Corporate Responsibility

Corporate Social Responsibility (CSR)•CSR policy would function as a built-in

self regulating mechanism whereby business would monitor and insure its support to law, ethical standards, and international norms.

•According to Cannon, “Corporate social responsibility means devising corporate strategies and building a business with the society’s needs in mind.

Nature CSR•Positive Approach•Multi Dimensional Concept•Not an alternateScope of CSR

Net income contribution

Human resource

contribution

Public contribution

Environmental

contribution

Product of service

contribution

Need of CSR•To provide sense of responsibility•To fulfill long-run self-interests•To improve public image•To avoid Government regulation or

control•To avoid misuse of national resources

& economic power•To avoid class conflicts•To convert resistance into resources•To minimize environmental damage

Type of CSR•Environmental CSR•Human rights CSR•Financial CSR•Political CSRCSR Strategies:

Obstructionist stance

Defensive stance

Accommodative stance

Proactive stance

(Highest)

Integrating CSR into Business

Significance of CSRImproves

Public Image

Helps in survival and

growth

Facilitates changes

consumer expectations

Attracts better human

resources

Fulfills changed public

expectations of business

Provides better environment for business

Helps in avoiding

government regulation

Maintains balance of

responsibility with power

Limitations of CSRProfit

maximization

Society has to pay the

cost

Lack of social skills

Business has enough

power

Social overhead

cost

Lack of accountabili

ty

Lack of board

support

Indian Examples of CSR • Reiance Industries• Tata group firms• Tata motors• IBM• HSBC• Max New York• Standard Charterted Bank• Navratna Company ,Coal India• BHEL• Reddy’s Lab• Hindustan Unilever• ICICI Bank• ITC• SAIL• TCS & Wipro