CORPORATE SOCIAL RESPONSIBILITY

SUBMITTED BY
AJIT KUMAR JENA DEBASWINEE PATTANAIK MADHUSMITA KANUNGO DEBASHRITA RATH RANJAN PATRO

Introduction of corporate social responsibility Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business)[1] is a form of corporateselfregulation integrated into a business model. The concept of social responsibility linked to corporate is a phenomenon from the beginning of industrialization for around 200 years.CSR policy functions as a builtin, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. Corporate Social Responsibility is the concept whereby companies act to balance their own economic growth with the sustainable social and environmental development of the country. A company performing highly in CSR is one that goes beyond compliance with the legal framework to actively pursue positive impacts on local communities and the environment.CSR is a process with the aim to embrace responsibility for the company's 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 "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization's activities have an impact.As from 1 January 2012, every profitable company is required annually to set up a CSR Fund equivalent to 2% of its profits chargeable to income tax, derived during the preceding year. However, for accounting periods prior to this date the CSR Fund is calculated on the adjusted book profit1 after tax. Corporate social responsibility is all about involving all societal actors. The concept of CSR is described as the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as wellas of the local community and society at large.it is about what people choose to take into account because they feel strongly about certain issues, or because they feel their action might have an impact that will affect them too. Together with the economic growth seen in most sectors, management quality is required to meet the needs of corporate stakeholders including consumers,employees,shareholders, and community. The implication have received more attention from firm managers in order to get best returns on business performance. CSR has also different meaning for different organisations, for some it means that they integrated social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. ROLE OF HR IN CORPORATE SOCIAL RESPONSIBILITY Most countries have policies and guidelines to address social issues of the country. There are primary and secondary concerns and issues of the society, which become the primary roles and tasks of the various constituents.Health ,hygiene ,education are the key and primary issues of society and the country. These concerns ought to be the primary concerns of the government. However these primary concerns are now partly held by the NGOs. Corporates are getting more and more involved in the sharing of the primary responsibility of the society.

GOVERNMENT NGOS

CITIZENS sectoral

HYGIENE, HEALTH, EDUCATION Employability, orphanages, income generation, women, water, hygiene, health

CORPORATES

INDIVIDUAL CHOICES PREFERENCES

both Employment education-support to NGOS, craft, performing arts,income generation, health PERSONAL Culture, societal-both primary Donations to socio- cultural AND and secondary issues, children education, hospitals- water, poverty, charity, philanthropy

Wider social concerns primary and secondary

CORPORATES To focus on heath and hygiene means that besides the internal physical work environment, the environment around the corporate premises needs to be clean and free of debris and garbage. The roads around the organizations need to be free of potholes and pavements are needed for pedestrians and people. Each organizations can create a geographical limit and educate and align with the municipalities to focus on cleanliness and clutter free roads. HUMAN RESOURCE As of now HR is focused on the language of employability of students as soon as they enter the work places, rather than the responsive students who can adapt and respond to any challenges and opportunities offered by the organization. All that HR needs to do is build a bridge in the induction orientation program at the time of entry where the young recruit absorbs the work culture and task requirements of the organization.

ROLE OF HR IN CORPORATE SOCIAL RESPONSIBILITY External environment

HR to align the corporate with the regulatory policies of the government. CSR in partnering with the social sector to contribute to the developmental issues of the country, the state, the city, and the village. There are the health, hygiene and education issues in and around the organization. Academia-industry interface- hr and academia can work together to design education with values for life. Contribute to encourage original and fundamental research.

Internal environment

the employees of the organization and their life space. Induction process so that generation entering the work places grow into wholesome and intelligent contributing number. Individual and organization renewal. HR can address issues of the various thresholds of work life which help the employees from entry into the organization to transition from organization into their social roles and communities with dignity and grace.

