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RESPONSIBILITY
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship or responsible business) is a form of corporate self-regulation integrated into
a business model. CSR policy functions as a self-regulatory mechanism whereby a
business monitors and ensures its active compliance with the spirit of the law, ethical
standards and national or international norms. With some models, a firm's
implementation of CSR goes beyond compliance and engages in "actions that appear to
further some social good, beyond the interests of the firm and that which is required by
law." The aim is to increase long-term profits through positive public relations, high
ethical standards to reduce business and legal risk, and shareholder trust by taking
responsibility for corporate actions. CSR strategies encourage the company to make a
positive impact on the environment and stakeholders including consumers, employees,
investors, communities, and others.
Proponents argue that corporations increase long-term profits by operating with a CSR
perspective, while critics argue that CSR distracts from businesses' economic role. A
2000 study compared existing econometric studies of the relationship between social and
financial performance, concluding that the contradictory results of previous studies
reporting positive, negative, and neutral financial impact, were due to flawed empirical
analysis and claimed when the study is properly specified, CSR has a neutral impact on
financial outcomes
Critics questioned the "lofty" and sometimes "unrealistic expectations" in CSR. or that
CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a
watchdog over powerful multinational corporations.
RESEARCH METHODOLOGY
The research papers suffers from certain limitations , for e.g. The limited access to
sources of data.
BOOKS
Approaches
Some commentators have identified a difference between the Canadian (Montreal school
of CSR), theContinental European and the Anglo-Saxon approaches to CSR.]It is said
that for Chinese consumers, a socially responsible company makes safe, high-quality
products; for Germans it provides secure employment; in South Africa it makes a positive
contribution to social needs such as health care and education. And even within Europe
the discussion about CSR is very heterogeneous.
A more common approach to CSR is corporate philanthropy. This includes monetary
donations and aid given to nonprofit organizations and communities. Donations are made
in areas such as the arts, education, housing, health, social welfare and the environment,
among others, but excluding political contributions and commercial event sponsorship.[24]
CSR Approaches
Another approach to CSR is to incorporate the CSR strategy directly into operations. For
instance, procurement of Fair Trade tea and coffee.
Creating Shared Value, or CSV is based on the idea that corporate success and social
welfare are interdependent. A business needs a healthy, educated workforce, sustainable
resources and adept government to compete effectively. For society to thrive, profitable
and competitive businesses must be developed and supported to create income, wealth,
tax revenues and philanthropy. The Harvard Business Review article Strategy & Society:
The Link between Competitive Advantage and Corporate Social Responsibility provided
examples of companies that have developed deep linkages between their business
strategies and CSR. CSV acknowledges trade-offs between short-term profitability and
social or environmental goals, but emphasizes the opportunities for competitive
advantage from building a social value proposition into corporate strategy. CSV gives the
impression that only two stakeholders are important - shareholders and consumers. Many
companies employ benchmarking to assess their CSR policy, implementation and
effectiveness. Benchmarking involves reviewing competitor initiatives, as well as
measuring and evaluating the impact that those policies have on society and the
environment, and how others perceive competitor CSR strategy.
Cost-benefit analysis
In competitive markets cost-benefit analysis of CSR initiatives, can be examined using
a resource-based view (RBV). According to Barney (1990) "formulation of the RBV,
sustainable competitive advantage requires that resources be valuable (V), rare (R),
inimitable (I) and non-substitutable (S)." A firm introducing a CSR-based strategy might
only sustain high returns on their investment if their CSR-based strategy could not be
copied (I). However, should competitors imitate such a strategy, that might increase
overall social benefits. Firms that choose CSR for strategic financial gain are also acting
responsibly.
RBV presumes that firms are bundles of heterogeneous resources and capabilities that are
imperfectly mobile across firms. This imperfect mobility can produce competitive
advantages for firms that acquire immobile resources. McWilliams and Siegel (2001)
examined CSR activities and attributes as a differentiation strategy. They concluded that
managers can determine the appropriate level of investment in CSR by conducting cost
benefit analysis in the same way that they analyze other investments.
