A Seminar Report on

CORPORATIVE SOCIAL RESPONSIBILITY

Submitted towards the partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

MBA Batch 2012 ndash 2014

Submitted to submitted by

dr sandeep singh virdi Daljit kaur

Assistant Professor MBA 1st Year Section F

Roll No 120425710

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY PATIALAAUGUST 2012

Achnowlegement

I take this opportunity to acknowledge a deep sense of gratitude towards my teacher and

mentor Dr Sandeep Singh Virdi whose invaluable co-operation and guidance resulted in

successful completion of this dissertation He not only encouraged me but also took great pains

in going through the manuscript carefully and made numerous suggestions and corrections which

greatly improved the quality of my workI would also like to thank my family without whose

motivation I would have been able to complete this report

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY PATIALAAUGUST 2012

TABLE OF CONTENTS

1 CSR ndash meaning and definition2 Origin of CSR3 Reason for learning about CSR4 Types of CSR5 CSR- activities6 Issues and challenges for CSR7 Arguments for CSR8 Arguments against CSR9 Stratigic plan for CSR10 Scope of research11 Role of private sector in CSR12 Role of govt in CSR13 Position of CSR today and its scope14 Emerging model of CSR in india 15 Case study of kingfisher company16 Conclusion17 Bibliography

CSR- meaning and defination

meaning

While there is no universal definition of corporate social responsibility it generally refers to transparentbusiness practices that are based on ethical valuescompliance with legal requirements and respect for peoplecommunities and the environment Thus beyond beyondmaking profits companies are responsible for the totalityof their impact on people and the planet1 ldquoPeoplerdquoconstitute the companyrsquos stakeholders its employeescustomers business partners investors suppliers and vendors the government and the community Increasinglystakeholders expect that companies should be more environmentally and socially responsible in conducting their business In the business community CSR is alternatively referred to as ldquocorporate citizenshiprdquo whichessentially means that a company should be a ldquogood neighborrdquo within its host community

Corporate social responsibility (CSR also called corporate conscience corporate citizenship social performance or sustainable responsible business Responsible Business) is a form of corporate self-regulation integrated into a business model CSR policy functions as a built-in self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law ethical standards and international norms The goal of CSR is to embrace responsibility for the companys actions and encourage a positive impact through its activities on the environment consumers employees communities stakeholders and all other members of the public sphere who may also be considered as stakeholders

The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL) which is used as a framework for measuring and organisationrsquos performance against economic social and environmental parameters

The rationale for CSR has been articulated in a number of ways In essence it is about building sustainable businesses which need healthy economies markets and communitiesThe key drivers for CSR are

1048713 Enlightened self-interest - creating a synergy of ethics a cohesive society and asustainable global economy where markets labour and communities are able tofunction well together

1048713 Social investment - contributing to physical infrastructure and social capital isincreasingly seen as a necessary part of doing business

1048713 Transparency and trust - business has low ratings of trust in public perceptionThere is increasing expectation that companies will be more open more accountableand be prepared to report publicly on their performance in social and environmentalarenas

1048713 Increased public expectations of business - globally companies are expected todo more than merely provide jobs and contribute to the economy through taxes andemploymentrdquo

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Achnowlegement

I take this opportunity to acknowledge a deep sense of gratitude towards my teacher and

mentor Dr Sandeep Singh Virdi whose invaluable co-operation and guidance resulted in

successful completion of this dissertation He not only encouraged me but also took great pains

in going through the manuscript carefully and made numerous suggestions and corrections which

greatly improved the quality of my workI would also like to thank my family without whose

motivation I would have been able to complete this report

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY PATIALAAUGUST 2012

TABLE OF CONTENTS

1 CSR ndash meaning and definition2 Origin of CSR3 Reason for learning about CSR4 Types of CSR5 CSR- activities6 Issues and challenges for CSR7 Arguments for CSR8 Arguments against CSR9 Stratigic plan for CSR10 Scope of research11 Role of private sector in CSR12 Role of govt in CSR13 Position of CSR today and its scope14 Emerging model of CSR in india 15 Case study of kingfisher company16 Conclusion17 Bibliography

CSR- meaning and defination

meaning

While there is no universal definition of corporate social responsibility it generally refers to transparentbusiness practices that are based on ethical valuescompliance with legal requirements and respect for peoplecommunities and the environment Thus beyond beyondmaking profits companies are responsible for the totalityof their impact on people and the planet1 ldquoPeoplerdquoconstitute the companyrsquos stakeholders its employeescustomers business partners investors suppliers and vendors the government and the community Increasinglystakeholders expect that companies should be more environmentally and socially responsible in conducting their business In the business community CSR is alternatively referred to as ldquocorporate citizenshiprdquo whichessentially means that a company should be a ldquogood neighborrdquo within its host community

Corporate social responsibility (CSR also called corporate conscience corporate citizenship social performance or sustainable responsible business Responsible Business) is a form of corporate self-regulation integrated into a business model CSR policy functions as a built-in self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law ethical standards and international norms The goal of CSR is to embrace responsibility for the companys actions and encourage a positive impact through its activities on the environment consumers employees communities stakeholders and all other members of the public sphere who may also be considered as stakeholders

The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL) which is used as a framework for measuring and organisationrsquos performance against economic social and environmental parameters

The rationale for CSR has been articulated in a number of ways In essence it is about building sustainable businesses which need healthy economies markets and communitiesThe key drivers for CSR are

1048713 Enlightened self-interest - creating a synergy of ethics a cohesive society and asustainable global economy where markets labour and communities are able tofunction well together

1048713 Social investment - contributing to physical infrastructure and social capital isincreasingly seen as a necessary part of doing business

1048713 Transparency and trust - business has low ratings of trust in public perceptionThere is increasing expectation that companies will be more open more accountableand be prepared to report publicly on their performance in social and environmentalarenas

1048713 Increased public expectations of business - globally companies are expected todo more than merely provide jobs and contribute to the economy through taxes andemploymentrdquo

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

TABLE OF CONTENTS

1 CSR ndash meaning and definition2 Origin of CSR3 Reason for learning about CSR4 Types of CSR5 CSR- activities6 Issues and challenges for CSR7 Arguments for CSR8 Arguments against CSR9 Stratigic plan for CSR10 Scope of research11 Role of private sector in CSR12 Role of govt in CSR13 Position of CSR today and its scope14 Emerging model of CSR in india 15 Case study of kingfisher company16 Conclusion17 Bibliography

CSR- meaning and defination

meaning

While there is no universal definition of corporate social responsibility it generally refers to transparentbusiness practices that are based on ethical valuescompliance with legal requirements and respect for peoplecommunities and the environment Thus beyond beyondmaking profits companies are responsible for the totalityof their impact on people and the planet1 ldquoPeoplerdquoconstitute the companyrsquos stakeholders its employeescustomers business partners investors suppliers and vendors the government and the community Increasinglystakeholders expect that companies should be more environmentally and socially responsible in conducting their business In the business community CSR is alternatively referred to as ldquocorporate citizenshiprdquo whichessentially means that a company should be a ldquogood neighborrdquo within its host community

Corporate social responsibility (CSR also called corporate conscience corporate citizenship social performance or sustainable responsible business Responsible Business) is a form of corporate self-regulation integrated into a business model CSR policy functions as a built-in self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law ethical standards and international norms The goal of CSR is to embrace responsibility for the companys actions and encourage a positive impact through its activities on the environment consumers employees communities stakeholders and all other members of the public sphere who may also be considered as stakeholders

The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL) which is used as a framework for measuring and organisationrsquos performance against economic social and environmental parameters

The rationale for CSR has been articulated in a number of ways In essence it is about building sustainable businesses which need healthy economies markets and communitiesThe key drivers for CSR are

1048713 Enlightened self-interest - creating a synergy of ethics a cohesive society and asustainable global economy where markets labour and communities are able tofunction well together

1048713 Social investment - contributing to physical infrastructure and social capital isincreasingly seen as a necessary part of doing business

1048713 Transparency and trust - business has low ratings of trust in public perceptionThere is increasing expectation that companies will be more open more accountableand be prepared to report publicly on their performance in social and environmentalarenas

1048713 Increased public expectations of business - globally companies are expected todo more than merely provide jobs and contribute to the economy through taxes andemploymentrdquo

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

CSR- meaning and defination

meaning

While there is no universal definition of corporate social responsibility it generally refers to transparentbusiness practices that are based on ethical valuescompliance with legal requirements and respect for peoplecommunities and the environment Thus beyond beyondmaking profits companies are responsible for the totalityof their impact on people and the planet1 ldquoPeoplerdquoconstitute the companyrsquos stakeholders its employeescustomers business partners investors suppliers and vendors the government and the community Increasinglystakeholders expect that companies should be more environmentally and socially responsible in conducting their business In the business community CSR is alternatively referred to as ldquocorporate citizenshiprdquo whichessentially means that a company should be a ldquogood neighborrdquo within its host community

Corporate social responsibility (CSR also called corporate conscience corporate citizenship social performance or sustainable responsible business Responsible Business) is a form of corporate self-regulation integrated into a business model CSR policy functions as a built-in self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law ethical standards and international norms The goal of CSR is to embrace responsibility for the companys actions and encourage a positive impact through its activities on the environment consumers employees communities stakeholders and all other members of the public sphere who may also be considered as stakeholders