Objective of Corporate Social Responsibility

All profitable companies are required to use their CSR Fund that contribute to the social and environmental development of the country/Society. Corporate Social Responsibility Objectives are: Actively promote our CSR strategy to ensure it is embedded within the business Enhance the intellectual capital of the business through training and development of employees Improve employee satisfaction Continue to encourage employees to generate ideas that that will add value to our business and that of our clients Maintain our quality accreditations Work to minimise our impact on the environment Actively contribute to a variety of national and local charities To ensure the health, safety and well being of all our employees and visitors to our offices

Needs and importance of corporate social responsibility

The Importance of Social Responsibility Solving Social Problems: -For example, is the protest against aerosol sprays. Resource given by the organizations to solve the social problem. Organization should be, for example, give due consideration to the design of work organization and job satisfaction, make very reasonable effort to give security of employment, and provide employment opportunities for minority groups. Improves Public Image of the Firm: -Social initiatives taken by organizations tend to promote goodwill, public favour, corporate trust, profit.-for example: giving recognition to the needs of developing countries; limiting the extent of political involvement or campaigning; donations to, or sponsorship of, the arts, educational or educational or research institutions, sporting organizations or charities. Best Interest of Business to Promote and Improve the Communities: Assist to Government: - to solve social, economical and political problems of the country. Pressure of Consumer Movement: - to protect consumers against business malpractices like adulteration, black marketing, unfair pricing, shortage in weight, measures, etc. Pressure of Trade Union: - relations between management and labour. Attracts and retains staff: Customers are attracted to socially responsible companies:Corporate Social Responsibility attracts investors: Corporate Social Responsibility helps to cut your business costs .

For corporate sustainability goals. Interdependency between a corporation and community. A CSR program can be seen as an aid to alleviate poverty

CLASSIFICATION OF SOCIAL RESPONSIBILITY 1. Responsibility Towards Itself It is the responsibility of each corporate entity run business and to work towards growth, expansion and stability and thus earn profits. If the corporation is to achieve social and economic ends, organizational efficiency should be boosted up. 2. Responsibility towards EmployeesEmployees are the most important part of an organization. Following are some of the responsibilities which a business entity has towards its employees Timely payment Hygienic environment Good and impartial behavior Health care through yoga Recreational activities Encouraging them to take part in managerial decisions 3. Responsibility towards shareholders It is the responsibility of corporate entity to safeguard the shareholders investment and make efforts to provide a reasonable return on their investment. 4. Responsibility towards state Out of the profit available, the state is entitled to a certain share as per the income tax laws. Utmost transparency has to be exerted regarding the profit &loss account and the balance sheet. 5. Responsibility towards consumers The Company should maintain high quality standards at reasonable prices. It should not resort to malpractices such as hoarding and blackmarketing. 6. Responsibility towards environment It is the responsibility of the organization to contribute to the protection of environment. It should produce eco -friendly products. Moreover, industrial waste management must be taken care of.

So why CSR?
1. SATISFIED EMPLOYEES. Employees want to feel proud of the organization they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere. It is also likely that you will receive more job applications because people want to work for you. More choice means a better workforce. Because of the high positive impact of CSR on employee wellbeing and motivation, the role of HR in managing CSR projects is significant.

2. SATISFIED CUSTOMERS Research shows that a strong record of CSR improves customers attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand. Relevant research: IBM study Attaining Sustainable Growth through Corporate Social Responsibility: The majority of business executives believes that CSR activities are giving their firms competitive advantage, primarily due to favorable responses from consumers. Better Business Journey, UK Small Business Consortium: 88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society. 3. COSTS REDUCTIONS Yes, you read this correctly. A CSR program doesnt have to cost money. On the contrary. If conducted properly a company can reduce costs through CSR. Companies reduce costs by: More efficient staff hire and retention Implementing energy savings programs Managing potential risks and liabilities more effectively Less investment in traditional advertising 4. MORE BUSINESS OPPORTUNITIES A CSR program requires an open, outside oriented approach. The business must be in a constant dialogue with customers, suppliers and other parties that affect the organization. Because of continuous interaction with other parties, your business will be the first to know about new business opportunities. 5. LONG TERM FUTURE FOR YOUR BUSINESS CSR is not something for the short term. Its all about achieving long term results and business continuity. Large businesses refer to: shaping a more sustainable society (Vodafone 2010 report):

REASONS WHY BUSINESS SHOULD BE SOCIALLY RESPONSIBLE The era of the social enterprises is upon us. More so than ever before, the most successful, respected, and desirable businesses exist to do much more than make money; they exist to use the power of business to solve social and environmental problems. Study after study has shown that socially responsible businesses (aka social enterprises) not only provide sustainable business models, but also have improved marketing, employee recruitment, employee satisfaction, legal treatment, customer loyalty, brand perception, and richer partnerships.

