Introduction b. The Amul Model 6 3. We are especially indebted to Prof. Kala Chenji, who have been supportive of our career goals and who worked actively to provide us with the protected academic time to pursue those goals.
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Topic Corporate social responsibility 1. CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and international norms. With some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law.
The term "corporate social responsibility" became popular in the s and has remained a term used indiscriminately by many to cover legal and moral responsibility more narrowly construed. Proponents argue that corporations increase long term profits by operating with a CSR perspective, while critics argue that CSR distracts from business' economic role. A study compared existing econometric studies of the relationship.
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR or that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.
Political sociologists became interested in CSR in the context of theories of globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist legitimacy and in particular point out that what began as a social movement against uninhibited corporate power was transformed by corporations into a 'business model' and a 'risk management' device, often with questionable results.
CSR is titled to aid an organization's mission as well as a guide to what the company stands for to its consumers.
Business ethics is the part of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation. Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. Care for all Stakeholders: The companies should respect the interests of, and be responsive towards all stakeholders, including shareholders, employees, customers, suppliers, project affected people, society at large etc.
They should develop mechanism to actively engage with all stakeholders, inform them of inherent risks and mitigate them where they occur. Ethical functioning: Their governance systems should be underpinned by Ethics, Transparency and Accountability. They should not engage in business practices that are abusive, unfair, corrupt or anti-competitive.
Respect for Workers' Rights and Welfare: Companies should provide a workplace environment that is safe, hygienic and humane and which upholds the dignity of employees. They should provide all employees with access to training and development of necessary skills for career advancement, on an equal and nondiscriminatory basis. They should uphold the freedom of association and the effective recognition of the right to collective bargaining of labour, have an effective grievance redressal system, should not employ child or forced labour and provide and maintain equality of opportunities without any discrimination on any grounds in recruitment and during employment.
Respect for Human Rights: Companies should respect human rights for all and avoid complicity with human rights abuses by them or by third party. Respect for Environment: Companies should take measures to check and prevent pollution; recycle, manage and reduce waste, should manage natural. Activities for Social and Inclusive Development: Depending upon their core competency and business interest, companies should undertake activities for economic and social development of communities and geographical areas, particularly in the vicinity of their operations.
These could include: education, skill building for livelihood of people, health, cultural and social welfare etc. They may influence the supply chain for CSR initiative and motivate employees for voluntary effort for social development.
They may evolve a system of need assessment and impact assessment while undertaking CSR activities in a particular area. Companies should allocate specific amount in their budgets for CSR activities. This amount may be related to profits after tax, cost of planned CSR activities or any other suitable parameter.
This would help companies to improve on their CSR strategies and effectively project the image of being socially responsible. The companies should disseminate information on CSR policy, activities and progress in a structured manner to all their stakeholders and the public at large through their website, annual reports, and other communication media. Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them.
They imagine that customer satisfaction is now only about price and service, but they fail to point out on important changes that are taking place worldwide that could blow the business out of the water. The change is named as social responsibility which is an opportunity for the business. Some of the drivers pushing business towards CSR include: The Shrinking Role of Government: In the past, governments have relied on legislation and regulation to deliver social and environmental objectives in the business sector.
Shrinking government resources, coupled with a distrust of regulations, has led to the exploration of voluntary and non-regulatory initiatives instead. Demands for Greater Disclosure: There is a growing demand for corporate disclosure from stakeholders, including customers, suppliers, employees, communities, investors, and activist organizations.
Increased Customer Interest: There is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisions of customers. In a recent survey by Environics International, more than one in five consumers reported having either rewarded or punished companies based on their perceived social performance. Growing Investor Pressure: Investors are changing the way they assess companies' performance, and are making decisions based on criteria that include ethical concerns.
A separate survey by Environics International revealed that more than a quarter of share-owning Americans took into account ethical considerations when buying and selling stocks.
More on socially. Competitive Labour Markets: Employees are increasingly looking beyond paychecks and benefits, and seeking out employers whose philosophies and operating practices match their own principles. In order to hire and retain skilled employees, companies are being forced to improve working. Supplier Relations: As stakeholders are becoming increasingly interested in business affairs, many companies are taking steps to ensure that their partners conduct themselves in a socially responsible manner.
Some are introducing codes of conduct for their suppliers, to ensure that other companies' policies or practices do not tarnish their reputation. Dr Ratnam said the concept of CSR had different meanings depending on the stakeholder and that depending on the specific situation of the enterprises expectations can also vary.
A CSR project can begin in response to a crisis or adverse publicity that a company may suffer. The motive for launching CSR can vary between philanthropy or notions of corporate citizenship. In India, over time, the expectations of the public has grown enormously with demands focusing on poverty alleviation, tackling unemployment, fighting inequality or forcing.