The term is often used interchangeably for other terms such as Corporate Citizenship and is also linked to the concept of Triple Bottom Line Reporting (TBL) which is used as a framework for measuring and organisationrsquos performance against economic social and environmental parameters

The rationale for CSR has been articulated in a number of ways In essence it is about building sustainable businesses which need healthy economies markets and communitiesThe key drivers for CSR are

1048713 Enlightened self-interest - creating a synergy of ethics a cohesive society and asustainable global economy where markets labour and communities are able tofunction well together

1048713 Social investment - contributing to physical infrastructure and social capital isincreasingly seen as a necessary part of doing business

1048713 Transparency and trust - business has low ratings of trust in public perceptionThere is increasing expectation that companies will be more open more accountableand be prepared to report publicly on their performance in social and environmentalarenas

1048713 Increased public expectations of business - globally companies are expected todo more than merely provide jobs and contribute to the economy through taxes andemploymentrdquo

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

1048713 Enlightened self-interest - creating a synergy of ethics a cohesive society and asustainable global economy where markets labour and communities are able tofunction well together

1048713 Social investment - contributing to physical infrastructure and social capital isincreasingly seen as a necessary part of doing business

1048713 Transparency and trust - business has low ratings of trust in public perceptionThere is increasing expectation that companies will be more open more accountableand be prepared to report publicly on their performance in social and environmentalarenas

1048713 Increased public expectations of business - globally companies are expected todo more than merely provide jobs and contribute to the economy through taxes andemploymentrdquo

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Definations

1 The World Business Council for Sustainable Development defines the CSR as ldquobusiness commitment to contribute to sustainable economic development working with employees their families the local community and society at large to improve their quality of liferdquo Under this point of view the CSR rests on the fundamental pillars of both the economic growth and the quality of life as an engine for ldquosustainablerdquo development

2 The Canadian Centre for Philanthropy CSR is ldquoa set of management practices that ensure the company minimises the negative impacts of its operations on society while maximising its positive impactsrdquo Thisdefinition therefore provides the link between the decisions tied to the social responsibility and ldquothe business derived from the respect of the lawyer instruments the population the communities and the environment 3The Corporate Social Responsibility Newswire Service the CSR is ldquothe integration of business operations and values whereby the interests of all stakeholders including customers employees investors and the environment are reflected in the companyrsquos policies and actionsrdquo

Origin of csr

Although the term was not coined until 1953 new research shows that corporate social responsibility (CSR) can trace its roots to the early years of the 20th century and to the editor of one of Americas initial business magazines The Worlds Work

From its beginnings in November 1900 The Worlds Work was devoted to social responsibility in the public interest says David L Remund a Legacy Scholar in the Arthur W Page Center for Integrity in Public Communication at Penn State University Remund is completing his doctoral studies at the University of North Carolina

The editor of The Worlds Work Arthur W Page later became one of the nations pioneering and still-revered public relations practitioners He was the first to serve on the executive management team of a major corporation ATampT In 1927 he took his editorial views to ATampT and put them into action laying the groundwork for the modern CSR model

Remunds research paper The Worlds Work Arthur W Page and the Movement Toward Social Responsibility in Corporate Communications 1913-1927 traces how Pages editorial vision reflected progress toward social responsibility in later corporate communications The paper was presented at the International History of Public Relations Conference in Bournemouth England in July

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Historians of corporate social responsibility generally agree that the concept emerged in the 1930s and 1940s It became formalized in 1953 with the publication of Social Responsibilities of the Businessman a book by Howard Bowen

Remunds scholarship however shows advocacy for CSR - in form if not name - from a major pro-business magazine much earlier than that Further he concludes that through Arthur W Page the supportive words of The Worlds Work became deeds when Page moved from the editors chair into the corporate executive office

Remund examined nearly 180 issues of The Worlds Work Pages personal correspondence speeches and transcripts of oral interviews also were used Some of the trends Remund found could leap from todays headlines

Five themes of corporate and social responsibility emerged he says They include environmental protection labor rights consumer protection and education child welfare and corporate transparency

In the 1920s social responsibility was not front-and-center in corporate management It was a time when as President Calvin Coolidge stated the chief business of the American people is business

Yet from his post as editor of The Worlds Work Page was calling for sustainability in logging practices labor rights for African-American cotton workers better safety measures for underground miners greater consumer education about investment banking an end to child labor and more corporate transparency

This last topic was perhaps the most prolific of the five social responsibility themes that emerged in The Worlds Work from 1913 to 1927 says Remund A dozen or more editorials addressed this theme

Reasons for learning about csr and its importance

Corporations are powerful institutions that can make a significant difference to society That difference can be a positive contribution or it could equally be harmful Learning about Corporate Social Responsibility (CSR) contributes to better thinking about what is morally right and wrong with the decisions and activities of these institutions This knowledge can produce decisions and behavior that meet the demands of stakeholders for greater accountability It can help stakeholders to recognize unethical behavior which is still too common and it can help managers assess the changes needed to manage corporate responsibility There are seven compelling reasons for corporations and their stakeholders to be active in business ethics training

1Corporate Power Corporations are powerful institutions that influence many facets of society They are private enterprises formed to pursue commercial purposes but their processes have a very public impact Companies affect many lives through their actions and behaviors It is important that they act and behave responsibly Learning about corporate social responsibility (CSR) explains why these

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

responsibilities arise what they are and how they can be delivered

2 Responsible Business Can Make a Worthwhile ContributionResponsible business can make a worthwhile contribution to society Companies make products and deliver services They create jobs They generate investment Companies have the potential to fulfill not only a major economic role within society but also a major environmental and societal role Their decisions and activities can positively impact on the use of natural resources and the quality of lives of many people ndash both internal to their operations like managers and employees and external to their operations like customers suppliers governments and local communities Responsible business can help build sustainable lives and livelihoods for many

3 Unethical Business Can be HarmfulWhile responsible business can be positive in its impact irresponsible business can be harmful in equal measure Companies that lack awareness or regard for their responsibilities can act and behave in ways that are very damaging to the worldrsquos natural resources to the lives of local communities and to the well-being of staff and managers The potential for impact is heightened in a globalised economy where the activities of corporations reach across many countries and cultures

4 Stakeholders Demand AccountabilityTolerance of corporate impacts is changing and stakeholders whose lives and livelihoods are impacted by irresponsible business activities are demanding greater accountability Stakeholders are placing greater demands on companies to be accountable for corporate activities and their impacts Stakeholders include the owners (shareholdersinvestors) employees customers suppliers the community competitors and government Developments in communications technology allow stakeholders greater and quicker access to information and to each other Global communication via the internet and cell phones means that issues of malpractice can surface more rapidly and stakeholders can mobilize to respond more quickly

5 Corporate Decision-makingCorporate Social Responsibility involves more complex decision-making It moves business away from single dimensional thinking (maximizing financial profit) and toward multi-dimensional thinking (the economic social and environmental facets of corporate impact) It shifts business thinking about whether a decision is only financially profitable or strategically strong to whether it is morally right or wrong Knowledge of CSR is necessary for corporate managers to identify understand analyse and resolve the complexity of these multiple issues It also assists other stakeholders to do the same

6 Corporate Social Responsibility ManagementLearning about Corporate Social Responsibility also means learning how to manage CSR initiatives engage with stakeholders and report on activities CSR cannot be simply an idea that has no strategy or

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

action to support it So learning about CSR helps managers evaluate the advantages and disadvantages of particular strategies and their implementation It enables managers to bring CSR alive within the company

7 Unethical Business Conduct is too CommonAnother reason for learning about CSR is that ethical misconduct in business is still far too common Knowledge of Corporate Social Responsibility helps employees and managers to recognize wrong-doing within the workplace It helps customers and other external stakeholders to recognize misconduct when transacting with a company Knowledge of CSR can make stakeholders more assured in taking action to address the misconduct

It would be easy to think that business ethics training is the realm of a select few but it is relevant to many people Within a corporation it is relevant to senior executives to middle management and across all areas of staff Knowledge of CSR provides greater momentum for its correct implementation Outside the corporation there are compelling reasons for customers suppliers and community stakeholders to learn about CSR so as to protect and promote their interests in relation to corporate activities In learning about Corporate Social Responsibility everyone can benefit

Types of CSR

Four types of CSRAs large corporations begin to dominate the world economy it raises questions about the importance of corporate social responsibility in business A variety of types of corporate social responsibilities have emerged in public discussions and understanding their implications is important

1Environmental ResponsibilityPeople expect businesses to exhibit environmentally responsible behavior as evidenced by a PricewaterhouseCoopers survey that found that the No 1 issue for companies in the future according to US respondents is carbon emissions reductions Specific environmental issues that affect businesses include global warming sustainable resources and pollution Businesses are being urged by environmental groups and governments to reduce their carbon footprint to obtain their materials from sustainable sources and to reduce their pollution