The top five reasons to have (and/or work for) a socially responsible business are: 1. Employees want demand their company to be socially responsible Five years ago, it was considered good if a company simply did not harm the environment. However, times have changed, and now employees demand that their company do more than simply not be bad. They need to do good, too. According to Forbes:

32% of employees would seriously consider leaving their job if their company gave no / little money to charity; 65% would seriously consider leaving their job if their company harmed the environment; 83% would seriously consider leaving their job if their employer used child labor in sweatshop factories.

Furthermore, a landmark international Corporate Social Responsibility (CSR) study of human resource practitioners conducted by the Society for Human Resource Management (SHRM), reveals that CSR practices are seen as important to employee morale (50%), loyalty (41%), retention (29%), recruitment of top employees (25%) and productivity (12%). 2. Consumers expect better business practices (and will pay for it) Just under a year ago, a study was published showing that the average consumer will drive en extra 11 minutes to buy a product that supported a cause. Since then, more data has been released supporting the fact that consumers will adjust buying behavior from average companies to socially responsible companies. According to the same article by Forbes: More than 88% of consumers think companies should try to achieve their business goals while improving society and the environment; 83% of consumers think companies should support charities and nonprofits with financial donations. The important consideration is that consumers know that the corporation is making donations out of its own pocketbook, not asking for donations by its consumers. In fact, 35% of consumers dislike being asked to donate money at the checkout counter. 3. It creates competitive immunity (and makes your business more sustainable in the long-term) According to the Harvard Business Review, Strategy is about choosing a unique position doing things differently from competitors These principles apply to a companys relationship to society as readily as to its relationship to its customers and rivals. Furthermore CSR can be mu ch more than a cost, a constraint, or a charitable deedit can be a source of opportunity, innovation, and competitive advantage. In addition to helping companies differentiate themselves in an already crowded marketplace, social responsibility also inspires innovation within corporations thereby developing longer-term immunity and business sustainability. 4. Capitalism is evolving, and society is, too

Even investors are pulling away from companies that dont do go. This was recently evidenced when investment firms and stockbrokers pulled money away from BP due to its operations in Alaska. In addition to market reactions, society as a whole is also evolving. In the article titled The For-Benefit Enterprise, HareedSabetti notes that new trends are supporting these businesses, including Publ ic policy, financial markets, accounting standards, and professional services. As a result, Hareed predicts that We will see the emergence of a fourth sector of the economy, interacting with but separate from governments, nonprofits, and for-profit businesses. The rise of that sector is likely to reshape the future of capitalism. As the market evolves to support these for-benefit enterprises, early-movers and leaders have the most to gain from this shifting system. In other words, the sooner companies shift to being socially responsible, the more successful they will be in the future. 5. It is a moral imperative Nobody is better positions to create long-term, sustainable change than businesses. According to Michael E. Porter and Mark R. Kramer at the Harvard Business Review, When a well-run business applies its vast resources, expertise, and management talent to problems that it understands and in which it has a stake, it can have a greater impact on social good than any other institution or philanthropic organization. No matter the lens that you view a social enterprise through, they are becoming increasingly popular and beneficial. Whether it is a new or existing business, the future success of it will be increasingly tied to its ability to do good through its day-to-day operations. Since businesses have the greatest potential to improve the health of our planet and citizens, as they become prosperous, they have a moral obligation to improve the conditions of a system that has helped them succeed.

CONCLUSION For bringing back and maintaining the general balance in the economic and social arena it is evident to think deeply and act wisely about CSR. Every business house owe some responsibility towards the society, nation and world in general which provide it with all human , material and natural resources. Considering the long run growth and sustainable development following the norms of CSR , devising new policies and effective implementation is inevitable to bring and sustain a balance between corporate world and society, present generation and upcoming generation, man and nature . As far as the Tata group is concerned , it has gone a long way in fulfilling its duty and responsibility towards the society and the nation. It has reached the masses to elevate their lives, to nurture their dreams and to hone their skills justifying the statement of the founder We do not claim to be more unselfish, more generous and more philanthropic than other people. But we think we started on sound and straightforward businessprinciples, considering the interests of the shareholder, our own, and the health and welfare of the employees, the sure foundation of our prosperity.

