1 CSR Lec 12 (2008) II Version

8/9/2019 1 CSR Lec 12 (2008) II Version

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CorporateCorporateSocialSocial

ResponsibilityResponsibility

Lecture 1 & 2 MBA 2008 Div CLecture 1 & 2 MBA 2008 Div C

Dr.BALADr.BALA


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NormsNorms

Readings circulated are essentialReadings circulated are essential Guest lectures: 4 sessionsGuest lectures: 4 sessions One Field Visit to an NGO in MumbaiOne Field Visit to an NGO in Mumbai

Mid Term :QuizMid Term :Quiz-- 10 Marks10 Marks Poster presentationPoster presentation-- 10 Marks based on10 Marks based on

field visitfield visit

Project based Oral PresentationProject based Oral Presentation--10 Marks10 MarksWritten AssignmentWritten Assignment--2020--reportreport End Term exam : 50 marksEnd Term exam : 50 marks


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Important WebsitesImportant Websites

www.bsr.orgwww.bsr.org Business Social ResponsibilityBusiness Social Responsibility www.wbcsd.orgwww.wbcsd.org World Business CouncilWorld Business Council

for Sustainable Developmentfor Sustainable Development

www.worldbank.orgwww.worldbank.org The World BankThe World Bank www.undp.orgwww.undp.org United NationsUnited Nations

Development ProgrammeDevelopment Programme


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Power of CorporationsPower of Corporations

Corporations have far more power than the nationCorporations have far more power than the nation--states across whose borders they operatestates across whose borders they operate..

The combined revenues of just

General Motors and Ford -- thetwo largest automobile

corporations in the world --

exceed the combined Gross

Domestic Product (GDP) for all

of sub-Saharan Africa

The combined sales of

Mitsubishi, Mitsui,ITOCHU, Sumitomo,

Marubeni, and Nissho

Iwai. are nearly

equivalent to the

combined GDP of all of

South America

The United Nations has justly described these corporations

as the productive core of the globalizing world economy.


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What is a Company?

What is the role of companies in aglobalized economy?

To whom are companies/businesses responsible???


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GlobalizationGlobalization

Globalization is a process ofGlobalization is a process of

Interaction andintegration among the

people, companies, and

governments of different

nations

A process driven by

international tradeand investment and

aided by information

technology

It impacts environment, culture, political systems,economic development and prosperity, and humanphysical well-being in societies around the world.


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Impact of GlobalizationImpact of Globalization

New job creationNew job creation Globalization ofInformation andGlobalization ofInformation and

Communication system : Global villageCommunication system : Global village Globalization of science leads to the fusionGlobalization of science leads to the fusion

of scientific data and rules to form aof scientific data and rules to form auniform network of databaseuniform network of database

Increase in global awareness aboutIncrease in global awareness aboutvarious economic, legal, political, technicalvarious economic, legal, political, technicaland cultural aspectsand cultural aspects


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SelfSelf--employment increased in all developingemployment increased in all developingregions except East and Southregions except East and South--east Asiaeast Asia

Figure 15: Non-agricultural self-employment, 1980-89 and 1990-2000

(in per cent of total non-agricultural employment)

26

13

44

29

26

32

12

44

32

48

0

10

20

30

40

50

World Developed Regions Africa Latin America Asia

Source: ILO, Women and men in the informal economy, 2002.

1980/1989

1990/2000


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Current Trends in GlobalizationCurrent Trends in Globalization

IMBALANCEIMBALANCE

North-South imbalance - unfair rules in Trade and FDI

Trade: Despite liberalization, expansion did not occur uniformly

Barriers to market entry for certain products of poor countries

FDI highly concentrated in about 10 developing countries despite

efforts by many to seek to attract FDI

Capital & goods move more freely than labour & knowledge

Disparities in enterprise competitiveness and labour markets

More than 2 billion people particularly in sub-Saharan Africa, the

Middle East, and the former Soviet Union live in countries that

are being left behind.


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China, India,

Bangladesh,Philippines, Brazil,Costa Rica, Thailand,

Source: World Bank 2006


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Impact on the Global MarketsImpact on the Global Markets

More choice but can result inMore choice but can result in

Unhealthy lifestylesUnhealthy lifestyles lack of activity, risky sexuallack of activity, risky sexual

behaviour, breakdown in traditional valuesbehaviour, breakdown in traditional values Promotion of processed tobacco, alcohol andPromotion of processed tobacco, alcohol and

processed food with high salt sugar and fat contentprocessed food with high salt sugar and fat content

Unrealised expectationsUnrealised expectations resulting in depressionresulting in depression Increased tourism brings risks to health of tourists andIncreased tourism brings risks to health of tourists and

communitiescommunities


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Impact on Global HealthImpact on Global Health Health conditions affecting people acrossHealth conditions affecting people across

boundaries, culture & generationsboundaries, culture & generations Infectious diseases: HIV/AIDS, TB, Influenza, SARS,Infectious diseases: HIV/AIDS, TB, Influenza, SARS,