2Human Rights ResponsibilityThe 21st-century marketplace is highly global This means that when a product is purchased in the United States for example it may have been produced in China or have components from South America The ethical issue for corporations is ensuring that human rights are respected throughout all levels of the supply chain Major companies have received criticism for their use of sweat shops and for sourcing resources that are harvested by unfairly treated workers This has lead to a push for the use of strict labor standards to be applied to suppliers and a demand for fair trade products such as chocolate and coffee

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

3Financial ResponsibilityFinancial responsibility is an important issue in corporate social responsibility In the wake of the accounting fraud perpetrated by Enron and Arthur Andersen and Ponzi schemes orchestrated by the likes of Bernie Madoff businesses are questioned about the accuracy of their financial reporting by increasingly skeptical shareholders and government officials as evidenced by the Sarbanes-Oxley Act Employees are expected to act as whistle blowers in such situations and white collar crime is seeing high-profile prosecutions like that of Martha Stewart or former Worldcom CEO Bernie Ebbers

4Political ResponsibilityTrading with repressive regimes is a difficult issue in corporate social responsibility Some businesses argue that working with these regimes will help to advance them and bring rights to the countries People and governments have demanded that businesses stop trading with repressive regimes which was most notably observed when several western governments launched an embargo against the Apartheid government in South Africa during the 1980s Shell Oil received considerable consumer backlash during the 1990s for its complicit involvement with the Nigerian government that murdered anti-oil activists

CSR activities

In the report Catalogue of CSR Activities A broad overview prepared by the Ashridge Centre for Business and Society (2005) they have made a convenient classification of the CSR activitiesThe report has clustered the CSR activities into seven main groups The groups includeLeadership vision and values Marketplace activities Workforce activities Supply chainactivities Stakeholder engagement Community activities and Environmental activities These groups have been identified based on practical activities undertaken by the businesscommunity The main groups are then divided into main classes of CSR activities within thatgroup which are further divided into actual activities For details regarding the groups andclasses

Issues and challenges for csr

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Many companies think that corporate social responsibility is a peripheral issue for their business and customer satisfaction more important for them They imagine that the customer satisfaction is now only about price andservice 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 businessSome of the drivers pushing business towards CSR include

The Shrinking Role of GovernmentIn 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 DisclosureThere is a growing demand for corporate disclosure from stakeholders including customers suppliersemployees communities investors and activist organizations

Increased Customer InterestThere is evidence that the ethical conduct of companies exerts a growing influence on the purchasing decisionsof 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

Investors are changing the way they assess companies performance and are making decisions based on criteria that include ethical concerns The Social Investment Forum reports that in the US in 1999 there was more than$2 trillion worth of assets invested in portfolios that used screens linked to the environment and social

responsibility 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 responsible investment can be found in the Banking and investment section of the site)

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 employeescompanies are being forced to improve working conditions

Supplier Relations

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

As stakeholders are becoming increasingly interested in business affairs many companies are taking steps toensure 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

Arguments for CSR

Five main arguments for and against CSR

For - Address Environmental Concerns - Better employee engagement and retention - Business accountability for their actions - Help those most in need in society - Can lead to better profits

Against- Cost- Some argue the sole role of business is to make profit and nothing else- Some companies may only treat it as a marketing exercise- dilution of economic productivity- lack of skills by business leader to solve the problem

The major arguments for the assumption of social responsibilities by business are

1) Public expectations Social expectations of business have increased dramatically since the 1960s Public opinion in support of business pursuing social as well as economic goals is now well solidified

2) Long run profits Socially responsible businesses tend to have more and secure long run profits This is the normal result of the better community relations and improved business image that responsible

3) Ethical obligation A business firm can and should have a conscience Business should be socially responsible

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

because responsible actions are right for their own sake

4) Public image Firms seek to enhance their public image to gain more customers better employees access to money markets and other benefits Since the public considers social goals to be important business can create a favorable public image by pursuing social goals

5) Better environment Involvement by business can solve difficult social problems thus creating a better quality of life and a more desirable community in which to attract and hold skilled employees

6) Discouragement of further government regulation Government regulation adds economic costs and restricts managementrsquos decision flexibility by becoming socially responsible business can expect less government regulation

7) Balance of responsibility and power Business has a large amount of power in society An equally large amount of responsibility is required to balance it When power is significantly greater than responsibility the imbalance encourages irresponsible behavior that works against the public good

8) Stockholder interests Social responsibility will improve the price of a businessrsquos stock in the long run The stock market will view the socially responsible company as less risky and open to public attack Therefore it will award its stock a higher price earning ratio

9) Possession of resources Business has the financial resources technical experts and managerial talent to provide support to public and charitable projects that need assistance

10) Superiority of prevention over cures Social problems must be dealt with at sometime Business should act on them before they become serious and costly to correct and take managementrsquos energy away from accomplishing its goal of production goods and services

The major arguments against the assumption of social responsibilities by business are

1) Violation of profit maximization This is the essence of the classical viewpoint Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions

2) Dilution of purpose The pursuit of social goals dilutes businessrsquos primary purpose economic productivity Society may suffer as both economic and social goals are poorly accomplished

3) Costs Many socially responsible activities do not pay their own way Someone has to pay these costs Business must absorb these costs or pass them on to consumers in higher prices

4) Too much power Business is already one of the most powerful institutions in our society If it pursued social

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

goals it would have even more power Society has given business enough power

5) Lack of skills The outlook and abilities of business leaders are oriented primarily toward economies Business people are poorly qualified to cope with social issues

6) Lack of accountability Political representatives pursue social goals and ar6e held accountable for their actions Such is not the case with business leaders There are no direct lines of social accountability from the business sector to the public

7) Lack of broad public support There is no broad mandate from society for business to become involved in social issues The public is divided on the issue In fact it is a topic that usually generates a heated debate Actions taken under such divided support are likely to fail

Stratigic plan for CSR

The principal goal of the Strategic Plan for Corporate Social Responsibility is to establish some management directives to guarantee certain ethical principlesrespect for people and for the environment

The specific objectives that have been established in the Strategic Plan for Corporate Social Responsibility coincide with the strategic lines defined

1 Minimise the environmental impact

2 Guarantee transparency with the investment community

3 Ensure that employees are motivated and involved in thecontinuous improvement of the company

4 Maintain a close relationship with the client to guarantee clientsatisfaction

5 Extend the commitment to Social Responsibility to suppliersand sub-contracted companies

6 Involvement with the community and the society as a whole

7 Encourage and systematise communication channels

8 Guarantee that the implementation of the Strategic Plan forCorporate Social Responsibility is controlled and monitored

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Each strategic line is developed through various actions some being appliedacross all the companies in the group and others specific to different sectors of activity

Strategic line 1 minimise environmental impact

Respect for the environment is a fundamental aspect of Social ResponsibilityIn fact it is one of the three premises for sustainable development ldquohellipeconomicprosperity environmental quality and social equity Companies aiming forsustainability need to perform not against a single financial bottom line but also against the triple bottom linerdquo (Elkington 1997)

Any activity has an impact to a greater or lesser degree on the environment To minimise this impact a first step is to identify it and evaluate it so as to thenestablish the necessary improvements

Both the identification and evaluation as well as the subsequent implementation of improvements are actions that this strategic line covers Maintaining a register of environmental legislation that affects the activity and ensuring that it is kept up to date and complied with is part of the process of implementing a system of environmental management for all companies in the Corporation

Specific actions are also proposed to improve environmental management indifferent sectors of activitySome of these are already in placeandtherefore it is necessary to broaden or strengthen their implementation others represent new challenges to improve environmental management

Area of applicationGeneral11 Identify and evaluate the activityrsquos main environmental impacts

12 Establish improved objectives to reduce the activityrsquos environmental impacts

13 Maintain a register of environmental legislation that affects the activity and guarantee that it is complied with and kept up to date

14 Systematically control water and energy consumption and the production of residues

15 Manage residues appropriately

16 Optimise energy consumption

Highways

17 Manage the highwaysrsquo forestry diversity

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

18 Build awareness amongst users of the forestry and scenic value

19 Expand the Teletac service

110 Expand the waste water collection service for buses and caravans

111 Ensure that waste waters generated by activities are correctly managed

112 Carry out diagnosis and audit of energy usage in different installations

113 Prepare a map of the impact of traffic noise on the highways

Car parks

114 Ensure optimum levels of interior air quality

115 Collaborate in Car Sharing projects

116 Facilitate parking for bicycles

117 Carry out diagnosis and audit of energy usage indifferent installations

Telecommunication

Follow the measures established by Tradia in its environmental management system in line with ISO 14001

Logistic services

Given the characteristics of this area of activity focus efforts on involving the client operators in adopting management practices that respect the environment

Strategic line 2 guarantee transparency with the investmentCommunity

This strategic line is applicable to the Corporation given that as a publicly traded company it has a relationship with the investment community

Includes all the aspects related to corporate governance stipulated in the new law of transparency as well as the recommendations made in the Olivencia Code and the Aldama Report even though these are not binding

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Reference is also made to dialogue with the objective of finding the idealchannels to guarantee feedback from the investment community

Area of application

Corporation

21 Comply with the rules on transparency and adopt the recommendations from the Olivencia Code and Aldama Report

22 Guarantee two-way communication with the investment community

23 Have a system for the evaluation application and monitoring of opinions and demands from the investment community

Strategic line 3 ensure that employees are motivated andinvolved in the continuous improvement of the company