FINDINGS it has to care for varied needs of the society

society and business seeking mutual benefit for the both. becomes instrumental in attracting customers, efficient personnel and investors.

Case: Lifebuoy SwasthyaChetna Hindustan Lever Limited (HLL) is a premier fast-moving consumer goods (FMCG) company operating in India. Its various products have been categorised into three broad groups- home and personal care, food and beverages , and industrial and agricultural . Lifebuoy is the brand name of toilet soap manufactured and marketed by HLL. This soap is positioned as a means for improving health and hygiene. In order to increase awareness of health and hygiene in rural India, HLL launched a five-year Lifebuoy SwasthyaChetna(LSC) programme in 2002 in eight states across India. The objective of this programme was to educate around 200 million people in rural areas about the importance of health and hygiene practices. The programme aimed to debunk the misconception that visibly clean is safe clean. It spreads awareness about germs and their adverse impact on health, and how proper health and hygiene practices, such as bathing and washing hands with soap could prevent diseases like diarrhea, the second largest cause of death among children in India. The LSC programme was implemented in various phases, HLL executives interacted with school children and other influencers like medical practitioners and panchayat members. People were educated about health and hygiene practices through lectures, demonstrations, use of visual aids, and quizzes. The programme used media vehicles like cinema vans, wall paintings , weekly markets, fairs and festivals. The programme was later extended to parents and other adults. The messages on health and hygiene were reinforced through regular contact programmes. Finally. Children and parents were recruited as volunteers to start health clubs that would help sustain the health and hygiene awareness. At each stage, LSC this as their own programme and felt a sense of ownership. For making LSC programme successful, HLL had committed Rs. 240 million to be spent over a period of five years. By the end of 2006, HLL had covered around 27,000 villages across the country. According to the company, LSC programme was not a philanthropic activity, but a marketing programme with a social benefit. HLL sought to grow the Lifebuoy brand in India by attracting those consumers who never used soap. In the company, the company sought to bring about a behavioural change by convincing people to use soaps more frequently, thus creating more users for its brands. On April 7, 2006, on the occasion of World Health Day, the Department of Posts of Govt. Of India released a special Lifebuoy SwasthyaChetna Postal Cover. The special cover was released in recognition of the Work done by HLL to increase awareness of health and hygiene in rural India.

Question with Answers 1) Comment on the social responsiveness of HLL that is reflected in LSC. The social responsiveness of HLL is clearly reflected in LSC Programme. Because, it has given emphasis on improving health & hygiene. It has spread awareness about germs & their adverse impact on health & hygiene practices, such as bathing and washing hands with soap . It could prevent diseases like diarrhea ,the second largest cause of death among children in India. For making more success to the programme, to the programme, the HLL executives interacted from grass route level e.g. School children. The HLL executives not only involved school children but also medical &panchayat members. HLL not only made this policy but also implemented it very well. The bright example of this is people were educated about health & hygiene practices. 2) In what way, will this programme benefit to the society? People can become more aware about their health programme . If the people will aware then the diarrhea and different type of skin diseases etc can be eradicated. Dangerous epidemic can be illuminated. As we know prevention is better than cures. If the people will first take all preventative measures than they can overcome from this situation. So , children , parents every member of the society can become more aware. 3) How can the HLL get the good social & commercial benefit through LSC? HLL can get the social as well as commercial benefit through the LSC Programme. The organization can get social benefit in following way: Through this programme, the people of the society can be aware. Then the different diseases can be protected. The health condition of the society can be developed. The organization also gets the commercial benefit in this way: When people will influence through the LSC Programme, then they will more concuss about their health. As a result, consumers will become more loyal to the Lifebuoy company. It will affect the corporate image of the company positively. The consumers will give more emphasis on the company rather than the other company. 4) Give the appropriate suggestions through which the LSC Programme can be more successful? The organization should try to motivate the people more about the necessecity of good health , because health is wealth. Then the huge number of people can become aware , if they will become aware then they can encourage more people ,then the number can be gradually increase. Many places, there is a dangerous problem. That is scarcity of water .So people may be hesitate to use soap always for washing & bath. If the organization will motivate to the people to save the water (to prevent the people for unnecessary use of water) & for

preservation of rain water, then the water resource can be saved to a great extent. In this way , the scarcity of water can be reduced. In this way the LSC programme can become more success.