1. CORPORATE SOCIAL
RESPONSIBILITY
By Dr.Priyanka Phonde

2. • Trends in CSR programme development
• Strategies to promote CSR

3. Trends in CSR Programme
Development
• CSR programme trends have developed over
time changing with the changing conditions
and directions in the business world
– Branding
– Core competency fit
– Partnerships
– Socially Anchored Strategy

4. Branding
• Branding & signature programmes are very
popular
• Developing a brand name helps companies to
position and advertise their values in public
• Ex. TOI : lends its name for mobilizing funds to
help NGOs

5. Core Competency Fit -- I
• CSR initiatives that deliberately tie with their
core competencies ( product , human resources
and equipments)
• Companies may volunteer to lend these &
contribute to community development
– Ex. Ballarpur Paper Industries have a social forestry
programme.

6. Core Competency Fit -- II
• Providing material aid to NGOs for
establishing a base for wider relationships
– Eg. TCS, Thermax providing their old computers
to municipal schools for fostering computer
literacy.

7. • Why should Corporates enter into Cross
Sector partnerships ?

8. Why Partnerships
• Voluntary Sector
– Skills in the areas of mobilizing & motivating
volunteers, networking , advocacy and campaigning
• Business contact with NGOs
– Learning community development skills
– Development & Implementation of CSR programmes
by involving other stakeholders
– Extremely beneficial for those who are involved in it
• Eg. Excel Industries & MMC : Waste management

9. • What is partnerships based on?

10. Basis of Partnerships
• Mutual recognition of skills and resources that
each sector can contribute
• A win-win situation to all those who are
involved

11. • How can stakeholders contribute in a cross
sector partnership?

12. Partnerships For Corporates
• Able to contribute to the
– Financial profits
– Provide a positive environment for growth
– Increase the corporate value from the shareholders
point of view
– Contribute to the societal value

13. Partnerships For Government &
Civil Society Organizations
• In improving its governance by providing
specific interventions in managerial and
technical areas
• To civil society organization it should
strengthen its functioning and ability to
create an impact

14. Forms of Partnerships
• Cash donations from corporates to struggling community
organization helps to attract further support
– The Infosys Foundation
• Grants to socially & physically challenged children for education.
• partnered with various NGOs & local government in strengthening
rural development activities and infrastructure
– Cadbury India : funds a street children project focusing on
education
– Ranbaxy has contributed for community health care programmes

15. Partnerships
• Equal players
– Pratham : A triangular partnership between the government,
corporate sector and citizen to achieve universalization of primary
education.
– Catalytic role in improving primary education in Mumbai
– Developing low-cost mass replicable innovative models to address
existing problems in the area of education
– Motivating teachers & parents
– Studying the current system to make it more effective.
• Some Business partners of Pratham
– ICICI,IDBI, British airways, BEST and Mahindra’s

16. • Issue/cause specific partnerships
– Ex. Mahindra & Mahindra : encouraging education
at all levels: has partnered with various NGOs in
both rural & urban areas to further the cause of
education

17. Partnerships
• Cause related partnership
– Companies adopting this view feel that a social
attribute added to the products influences
consumers brand behaviour which results in
increased sales

18. Cause related partnership
• P&G , Hygiene & Health Care India : project DRISHTI – 1st
ever Sight Restoration Corporate project in association with
NAB
• OPEN MIND with UNICEF : support & educate working
children
• These initiatives are support by their brand. Part of the sale
of the products is contributed towards these initiatives

19. Activating active citizenship and
exchange of skills
• HLL deputes management trainees to NGOs to
sensitize them to the rural ethos, markets &
culture
• OTIS elevators motivates its employees to work
with mentally challenged .
• Tata Group of Companies encourages its
employees to participate in community
development activities

20. SOCIALLY ANCHORED
COMPETENCIES MODEL
• Integrates Corporate Social Responsibility and
Competitive Strategy
• Discusses how companies may use core competencies to
drive CSR initiatives and achieve significant competitive
advantage
• By integrating SACs in their CSR operations, companies
are able to develop new and improved products and
services for the society, more efficient production
processes and strong reputation and brand identity.

21. CSR MISALIGNMENT
INEXPERIENCED /
INAPPROPRIATE
CSR STAFF
CSR MGMT
STRUCTURE ISOLATED
FROM BUSINESS
LIMITED OR
RESTRICTED
CSR BUDGET
MISALIGNMENT BETWEEN BUSINESS AND
SOCIAL RESPONSIBILITY STRATEGIES AND FUNCTIONS
IMPACT DILUTED DUE
TO LIMITED BUDGET
ALLOCATION TO
MANY CHARITIES
CORE COMPETENCIES
AND BUSINESS ASSETS
NOT FULLY USED
DECISIONS THAT
DAMAGE
REPUTATION
MINIMAL OR NEGATIVE SOCIAL AND BUSINESS
IMPACT OF CSR PROGRAMS
CAUSES
PROBLEM
CONSEQUENCES

22. COMPARING SAC
PROGRAM
COMPONENT
S
TRADITIONAL CSR
PROGRAM MODEL
SAC INFLUENCED CSR
PROGRAM MODEL
GOALS Focuses on social impact that
is often not measured
Designed to deliver social and
business impact that is measured
and attributed to the project
STRATEGIES Vary from project to project.
Tend not to take advantage of
company’s skills.
Built on core competencies.
Includes skills from the company
as well as its partners.
BENEFICIARIES Are broadly defined. Usually,
constituents of the partner
organisation.
Targeted towards stakeholders
strategically linked to the
company and its businesses.
RESOURCE MIX Mix of cash grants and
product donations.
Sometimes, emplyee
volunteerism.
Creative mix of cash, product,
people and other assets that
leverage the maximum impact.
MANAGEMENT CSR staff approves projects.
Maintains a reporting
relationship with partners.
Cross functional management
teams that participate in design,
overseeing and evaluation.