The objective of abertis is to provide a workplace for the professional team of almost 6000 people ndash between the Corporation and its subsidiary companies for professional and personal development

For this reason issues covered in this point include no discrimination continuous training participative management balance between work family and leisurehealth and safety in the workplace and business ethics

The international standard SA 8000 has been taken as a reference which adopts a system of accountable management to focus specifically on the relationship with the employee

Area of application

General

31 Increase the representation of women

32 Ensure employment of disabled personnel

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

33 Value the training needs of all personnel and prepare an annual training program that includes issues of Corporate Social Responsibility in the trainingsessions

34 Provide training to new employees on the commitments to Corporate Social Responsibility

35 Develop a system of management by objectives

36 Develop a system to encourage employee participation through suggestions

37 Adopt measures to balance work-family-leisure

38 Guarantee coherence equal opportunities and no discrimination

39 Protect the stability of the workforce

310 Evaluate the level of employee satisfaction

311 Adopt the necessary measures (ergonomics in space material equipment etc) to guarantee a good work environment

312 Ensure basic health safety and accident prevention measures are taken

313 Encourage good environmental practices at home amongst employees

314 Prepare an employeersquos code of ethics

315 Work to comply with the requirements stipulated in the SA 8000

standard

Strategic line 4 maintain a close relationship with the client toguarantee client satisfaction

Offer excellence in the quality of services to clients has been and continues to be one of the basic and essential objectives in the activity of abertis Accordingly one of the strategic lines in this Social Responsibility Plan specifically refers to the relationship with clients to guarantee dialogue transparency and client satisfaction

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Area of application

General41 Evaluate the level of client satisfaction

42 Communicate all information about a product or service offered clearly and transparently

43 Encourage good environmental practices amongst clients

Highways and parks

Undertake or increase collaboration in campaigns toreduce road accidents by publishing brochures or inserting messages in the different information channels that exist (web radio service highway message panels)

TelecommunicationThe same actions detailed above of General application

Logistic services

Establish environmental and social requirements of clients and monitor compliance

Strategic line 5extend the commitment to Social Responsibility to suppliers and subcontracted companies

If the commitment to Social Responsibility is to be effective suppliers andsubcontracted companies need to be involved as they undertake significant part of the activity for companies in the group For this reason the objective is assumed of extending the commitment that abertis has to Social Responsibility to the supply chainTo do this environmental and social criteria are established for the selection ofproducts and services that allow products and suppliers to be given prioritybased on established requirements both in the area of environmentalmanagement and in the employee relationship

Area of application

General

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

51 Homologate product supplies based on established environmental and social criteria

52 Include requisites based on established criteria in the contractual agreement

53 Establish a system for evaluating suppliers and subcontracted companies

based on criteria established in the previous point

Strategic line 6 involvement with the community and society as a wholeThis line includes what is known as ldquosocial actionrdquo which refers to a wide range of actions from dialogue with the community to the investment of money or in kind

(time services) donations sponsorship and patronage

Social action has been practised widely across different companies in the groupThe drafting of the Sponsorship and Social Action Plan aims to channel all sponsorship and social action through the abertis foundation although some sponsorship amp social action by subsidiary companies will be maintained at alocal level

Area of applicationGeneral 61 Develop a system of communication to improve dialogue with the local community

62 Be an active member of associations and groups with a close relationship

63 Prepare a Sponsorship and Social Action Plan and a Sponsorship manual

Strategic line 7 encourage and systematise communicationChannels

Social Responsibility inherently implies the concept of involvement and dialogue with stakeholders2 The previous strategic lines deal specifically with the different interested parties identified by abertis (investment community employeesclients suppliers and sub-contracted companies community) But dialogue with these stakeholders is considered sufficiently important to define a separate strategic line in the Strategic Plan for Corporate Social Responsibility that coversall issues related to the involvement

It is important to emphasise the connotations of the word ldquodialoguerdquowhichexpresses two-way communication Therefore the final objective is to establish the channels that donrsquot just enable information to be provided but also and essentiallyto receive information and obtain feedback from the different stakeholders

Area of application

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

General71 Develop a communication plan to make all interested and potentially interested parties awareof the Strategic Plan for Corporate SocialResponsibility so as to contribute to its implementation

72 Ensure that subsidiary and associated companies have a spokesperson

73 Systematise internal structure of communications

74 Increase contents of information on Social Responsibility in the existing communication channels

75 Create within each company two-way communication channels with employees

76 Establish a program of social activities for employees

77 Create a working group to encourage dialogue with employees

78 Ensure that each company has a formally established system to collect queries and suggestions from clients as well as mechanisms to respond monitor and record them

79 Ensure that there is a spokesperson for institutional relations in all subsidiary and associated companies

710 Create incentives within subsidiary and associated companies to encourage dialogue with interested parties (employees clients local community)

Strategic line 8 guarantee that the implementation of theStrategic Plan for Corporate Social Responsibility is controlled and monitored

This strategic line establishes the mechanisms of internal organisation that the Strategic Plan for Corporate Social Responsibility should help to implement using a system of monitoring and control that aliments itself guaranteeing continuous improvement

In this respect the Unit of Social Responsibility is established as a body for coordinating and monitoring the Strategic Plan for Corporate Social Responsibilitya manager-leader for each company of the group is appointed Work is controlled and monitored regularly using the indicators selected for each of the actionswhich will be used to prepare the annual sustainability reports and to monitor progress of the Planrsquos implementation

Area of application

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

General81 Establish the Social Responsibility Unit to coordinateand monitor the Strategic Plan for Corporate Social Responsibility acting as interlocutor between subsidiary and associated companies and the Corporation

82 Appoint a leader of the Strategic Plan for Corporate Social Responsibility in each of the subsidiary and associated companies

83 Update the data for the indicators with the frequency established in each case

84 Report the results of the indicators for each company to the Social Responsibility Unit so that they can prepare the triple bottom line

85 Evaluate the impact of implementing the Strategic Plan for Corporate Social Responsibility

86 Create a platform for the Strategic Plan for Corporate Social Responsibility

Research

Research QuestionThis policy initiative first came to my notice in the middle of October about a month afterthe announcements regarding the same were made I decided to look into this policy andformulate my thesis on a research question based on this policy The preliminary researchquestion had two parts ldquoHow will environmental benefit be achieved through the public and private sector contributions to CSR which was being enforced by the Government ofGujaratrdquo and ldquoHow will social entrepreneurship be involved in the implementation of thispolicyrdquo

Given my research interest an effort was made to seek information academic knowledge andunderstanding about the issues and also personal opinions of people directly related to thepolicy and its implementation But as has been explained in the limitations of this research it was not possible to gain almost any information or personal opinions about the topic at hand This created a situation where in a change in research question and focus of the research was necessary Hence the revised research question is based on a theoretical analysis of similar existing policies and look at relevant issues and aspects which can be understood and appropriately applied in the case of Gujarat The principal research question is as follows

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Purpose and Justification for Research Gujarat is my home state I have been brought up in the capital of the state and was always interested in the local and state governmental policies and how certain issues were dealt with by the government Such a policy was extremely interesting for a variety of reasons

1 Gujarat has been traditionally an industrialization oriented and capitalistic economyThe fact that the present government which has been stimulating greater investmentsand image building of the state should choose to take such a major policy decisionbuild up an interest in me

2 Corporate Social Responsibility at both a theoretical and at a practical is an interestingtopic given the variation of opinions and ideas of academics corporations and thegovernment Social Entrepreneurship (SE) has been traditionally linked to CSRactivities and I wanted to look at the various ways in which the two issues connect andrelate

3 To improve my understanding on CSR and SE issues and how they are related I didmy ARPEA (Applied Research in Preventive Environmental Approaches) paper onldquoSynergy between Corporate Social Responsibility and Social Entrepreneurship ndash Atheoretical study of potential avenuesrdquo

Even though CSR is a topic almost half a century old the issue (as discussed above) has hadits share of discussion and still remains a rather contentious issue The possibility that thebenefits of CSR activities could be enhanced by collaboration with social entrepreneurs wasvery too alluring and I wanted to work on these two issues The policy of the Govt ofGujarat gave me a live project to work on and focus my work on the interactions between the new governmental policy CSR activities environmental improvement and related SE issues

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Scope of the Research In the ARPEA paper the focus had been on the synergy The thesis was intended to be based on that study with theoretical understanding being drawn from the research for the ARPEA paper The scope of the thesis was fairly limited Details of the governmental policies related to public and private sector enterprises along with understanding what environmental benefits were being looked into as a part of this policy The second issue was of SE and that was limited to what the government and industries think about partnerships with social entrepreneurs and how it was to be implemented

Limitations of the Study The research focussed on governmental and corporate policy making whilst dealing with CSR issues and issues related to the environment This resulted in some expected and some unexpected inadequacies affecting the research Some of the issues are

1 The policy decision in the draft industrial policy (September 2008) regarding mandatoryCSR for private companies was taken back in the final industrial policy released in January2009 Instead a voluntary approach was put forward So the focus of the study shiftedfrom private sector to public sector enterprises only (Govt of Gujarat 2009a)

