Csr

3. • CSR is the continuing commitment by businesses to
behave ethically & contribute to economic development
while improving the quality of life of the workforce & their
families ,local communities and the society at large.
(World Business Council)

4. • Many other names are used to refer to CSR such as
• socially responsible business,
• responsible business conduct,
• responsible entrepreneurship,
• corporate citizenship,
• corporate accountability or
• corporate sustainability.

5. WHAT IS CSR
• CSR is an extended model of corporate governance based on the fiduciary duties
owed to all the firm’s shareholders.
• CSR is about how companies manage the business processes to produce an
overall positive impact on the society.
• CSR is the responsibility of corporations to go above and beyond what the law
requires them to do.
• CSR is the responsibility of corporations to contribute to a better society and
cleaner environment.

6. IMPORTANCE OF CSR
• CSR requires companies to acknowledge that they should be publicly accountable
not only for their financial performance but also for their social and environmental
record.
• CSR encompasses the extent to which companies should promote human rights,
democracy, community improvement and sustainable development objectives
throughout the world. (Confederation of British Industry,2001).
• CSR is the commitment of businesses to contribute to sustainable economic
development working with employees, their families, the local community and society
at large to improve their quality of life in ways that are both for business and good for
international development. (World Bank,24 March 2004).

7. • Where an organization takes into account the effect its strategic decisions have
on society, this is known as
• A. Corporate governance
• B. Business policy
• C. Business ethics
• D. Corporate social responsibility

8. CARROL PYRAMID
• According to Carroll, CSR is a multi-layer concept consisting of four inter-related
aspects of responsibilities, namely, economic, legal, ethical, and philanthropic. He
presents these different responsibilities as consecutive layers within a pyramid.

9. DIMENSIONS OF CSR

10. ECONOMIC RESPONSIBILITY
• The lowest level of the pyramid represents a business’s first responsibility, which is to be profitable.
Without profit, the company would not be able to pay their workers, employees will lose their jobs
even before the company starts CSR activities. Being profitable is the only way for a company to be
able to survive long term, and benefit society. Additionally, this also means that it is a company’s
duty to produce goods and services that are needed/wanted by the customers, at a reasonable
price.

11. LEGAL RESPONSIBILITY
• The second level of the pyramid is the business’s legal obligation to obey the law. This is the most
important responsibility out of the four levels as this will show how companies conduct their
business in the marketplace. Employment laws, competition with other companies, tax regulations
and health and safety of employees are some examples of the legal responsibilities a company
should adhere to. Failing to be legally responsible can be very bad for businesses.

12. ETHICAL RESPONSIBILITY
• The ethical layer of the pyramid is described as doing the right thing, being fair in all situations and
also avoiding harm. A company should not only be obeying the law, but it should also do their
business ethically. Unlike the first two levels, this is something that a company is not obligated to
do. However, it is best for a company to be ethical as this not only shows their stakeholders that
they are moral and just, but people will feel more comfortable purchasing goods/services from the
company as well. Being environmentally friendly, treating suppliers/employees properly are a few
examples of being ethically responsible.

13. PHILANTHROPIC RESPONSIBILITY
• At the top of the pyramid, occupying the smallest space is philanthropy. Businesses have long been
criticized for their carbon footprint, their part in pollution, using natural resources and more. To
counterbalance these negatives, they should “give back” to the community they take from. Even
though this is the highest level of CSR, it should not be taken lightly as many people would want to
do business with companies that are giving back to society. Philanthropic Responsibility is more
than just doing what is right, but it is something that holds true to the company’s values, to give
back to society.

14. The four types of social responsibility include
• A. Legal, Philanthropic, Economic & Ethical
• B. Ethical, Moral, Social & Economic
• C. Philanthropic, Justice, Economic & Ethical
• D. Legal, Moral, Ethical, Economic

15. BENEFITS OF CSR
• Increased employee loyalty and retention.
• Increased quality of products and services .
• Increased customer loyalty.
• Increased reputation and brand image.
• Greater productivity and quality.
• Reduced regulatory oversight .
• Access to capital and market.
• Product safety and decreased liability.
• Less volatile stock value.

