Corporate Social Responsibility

1. Corporate Social Responsibility LECTURE 16: Corporate Social Responsibility MGT 610

2. Corporate Social Responsibility Chapter 5 Creating CSR Framework

3. Corporate Social Responsibility LEARNING OBJECTIVES • Understand the importance of historical evidence in exploring the concept of CSR • Examine the processes of integrating CSR into the strategic framework of organizations • Provide simple suggestions on implementation processes of CSR for organizations understand that CSR • Perception and delivery have to take into account both global and local practices

4. Corporate Social Responsibility • Introduction • The purpose of business is to earn profit • Profit is a culmination of risk, return and growth of an organization • All three have deep relationship with the internal and external environment • CSR caters to both these environments • CSR has to be woven in to the daily activities of the organization so that it cannot be thrown out when the organization is going through a down time • We will begin by appreciating the role that history and cultures play in the economic development of any country and then study how a strategy can be created to incorporate and implement CSR

5. Corporate Social Responsibility • Relevance of history and cultures • Business aiming for total development cannot ignore historical and cultural aspect of a country • A durable socio economic environment has to create a harmonious relationship with new changes without loosing its originality • Our view of history shapes the way we view our present, and it dictates the answer we offer for existing problems • We have to learn from history carefully • Historian distortion is more than technical it is ideological • It is released in to a world of opposing interest where any chosen emphasis supports some kind of interest • Economic, political, racial, national • When use history to evaluate a concept we should be aware that true history and pseudo history can coexist

6. Corporate Social Responsibility • Early history emphasized as to how the institutions of capitalism and industrialism evolved • Sociologist explored the role of religious and social relation in the development of modern capitalist attitude towards economic gain and opportunity • History provides us with information which helps us in understanding the changes in industries, markets, societies, economies and the political system • Management and the industry has to respond to cultural elements that include psychographics and physiological needs of its various stakeholders • While designing strategies for growth and corresponding profits the business world would have to take in to account all this to create a sustainable socio economic environment

7. Corporate Social Responsibility • Creation of strategy • Definition of strategy • Analyzing, projecting and directing the different engagements • How each engagement is linked • Operates in a controlled environment • Not a guessing game • It is rational and a conscious reaction to environment • Some important assessments that an organizations needs to make on pursuing CSR are • Risk analysis • Strategy is built from studying history and culture • Foremost policy that needs to be articulated • Goals and objectives • Long term and short term • Analyze the impact on society and community both long term and short term • Required because resources are derived from the society which are needed to fulfill the aims and objectives • This is where the stakeholders theory finds its legitimacy