This document discusses the key concepts of corporate social responsibility (CSR). It defines CSR as a company's obligations to society beyond legal and economic requirements. CSR has three components - cognitive (thinking about stakeholder relationships), linguistic (explaining CSR activities), and conative (actual socially responsible actions). The document also discusses stakeholder vs stockholder perspectives on CSR, as well as strategic, ethical, and altruistic types of CSR activities. It notes that CSR goes beyond traditional philanthropy by accepting communities as stakeholders. The document provides an overview of CSR in India and how funds could support healthcare.

1. CSR

2. Corporate Social
Responsibility

3. Corporate social responsibility is the idea that
firms have obligations to society beyond their economic obligations
to owners or stockholders
and also beyond those prescribed by law or contract

4. Business Ethics vs. CSR
Business ethics is a narrower concept that applies to the morality of
an individual’s decisions and behaviours.
Corporate social responsibility is a broader concept that relates to an
organization’s impact on society, beyond doing what is ethical

5. Corporate social responsibility has three
components
• Cognitive
• Linguistic
• Conative

6. cognitive
• implies thinking about the organization’s relationships with its parties
at interest.
• Also included here is the firm’s rationale for engaging in specific
activities that might have an impact on key relationships.
• For example, Nestlé might think about how providing clean water for
school children in India could help its reputation

7. linguistic
• involves explaining the organization’s reasons for engaging in certain
activities and how it goes about sharing these explanations with
others.
• The corporate communications (or public relations) group assists with
the linguistic component.

8. conative
• involves what the firm actually does, along with the commitment and
consistency it shows in conducting its acts of social responsibility.
• The consistent behavior of Nestlé in using clean water for its products
in India, as well as furnishing clean water to the school children, is
part of the conative component.

9. According to Geoffrey Lantos:3 main types of
CSR.
• Ethical CSR: It’s about the responsibility to avoid harms or social
injuries.
• Altruistic CSR: Contributing to the common good at the possible
expenses of the business for altruistic, humanitarian or philanthropic
causes.
• Strategic CSR: It’s about firm’s social welfare responsibilities that
benefit both the corporation and stakeholders

10. Stockholder versus Stakeholder Viewpoints
of Social Responsibilty

11. Stockholder viewpoint
• The traditional perspective on social responsibility that a business
organization is responsible only to its owners and stockholders

12. Stakeholder viewpoint
• The viewpoint on social responsibility contending that firms
must hold themselves responsible for the quality of life of the many
groups affected by the firm’s actions

13. Corporate Social Performance
• It is the extent to which a firm responds to the demands of its
stakeholders to behave in a socially responsible manner.

14. The vicious circle
• A pioneering study by Sandra A. Waddock and Samuel B. Graves found
that levels of corporate social performance were influenced by prior financial success.
• This result suggests that financial success creates enough
money left over to invest in corporate social performance.
• The study also found that good corporate social performance contributes to
improved financial performance as measured by return on assets and return on
sales.
• The researchers concluded that the relationship between social and
financial performance may be a virtuous circle, meaning that corporate
social performance and corporate financial performance feed and reinforce
each other

15. • The primary difference between CSR and traditional philanthropy is
that CSR accepts the community as a stakeholder in corporate
activity.

16. • The perception of corporate social responsibility (CSR) in India is
changing. It is slowly moving away from philanthropy to a process of
sustainability, where the company and community have an ongoing
engagement. We live in the millennium age, where boundaries mean
little to the organisations turning global. Today, business is not only a
profit-making proposition but also a personified image which can
think, leap, rebel and emote. It is this character of business that has
brought CSR to the limelight. An offshoot of globalisation, CSR has
gained immense prominence and popularity in the decision-making
world.

17. • India spends only 5% of its gross domestic product (GDP) on health,
of which government’s share is only 1.4%

18. CSR funds can be mobilized to support the
healthcare system in two ways.
• Strategic partnerships can strengthen diagnosis, treatment and care
for patients
• Community programmes can help to keep people healthier, which
prevents visits to the doctor and hospitals

19. • CSR is not a panacea to all ills—it can only act as a catalyst or
complement government efforts

20. • Going by the government’s 2% norm Rs 63 billion is expected to flow
in from India’s top 500 listed companies. If we expand this list to the
top 1,000 corporations, add MNCs, co-operative banks and SMEs,
then we are talking about at least Rs 120 billion. Each of India’s 660
districts could get over Rs 18 crore of this investment

21. CSR rules in India

22. • Thank You