Corporate Social Responsibility

(CSR)
Introduction
Corporate Social Responsibility is the action taken by a firm that appear to further some social
causes beyond the interest of the firm and that which is required by law and ethics. Corporate
social responsibility (CSR), also known as corporate responsibility, corporate citizenship,
responsible business, sustainable responsible business (SRB), or corporate social performance, is
a form of corporate self regulation integrated into a business model. Ideally,CSR policy would
function as a built-in, self-regulating mechanism whereby business would monitor and ensure its
support to law, ethical standards, and international norms. Consequently, business would
embrace responsibility for the impact of its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere. Furthermore, CSR-
focused businesses would proactively promote the public interest by encouraging community
growth and development, and voluntarily eliminating practices that harm the public sphere,
regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into
corporate decision-making, and the honoring of a triple bottom line: people, planet,
Profit.
The term "CSR" came in to common use in the early1970s, after many multinational
corporations formed, although it was seldom abbreviated. The term stakeholder, meaning those
on whom an organization's activities have an impact, was used to describe corporate owners.
Approach
An approach for CSR that is becoming more widely accepted is community-based
development Approach. In this approach, corporations work with local communities to better
themselves. For example, the Shell Foundation has involvement in the Flower Valley, South
Africa. In Flower Valley they set up an Early Learning Centre to help educate the community's
children as well as develop new skills for the adults. A more common approach of CSR is
philanthropy. This includes monetary donations and aid given to local organizations and
impoverished communities in developing countries. Some organizations do not like
this approach as it does not help build on the skills of the local people, whereas community-
based development generally leads to more sustainable development. Another approach to CSR
is to incorporate the CSR strategy directly into the business strategy of an organization. For
instance, procurement of Fair Trade tea and coffee has been adopted by various
businesses. Another approach is garnering increasing corporate responsibility interest. This is
called Creating Shared Value, or CSV. The shared value model is based on the idea that
corporate success and social welfare are interdependent. A business needs a healthy, educated
workforce, sustainable resources and adept government to compete effectively.
Potential Business Benefits
The scale and nature of the benefits of CSR for an organization can vary depending on the nature
of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting
business to adopt measures beyond financial ones.The business case for CSR within a company
will likely rest on one or more of these arguments:
Human resources: A CSR programme can be an aid to recruitment and retention, particularly
within the competitive graduate student market. Potential recruits often ask about a firm's CSR
policy during an interview, and having a comprehensive policy can give anadvantage. CSR can
also help improve the perception of a company among its staff, particularly when staff
can become involved through payroll giving, fundraising activities or community
volunteering.
Risk management: Managing risk is a central part of many corporate strategies. Reputations
that take decades to build up can be ruined in hours through incidents such as corruption scandals
or environmental accidents. These can also draw unwanted attention from regulators, courts,
governments and media.Building a genuine culture of 'doing the right thing within a corporation
can offset these risks.
Brand differentiation: In crowded marketplaces, companies strive for a unique selling
proposition that can separate them from the competition in the minds of consumers. CSR can
play a role in building customer loyalty based on distinctive ethical values.
License to operate: Corporations are keen to avoid interference in their business through
taxation or regulations. By taking substantive voluntary steps, they can persuade governments
and the wider public that they are taking issues such as health and safety, diversity, or the
environment seriously as good corporate citizens with respect to labour standards and impacts on
the environment
CSR Initiatives and Green Measures
· Reliance industries and two Tata groups firms, TataMotors and Tata Steel are the country’s
most admirable companies for their Corporate Social
Responsibilities initiative.
· IBM has joined hands with Tribal Development
department of Gujarat for a development project
aimed at up liftment of tribal in the Sesan area of
Gir forest.
· The Indian paint industries are making their
product more environment friendly by opting for
water based paints and making its carcinogens
free.
Criticism and Concerns
Critics of CSR as well as proponents debate a number of concerns related to it. These include
CSR's relationship to the fundamental purpose and nature of business and questionable motives
for engaging in CSR, including concerns about insincerity and hypocrisy.