23. SAC MODEL
BUSINESS BENEFITS
• Lower costs / waste
• Increase Efficiency
• Reduce risk
• Add Value
• New Products
• License to operate
• Reputation
SOCIAL BENEFIT
• Vibrant Communities
• Strong community relations
• Employee well-being and productivity
INTEGRATION AND
LEARNING
• Team Formation
• Goal settings
• Experimentation
• Dissemination
SOCIALLY ANCHORED COMPETENCIES
• Competencies appropriate for CSR initiatives
• Building blocks for new mind set to deliver value
STRATEGIC ALLIANCES
• NGO
• Interest Groups
• Government
• Other Companies
IDENTIFICATION OF
CORE COMPETENCIES
• Skills
• Experiences
• Abilities
• Other Assets
• Collective Learning
IDENTIFICATION AND ANALYSIS
OF KEY STAKEHOLDERS
• Customers
• Investors
• Employees
• Suppliers
• Government
• NGOs

24. Strategies for promoting CSR
• Promotion of ‘CSR-friendly’ social dialogue
• Rethinking the governance
• Enabling the actors to play their role
• Promoting the internal as well as external
aspects of CSR
• Intensifying the dialogue
• Fostering CSR among SMEs
• Promoting CSR as a tool to anticipate change

25. ‘CSR-friendly’ social dialogue
• Foundation research suggests that CSR can only exist
in conjunction with a strong social dialogue
• It is not easy for the traditional players in social
dialogue to practice CSR
• Incorporation of CSR into the agenda of in-house
social dialogue is still minimal
• Many information/consulting procedures ignore it or
deal with it at minimal level

26. Barriers to CSR friendly social
• Decentralized production networks,
• Recurrent restructuring ,mergers & acquisitions makes
it difficult for company boundaries to coincide with
the boundaries of social dialogue

27. How can information on CSR be promoted so
that the existing social dialogue can expand to
include these new dimensions?

28. Options in Social Dialogue
– Dialogue with other stakeholders can be
developed in parallel to the social dialogue and
bridges built between them with the help of the
binary model of social dialogue
– Employees can act as representatives to build the
bridge between stakeholder.
– Challenge lies in expanding social dialogue without
weakening the traditional social dialogue

29. Rethinking the Governance
• Governance is designing and implementing rules,
processes and practices
• In relation to CSR governance is at two levels:
– Company and
– Society
• At the Company level it means taking on board a
diversity of stakeholders and multitude of expectations
• Taking these considerations &organizing necessary
processes and making tradeoffs between the different
expectations

30. Rethinking the Governance
• However the management receives primary mandate
from stockholders
• Question is whether the executives receive a real
‘social mandate’ which allows them to commit to other
stakeholders
• Applying CSR may also affect the way governance is
exercised in society

31. Enabling the actors to play their role
• Skills & tools are important to allow stakeholders to
play their role properly
• Today the acquisition of these skills by stakeholders
and the development of these tools is not sufficient
to allow them to act efficiently
• Ex.: Civil Society has difficulties in playing its role
because
– The actors & their expectations are not clearly identified
– The members do not have the necessary skills and
resources to act properly

32. Enabling the actors to play their role
• Initiatives already existing which can help
actors both inside & outside the company
should be reinforced
• Ex: Helping stakeholders to be more
structured & professional thereby
increasing efficiency
– Creating appropriate institutional frameworks
which permit stakeholders to meet & discuss
CSR

33. Promoting the internal as well as
external aspects of CSR
• External aspect of CSR is important and tends to get a
lot of attention
• Internal aspect also important
• In an economy of decentralized production and
networking it is important to look at issues of
– Job quality,
– health & safety provisions,
– Working conditions of employees of subcontracting companies
play a major role in CSR policies

34. Intensifying Dialogue
• Active dialogue among stakeholders : crucial for success
of CSR
• Research: Companies have interest of enlarging the
focus to other stakeholder & not just consumers
• New way of business: Based on management and
dialogue with stakeholders
• Trust , transparency, internal & external audit can create
and foster successful dialogue & sustainable corporate
governance
• Local municipalities and governments have an important
role to play in facilitating partnerships

35. Fostering CSR among SMEs
• Smaller companies have little knowledge of what is CSR
• They do not possess the human & financial resources
when it comes to developing tools for reporting CSR
• Moreover companies employing subcontractors can
have a strong influence on their suppliers by
compelling them to standardize & label their practices
in the areas of quality, safety and the environment.

36. Promoting CSR as a tool to anticipate
change
• Pro-active, prevention approach to restructuring can be
beneficial to all stakeholders
• Practices positioned in advance of restructuring can
prepare employees to anticipate & prepare for the
coming change
• Relevant prior information & consultation with parties
involved are prerequisites for socially successful
restructuring
• It raises the question of how far socially responsible
companies should commit themselves to that approach
and which priorities could be used in this approach