CORPORATE SOCIAL

RESPONSIBILITY

Akhila Divakaran
20mcomrc02
Department of Financial Administration
Central University of Punjab
WHAT IS CORPORATE SOCIAL
RESPONSIBILITY?
 Corporate Social Responsibility (CSR) is a self regulating business model i:e;
the guidelines or the strategy that is internally formed by the company that
helps a company be socially accountable to itself, its stakeholders and the
public.
 Thus in other words we can say that CSR means taking responsibility for its
actions and creating a positive impact on the society.
 CSR is also known as Corporate Citizenship.
 CSR has different meaning for different group of people. A businessman may
define CSR as business strategy , an NGO activist may consider it as
something totally different from businessman , while a government official
may see it as voluntary activity/ regulation done by a company.
 Corporate social responsibility has been defined by Sheehy as "international
private business self-regulation.“
 Sheehy considered Archie Carroll's description of CSR as a pyramid of
responsibilities, namely, economic, legal, ethical, and philanthropic
responsibilities.
 Carroll was not defining CSR, but simply classifying the activities, Sheehy
developed a definition differently following the philosophy of science—the
branch of philosophy used for defining phenomena.
 Carroll’s view is reflected in the Business Dictionary which define CSR as “a
company’s sense of responsibility towards the community and environment
(both social and ecological) in which it operates”.
Thus to engage in CSR means that the company in its ordinary course of business is
also providing for the growth of its environment and society.
IMPORTANCE OF CORPORATE SOCIAL
RESPONSIBILITY
 CSR is important equally for the community (society) and the
company. This help in the simultaneous growth of the society and
the company.
 CSR activities built a strong relation (bond) between the
employees and the organization.
 This keep the company, employee and the employers to be more
connected to the society. They have a good public relation.
 It boost the morale and help the employees and create a positive
workplace.
 Customers are more attracted towards the companies engaged in CSR activities
 CSR helps in creating a reputation for the company.
 CSR contributes to a firms profit.
 It shows the high ethical standard of a company, thus they can avoid legal and
business loss to an extent.
 In short Companies can express their citizenship:
 Through their waste and pollution reduction process (environmental)
 By contributing educational and social programs ( social)
 By earning good returns on the employed resources.(Human capital)
APPROACHES
Corporate Social Responsibility is a vast area and it includes a lot of activities.
Some of the most common activities/ actions are :
 Environmental Sustainability : One of the primary focus of CSR is the
environment. Companies regardless of their sizes whether large or small have
carbon footprints, thus any step they take to tackle this issue is considered as a
positive sign for both company and the society. The business can go for
recycling, waste management, renewable energy etc.. to help in maintaining
environmental sustainability. It is considered that business take resource from the
environment for their activities, thus it is the responsibility of the business to
ensure sustainability in the environment and carry out their business accordingly.
 Human Resource : Human resource is the most important resource in an
organization. Business should treat their employees fairly and ethically there
should be no discrimination or partiality on the basis of gender, caste religion etc.
They should boost the morale and motivate the employees to work efficiently and
provide them with good incentives. They can provide additional training to their
employees and help them in their personal growth. Also, as part of CSR activities
they can give more opportunities to local employees as well.
 Philanthropy : This mainly deals with the community welfare, i:e; how a
company wants to contribute for the betterment and welfare of its
community/Society. Business can do CSR activities by doing charity – donating
money or other products to NGO’s, or may be helping non profit organization in
meeting their needs. They can also volunteer for these organization or sponsor
some of their events as well.
One of the best way to help the community growth is to employee the local
workforce, and supporting local trade.
 Ethical Marketing : It means trading in a fair manner. The companies who treat
their employees in a fair manner without manipulating them have a good
reputation in the market. The consumers trust those companies and have high
respect for them.
CSR VALUE CURVE
SOME OTHER REFERNCES

 When planning a CSR activity involve the employees as well,

this will bring assurance to the team and will increase the success
rate of the CSR activity as well.
 If the decision are made by discussing with the employees and
taking consumers opinion there are less chances of any allegation
 Whatever the strategies are formulated let the world know about
it.
 IMPACT OF CSR

Corporate Social Responsibility has had a great impact on social, economical and
environmental aspects all over the world. Many companies have taken steps to
improve their working environment and to ensure environmental protection by
following various measures like using renewable energy, recycling etc.. They have
provided chances for the growth of local business and also providing employment to
the locals in an area. This in turn also ensured ethical behavior among all the
employees and the employers.
Thus we can conclude that, if look at the bigger picture CSR has a positive impact
in the society and has helped in the growth of the business and the society as well.
EXAMPLE - STARBUCKS
STARBUCKS

 When we take a look at the top 100 Companies following CSR

activities, Starbucks is one among them. Starbucks has always
been known for its Social responsibilities, commitment to social
welfare etc.
 According to its 2019 Global Social Impact Report it was able to
reach 99% of ethically sourced coffee, create a global network of
farmers, do community services and do various programs for its
employees and customers.
 Starbucks goals further includes hiring refugees, reducing
impacts of its cups and create environmental leadership.
CONCLUSION
 Thus I would like to conclude by quoting Warren Buffet “ It takes
20 years to built a reputation and five minutes to ruin it. If you
think about it you will do things differently”.
Thus its in the favour of every company to follow CSR activities
and to maintain their reputation. In that way it would help the
company to grow along with its customers, economy and
environment as a whole.

Thank you