NATURE OF BUSINESS
Milton Friedman and others have argued that a corporation's purpose is to maximize returns to its
shareholders, and that since only people can have social responsibilities, corporations are only
responsible to their shareholders and not to society as a whole.
MOTIVES
Some critics believe that CSR programs are undertaken by companies such as British American
Tobacco (BAT), the petroleum giant BP (well-known for its high-profile advertising campaigns
on environmental aspects of its operations), and McDonald's to distract the public from ethical
questions posed by their core operations. They argue that some corporations start CSR programs
for the commercial benefit they enjoy through raising their reputation with the public or with
government.
ETHICAL CONSUMERISM
The rise in popularity of ethical consumerism over the
last two decades can be linked to the rise of CSR. As
global population increases, so does the pressure on
limited natural resources required to meet rising
consumer demand. Industrialization, in many
developing countries, is booming as a result of both
technology and globalization. Consumers are becoming
more aware of the environmental and social
implications of their day-to-day consumer decisions and
are therefore beginning to make purchasing decisions
related to their environmental and ethical concerns.
However, this practice is far from consistent or
universal.
SOCIAL AWARENESS AND EDUCATION
The role among corporate stakeholders is to work
collectively to pressure corporations that are changing.
Shareholders and investors themselves,
through socially responsible investing are exerting
pressure on corporations to behave responsibly.
Ethics training
The rise of ethics training inside corporations, some of
it required by government regulation, is another driver
credited with changing the behaviour and culture of
corporations. The aim of such training is to help
employees make ethical decisions when the answers
are unclear.
LAWS AND REGULATION
Another driver of CSR is the role of independent
mediators, particularly the government, in ensuring
that corporations are prevented from harming the
broader social good, including people and the
environment.
STAKEHOLDER PRIORITIES
Increasingly, corporations are motivated to become
more socially responsible because their most important
stakeholders expect them to understand and address
the social and community issues that are relevant to
them. Key external stakeholders include customers,
consumers, investors (particularly institutional
investors), and communities in the areas where the
corporation operates its facilities, regulators,
academics, and the media.
What is the need for CSR?
While the interests of shareholders and the actions of
managers of any business enterprise have to be
governed by the laws of economics, requiring an
adequate financial return on investments made, in
reality the operations of an enterprise need to be
driven by a much larger set of objectives that are today
being defined under the term CSR. The broad rationale
for a new set of ethics for corporate decision making,
which clearly constructs and upholds a organization's
social responsibility, arises from the fact that a
business enterprise derives several benefits from
society, which must, therefore, require the enterprise
to provide returns to society as well. A business cannot
succeed in a society which fails. This, therefore, clearly
establishes the stake of a business organization in the
good health and well being of a society of which it is a
part. More importantly, in this age of widespread
communication and growing emphasis on
transparency, customers of any product or service are
unlikely to feel satisfied in buying from an organization
that is seen to violate the expectations of what is
deemed to be ethically and socially responsible
behaviour. It is becoming increasingly evident that
organizations that pay genuine attention to the
principles of socially responsible behaviour are also
finding favour with the public and are the preferred
choice for their goods and services.
CORPORATE GOVERNANCE INITIATIVES IN
INDIA
There is a very impressive growth of the corporate
sector in India. To examine corporate governance
issues and recommend a voluntary code of best
practices, Confederation of Indian Industry (CII) set up
a committee and started the initiative to improve
corporate governance in India. The first draft of the
code was prepared
by April 1997, and the final document was released in
April 1998.
Considerably debate has taken place on reforming
Indian corporate governance practices in recent times.
Various committees have suggested Anglo-Saxon style
of corporate governance reforms. However, such
reforms are unlikely to improve the protection of
minority shareholders.
There is still a larger issue arising out of the pyramidal
structures. The ordinary investors may find it difficult to
differentiate a good investment from a bad one.