Reinhardt (1998) found that a firm engaging in a CSR-based strategy could only sustain
an abnormal return if it could prevent competitors from imitating its strategy.
businesses that operate in international locations with labor laws that differ from
those in the United States.
Economic Responsibilities: A business exists to make a profit for shareholders. If
it fails to do so, it likely wont be able to pay its employees, taxes and other
obligations. A corporate social responsibility program (CSR program) cannot be
implemented until a business is profitable.
Legal Responsibilities: Following the law is the foundation of corporate
responsibility. A company cannot benefit society if it does not adhere to labor and
tax laws or applicable industry regulations.
Ethical Responsibilities: Once a company is profitable and meets its legal
responsibilities, it can move up the ladder to ethical responsibilities, which might
include paying higher wages, offering employees better benefits, avoiding trade
with unscrupulous companies or providing jobs to those who would otherwise
have difficulty finding work.
Corporate philanthropy ranges in size and scope, and can include everything from
donating time to a local charity to building a childrens hospital.
Undertaking socially responsible initiatives is truly a win-win situation. Not only will
your company appeal to socially conscious consumers and employees, but you'll also
make a real difference in the world. Keep in mind that in CSR, transparency and honesty
about what you're doing are paramount to earning the public's trust.
"If decisions [about social responsibility] are made behind closed doors, people will
wonder if there are strings attached, and if the donations are really going where they say,"
Cooney said. "Engage your employees [and consumers] in giving back. Let them feel like
they have a voice."
to organsition
Environmental benefits:
A major trend for CSR is implementing environmentally friendly models of operation in
which a company carefully facilitates its production and services. This focus produces
benefits for the environment using methods that are eco-friendly, while for the company,
reducing costs and increasing sales as the drivers. For example, Coca Colas innovative
environmental practices have significantly increased sales and delivered a sustainable
Social benefits:
Community outreach is a huge aspect of CSR which engages in philanthropic activities
and promotes NGOs and education, while it simply develops core values to guide the
behavior of a company. The core values that CSR helps emphasize lead firms to be more
organized and beneficial for society as well as more appealing to work with. The
incorporation of CSR into a business can benefit the ways that a company operates and
how it interacts with the community, other organizations including its customers, and the
society in general. Microsoft is listed as the leading company with the best CSR
reputation on Forbes and shows that what a company stands for is more valuable than
their product. In 2012, Microsoft engaged in a new social initiative called Microsoft
YouthSpark that created a connection for millions of students with education,
employment and entrepreneurship opportunities. The goal was to help young people
secure their futures and in return benefit the global economy. Microsoft was able to make
an impact in the lives of millions of young members of society and in 2012 the company
experienced an increase of $3.76 billion in revenue from the previous year. Dan Bross,
Microsofts Senior Director of Citizenship and Public Affairs claims, Our CSR efforts
have a direct and positive impact on people in our own backyard and around the world,
and in turn, their ongoing engagement with us contributes to Microsofts business
success. CSR proves to be a social investment that yields long term benefits because of
the positive impact it makes on society.
Financial benefits:
CSR projects lead to company growth resulting in more customers, higher revenue, and a
greater capacity to be more innovative. Employees and customers prefer to work with a
firm that they respect, thus leading to create a more stabilized staff and limiting the costs
of finding new employees. Among the benefits created by CSR activities, financial
returns are produced both directly and indirectly. Companies receive more recognition,
create new products, or simply become involved in new ways of both helping others and
making revenue. Investing in CSR can produce many benefits for the environment,
society and a companys well-being.
The benefits from CSR vary from company to company as each may focus on different
areas of improvement. As CSR continues to have a higher prevalence in China, more and
more companies are noting the benefits and positive outcomes of its value.
Improved financial performance: A recent longitudinal Harvard University
study has found that stakeholder balanced companies showed four times the
growth rate and eight times employment growth when compared to companies
that focused only on shareholders and profit maximization.
