Presentation Transcript

1. Corporate social responsibility

2. To reflect for few moments… I have failed over and over again in my life. And that is why I succeed…… Michael Jordan The mind is not a vessel that needs filling but wood that needs lighting…….. Plutarch
3. What is csr
4. Influences on csr Two major concepts – Stakeholder’s model and triple bottom line Bottom line : Financial, Social, Environmental Thus, CSR can also be defined as operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business Evolution of the concept of Corporate Citizen
5. Friedman dilemma Suggested that corporate executives could either strive for profits or go hearing about chasing social causes The two were inimical to each other as social responsibility was nothing less than unadulterated socialism Corporate philanthropy was allowed for but only after profits were properly secured For Friedman corporate philanthropy is all right, but anything resembling CSR is letting the shareholders down
6. Evolution of late… Shift from viewing CSR as synonymous with philanthropy to socially responsible investing Shift from spending a portion of profits for charitable purposes to create an impression of caring for others to taking up responsibilities in societal development activities CSR must have a business perspective without being obsessed by profits
7. Infosys’s campus connect Started in 2004, it is a unique industry-academia initiative that aims to overcome this by creating a vibrant pool of future engineering graduates “It is our way of walking the talk on building the much-needed link between industry and academia. The focus is on enhancing the industry readiness of the students coming out of our educational institutions” – KrishGopalakrishnan, CEO and MD It has been normal practice for most IIT graduates to leave Indian shores for greener pastures in developed nations like the US or Europe facing a severe talent crunch in India. With Campus Connect, Infosys aims to solve the problem
8. Bosch The world’s largest private industrial giant and a billion dollar corporate has done more than its share for the country since 1951 It started an apprenticeship program in 1960 Infusing professionalism into India’s industrial sector, 500 trained apprentices from Bosch have been bridging the skill gap for companies across the globe every year for almost 50 years The students have gone on to become industrialists, or managing directors, such as R Ramakrishnan, CMD of GMR Agro-Business
9. Elements of csr
10. Action plan for csr – Environment and ecology Reduce consumption of energy, water, and other natural resources and emission of hazardous substances Establish environment management system Use recycled and recyclable products Increase durability of products and minimize packaging Train staff in environmental issues
11. Health and well being Establish policies to ensure the health and safety of all employees – which are known to employees Involve employees in business decisions that affect them Operate open book policies Consult employees on how to handle a downturn in business if layoffs are unavoidable, offer outplacement services, retraining and severance benefits, provide training opportunities Extend training to life management, retirement planning and dependants’ care
12. Diversity and human rights Work with charities, job centers to redesign jobs to make them accessible to the disadvantaged Set the tone in not tolerating sexists, racists, and homophobic jokes Support organizations that promote fair trade and human rights compliance Make sure that staff members are aware that there are explicit policies against discrimination in hiring, salary, promotion, training or termination of any employee on the basis of gender, race, age, ethnicity and disability
13. Community Encourage employee volunteering in the community payroll giving and back up with financial contributions and help in kind Make some of business products or services available free or at a cost to charitable products Look for opportunities to make surplus products and redundant equipment available to local schools charities and community organizations Offer quality work experience for school children and students Collaborate with local teachers to make the activity of business the subject of school projects. Use business experience to help local school charity Use marketing budget to associate business with social cause
14. Some benefits of csr Enhanced brand image Employee retention Reduced operational costs Increased community support…
15. Business importance of csr Improved financial performance Reduced operating costs Enhanced brand image and reputation Increased sales and customer loyalty Increased productivity and quality Increased ability to attract and retain employees Reduced regulatory oversight
16. Arguments for csr Balancing corporate power with corporate responsibilities Discouraging the creation and imposition of government regulations Focusing on social problems
17. Arguments against csr Stakeholders bear the costs of corporate social action (shareholders, employees and consumers) which affect a “corporation’s operating efficiency and weaken competitive position and advantage” Mismatch of the roles and expectations between the organization and society Prospects of corporation becoming even more powerful, as they may already exercise considerable power over society Management is trained in functional areas of management and does not have generic expertise in handling social issues
18. UN global compact
19. Social aspects of csr Human rights Labor Consumer protection Respect for national sovereignty and local communities
20. Drivers of csr
21. Three models of csr 1. Competency Driven 2. Community Driven 3. Consumer Drive
22. Competencydriven Company reaches out to the society by depending on its core competencies In doing so, it helps create potential stakeholders, and also adds to evolving higher efficiency standards
23. Community driven csr Organizations invest in social welfare but again with a business interest Idea is to subscribe to a sustainable form of CSR
24. Consumer driven Consumer pressure has made a great difference in sensitizing companies to the needs of stakeholders CSR can also help in raising consumer standards and expectations In this process not only is the consumer benefited, but the company too can hike up the competition in its own market sector