The Evolution of Concept of Csr in India

8/3/2019 The Evolution of Concept of Csr in India

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WE THE STUDENTS FROM THIRD YEARBACHELORS IN MANAGEMENT STUDIES OFTHAKUR COLLEGE OF SCIENCE AND COMMERCE

TAKE THIS OPPORTUNITY TO THANK PARULMAAM FOR GIVING US SUCH AN INTERESTINGTOPIC WHICH HELPED US TO GAIN IMMENSEKNOWLEDGE ABOUT THE SUBJECT.WE WOULD ALSO LIKE TO THANK HER FOR THE

VALUABLE GUIDANCE AND HELP FORPREPARING THIS PROJECT.


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ANKIT SINGH 5703

PRASHANT KARANDE 5704

MOHIZ LALANI 5756

RAMANDEEP SINGH 5743RAHUL GUPTA 5733

RAM KRISHNA. 5754


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The Concept of CSR originated in the 1950sin the USA and the concept came intoprominence in public debate during the1960s and 1970s.US had lots of pressingsocial problem likepoverty,unemployment,race,pollution.

During 1980s to 2000,corporation generallyrecognized a responsibility to society andweighed against the dd of beingcompetitive in a rapidly changing globaleconomy.


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CSR is operating a business in manner

which meet or excels the

ethical,legal,commercial,and publicexpectaion that society has form

business.


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CSR is generally understood is that

business has an obligation to society that

extended beyond its obligation to itsshareholder or owner. The philosophy is

basically to give back to the society. It

could take the form of community

releationship,volunteer,assistenceprogramme, health-care,education,and

scholarship.


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Corporation

Business organization

x Shareholder

Employee,Customer,supplier,Communit-y, society.


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Charity to organizations or NGOs.

Employing the local villagers.

Villagers were encouraged to produce

more veg and keep cattle by giving

startup money.


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Companies supplemented facilities in

schools or hospitals.

Helped women earn extra income through

sponsorship.

Promote adult literacy and family welfare

activities.


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After 1960 growth of environment

consciousness arises and felt by the

company.

Thus CSR evolved from philanthropy to

environment, employee relations,

corporate governance and engagingwith the community.

Current CSR deploys company core

competencies to help address societyproblems.


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Eg of TCS:

Used its expertise in IT to help

communities in different parts of India.

Develop a database child helpline fordistress child in 54 centres

Computer based functional literacyproject for adult30 to 40 hours thats2-3 months.


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Eg of NIIT.children from slums

were learn to use computer with touch

screen

E- choupals helps farmers checkprice of

global market.

Eg of Mahindra providing hearing aid to60 poor and nearly deaf children.

Besides 5 to 9 lakh rs for each children for

their entire rehabilitation.


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One of the most popular concepts of corporate

social responsibility was developed by Archie

Carroll in the early 1991 It is known as the pyramid of corporate social

responsibility

It composed by four responsibilities


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To be a goodcorporate citizen

To be ethical

To obey the

law

To be

profitable


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Historically business organization were created

as economic entities designed to provide goods &

services to consumers The principal role: to produce goods & services

that consumers needed & wanted

To make acceptable profits in the process


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Maximum profits

This Profits are necessary for any

other responsibilities to be carried

out.Its foundation on which others rest


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To be ethical

To obey the

law

To be

profitable


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Not only work for profit motive but Comply with

law & regulation

Given by federal, state, & local government,under which business must operate

It reflects a view of codified ethics

It include fair operation as established by are lawmakers


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To be ethical

To obey the

law

To be

profitable


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Activities that are not expected or prohibited by

society as economic & legal responsibility

Not codified in law as legal responsibility

It include norms, standards, or expectations

Which concern for stakeholders

It also respect & protects the stakeholders moralrights


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To be ethical

To obey the

law

To be

profitable


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To be a good corporate citizen

Contribute to arts, education &community

To endorse human welfare or

goodwill


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Philanthropic responsibility can sometimes be

same as ethical responsibility

Difference is:

Communities desire Business organization to

contribute their money, facilities & employeetime in human welfare

But if they do not do so it is not unethical

Contribute resources to community & improvethe quality of life


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To be a good

corporate citizen

To be ethical

To obey the

law

To be

profitable

In short, business organization should strive

to make a profit, obey law, be ethical & be a

good corporate citizen


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ARGUMENTS FOR CSR

BALANCES CORPORATE POWER WITH

RESPONSIBILITY

DISCOURAGES GOVERNM

EN

TREGULATION

PROMOTES LONG-TERM PROFITS

RESPONDS TO CHANGING

STAKEHOLDERS DEMAND

CORRECTS SOCIAL PROBLEM CAUSED

BY BUSINESS


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ARGUMENTS AGAINST CSR

LOWER ECONOMIC EFFICIENCY ANDPROFIT

IMPOSES UNEQUAL COST AMONG

COM

PETITORSIMPOSES HIDDEN COST PASSED ON TO

STAKEHOLDERS

REQUIRES SOCIAL SKILLS W

HICH

BUSINESS MAY LACK

STRICT GOVERNMENT CONTROL


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Tata steel was established in 1868 by JamsetjiNusserwanji Tata

With the acquisition of Corus in 2007 leading tocommencement of Tata Steel's European

operations.

It is among the top ten steel producers in the worldwith an existing annual crude steel productioncapacity of around 30 million tonnes per annumand employee strength of above 80,000across five

continents.

CSR rating: 4/5


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Sharing Wealth to Diminish Disparities:

First to establish labour welfare practices

It also instituted an eight-hour workday in 1912,

free medical aid in 1915,

a Welfare Department in 1917,

Workers Provident Fund and Workmens Compensation in1920 and Maternity Benefit for ladies in 1928.

Income generation for tribals:

Assist in the formation of SHGs


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Education:

An unusual project called Sahyog, implemented

in five schools

The Xavier Institute for Tribal Education nearJamshedpur has also been supported by TataSteel to produce professionally trained personnel.


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Health care:

Health care awareness including eye care,tuberculosis treatment, general health awareness,HIV/AIDS Awareness and Mother and Child survival

programmes.


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Mother and Infant Survival Programme ,PopulationStabilisation

Operation Muskaan for cleft lips and palates "YARS" - Youthand Adolescent Reproductive Services.

Specifically targeted programmes on HIV and AIDS.

Project "WATSAN" forWater and Sanitation, Free HealthCheckups forWomen at Surya Clinics


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Tata Steel, has planted 1.5 million saplings as a part of theGreen Millennium campaign.

It is the first company in the country to be conferred ISO-

14001 Certification for its main steel works and utility servicesin Jamshedpur

Tata Steel is Indias acknowledged Corporate SocialResponsibility leader and is recognised as a most humane

organisation.


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Documents

The Evolution of Concept of Csr in India