2 The policy for 30 profit before tax received a lot of criticism from the companymanagement media investors and experts Hence the policy although adhered to by thecompanies was wrought with controversy (Express News Service 2008) This causedunwillingness on the part of the industry to divulge information

3 The suggestion for 30 PBT for the GSEDS had come from the IndustriesCommissionerate This suggestion was based on an internal discussion regarding whichno official public documentation was available

4 The GSEDS which came into existence for the implementation of this policy is yet tohave fully functioning staff It is essentially still an organization only on paper and nofurther steps have been taken to proceed with the implementation of the policy Any

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

information regarding the way in which the implementation is to be done is not available

5 The national elections in India were scheduled for April and May This led to the stallingof some initiatives of the government due to shift of focus of work towards organizationof the elections and related activities

6 Most of the government officers involved in this policy making were shifted to ldquoelectiondutyrdquo before and during the national elections This led to them to be continuously busyor unavailable

7 The topic of mandatory CSR being rather sensitive the corresponding officers in thePublic Sector Undertakings either refused to meet or avoided meeting me even afterrepeated attempts to contact them

8 Three countries UK Denmark and Sweden were looked at in the thesis to analyse theirCSR promotion policies so as to provide recommendations to a province Gujarat Not allaspects and issues are relevant to both of the concerned political entities Whereas theanalysed entities are countries the recommendations are for a province Role of private sector in csr

The role of private have mentioned on the next page in the list

Building inclusive business model- in this we need co-creation of business and poor

Implementing complementary strategy- For example training programs local business NGOrsquos

Role of government in supporting CSR

One main proposal of this publication is that the contemporary CSR agenda is

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

founded on the premise that businesses are part of society their relationship with society is interdependent and they have the potential to make a positive contribution to societal goals and aspirations This role of business in promoting positive social progress is well recognized by governments in many developed and developing countries and they have begun to adopt this type of CSR agenda and encourage business in taking initiatives toward positive social development At the national level the role of CSR has been put forward as both a mechanism to address welfare deficits and a means of promoting national competitiveness At the international level CSR is understood as the mechanism for companies to contribute to sustainable development For example CSR is considered to be the strategic solution for socio-environmental challenges in developed economies and was officially adopted by member governments at the European Commission87 Recently the agenda has been endorsed by member states within ASEAN aimed at developing viable public policy or legal CSR instruments for reference by ASEAN Member States by 2010

There are at least four essential reasons why governments should take a CSR agenda seriously along with implementing the necessary measures to support companiesin practicing responsible conduct

Firstly as firstly detailed in citizen groups civil society organizations as wellas international development agencies have all advocated for inclusive and sustainabledevelopment and governments are expected to play a key role in promoting the economicsocial and environmental conditions that favour more inclusive and sustainable developmentGovernments are under pressure with the challenge of facilitating the transition to a moreefficient economy in conjunction with a fairer and more sustainable society CSR is widelyaccepted by many governments around the world as the business sectorrsquos contribution toinclusive and sustainable development Thus government can utilize a CSR agenda inpursuit of this goal

Secondly CSR is considered to play an important role in contributing to thecompetitiveness of a country The European Commission stresses the need to link CSRwith the competitiveness of companies and national and regional economies which in turn

has been described as fundamental for a nationrsquos sustainability89 Responsible competitivenesscan be attained when an economyrsquos productivity and overall competitiveness is enhancedby businesses taking a holistic account of their social economic and environmentalperformance According to analysis presented in the State of Responsible Competitiveness

200790 which assessed 108 countries across the world the correlation between theResponsible Competitiveness Index and the World Economic Forumrsquos GrowthCompetitiveness Index indicates a strong relationship (R2 = 085) between responsibilityand the most authoritative measure of country competitiveness (see Figure 4) Thishighlights that responsible business practice can and does reinforce competitiveness forcountries at all levels of development It also presents a challenge for governments whichneed to find ways of designing and implementing policies that encourage CSR practicesthroughout the business community to promote competitiveness at the national level

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Thirdly financial crises and fiscal deficit have forced many governments around theworld to look for a new approach for developing and funding collective action to deal withsocial demands that cannot be met by the government alone The collaborative actionsbetween governments and other sectors (in both the business and civil sectors) area response to the limitations of government In addition business taking an active role inaddressing some social causes is seen as a solution to current government financialcrises This allows CSR to present a new governance framework which government canuse to create an enabling environment wherein the private sector is encouraged to bemore engaged in social mission CSR therefore becomes a way of promoting goodcompany practices complementing other public efforts for societal progress

Finally although CSR is widely viewed as voluntary actions that companies takeabove and beyond regulatory requirements to improve their ethical socio-environmentaland economic performance there is growing recognition that governments can and shouldcontribute to shaping enabling conditions in order to see CSR more widely conducted AsPascal Lamy Director General of the WTO and former European Commissioner for Tradehas observed ldquoThe societal benefits of corporate responsibility practices will remain limitedunless they can be incorporated into broader strategies and public policies certainly havea role to play in this respectrdquo91 Government therefore plays an essential role in policydevelopment to promote CSR practice There are a variety of public policy instrumentsthat governments can use to promote this agenda The following two sections introducethe roles that governments can play and some broad areas of focus where governmentscan take action to promote the CSR agenda in their respective countries

What role can government playNo doubt government actions are essential to creating an enabling environmentfor private sector development that diminishes risks lowers costs and barriers of operationand raises rewards and opportunities for competitive and responsible private enterprisesThe challenge for governmental agencies in promoting a CSR agenda is to identify prioritiesraise awareness create incentives and support and mobilize resources from cross-sectoralcooperation that are meaningful in the national context as well as building on existinginitiatives and capacities For many developing countries especially in Asia there isa significant opportunity for governments to harness current enthusiasm for CSR amongenterprises and assist businesses in taking on a bigger role in social development particularlyunder the global demands for responsible business practice

Some key roles which a government can actively choose to engage to supporta CSR agenda include (but are not limited to) the following regulating facilitatingbrokering and warranting

RegulatingWhile CSR is normally seen as voluntarily going beyond local requirementsgovernments can ldquoraise the barrdquo through stricter regulation This can come in the form oflaws regulations penalties and associated measures to control aspects of businessinvestment or operations Governments at different levels can regulate the behaviour orpractice of business by defining minimum standards for business performance embedded

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

within the legal framework establishing targets for business to achieve setting up enforcersand inspectorates to oversee business conduct promulgating codes or laws to confineundesirable business conduct or imposing license of operation or mandatory environmental friendly industrial systems Examples of this include establishing a minimum age forlabour forces emission limit values for particular categories of industrial productions orrequirements for companies to publicize corporate social responsibility reports

Facilitating

Through facilitation governments enable or incentivize companies to engage inCSR to drive social and environmental improvements In many of the approaches reflectedunder this role government plays a catalytic secondary or supporting role For examplegovernment may provide tax incentives and penalties to promote responsible businessensure business can access information needed facilitate understanding of minimum legalrequirements for issues relating to responsible business practice include CSR elements inrelated policy areas (such as industrial policy trade policy environmental policy andlabour policy) offer capacity building business advisory services and technical assistanceto business when needed or support supply chain initiatives and voluntary certification

Brokering

Governments can combine public resources with those of business and otheractors to leverage complementary skills and resources to address issues within a CSRagenda Government can act as a broker in partnering public sector agencies businessescivil society organizations and other stakeholder groups in tackling complex social andenvironmental challenges Government can do this by initiating dialogue in multi-stakeholderprocesses supporting joint government-industry collaboration in capacity building anddeveloping sectoral CSR guidelines engaging stakeholders in standards-setting processespromoting public-private partnerships for community development and mobilizing resourcesIn this role as broker government can also stimulate the engagement of key actors ina CSR agenda by for example providing funding for research or leading campaignsinformation collaboration and dissemination training or raising awareness

Warranting

Lastly government can provide political support and public warrant of a CSRconcept In particular this can be done for specific types of CSR-related initiatives in themarketplace Warranting can take various forms including commitment to implementinternational principles education or awareness raising programmes official policy documentspublicity of good CSR practice conducted by other leading companies specific CSRrelatedaward schemes (such as a National Green Business Award) or endorse specificpro-CSR indicators guidelines systems and standards Government can also lead byexample through things like public procurement or public sector management practicesor direct recognition of the efforts of individual enterprises through CSR award schemes

There are often no clear-cut boundaries separating these roles For examplethere may be cases where government acts as broker but the incentive for partnershipderives from the possibility (explicit or implied) that legislation may follow if a partnership is

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

unsuccessful Equally the lines between ldquofacilitatingrdquo ldquobrokeringrdquo and ldquowarrantingrdquo arenot always clear Governments may choose to address different CSR themes throughactions which utilise a variety of roles For example it is quite feasible for a government toseek to increase and improve the level of corporate sustainability reporting by using anyone or a combination of various mandatory (legislative) facilitating (guidelines on content)brokering (engagement with multi-stakeholder processes) and warranting (publicity) effortThe next section introduces some initiatives which combine some of the different roles thatgovernment may undertake to raise the CSR profile of a country