Because the credibility of report earnings is suspect. In
addition, the reported
earnings may be a poor guide to future performance.
To conclude, the complex organizational structures of
many Indian business houses are a major impediment
to good corporate governance. Mechanical measures
such as increasing the number of independent directors
on Board will do little to change the state of affairs
unless
cash flows and control rights are aligned. In the wake of
issues like these, the Government has initiated
measures to arrest the future deterioration in the
functioning of corporate sector as well as to heal the
damage caused.
Coca Cola - CSR
Corporate Social Responsibility has always been an
integral part of the Coca Cola India’s vision and the
cornerstone of our Core Value of Good Corporate
citizenship.
The Coca Cola India defines Corporate Social
Responsibility as making socially responsible
products, engaging in socially responsible employee
relations and making a commitment to the
community around it. At the Coca Cola India’s,
Corporate Social Responsibility is not just a duty; it's
a way of life.
MISSION
To socially and economically empower communities
around our operations, by creating enabling
environment around our plants, for the betterment
of communities through sustainable projects
PREAMBLE
At Coca-Cola, we are committed to contribute our
time, expertise and resources to help communities in
partnership with local leaders.
These guidelines shall help Division and bottling
units to identify initiatives and projects that they
could undertake in their respective areas of
operation.
CSR GUIDELINES
· We will work towards attaining the most
efficient and optimum usage of water
· Endeavor to achieve Net Zero w.r.t.
groundwater i.e. to strive to recharge ground
water equivalent to the same used in our
operations.
· Trive to facilitate equitable access of clean
drinking water to communities around our
plants and support protection of watersheds in
such areas.
· Have measurable goals to conserve the
environment in collaboration with local
communities.
· Endeavor to recycle all our solid wastes
materials including PET articles.
· Strive to conserve energy and would comply
with national and applicable international
standards/practices.
· Dispose and manage bio solids, as per law of
the land and prevailing regulations, to minimize
the impact on the environment and adopt
environmental friendly practices.
· Work for practical sustainable solutions for
disposal of bio-solids and other wastes and help
spread awareness of the same.
· attempt to establish partnership with
Government, NGOs and communities and other
relevant agencies, to launch and manage
projects in communities around our operations.
· Work closely with our bottling partners and
share resources - technical, human and financial
- for the sustainable development of local
communities.
· Promote Healthy and active living/lifestyle in
workplace, in marketplace and in communities.
· Incorporate our social responsibility as a part of
the Company’s business plan.
· Promote and encourage employee volunteerism
in community work.
· We stand committed towards our associates,
their families and the communities around our
operations, to improve their quality of life as a
whole through health, education, and water
management programs.
· We shall commit a percentage of the company’s
turnover for CSR initiatives.
CSR ACTIVITIES
The Company provides direct and indirect employment
to more than 2500 people in its five bottling plants in
Andhra Pradesh situated in Ameenpur, Moula Ali (near
Hyderabad), Vizag, Vijayawada, and Nellore. The
Company has been recognized for Best HR practices
like KO Role Model -Deferred Rewards program,
reinforce performance and behavior, KO Key
Contributor - Cash reward for superlative performance
(CE & Solid Citizens) with citation & a gold pin, KO
Vacations - A program to include the associate's family
in celebrating his professional success by sending them
on a vacation, motivational programs like Surge
Beyond 100% to recognize team performance.
In addition to the professional growth of the
employees, the Company also focuses on personal and
social growth by involving employees in various
corporate social responsibility projects undertaken in
Andhra Pradesh. These include blood donation camps,
health camps for local communities around the bottling
plant, education support to local community, etc in
association with NGOs like Red Cross and Hyderabad
Round Table. In addition to the above, the Andhra
Pradesh team came forward to donate generously to
Chief Minister's Relief Fund during the tsunami tragedy
besides working on location to help the victims.
