MODULE 05

PROGRAM: MBA SEMESTER: II

COURSE CODE: 2T6 COURSE TYPE: CORE
COURSE: CORPORATE NAME OF THE FACULTY: PROF. DEEPIKA SONI/DR.
SOCIAL DHANASHREE KATEKHAYE
RESPONSIBILITY
CO4 Given the task of CSR, the future manager will be able to
plan and implement various activities to be taken under
CSR activity and evaluate its effectiveness.

Current trends and opportunities in CSR

1. Current trends in Corporate Social Responsibility
Some of the most popular CSR trends in the area of corporate social responsibility include
increased transparency, investment in green technologies, local community and employee
engagement, and diversity and inclusion initiatives.

1.1 Virtual Volunteering for Employees

Employee engagement directly translates into happier customers and better work
productivity. This even helps in retaining good talent in the organization. Contributing to
rebuilding the community develops a sense of satisfaction among individuals.

‍ irtual volunteering is a CSR trend that has grown exponentially since the COVID-19
V
Pandemic. According to the Volunteerism statistics, virtual volunteering
opportunities increased from 17% to 29% in 2020. Volunteering virtually has the edge over
offline volunteering due to its wider reach, location flexibility, and cost-effectiveness. While
some activities, like plantation campaigns and calamity relief, cannot be conducted digitally,
many only require a virtual communication medium. Employees of the organization
volunteer by doing activities like tutoring online, providing mental health support, or helping
to raise funds for crisis relief. Many companies opt for volunteering programs to make the
experience fulfilling for their employees. Goodera is a global platform for companies to
fulfill their CSR and sustainability goals. It has created impactful opportunities for employees
across 200+ cities with 7 million+ employee volunteers. Its end-to-end assistance executes
the campaigns, tracks the company’s social progress. 

1.2 Supporting small businesses

Small businesses have limited resources and capital to conduct business operations. When
they receive assistance from well-established organizations, it improves their quality of work
and boosts their morale. Many large companies take up their corporate social responsibility to
ensure the upliftment of small and medium-sized enterprises. 

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

How some corporations gave small ventures a helping hand:

 After the pandemic outbreak, American Express offered cashback to its members
shopping at small businesses.

 Businesses that advertised on Google and Facebook received ad credits.

 For up to 180 days, Dell Technologies offered 0% interest on new Dell equipment
purchases to small businesses.

1.3 Going Green

Trending issues like climate change have taken the internet by storm. To balance the harm
induced, many companies have pledged to take the matter into their own hands and neutralize
the lethalities caused to the environment. Large corporations have contributed to generating
carbon footprints due to their business activities. While food joints like McDonald’s have cut
energy costs by 25% after using energy-saving appliances, retail stores like Walmart opt for
sustainable logistics by using 100% renewable energy sources in their supply chain
operations.

1.4 Diversity, ‍Equality, and Inclusion

Diversity and the feeling of inclusion are the needs of the hour. Equality is a fundamental
human right that should never be overlooked. Companies have pledged to reduce social
discrimination by hiring racial and ethnic minorities and ensuring non-biased remuneration
for every employee regardless of their caste, creed, gender, or community. Gender equality
has been the frontrunner in corporate social responsibility trends, where frequent campaigns
are conducted to promote fair compensation for women. Companies that ensure that their
employees are treated fairly have a better retention rate and higher employee satisfaction.
Many companies even make these practices public by providing accurate data about their
workforce. They even promote such causes by running equality campaigns on social media
platforms like LinkedIn.

Examples of Diversity and Inclusion (DE&I) in the Workplace

The overarching goal of inclusion strategies, irrespective of the size or scale of organizations,
is centered around cultivating empathy and understanding through practical means that yield
measurable results.