Creating an enabling environment

There is substantial evidence that governments around the world have begun totake on a CSR agenda Some studies emphasize the influence of public policy asa critical factor in establishing a context within which CSR practice can flourish Publicpolicymakers can thus initiate policies and measures enabling CSR to flourish using severalmeans Some key means used to introduce an enabling environment for CSR in a countryinclude the following initiatives

Creating awareness and raising public support

CSR cannot be imposed against the will of enterprises but can only be promotedtogether with them under involvement of their stakeholders The first step to promote CSRin a country is necessarily to fill the knowledge gaps about the significance and contributionof CSR to business success and sustainability as well to increase awareness and acceptance

among relevant actors The government can play a crucial role in establishing CSR valueand knowledge among the business and the general public through recognition for CSRachievement and spreading CSR information to attain a better understanding of CSRamong the public Initiative can come in the form of publicity awarding success campaigningfor awareness networking opportunities and funding In the Philippines a presidentialdecree promulgated in 2002 designated the first week of July as CSR week for thecountry The Stock Exchange of Thailand (SET) has run annual CSR Awards for its listedpublic companies since 2006 SET also set up a CSR day on 19 March each year topresent awards to successful companies recognize achievement and promote the practiceand publicize examples of innovative and good models of CSR implementation Governmentleaders also play a vital role in educating the public private and non-profit sectors on howto tackle social problems from the CSR perspective The former Malaysian Prime MinisterDatuk Seri Abdullah Ahmad Badawi gave his full backing in the fact that he was a patron ofthe Prime Ministerrsquos CSR Awards launched in 2007 in Malaysia aimed at recognizingcompanies that have made a difference to the communities in which they operate throughtheir CSR programmes

Establishing a specialized CSR agency

Because CSR agendas are often cross-cutting issues which broadly encompasshuman rights labour the environment anti-corruption issues a single agency withina Ministry working in a traditional lsquosilorsquo fashion would be incapable of effectively managing

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

a CSR agenda Governments in many countries have thus decided to set up specificagencies with a specific mission to promote CSR practice in their respective countries InThailand the CSR Institute (CSRI) was established in 2007 under the SET to promoteCSR practices among its listed public company members CSRI aims to become a focal

point for the public companies in promotion of the CSR undertaking Later the CSRCentre was launched under Thailandrsquos Ministry of Social Development and Human Securityin 2008 While there is no explicit CSR public policy in Viet Nam the government ofViet Nam developed its 2004 Strategic Orientation for Sustainable Development (Viet NamAgenda 21 or VA21) based on the Global Agenda 21 to be a national framework and legalfoundation for national sustainable development in Viet Nam VA 21 covers many CSRrelatedcomponents such as labour practice gender equality environmental protectionand the development of local and regional communities The Viet Nam 21 Agenda Officewas set up as a national authority to deploy VA 21 and help the country to reach its goal ofsustainable development The VA 21 Agenda Office organizes sustainable developmentactivities nationwide cooperates with concerned ministries and coordinates with nationaland international institutions Support for business provided by the CSR specialist agencycan focus on specific activities (information advisory services counselling and trainingfunding as for instance) within a particular issue (for example human rights child careyouth work labour environment or customer protection)Reforming regulatory frameworks to meet CSR-related standards

Government plays an important role in setting standards that reflect a minimumstandard of good CSR practice or performance requirements The government is thus ina position to determine if any legal requirement is needed to ensure compliance with theseminimum social and environmental standards It also can make necessary changes toregulatory frameworks in cases where laws tax and administrative compliance may hinderthe development of responsible business practice Legislation that supports pro-CSRindustrial investment within businesses ndash for example pollution charges associated withimplementation of the ldquopolluter-pays principlerdquo ndash can also contribute to pro-CSR productionprocesses It should be noted that the government role of defining minimum legalrequirements on environmental or social issues can be accompanied by access to justicefor individuals who are affected by the misconduct of business

From 2003 to date a number of CSR-related laws and regulations in the area ofenvironment labour and CSR reporting have been passed in China and others arecurrently under consideration For example the Corporate Act was promulgated in 2006to set general principles on social responsibility for companies to comply with businessethics and regulation In the Philippines a bill requiring companies to observe CSRthrough community projects has been filed in the Philippinesrsquos House of Representativesand the Corporate Social Responsibility Act of 2009 was recently released It mandatescorporations to ldquoconsider the interests of society by taking responsibility for the impact oftheir activities on customers employees shareholders communities and the environmentin all aspects of their operationsrdquo In late 2008 the government of Bangladesh hasapproved the long-awaited proposal for a tax exemption facility at the rate of 10 per centon a part of the corporate income to be spent on complying with CSR practices The

exemption facility is aimed at encouraging private companies to be involved more in CSR

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

conductAlthough CSR agendas are giving rise to new demands for a lsquolevel playing fieldrsquo ofminimum environmental and social standards to protect free and fair competition theminimum mandatory standards cannot create a level playing field that allows the market toreward higher standards without penalties for failure to comply Lack of capacity toenforce minimum standards may lead to the collapse of these types of attempts Governmentneeds to pay attention to this concern Furthermore international collaboration may beneeded to avoid distortion of competition between enterprises of different countries throughdifferent standards

Fostering interaction with businesses NGOs and otherkey stakeholders

Government is in a unique position to convene necessary stakeholders in order toaddress social problems through a CSR agenda In one way or another governments canpartner with foundations and corporations to support business responsibility initiatives Itplays a key role in facilitating meaningful stakeholder dialogue with the business community(for example by building the capacity of civil society actors or by directly facilitatingdialogue and multi-stakeholder processes) In India two dialogue forums directly relevantto CSR policy development were initiated102 First the Coordination Committee to PromoteAffirmative Action in the Indian Industry comprises the relevant government ministry offices(mainly the Ministry of Commerce and Industry) Associated Chambers of Commerce andIndustry of India Federation of Indian Chambers of Commerce and Industry as well assenior representatives of industry The aim of the partnership is to finalize a Code ofConduct on Affirmative Action and to set up an ombudsman with regional benches tomonitor the compliance of the voluntary code of conduct by its members Another forum isthe India Partnership Forum (IPF) which is also involved in this multi-stakeholder dialogueforum IPF has a more CSR-focused brief and addresses issues other than affirmativeaction its areas of interest being the adoption and operationalization of a social code forbusiness the formulation of CSR providing support to public policy measures on CSRensuring the mainstreaming of CSR education in business schools capacity building forcommunity development capacity building for sustainable reporting processes and indicesbuilding a CSR knowledge base and providing communication and advocacy on CSR

In some cases governments require companies to enter into stakeholder engagementthrough mandatory legislation In many cases governments can harness the communitydevelopment potential of corporate philanthropy and social investment through dialogue tooptimize their alignment with community needs In certain cases they can mandatecorporate contributions in return for a license to operate Such partnerships also aid inraising awareness of specific social problems and link to the engagement of business aswell as the expertise of stakeholders in other sectors Furthermore a business-NGOpartnership can provide leverage for the availability of private resources to be directlychannelled to meet social and environmental solutions

Supporting pro-CSR production and consumption

Government can promote pro-CSR production practices through business technical

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

and advisory services and research This can be achieved though a variety of meansGovernments may choose to include CSR-related requirements in public procurementpractices that is linking their actions as consumers to promotion of pro-CSR productionTwo United Kingdom government departments the Department for International Developmentand the Foreign and Commonwealth Office have switched to Fairtrade products in theirstaff restaurantsThe Building and Construction Authority of Singapore (BCA) launchedits BCA Green Mark Scheme in January 2005 which is an initiative to drive Singaporersquosconstruction industry towards more environment-friendly buildings It is intended to promotesustainability in the built environment while raising environmental awareness amongdevelopers designers and builders when beginning to conceptualize and design a projectas well as during construction On the consumption side support for environmental andsocial labelling schemes designed to stimulate consumer demand for environmentally orsocially preferable goods and services can be found in developing as well as industrialcountries The Fairtrade label can be used here as well

Many of the examples associated with an initiative through pro-CSR productionand consumption reflect the role of certification ldquobeyond-compliancerdquo standards andenvironmental or social management systems in CSR agendas Some labelling andcertification schemes like the product-based Indian Ecomark Scheme have been initiatedby public sector bodies This voluntary product labelling scheme was initiated by theIndian Parliament in 1991 The Ministry of Environment and Forests the Central PollutionControl Board and the Bureau of Indian Standards are all involved in its administrationAssessment of consumer products in 16 categories ranging from foodstuffs to fire extinguishersis designed to take into account the full life cycle of a product (materials production anddisposal)

Providing support to increase capacity and effectivenessfor business in CSR initiatives

Other interventions by governmental agencies in some developing countries haveincluded capacity building activities designed to help domestic producers meet CSR standardsOutlines of a broadly complementary initiative in India serve as a good example106 TheIndian Textiles Committee part of the Ministry of Textiles has taken up a national campaignto sensitize the textile and clothing industry particularly in the SME sector to addressemerging challenges resulting from the forthcoming liberalization of the Indian textile andclothing industry The Committee is working with the Ministry of Commerce stategovernments and local industry and trade associations on the campaign Approximately7500 company representatives will have taken part in 25 workshops The aim is to

disseminate information on various standards and compliance mechanisms including ISO9000 QMS ISO 14000 EMS and Social Accountability (SA8000) standards as well asoffer technical assistance to encourage implementation

