving employees
Present status of CSR
≈ Growing incubation by business
but mostly in the developed world
≈ Developing/underdeveloped countries
feel this as a new barrier
≈ Developed/underdeveloped countries lack
capacity to adopt CSR policies/strategies
≈ CSR activities are mainly devoted to uplift
programs in education and general health
services (reactive).
CSR is broadening
► ISO
26000 is coming up as guidelines for
Social Responsibility and it will encompass
more areas than CSR.
► It will be broad-based
► It will give more stress on worker’s welfare
Guidance for Social
Responsibility
ISO 26000 (in 2010)
Difference with CSR
ISO 26000







Organizational governance
Human Rights principles
Environmental care
Labour practices
Fair operating practices
Respecting consumer concerns
Contributing to social uplift
CSR vs Financial Crisis
The ongoing financial crisis and its effects on the global
economy have made it clear that the stability of our
global market system depends on responsible behavior,
sustainable business models and proactive management
of business impacts on society as well as regulatory
frameworks.
---- Prof Craig Smith
Chair
Ethics & Social Responsibility
INSEAD
 68 % business leaders in USA are using CSR to create
new revenue streams
----- survey conducted by Environmental Leader (think tank) US.
 69 % private and public organizations worldwide
opt for increases in their CSR budget to have positive
impacts
---- IBM survey 2008
 Marks & Spencer to invest over US$ 300 million on
green retailing
Case study -- Bangladesh
Readymade garments & textile industries
◘ Over 20000 industries of various sizes
◘ Over two million workers, mostly female-illiterate
◘ Mostly situated in non-industrial areas thus not
incorporating industrial infrastructure
◘ Only 50 per cent have proper ventilation
◘ Only 40 per cent have hygienic toilets
◘ Over 70 per cent do not have proper emergency
exits
Case study -- Bangladesh
Rice Mill tragedies
►
►
►
►
►
Over 40,000 rice mills (husking)
5 million workers (cheap labour, illiterate-mostly
women or vagrant males
Deplorable working conditions – open air- no
PPE- temporary employment
Boiler bursting – usual incidents
Over 1200 reported deaths due to boiler bursts. 5000
injured due to sun-stroke, respitory problems and overload
carrying
◘ Length and breadth of CSR can not be measured
mathematically.
◘
CSR is not about doing something which you expect or
desire to do : It should be as per the expectations of the
society or more precisely the Stakeholders.
◘
Assessment of effectiveness of CSR actions can be
gauzed on the Benefits that the beneficiaries receive ---tangible and visible.
◘
ISO 26000 will not be any standard but a guideline.
It will not eclipse CSR but more likely to strengthen CSR.
CSR
Sustainable Development
Social harmony
Human well-being
Economic growth
The smile of happiness
ensured
Be caring