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

 Addressing & mitigating
unconcious bias through training,
Encouraging and supporting ERGs hiring practices and knowledge
dissemination
04 pillars of
DE&I
The Best Workplace Practices

Supporting employees and Implementing inclusive consumer

nurturing their career progress oriented strategies with products &
with assistance, mentorship and services to embrace diversity
upskilling opportunities beyond workplace

Key
Strategies

1. Enhancing workforce diversity with unconcious bias training to

1. Gender, racial and pay equity. address prejudice and discrimination.
2. LGBTQIA+visibility 2. Partnering with stakeholders to advocate for equality and increased
3. Disability justice. employment opportunities.
3. Building diverse employee network and ERGs to enable the
4. Ethnic Diversity professional development of varying identity groups and settling
5. Mental healh & wellness measurable targets of acquiring diverse talent for adequate
representation.
6. Career Development Target
4. Employee assistance program functional 24*7 for mental health
Outcomes
support, ally network of 8,900+ trained Mental health professionals to
support employees, providing resources for builidng healthy habits.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

 Gender equity
Racial & Ethnic inclusion.
LGBTQIA+ rights.
Target Disability Justice

Outcomes Multicultural & socio-economic diversity.

Multigenerational allyship

Developing fomulae that ensure quality, efficacy and safety for all our consumers and their
specific needs and celebrating the infinite diversty of beauty in advertising.

Working to eliminate bias in algorithms, recruiting diverse teams, prioritizing inclusive

leadership & management and partnering with responsible suppliers who share their values.
Key Strategies Encourage multicultural and socio-economic diversity & account for people of all ages and
generations with health covrage, ERGs and their citizen engagement program.

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

 Ernst & Young

Target Outcomes Key Strategies

Gender Equity Creating a 5 year plan to facilitate

representational leadership

Pay Equity
Driving pay equity by establishing strict annual
compensation planning processes and
conducting annual pay gap analysis
Racial Inclusion

Establishing EnY Enprprenerus

Representational Access Network to champion Black
Leadership and latinx employees and building
the EY social justice fund of over
$10 millionh
Career
Progression

1.5 Increased Transparency

Demands for disclosure for companies to reveal what's under the hood of their businesses
have become commonplace among consumers. This CSR trend is partly in response to
heightened regulatory oversight such as the European Union's noteworthy General Data
Protection Regulation (GDPR). It is also partly a result of ever-increasing availability of
almost instantaneous information, and consumer and shareholder demand of once behind-the-
scenes information. As part of a business model that embraces corporate social responsibility,
companies are sharing more environmental, social and governance disclosures.

Consumers are no longer satisfied with shady business dealings and hidden agendas but are
demanding to know more about previously internal matters. For example, even workers at
places like Google have on a cloud computing contract with US Customs and Border
Protection. Just as non-profits are subject to rigorous impact reporting, financial transparency,
and accountability, increased transparency is a CSR trend that will only grow in coming
years.

1.6 Green Technology

Gone are the days of rampant resource usage without any accountability or thought toward
replenishment. Climate change continues to drive many conversations in the corporate world,
and multiple trends in CSR intersect at this topic. As available natural resources are rapidly
depleted and our world reaches a tipping point of a two-degree rise in average temperature,
socially responsible companies are investing in green technologies, reducing their reliance on
non-renewable resources, and looking to more sustainable inputs to do business.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

Whether it's fashion companies looking into alternative fabrics such as eucalyptus or recycled
water bottles, producing clean emissions through more rigorous machinery emissions tests, or
simply getting certifications like LEED for their buildings, green technology will certainly be
a growing trend for businesses looking to enhance their corporate social responsibility.

1.7 Global Companies Acting Locally

Localization is in. Even companies that operate on a global level are recognizing the value of
local markets and supply chains. This is not only to reduce carbon emissions that might be
associated with transportation or supply chain costs (as creating "greener" businesses is also a
rising CSR trend mentioned above), but to tap into local talent and solutions. Many
companies that also have charitable arms are also prioritizing non-profit partners that work
with local leaders and local talent, rather than "shipping in" cookie-cutter solutions.

Also, corporate social responsibility initiatives actively attempt to engage in activities that
benefit their local communities as well as produce profits for the corporation. Not only are
there publicity benefits to be gleaned from getting involved in local communities, it can also
boost employee satisfaction. Increasingly, corporations interested in CSR are donating to
local non-profits, funding the construction of things like schools in lower-income
neighbourhoods, and becoming engaged with civic issues that affect where they do business.
Corporate-sanctioned volunteer events, especially during the holidays, are also an emerging
CSR trend that allows employees to volunteer their efforts and make positive contributions
with minimal time commitments.