Regarding the international trade-related aspect of implementing a CSR agendagovernments in many countries now are recognizing the potential for a CSR agenda toopen up new market access opportunities for exports of sustainably produced goods andservices and to tackle potential exclusion from existing markets as CSR conditions areintroduced Government-led export promotion of ldquogreenrdquo goods and services can build

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

international market access opportunities for domestic enterprises and encourage a morepro-CSR goods and services In this case government can provide knowledge andtechnical support including capacity building for domestic producers to enable them tomeet CSR standards and engagement in CSR standard-setting initiatives to ensure theydo not create unfair market access barriers

Position of CSR today and its scope

In many Asian societies Corporate Social Responsibility (CSR) is generally understood as being no more than corporate-run community development projects to compensate for social and economic injustices Most of such projects like constructing schools and health care centres have been effectively hegemonic providing strong legitimacy and extensive license tocorporations to sustain the exploitation of the human and natural resources in many

countries A further implication of CSR is that it makes people think that it is the companyrsquos obligation to meet peoplersquos rights to a better education system clean water health care etc instead of the State or government At the same time this has allowed the State to escape from its obligations towards society

CSR is a simple but effective method for corporations to obtain legitimacy as a responsible social actor It is also a status-enhancing way for them to acquire an excellent and clean image in the public For many corporations the implementation of CSR can increase the sales of their products and market share CSR can also help the brand attain a good reputation and promote workersrsquo productivity It can reduce production costs attract more investment and achieve more favourable credit and ratings In this respect there is no doubt that CSR is a vehicle for increased corporate power in society

There are many actors involved in CSR activities NGOs government and international institutions which eventually make CSR an emerging industry itself valued at US$ 317 billion in 2007 CSR-driven initiatives such as Multi-Stakeholders Initiatives (MSI) claim to have an impact

on core labour issues such as freedom of association and collective bargaining However the reality has proven that CSR has more harm than good

In the labour movement CSR has transformed itself into a mechanism called Code of Conduct The Code of Conduct is a fundamental manifestation of the CSR which corporations consider as part of their business public relations in response to accusations made by activists Certainly corporations by nature do not see CSR as their obligation but as a business strategy to achieve greater profit by fulfilling its social responsibility

By promoting Codes of Conduct employers alter labour relations in the factories towards a harmonious industrial relation to sustain their violations against labour rights without facing any resistance Codes of Conduct are aimed at making people feel good and pacifying labour consumer and civil society movements It has the mission of protecting Multinational Corporationsrsquo interests in international sub-contracting The way that Codes of Conduct

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

domesticate the movements is that it serves as the basis for NGOs and even labour unions to be engaged in the supervision work of the manufacturing process of Multinational Corporations In the end many NGOs and labour unions participate in the band wagon of Code of Conduct monitoring taskforces stakeholdersrsquo roundtables etc forsaking their core work at the grass-roots

Codes of Conduct create the privatization of labour law and promote self-regulation in the factories By promoting Codes of Conduct employers divert the focus of labour and consumer movement into setting up localised regulation but at the same time neglect the national constitution and the labour law Employers try to convince us that voluntary standards are better than the existing labour law which suffers from a lack of implementation Thus the Code of Conduct logically has an inherent contradiction in itself as the root-problem is the defect of labour law Code of Conduct then has a similar limitation of its functioning For that reason we are very doubtful that local labour laws will be improved and properly enforced under the Code of Conduct influence

Moreover Codes of Conduct and other types of CSR have the lsquodivide and rulersquo effect At the workplace level CSR hampers the development of genuine free and independent unions which are further stigmatised as trouble-makers in society At the community level CSR affects the loss of harmony within society as a number of people get benefits through jobs gifts or trade opportunities while others get none some people are even deprived such as when they have to give up their land At the national level the impact of CSR is obviously seen as the rupture between the proponents and opponents of CSR is ever widening Meanwhile in the global level Northern and Southern workers become less and less likely to reach out each

other as they get co-opted by multi-stakeholder initiatives and become more invested in them rather than in seeking the solidarity of other workers In a nutshell CSR undermines solidarity between workers

At the moment CSR has won the battle of ideas and serves the neoliberal agenda of a reduced role for the state in favour of an expanded role for the corporate sector To respond to the facts we are challenged to face it in several ways First we have to demystify CSR Many experiences show that CSR fails to produce concrete improvement in working conditions but also diverts movementsrsquo attention away from real issues Second we have to strengthen solidarity between workers to have better communication with one another and a united front against extensive promotion of CSR Third we have to establish more effective international solidarity

On this occasion we are calling everyone who shares the above-stated perspective about CSR and its impacts on society to endorse this statement to confirm that CSR activities are detracting from labour unity and failing to contribute to sustained worker empowerment and that labour groups must focus on increasing the collective power of workers to assert their labour rights not relying on what is granted voluntarily by corporations

Emerging model of CSR in India Mapping out these four families of CSR helps provide a context for understanding the emerging model of corporate responsibility in India Looking across the current practices of leading Indian corporations a

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

number of core elements emerge

P Community development Most large companies either have their own foundations or contribute to other initiatives that directly support the community upliftment notably in health education and agriculture

P Environmental management Environmental policies and programmes are now standard and many companies have implemented the ISO 14 001 system throughout their businesses

P Workplace Growing out of long-standing commitments to training and safety is a more recent emphasis on knowledge and employee well-being

Table 1 presents a selected list of CSR innovations from some of Indiarsquos leading companies

Issue company action

Community development Hindalco Asian CSR Award for its Integrated Rural Poverty Alleviation Programme Corporate giving Indian Oil Corporation Dedicating 075 of net profit to community development initiatives

Health Larsen and Toubro One of first corporates to launch an HIVAIDS programme

Labour standards ITC First company in India to be certified to the SA8000 social accountability standard for its Chirala facility

Human capital Infosys Pioneering evaluation of human capital using an education index for its employees

Environmental management BHEL All BHEL units are certified to the ISO14 001 environmental management System

Energy conservation Reliance Energy conservation measures are saving the company 1150 million rupees per annum

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

Disclosure Tata I ron and Steel First Indian company to publish a sustainability report in line with Global Reporting Initiative guidelines

Comparing the CSR progress of India Inc with the other emerging economies is difficult toachieve not least because there are no global benchmarks However some proxy indicators areavailable In September 2004 the International Organisation of Standardisation published itslatest survey of the adoption of the ISO 14 001 environmental management system At the endof 2003 over 66 000 certificates had been issued worldwide up 16 on the year before Ofthese India had 879 certificates a substantial growth from the 600 certificates in 2002 Yet

India lagged far behind China which had over 5000 ISO 14 001 certificates in 2003 making itthe country with the third highest number of ISO 14 001 registrations after Japan and the UK1Another broader measure of corporate commitment to social responsibility is the UN GlobalCompact a set of 10 principles launched by UN Secretary-General Kofi Annan Currently 95Indian companies have backed the Global Compact slightly less than in Brazil but on thisoccasion considerably more than in China

Scope

How to find a job in a csr compny

Even though itrsquos only March graduation season is just around the corner Before you know it across the country hundreds of thousands of individuals will be walking across the stage to receive a scroll that represents four years of hard work Itrsquos the start of a new life and a new career So whatrsquos a graduate to do if he or she is interested in a career in corporate social responsibility (CSR) Here is some advice that I often offer to newly minted professionals looking to establish themselves in a career in CSR

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

First and foremost the two most important skills for a CSR professional are

bullCommunication Knowing how to clearly articulate your own ideas either verbally or in writing is one of the most important and under-valued skill sets In fact I believe as our society leans more towards communicating ldquoTwitter-stylerdquo in 140 characters or less the ability to effectively communicate your ideas and those of your department will become an even greater asset to any professional but especially a CSR professional As I mentioned in a previous post companies routinely fail to tell their own story effectively If you know how to write and how to give a presentation you will have a leg up in your career

bull Leadership In my experience there are very few large CSR departments out there ndash even within big companies If you really want to excel in this field you need to understand the power dynamics of an organization Because resources are tight in most companies you have to learn how to influence people in your

organization often without formal authority such as a fancy title What do employers look for to see if yoursquove got what it takes to work in CSR Theyrsquore looking for employees who can (with fabulous oral and written communication skills) professionally persuade people in other departments to change their behavior You will need to work with departments such as operations marketing legal and human resources to name only a few

Here are some additional ideas

Get the basics done To score a job in nearly any field you have to cover the basics Know how to write a cover letter how to make your resume stand out and how to interview well There are plenty of resources online that offer tips on each of these but itrsquos impossible to overstate how important it is to master the basics during any job search Companies are bombarded with applications these days and theyrsquore looking for reasons to narrow down the large pile of applications as quickly as possible Donrsquot let simple mistakes undermine your four years of effort to get your degree