Lifestyle diseases and conditions: obesity, lungLifestyle diseases and conditions: obesity, lungcancer, heart disease, STDs, Type 2 Diabetescancer, heart disease, STDs, Type 2 Diabetes

Threats to global stability and economy: HIV/AIDS,Threats to global stability and economy: HIV/AIDS,SARS.The vectors of these diseases may beSARS.The vectors of these diseases may be travel ortravel orwork placework place


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Impact of Globalization:Impact of Globalization:

EnvironmentEnvironment Threats to the GlobeThreats to the Globe

Global warmingGlobal warming

Agricultural development and food securityAgricultural development and food security Water stress and water insecurityWater stress and water insecurity Rising sea levels and exposure to climate disastersRising sea levels and exposure to climate disasters

Environmental pollutionEnvironmental pollution

Loss of bio diversityLoss of bio diversity


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Impact of Globalization on WomenImpact of Globalization on Women.].]

Gender imbalanceGender imbalance Trade liberalization has wiped outTrade liberalization has wiped out

livelihood sources of women producerslivelihood sources of women producers

Migrants particularly women driven toMigrants particularly women driven toillegal economy( trafficking) leaving themillegal economy( trafficking) leaving them

vulnerable to exploitation.vulnerable to exploitation.


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Impact of Globalization (Wider Effects)Impact of Globalization (Wider Effects)

Global revolution has impacted culture &Global revolution has impacted culture &identityidentity-------- Values, normsValues, norms

Illicit cross border activitiesIllicit cross border activities--increased taxincreased taxevasion, rise in multinational crime syndicatesevasion, rise in multinational crime syndicatesmoney launderingmoney laundering

Trafficking of human beingsTrafficking of human beings Rural & Informal economies remain on theRural & Informal economies remain on the

margins resulting in persistent povertymargins resulting in persistent poverty Loss of jobs due to industrial restructuringLoss of jobs due to industrial restructuring Migration leading to brainMigration leading to brain--draindrain


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World increasingly shaped by SustainableWorld increasingly shaped by SustainableDevelopment issuesDevelopment issues

A carbon constrained worldA carbon constrained world

A water constrained worldA water constrained world Issues of sustainable productionIssues of sustainable production PovertyPoverty


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CORRECTING THE IMBALANCECORRECTING THE IMBALANCE

How to build a fair globalization to reduceHow to build a fair globalization to reducepoverty and inequalitypoverty and inequality


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Globalisation agenda for actionGlobalisation agenda for action

Development roundDevelopment round market accessmarket access Improving investment climateImproving investment climate

Strengthening edn, health and empowermentStrengthening edn, health and empowermentSocial protectionSocial protection

More and better aidMore and better aid

Debt relief for reforming countries (HIPC)Debt relief for reforming countries (HIPC) Global collective action ( global warming)Global collective action ( global warming)


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Adverse Effects of Globalization Can be Controlled

Principles ofdemocracy social equity

Human Rights

Respect the Law

Smart

Partnerships

between State

and

Businesses


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Need for Intervention of Business for SustainableNeed for Intervention of Business for Sustainable

DevelopmentDevelopment

IfIf businessbusiness hashas toto bebe developed,developed, thethe societysociety needsneeds toto bebedeveloped,developed, businessbusiness sectorsector cannotcannot flourishflourish inin anyanycountry,country, ifif thethe environmentenvironment requiredrequired byby businessbusiness isis notnot

conduciveconducive..

IncreasingIncreasing socialsocial issuesissues impactsimpacts thethe entireentire societysociety iningeneralgeneral andand businessbusiness inin particularparticular becausebecause toto aa largelargeextentextent businessbusiness isis dependentdependent onon thethe societysociety forfor itsits

growthgrowth andand prosperityprosperity..


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Need for Intervention of Business for SustainableNeed for Intervention of Business for SustainableDevelopmentDevelopment

The most fundamental impact on society is fromThe most fundamental impact on society is fromtechnological and social change.technological and social change.

Creation ofCreation of new cultural and social attitudesnew cultural and social attitudes

NNew set of relationships between the business firm andew set of relationships between the business firm andthe surrounding society.the surrounding society.

Stakeholders, who have long remained dormant, haveStakeholders, who have long remained dormant, havestirred awake and are now proving themselves as majorstirred awake and are now proving themselves as majorforces to be reckoned with.forces to be reckoned with.


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Need for Intervention of Business forNeed for Intervention of Business for

Sustainable DevelopmentSustainable Development

Challenges in the 21Challenges in the 21ststCentury cannot be tackledCentury cannot be tackledby yesterdays rule of governance.by yesterdays rule of governance.

There is a need to develop new ways of thinkingThere is a need to develop new ways of thinkingand new approaches to governance at everyand new approaches to governance at everylevel of society.level of society.

It is an accepted fact, that, there are crucialIt is an accepted fact, that, there are cruciallinkages between economic growth, humanlinkages between economic growth, humandevelopment, social cohesion and environmentaldevelopment, social cohesion and environmentalsustainability.sustainability.

Documents

1 CSR Lec 12 (2008) II Version