Corporate Social Responsibility

1. Corporate Social Responsibility LECTURE 15: Corporate Social Responsibility MGT 610

2. Corporate Social Responsibility Chapter 4Roles of Various Institutions in CSR

3. Corporate Social Responsibility LEARNING OBJECTIVES • Understand that CSR is integral to the development process • Understand and the role of the major institutions of the civil society in CSR • Create and awareness of certain institutional initiatives in progress and the need for further contribution in the field

4. Corporate Social Responsibility • Conclusion • Broad based social and moral consensus in the global arena is the need for effective CSR • Sullivan principle • Given by Reverend Leon Sullivan, member board of General Motors in 1977 • Persuade US companies with investment in South Africa not to participate in the negative practices • Gained popularity and was relaunched in 1999 as a Global Sullivan principle to foster human dignity • This refers to support for universal human rights, equal opportunity, respect for freedom of association, levels of employee compensation, training, health, safety, sustainable development, working in partnership to improve quality of life • This and other UN institutions principles can become yard sticks for the local governments to measure and evaluate their CSR activities

5. Corporate Social Responsibility • Finally one cannot ignore the fact that at the final assessment • Every regulation is dependant upon the human subjective • Humans designs , works and can break them • Governments especially the democratic governments have to be careful about the balance between freedom and responsibility • If the government allows direct democracy it can lead to tyranny of the majority • This is where the utilitarianism faces road blocks • Concept of majority is flexible • In a group of ten, six is a majority and so is none • Direct democracy • may actually undermine and over rule representative government • Threat to individual freedom as minorities may loose out in the race of representation • Government has to be vigilant about misuse of power by corporation but it should also ensure that citizens do not abuse their rights and freedom to exploit others

6. Corporate Social Responsibility • Role of NGOs and N-F-P Organizations • NGO is a legally constructed body without any government involvement • Even after receiving government funding they keep their non government status intact • Not for profit organization • An incorporated organization that exist for educational and charitable reasons and from which its shareholders or trustees do not benefit financially • Any profits earned must be retained by the organizations • Get tax exemption • It is managed like any other company • Dedication and commitment to work is inherent in the structure of an NPO • Considering the region where the NPO is working, the work can be demanding • Funds are donations routed through entities or directly • NPO is abridge between the beneficiary and the donor and is accountable to both

7. Corporate Social Responsibility • NPO and NGO play a important role in CSR • Facilitate social responsibility by joining hands with corporations • Can also become agents of money laundering by unscrupulous businesses • Since funds are received by donors, choice of cause is also donors • Priority issues get ignored • Superficial social work • Unbridled growth of commercial activities have both positive and negative fallouts • NPOs can keep traditions alive • Reduces burden on already stretched facilities of the urban centres • Help reduce poverty • Sum total of multiplicity factors • Health • Access to land, credit and education and infrastructural facilities • Results in less productive workforce • CSR has to deal with this issue unleashed because of market forces, government apathy or corruption

8. Corporate Social Responsibility • CSR would have to confront issues like • female feoticides • Women empowerment • Corporates have to reinvent their human resources policies to support women • Not hire women • NGOs and NPOs can contribute with government and the corporate world

9. Corporate Social Responsibility • Role of educational Institutions • university “does not only need to become more open minded, it also needs to transform itself into a learning academia, constantly adapting itself to new challenges and comprehending itself as one player interacting with other” • Educational institutions can mould the young minds • Importance aspect of CSR that organizations cannot handle • Academic institutions have to provide the platform • For interactions between corporate and academia • Students should be given the opportunity to learn hands on about CSR • Educational institutions can play an important role in improving the quality of life • Educational institutions have the responsibility to • Educate human capital • Promoting the development of knowledge by encouraging lifelong leaning • Create an environment for innovations • Collaborate with the corporate world • Disseminate knowledge the create synergy

10. Corporate Social Responsibility • Revamp teaching processes to ensure that future leaders are socially responsible • Business ethics and CSR

11. Corporate Social Responsibility • The role of media • Media is the most powerful engines of social change • It has not been taped to bring about responsible social change • Benefits of free press • Tremendous positive influence on society • The competition for survival is strong and media trade value and integrity to remain in business • Show or write what the society wants • Increase ratings • Media has to play the role of a true detective • Uncover truth while maintaining the dignity and privacy of citizens • Balance between the right to privacy and the right to information • Create a self regulatory process keeping the well being of society in mind • This is where the concept of CSR fits in media world • Power and pressure that media can exert • It is not the moral police but can promote morality by reporting cases

12. Corporate Social Responsibility • Act as a channel for dialogue between stakeholders • Be an instrument for disseminating, development and goodwill • Monitor government and corporations • Play the role of a mediator • Media should be transparent and accountable • Media has to be a role model of CSR • It can motivate companies

13. Corporate Social Responsibility

14. Corporate Social Responsibility