Check yourself If yoursquore looking for a job in corporate social responsibility you ought to know what CSR means I canrsquot count how many times people have asked me for advice only to discover that they think CSR is a synonym for philanthropy Itrsquos not Yes philanthropy is a part of a broader effort for companies to look at the business impact of their business operations But if yoursquore interviewing with a company that has experience in CSR you will likely undermine your chances if yoursquore unaware of the many

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

other subjects that make up a full CSR strategy Know how to define the field before you sit down across the table from the hiring manager

bullBe a champion outside of the CSR department As I mentioned most CSR departments arenrsquot heavy on the headcount Naturally this means that there are fewer opportunities to work in a companyrsquos CSR department than say operations or finance In fact this is precisely where the opportunities are For CSR professionals one of the most useful things to have is a champion in another department ndash someone who ldquogets itrdquo These champions can help by being another voice outside of the ldquousual suspectsrdquo in a CSR department who can advocate for change in their organization Paradoxically itrsquos quite possible to have a larger

impact on a company adopting CSR if yoursquore outside of a large companyrsquos formal CSR department It just depends on your level of engagement and your ability to influence others (sound familiar) So when it comes to job seeking expand your search beyond jobs that have ldquosocial responsibilityrdquo or ldquosustainabilityrdquo in their titles This is especially important because CSR departments donrsquot have a lot of

entry-level positions available Instead for example you could look for a position in a companyrsquos supply chain department and get involved in logistics to reduce miles driven fuel consumption and carbon emissions

bullEnvironment environment environment When I look into my crystal ball itrsquos all about the environment Climate change adaptation carbon emissions energy conservation waste diversion life-cycle analysis of products ndash these are all issues that are going to become even more important (itrsquos just a partial list too) You will stand out among other applicants if you can point to meaningful professional or academic experience related to environmental issues

bullGet involved Letrsquos say that you just need a job any job after graduating If you really want to ldquodordquo CSR start creating a track record of involvement As mentioned previously you can start by reaching out to your companyrsquos CSR department and finding out how you can help What if your company doesnrsquot have an entire department devoted to CSR Get involved in other ways such as by joining andor taking a leadership role in phenomenal organizations like Net Impact With chapters across the country you can really roll up your sleeves When interviewing employers will likely see sustained involvement in organizations like Net Impact as a sign that you are truly interested in CSR In addition many larger cities are stepping up their interest in social responsibility or sustainability The City of Chicago has the Chicago Climate Action Plan and offers ways you can get involved as

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

volunteers through two organizations Denver Portland New York and Atlanta ndash just as a few examples ndash all have plans and programs related to sustainability So do some research and get involved

Scope of csr in India

NEW DELHI Hiring activities in the non-governmental organisation (NGO) sector have increased over 60 per cent in 2011 compared to 2010 even as they have come under the government scanner for pushing alien agendas in the country

Overall hiring activities in the social sector which includes NGOs sustainability arm of big corporates and micro finance companies increased by 30-40 per cent in 2011 The addition of manpower in the sector happened even as the overall hiring activities in some of the corporate verticals like transport media and government had gone down last year

The Monster Employment Index India said that 21 of the 27 industry sectors that it monitors had registered expansion in recruitment activity between January 2011 and January 2012 by only 6 per cent Of all the sectors NGOssocial services sector hiring exhibited the highest annual growth according to the data from job search firm Monster India

A dipstick survey of around 1000 firms including non-profit organisations by MyHiringClub shows that the sector had added 11459 workers in 2011 compared to 6459 in 2010 In case of NGOs MFIs and other non-profit organisations hiring in 2011 was 4984 compared to 2968 in 2010

ldquoIt has been observed that hiring in social sector is an ongoing process as the sector (to a large extent) is not affected by Sensex movements unlike other sectors The main aim of firms in this sector is not to make profits but to deploy funds in the right places and projects During the beginning of the year funds are allocated to social firms which they have to deploy in defined time lines For example two years three years or five years and hence the immediate variations in the economy do not have instant adverse affect on hiring in the social sectorrdquo Sunil Goel director of executive search firm Globalhunt said

The corporate responsibility initiatives of companies have also triggered social sector hiring For instance in the Vedanta Group the number of employees working on community programmes has increased by around 12 per cent from 2010 till now The increase from 2005 till the current year is close to 70 per cent

ldquoThe Vedanta Group has been involved in various community initiatives for several years now We continue to add more projects and geographies and have therefore been hiring people who are trained in community development environment health and sustainability We work very closely with over 160 partner organisations including 82 NGOsrdquo a Vedanta spokesperson said

Even for companies like auto giant Maruti and beer maker SabMiller which have very small corporate social responsibility (CSR) teams the tie-ups with NGOs and other social activities have gone up considerably Other firms which have ramped up hiring in 2011 include Janalaxmi Financial Services (MFI) Sahayata MFI CRY Smile Foundation Tata Steel (CSR Division) Hindalco (CSR Division) and Hindustan Zinc (CSR Division) among others

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

ldquoA higher number of companies are hiring social sector professionals thanks to increased corporate philanthropy higher CSR activities focus on rural consumers and more partnerships with government There has been an average increase of 30 to 40 per cent every year in social sector hiring activity Hiring in social sector is mostly in tier II and III cities This year also we are expecting a 25 per cent increase in hiring activity in this sectorrdquo Rajesh Kumar CEO MyHiringClubcom and NriJobPortalcom said

Case study of kingfisher company

Kingfisher is Europes largest home improvement retailer with 1300 stores and 9000 employees in 16 countries Its operating companies include BCC (The Netherlands) Promarkt (Germany) Vanden Borre (Belgium) Darty (France) Comet (UK) BampQ (UK) Koccediltas (Turkey) and Reacuteno-Deacutepocirct (Canada)

In 2001 the group achieved a turnover of pound121 billion ($175 billion) and a pre-tax profit of pound606 million ($878 million)

At the end of 2001 Kingfisher unveiled a group-wide initiative to monitor improve and report on corporate social responsibility issues at the level of individual companies

The group has identified six ways in which it believes CSR can help its business

1 Being ready for the future identifying and managing issues which have the potential to affect the bottom line either positively or negatively

2 Respect for people making Kingfisher companies attractive places to work and thereby retaining skilled staff

3 Stores that communities welcome maximizing customer loyalty and improving morale among the workforce

4 Product innovation identifying green products that consumers will want to buy 5 Saving costs recognizing that many CSR initiatives are largely good housekeeping such as

reducing waste and retaining staff more effectively 6 Brand using innovation and excellence within individual operating companies to enhance the

reputation of the group as a whole

Kingfisher has devised a ladder model to simplify the assessment of CSR within operating companies The ladder has four rungs The bottom rung is Managing the risk and the next rung up is Managing the issues followed by Creating an opportunity and finally Leadership at the top Company managers will have to decide where their businesses currently stand on each of 12 separate ladders each representing a key issue such as waste climate change or community relations (see below) They are also asked to identify where they would like eventually to be on the ladder and to propose a realistic timescale

These action plans are due for completion by the end of April 2002 and a group-wide CSR report will be published in the spring of 2003

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

The CSR initiative will be co-ordinated by a nine-person social responsibility committee which now includes include six members of the main board of directors as well as Kingfishers head of social responsibility Dr Alan Knight A social responsibility team working closely with the committee will provide coaching and advice to managers within individual operating companies and will also be responsible for reporting progress both internally and to the outside world

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to accommodate the differences between individual businesses yet strong enough to reflect a common vision

Kingfishers definition of social responsibility entails making sure that in helping our customers improve their quality of life we do not destroy someone elses It adds That might mean improving the working conditions in the factories that make the products we sell using renewable energy sources or making sure our equal opportunities policies are robust

Group chief executive Sir Geoff Mulcahy says several of Kingfishers subsidiaries have been active in CSR for some years already particularly in terms of environmental stewardship We believe it is now time to co-ordinate these activities more rigorously at group level

The 12 key issues identified by Kingfisher

The way we treat all our people is becoming more important than ever Every product will soon be telling a story - and they will all need to be good Communities will reject businesses who are not good neighoburs Our suppliers need to be cleaner and greener too We are selling more wood but it is becoming harder to find Chemicals are causing increasing concern and controversy We need to plan what happens when our customers want to dispose of the products they

bought from us Packaging waste will become a bigger financial waste We will be judged by the way the people who make our products are treated Moving more stock is good - more traffic congestion is bad Climate change equals changes to homes - appliances will change too When we throw rubbish away it takes our profits with it

Conclusion

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

In the discussion about csr good points can be made both for and against social involvement by business but general trend toward greater social activities by business major issue has become how much social involement is desirableIn case study of csr we can analyse that how much important it isits study and implementation of csr and its affects on business organizations So here we conclude that in modern age csr is essential part of organization to exist and develop and to cop up with other organizationAn open minded amp balanced attitude toward the Issue is best position to assume

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom

BibliographyBooks refered

1 Writer-william cfrederickPublication-Mcgraw-hill internationaleditions Ist printing 1988Book name-bussiness and society6th edition printed and bounded insingapore page no ndash 26-48

Websites refered1 httpwwwgooglecom 2 httpwwwwikipediacom 3 httpwikianswercom 4 httpehowcom 5 httpkingfishercasestudycom