CSR and sustainability (corporate sustainability) is derived from the concept of sustainable
development which is defined as ―development that meets the needs of the present without
compromising the ability of future generations to meet their own needs‖. Corporate
sustainability essentially refers to the role that companies can play in meeting the agenda of
sustainable development and entails a balanced approach to economic progress, social
progress and environmental stewardship.
2. What is Strategic Corporate Social Responsibility?
Strategy is related to understanding and addressing issues which affect a firm’s ability to
achieve its mission with efficient utilization of resources so as to build and sustain a
competitive advantage.
According to Porter and Kramer, social and economic goals are integrally connected and not
inherently conflicting in the long run. Their work along with that of a few others led to the
development of the concept of strategic CSR, i.e., CSR activities which support core business
activities and thus provide significant business-related benefits to a firm and contribute to its
effectiveness.

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

The contribution of CSR activities to value creation for the firm can be assessed by the
following five strategic dimensions:
1. Centrality: Closeness of fit between a CSR policy/ programme and the firm's mission and
objectives.
2. Specificity: Firm's ability to internalize the benefits of a CSR programme instead of
creating public goods.
3. Proactivity: Manner in which a firm acts in anticipation of emerging technological,
economic, political or social trends. Ex: In 1975, 3M Company initiated the Pollution
Prevention Pays (3P) programme and by early 1990s its pollutants had been reduced by over
575,000 tons.
4. Voluntarism: Shows the absence of externally imposed compliance requirements
depicting the scope of discretionary decision-making by the firm.
5. Visibility: Related to the firm’s ability to engage in observable business activity and obtain
recognition from internal as well as external stakeholders. Ex: J&J’s response to Tylenol
poisoning cemented its reputation as a caring organization with a strong corporate code of
conduct.
Benefits of Strategic CSR
1. Enhancement of firm’s reputation as a socially conscious one; better relations with
different stakeholders (government, suppliers, customers, civil society) leading to less
stringent regulatory pressures along with increased social license to operate.
2. Generates strategic tangible and intangible firm assets which provide a competitive
advantage such as greater purchase likelihood and longer-term loyalty.
3. Helps attract better qualified workforce and aids in employee retention
4. Efficiencies and cost savings in the value chain such as, ITC’s e-Choupal initiative.
5. Creates new product/ market opportunities, such as, HUL’s campaign for washing hands
(Life boy)

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

3. Review of successful corporate initiatives & challenges of CSR

Successful corporate initiatives

Corporate social responsibility comes in many forms. Even the smallest company impacts
social change by making a simple donation to a local food bank. Some of the most common
examples of CSR include:

 Reducing carbon footprints

 Improving labour policies
 Participating in Fair trade
 Charitable giving
 Volunteering in the community
 Corporate policies that benefit the environment
 Socially and environmentally conscious investments

Challenges of CSR
a) Lack of Community Participation in CSR Activities: CSR, the term is a combination of
Corporate and societies responsibility in together. However, there is a lack of interest of the
local community in participating and contributing to CSR activities of companies. This is
largely attributable to the fact that there exists little or no knowledge about CSR within the
local communities as no serious efforts have been made to spread awareness about CSR and
instil confidence in the local communities about such initiatives. The situation is further
aggravated by a lack of communication between the company and the community at the
grassroots.
b) Need to Build Local Capacities: NGO’s can prove to be a boon for performing/carrying
out various CSR activities. However, NGO as a tool is rarely considered due to reasons like
their inefficiency, incompetency, lack of resources and support for their development. Hence,
there is a need for capacity building of the local non-governmental organizations as there is
serious dearth of trained and efficient organizations that can effectively contribute to the
ongoing CSR activities initiated by companies. This seriously compromises scaling up of
CSR initiatives and subsequently limits the scope of such activities.
C)Issues of Transparency: Lack of transparency is one of the key issues brought forth by
the survey. There is an expression by the companies that there exists lack of transparency on
the part of the local implementing agencies as they do not make adequate efforts to disclose
information on their programs, audit issues, impact assessment and utilization of funds. This
reported lack of transparency negatively International Conference on Technology and
Business Management March 28-30, 2011105impacts the process of trust building between