Enhanced brand image & reputation: A company considered socially
responsible can benefit -both by its enhanced reputation with the public, as well
as its reputation within the business community, increasing a companys ability
to attract capital and trading partners. For example, a 1997 study by two Boston
College management professors found that excellent employee, customer and
community relations are more important than strong shareholder returns in
CORPORATE SOCIAL
RESPONSIBILITY OF RELIANCE
Introduction
Reliance Industries Limited (RIL) is India's largest private sector enterprise with
businesses across the energy and materials value chain and a strong presence in the
As a responsible corporate citizen, RIL has embarked on several initiatives of scale in the
education, healthcare and livelihood domains. RIL endeavors to continuously learn from
its experiences and adapt its policies and implementation strategy on an ongoing basis
Policy
Policy At Reliance, business priorities co-exist with social commitments and our
activities support inclusive growth. Mukesh D. Ambani Chairman and Managing
Director
3.1.1 Conscious business decisions by the group have directly and indirectly created
value for multiple stakeholders and helped in improving lives of the people. RIL has
always believed in creating societal value by providing affordable products and services
which have assisted in the growth of relevant industries. Across all its areas of operations,
there are inherent linkages and interconnections with the immediate and long term
societal impact.
3.1.2 In addition, RIL impacts lives particularly of several hundreds of thousand
underprivileged people through our CSR activities.
3.1.3 RIL seeks to continue its contribution to the society through its distinct value
proposition that meets the needs of millions of people, enhancing their lives through
healthcare, improving quality of living by providing education and enabling livelihoods
by creating employment opportunities-through the following: a) For the Business- value
created for the society through business (including employment generation, market
growth, creating opportunities etc.) b) By the Business- value created through CSR
initiatives across different
operatingfacilitieswithappropriatelinkagestolocalcommunitiesinwhichtheyoperate. c)
Beyond Business- value created through interventions for the communities in diverse
geographies across India.
3.1.4 RIL has been involved in various Social Responsibility initiatives over the last
many years. These efforts have substantially improved the quality of lives of people
through health care, education, livelihoods and community development initiatives,
making their living experience dramatically better. These activities are spread across
India and reach well beyond our business locations impacting the lives of marginalized
communities.
3.1.5 To provide impetus to various Social Responsibility activities across the group,
Reliance Foundation (RF) was set up in 2010. Led by Smt. Nita M Ambani, RF has a
comprehensive approach towards development with an overall aim to create and support
meaningful and innovative activities that address some of India's most pressing
development challenges, with the aim of enabling lives, living and livelihood for a
stronger and inclusive India. Most CSR activities within RIL are carried out under the
umbrella of Reliance Foundation.
3.1.6 The key philosophy of all CSR initiatives of RIL is guided by three core
commitments of SIS: a) S- SCALE b) I-IMPACT c) S- SUSTAINABILITY
3.1.7 An endeavor is made to ensure that all initiatives undertaken by the group have an
impact on the beneficiaries in improving their lives. The initiatives also should be
replicable, scalable and sustainable on a long term basis.
3.1.8 RIL aims to continue its efforts to build on its tradition of Social Responsibility to
empower people and deepen its engagement with a view to improve lives, living and
livelihood of millions on a sustainable basis.
RIL aims to continue its work in the above mentioned areas and scale up further for better
reach, deeper engagement and impact. Key areas where RIL has been working and seeks
to continue its efforts are as under:
Rural Transformation
To work towards bridging the developmental gap between rural 'Bharat' and urban India
by improving livelihood, addressing poverty, hunger and malnutrition. Key initiatives
include:
a) Supporting Farm and non-farm livelihoods
b) Improving water conservation and rain-water harvesting
c) Developing community based initiatives like VFAs and producer companies towards
building capacity of the community and ensuring sustainability.
d) Using technology towards delivering need based information for improving quality of
life.
e) Improving food security and enhancing nutrition
f) Developing Community infrastructure
Healthcare
To address issues around affordability and accessibility of quality healthcare and bring
about improvement in awareness and health seeking behavior in various parts of India,
enabling a better living, through initiatives such as:
a) Primary, secondary and tertiary care facilities
b) Conducting need based health camps and providing consultation, medicines etc.