This is largely attributableto the fact that there exists little or no knowledge about CSR within the local communities as no seriousefforts have been made to spread awareness about CSR and instil confidence in the local communitiesabout such initiatives. The situation is further aggravated by a lack of communication between thecompany and the community at the grassroots. Need to Build Local Capacities: There is a need for capacity building of the local non-governmentalorganizations as there is serious dearth of trained and efficient organizations that can effectivelycontribute to the ongoing CSR activities initiated by companies.
This seriously compromises scaling upof CSR initiatives and subsequently limits the scope of such activities. 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 localimplementing 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 negativelyimpacts the process of trust building between companies and local communities, which is a key to thesuccess of any CSR initiative at the local level. Non-availability of Well Organized Non-governmental Organizations: It is also reported that thereis non-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 successfulimplementation of CSR activities.
This also builds the case for investing in local communities by wayof building their capacities to undertake development projects at local levels. According to Barney "formulation of the RBV, sustainable competitive advantage requires that resources be valuable V , rare R , inimitable I and non-substitutable S.
However, should competitors imitate such a strategy, that might increase overall social benefits. Firms that choose CSR for strategic financial gain are also acting responsibly. RBV presumes that firms are bundles of heterogeneous resources and capabilities that are imperfectly mobile across firms. This imperfect mobility can produce competitive advantages for firms that acquire immobile resources. They concluded that managers can determine the appropriate level of investment in CSR by conducting cost benefit analysis in the same way that they analyze other investments.
Reinhardt found that a firm engaging in a CSR-based strategy could only sustain an abnormal return if it could prevent competitors from imitating its strategy. Profit is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital unlike accounting definitions of profit. This measure was claimed to help some companies be more conscious of their social and moral responsibilities.
However, critics claim that it is selective and substitutes a company's perspective for that of the community. Another criticism is about the absence of a standard auditing procedure. Some companies use their commitment to CSR as their primary positioning tool, e. Some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions as another form of advertising.
Ever since their inception, corporates like the Tata Group, the Aditya Birla Group,and Indian Oil Corporation, to name a few, have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes.
A growing number of corporates feel that CSR is not just another form of indirect expense but is important for protecting the goodwill. Companies have specialised CSR teams that formulate policies, strategies and goals for their CSR programs and set aside budgets to fund them. These programs are often determined by social philosophy which have clear objectives and are well defined and are aligned with the mainstream business.
The programs are put into practice by the employees who are crucial to this process. CSR programs ranges from community development to development in education, environment and healthcare etc. For example, a more comprehensive method of development is adopted by some corporations such as Bharat Petroleum Corporation Limited, Maruti Suzuki India Limited.
Provision of improved medical and sanitation facilities, building schools and houses, and empowering the villagers and in process making them more selfreliant by providing vocational training and a knowledge of business operations are. Many of the companies are helping other peoples by providing them good standard of living. Also, corporates increasingly join hands with non-governmental organizations NGOs and use their expertise in devising programs which address wider social problems.
CSR has gone through many phases in India. The ability to make a significant difference in the society and improve the overall quality of life has clearly been proven by the corporates. Not one but all corporates should try and bring about a change in the current social situation in India in order to have an effective and lasting solution to the social woes. Partnerships between companies, NGOs and the government should be facilitated so that a combination of their skills such as expertise, strategic thinking, manpower and money to initiate extensive social change will put the socio-economic development of India on a fast track.
Managing regulations, risk and legitimacy license to operate is also reflected in the main capabilities emphasized by the respondents: ethical behavior, social accountability and stakeholder engagement.
These two capabilities are. For example, SAP India in partnership with Hope Foundation, an NGO that works for the betterment of the poor and the needy throughout India,has been working on short and long-term rebuilding initiatives for the tsunami victims. CSR has come a long way in India. From responsive activities to sustainable initiatives, corporate have clearly exhibited their ability to make a significant difference in the society and improve the overall quality of life.
In the current social situation in India, it is difficult for one single entity to bring about change, as the scale is enormous. Corporate have the expertise, strategic thinking, manpower and money to facilitate.
Effective partnerships between corporate, NGOs and the government will place Indias social development on a faster track. A phenomenon that has preceded the coining of the term CSR, the link between the karma as espoused by sacred Indian texts and initiatives anchoring corporate as responsible citizens has been amply evident in India since the early days.
Viewed from this perspective, public relations professionals are the custodians of trust for the corporate world.
csr in amul
Tapasvi R! About the company 2. CSR policy 3. The different CSR initiatives 4. Linkage between core business and its social initiatives 5. Social impacts 6. What in your view should be the focus of companys CSR 7.
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