Coca-Cola’s Concern for The Disabled
The Company employs 88 people with hearing and
speaking disability, who work as “Special Inspectors” at
its Nemam plant near Chennai. They have been trained
by the Company to observe the bottles and check for
any foreign particles during quality
The "Abhyaasa Project" (Systematic on-the-job
training) in particular, undertaken with the objective of
enhancing technical skills of casual workers and as well
as consistent harmonious industrial relations displayed
by the workers as well as the management also helped
the company
The Coca-Cola plant in Kerala has been providing
commercial waste to local farmers as fertiliser which
has proved to be contaminated with toxic substances.
The programme said it had discovered dangerous
levels of cadmium and lead in the sludge produced by
the plant which was lying on the fields of local farmers.
It was alleged that the substance was actually useless
as a fertiliser. BBC reporters also said they had seen
waste leaving the factory to be dumped directly into a
local river.
The Vice-President of Coca-Cola in India, Sunil Gupta,
said that the fertiliser was absolutely safe.
However, Professor John Henry, consultant at St Mary's
Hospital in London, said that the levels of toxins found
in water samples taken near to the plant would cause
serious problems of pollution that could have
"devastating consequences".
On January 20, 2009 SOS Children’s Villages of India, The Coca-
Cola Foundation and Coca-Cola India announced a partnership to
implement water conservation projects for a better life for children.
This partnership will collaborate to ensure sustainable water resources
by undertaking rainwater harvesting (RWH) projects at 39 SOS
locations spread across the country. The partnership will also support
creating or improving the awareness on Water conservation and
artificial recharge.
In the beginning of 2008, a pilot project was initiated in SOS
Children’s Village, Bawana, to collect rain water to replenish ground
water by using funds from SOS-India budget. Coca-Cola India
stepped in to fund this project and helped SOS save funds from its
budget for other use. The success of the project in terms of
professional implementation and impact on quality of life of SOS
children prompted The Coca-Cola Foundation and Coca-Cola India to
join hands with SOS for undertaking RWH projects in the remaining
39 SOS locations.
Further, The Coca-Cola Company in India has been
recognized for its community programs and
environmental practices by prominent global
organizations such as the Red Cross and has won
prestigious Indian environmental awards for
environmental practices.
The rainwater harvesting technology it has established
at many locations (including the plants at Plachimada
in Kerala, Kaledera in Rajasthan and Varanassi in Uttar
Pradesh).
State Government figures have confirmed that since a
Coca-Cola plant has been built, in some areas
(including Kaladera in Rajasthan) groundwater levels
have shown lower levels of depletion than other areas
and in some areas (including Varanassi in UP) water
levels have actually risen since the plants were built.
We believe this is due, in part, to the rainwater
harvesting technology employed at these plants
In Kerala, where ground water levels have certainly
decreased, the rainfall has been well below average for
several years. The Kerala State Ground Water
Department has said that any depletion in ground
water was due to poor rainfall and could not be
attributed to the plant. The Central Ground Water
Authorities have also confirmed there were no
abnormal changes in groundwater levels around the
plant that can be attributed to the Coca-Cola operation.
Most recently the interim report of the Centre for Water
Resources Development & Management (CWRDM)
groundwater depletion and the Coca-Cola plant in
Kerala.
Coca-Cola is one of the few companies in India to have
made any contribution to recharging groundwater in
India and uses less water, more efficiently, than many
other industries in India and yet a small number of
politically motivated groups have still chosen to target
just The Coca-Cola Company, using the Coca-Cola
brand name for the furtherance of their own anti-multinational
agendas.

Conclusion
The Coca cola maintains a considerable involvement
in philanthropy and in volunteering. It is considered to
be an active participant in the Indian Corporate Social
Responsibility field and received Award for CSR in
2007. When you’re serious about social change, the
numbers speak for themselves. For the Coca Cola,
Corporate Social Responsibility (CSR) is not just a
duty. It's the unique way we work and live.
The Coca cola focuses on the environment issues.
They have taken several steps in its efforts to be an
environment-friendly organisation.