16. CSR INITIATIVES- MICROSOFT
• https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RE4JaGo
• 1) Support inclusive economic opportunity
• 2) Protect fundamental rights
• 3) Commit to a sustainable future
• 4) Earn trust
• 5)Empower employees

17. IKEA CSR INITIATIVES
• IKEA is a Swedish-origin Dutch (Netherlands) headquartered multinational conglomerate that designs and sells ready-to-
assemble furniture, kitchen appliances and home accessories, among other goods and home services.
• https://about.ikea.com/en/sustainability
• Healthy & sustainable living
• Circular & climate positive
• Fair & equal
• Building a better business with IWAY -IWAY is the supplier code of conduct for responsibly sourcing products,
services, materials and components. It is a mandatory standard and sets clear expectations for environmental, social
and working conditions, as well as animal welfare, for all suppliers and service providers that work with IKEA.

18. CSR INITIATIVES- TATA MOTORS

19. • The Corporate Social Responsibility does relate most to the following EXCEPT:
• A. Ethical conduct
• B. Environmental practice
• C. Employee satisfaction
• D. Community investment
• E. ALL

20. CSR considers
• A. Impact of the company’s actions on society
• B. Impact of company’s success
• C. Impact of company’s failure
• D. Impact of company’s wind up.

21. • CSR includes all these EXCEPT
• A. Economic responsibilities
• B. Legal responsibilities
• C. Ethical responsibilities
• D. Personal responsibilities

22. CORPORATE SUSTAINABILITY
• The term "corporate sustainability" describes a new corporate management
model. It can also fall under the broader term "environmental social governance"
(ESG).
• Corporate sustainability emphasizes growth and profitability through intentional
business practices in three areas of society. The goal is to provide long-term
value for stakeholders without compromising people, the planet, or the economy.

23. THREE PILLARS OF CORPORATE
SUSTAINABILITY
1. The Environmental Pillar
It includes the various actions companies can take to reduce their environmental
impact and carbon footprint.
Examples include reducing packaging waste, reducing water usage, recycling
materials, and using sustainable energy sources.

24. 2. The Social Pillar
• The social pillar focuses on a company seeking the approval of its stakeholders,
employees, and the local community. A big part of corporate sustainability is a
company's dedication to taking good care of people inside and outside of the
business.
• Social pillar practices include eliminating child labor, offering paternity and
maternity leave, and giving back to the community.

25. 3. The Economic Pillar
• The economic pillar involves implementing sustainable business practices to promote
long term profitability. After all, a company can't have a positive impact on the
environment or community if it's not profitable.
• Elements of the economic pillar include compliance and good corporate governance.
Meaning, the values of stakeholders and management align in terms of how to spend
resources. The economic pillar makes it possible for a company to strategize and
invest in new corporate sustainability methods.
• All that said, no one pillar should overshadow the others. Otherwise, businesses get
caught trying to cut corners and increase profits unethically.

26. SIMILARITIES BETWEEN CSR AND CORPORATE
SUSTAINABILITY
• Both CSR and corporate sustainability focus on helping companies run in a way
that allows them to be ethically profitable—never at the expense of others.
• Both CSR and corporate sustainability help companies make a positive impact on
those around them.
• These two concepts are closely related. After all, corporate sustainability is part of
corporate social responsibility. But, there are some key differences between them.

27. DIFFERENCES BETWEEN CORPORATE SOCIAL
RESPONSIBILITY AND CORPORATE
SUSTAINABILITY
Vision
• CSR often looks backward and reflects on what a company has done to contribute to
society.
• Corporate sustainability looks forward and develops a sustainable strategy for the
future.
Target
• The targets of CSR initiatives are often opinion formers (e.g., media, politicians, and
pressure groups).
• Corporate sustainability looks at the whole value chain (i.e., everyone from end-
consumers to stakeholders).

28. Motivation
• The motivation and driving force behind CSR initiatives is to protect a company's
reputation.
• For corporate sustainability, the drive has more to do with creating new
opportunities for emerging markets.