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

companies and local communities, which is a key to the success of any CSR initiative at the
local level.
d)Non-availability of Well Organized Non-Governmental Organizations: It is also
reported that there is no availability of well-organized nongovernmental organizations in
remote and rural areas that canassess and identify real needs of the community and work
along with companies to ensure successful implementation of CSR activities. This also builds
the case for investing in local communities by way of building their capacities to undertake
development projects at local levels.
e) Visibility Factor: Communication in the right sense, of the right act, to the group of right
people leads to success and motivation to perform perpetually. The role of media in
highlighting good cases of successful CSR initiatives is welcomed as it spreads good stories
and sensitizes the local population about various ongoing CSR initiatives of companies. This
apparent influence of gaining visibility and branding exercise often leads many
nongovernmental organizations to involve themselves in event-based programs; in the
process, they often miss out on meaningful grassroots interventions. f. Narrow Perception
towards CSR Initiatives: Nongovernmental organizations and Government agencies usually
possess a narrow outlook towards the CSR initiatives of companies, often defining’s
initiatives more donor-driven than local in approach. As a result, they find it hard to decide
whether they should participate in such activities at all in medium and long run. g. Lack of
Consensus on Implementing CSR Issues: There is a lack of consensus amongst local agencies
regarding CSR projects. This lack of consensus often results in duplication of activities by
corporate houses in areas of their intervention. This results in a competitive spirit between
local implementing agencies rather than building collaborative approaches on issues. This
factor limits company’s abilities to undertake impact assessment of their initiatives from time
to time.
4. Overcoming Common Challenges of Corporate Social Responsibility
1. The Demand for Transparency and Disclosure
Stakeholders of all kinds, from consumers to suppliers to team members, investors, and local
community organizations, are increasingly demanding greater transparency and
accountability from companies with whom they do business. Businesses need business
practices that prioritize effective ways to collect, organize, analyze, and manage their data for
clear, accurate, and complete reporting of financial and business activities.
2. Pressure from Investors
In addition to accountability and transparency, those looking to invest capital are more likely
than ever to invest in companies with high marks for corporate responsibility and
sustainability (with regard to both social and environmental concerns). They rely on
resources like the Global Reporting Initiative to monitor and evaluate companies for
completeness and veracity in their sustainability reporting.
As millennials and Gen Z move to occupy the investor space from Gen X and Boomers, it’s

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RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

likely corporate social responsibility will become even more important in securing
investment, so companies need CSR plans designed with longevity, flexibility, and
responsiveness in mind.

3. Corporate Culture and Differing Priorities

It’s crucial for a company to present a united front with regard to business ethics and its
stances on political, environmental, and social issues. But companies can struggle to get
everyone onto the same page, especially when different business units have different
priorities and goals that may align with corporate goals for the bottom line, but not
necessarily its CSR initiatives. Education initiatives, training, and a unified approach to
internal business practices and controls can help secure employee engagement, as well as
support from the C-Suite.
4. Connecting CSR to the Value Chain and Profitability
CSR activities can generate both hard value (for example, in the form of cost savings from
going paperless with cloud-based data management and robotic process automation) and soft
value (e.g., attracting more skilled talent via quality of life perks and a progressive and
inclusive work environment) for organizations who perform them. But showing how CSR
contributes positively to developing products and services that meet regulatory compliance
requirements, company goals for profitability and performance, and consumer expectations
requires an investment in digital software solutions that bring disparate data sources together
and provide measurable value via insights and improved financial reporting.
For example, companies who centralize their procurement with a cloud-based, centralized
automation and data management solution like PLANERGY can collect, organize, and
analyze data streams from across their software environment to connect spend to business
practices to value in a number of ways. With full spend transparency, guided buying, and
built-in support for vendor relationship management and contract management, it’s much
easier to track internal process optimization data, analyze and improve sustainable sourcing
practices, and achieve greater savings and direct/indirect value through strong and strategic
relationships with “green” suppliers.
5. If It Ain’t Broke…Fix it Anyway
Now, as ever, the only certainty in business is uncertainty. What’s working today can quickly
become a plan for disaster in the blink of an eye, as the world quickly discovered in the wake
of the COVID-19 outbreak that fundamentally altered the world’s economy and the lives of
people all over the globe. True corporate responsibility requires a plan to address your
company’s approach to not only current hot button issues, but the challenges that lie on the
horizon.

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni

Dr. Ambedkar Institute of Management Studies and Research, Deekshabhoomi, Nagpur (For internal circulation only)

RTM Nagpur University MBA - 2022-23 / Semester – II / Prof. Deepika Soni