c) Working on maternal and child health
d) Behavioral change for improved mother and child health
e) Improving healthcare delivery through innovative outreach programmes
f) Working for the visually impaired
g) Working in the areas of Communicable and non-communicable diseases
h) Using technology for training, competency evaluation and clinical decision support for
medical professionals with a view to improve quality of healthcare
Education
To work on several educational initiatives to provide quality education, training, skill
enhancement for improving the quality of living and livelihood. Initiatives are aimed at:
a) Promoting primary and secondary education
b) Enabling higher education through merit cum means scholarships, including for
differently abled across the country.
c) Using sports as a tool for development of students in both urban and rural settings
d) Promoting higher education including setting up and supporting universities
e) Skill development and vocational training
Environment
To enable enhanced livelihood and quality of life, promote environment
sustainability through various initiatives for:
a) Ecological sustainability
b) Promoting biodiversity
c) Conservation of natural resources
d) Maintaining quality of soil, air and water
e) Promoting renewable energy
f) Developing gardens and river fronts
RIL to continuously strengthen its existing systems and processes to capture the impact
(social/economic and developmental) through its various initiatives across multiple
mediums. Periodic reports of CSR initiatives to be presented before the Corporate Social
Responsibility and Governance Committee (CSR&G) and Board of Directors of the
company.
Governance
Corporate Social Responsibility and Governance Committee (CSR & G
Committee)
a) RIL's Board of Directors have formed a CSR&G Committee. This committee, along
with the CSR team, to be responsible for the decision making with respect to RIL CSR
policy.
b) CSR&G Committee recommended the policy to RIL's Board of Directors and the
Board of Directors have approved this policy.
c) The Board level Committee to meet at least twice a year to review the implementation
mof CSR projects/ programs and give suitable direction
Budget
a) The Board of RIL to ensure that minimum of 2% of average net profit of the last 3
years is spent on CSR initiatives undertaken by RIL
b) All expenditure towards the programs to be diligently documented
c) In case at least 2% of average net profit of the last 3 years is not spent in a financial
year, reasons for the same to be specified in the CSR report
d) Any surplus generated out of the CSR activities not to be added to the normal business
profits of RIL.
Case study
Developing Trained Safety Professionals at Hazira
RIL Hazira recognized the need for trained safety professionals early on. In August 1996,
a Postgraduate Diploma Course in Industrial Safety was initiated in Surat by Reliance
Industries Limited in co-ordination with the Factory Inspection Office, Surat. This is a
two year part-time course with an intake capacity of 25 students. The course content is
designed to cover theoretical as well as practical aspects. Project work in a selected
industry and site visits to ten companies to study and analyse their Health, Safety and
Environment systems are integrated into the course curriculum. Examinations are
conducted every year and certificates awarded to successful candidates. The certificate is
awarded by the Technical Education Board, Gandhinagar, Government of Gujarat and
approved by the All India Committee for Technical Education (AICTE) New Delhi. This
course is intended for working professionals who want to make a career and enhance
their knowledge in the field of safety management. In a span of 8 years, Reliance has
created nearly 200 trained safety professionals.
Extended Learning Programme
The Extended Learning Programme offered at RIL also goes a long way in boosting
employees' morale, enhancing employability, and providing growth opportunities to the
employees. Keeping this in mind, the following courses/programmes are
offeredEmployees engaged in technical jobs with no formal educational qualifications
undergo a specially developed engineering degree programme designed and conducted by
RIL in association with the Indian Institute of Technology (IIT-Mumbai and Sardar
Vallabhbhai National Institute of Technology (SVNIT), Surat. Employees who
successfully complete these programmes are given further responsibility and growth
opportunities within the organization. Selected engineers undergo specially designed
management development programmes such as Management Programme for Reliance
Livelihood Support
A one-day training programme was organised on 21st May 2013 for local womenfolk on
post harvesting and marketing practices of fish products. 39 women from Gadimoga,
Laxmipathipuram and Chinavalasala villages were trained in making fish and prawn
pickle. Technical support was provided by the Central Institute of Fisheries Technology,
Visakhapatnam.
Employment of Local People
About 250 community members from Gadimoga and Bhairavapalem habitations are
being engaged in various maintenance works in the KG-D6 plant. The individuals work
in skilled, semi-skilled and unskilled categories.
Health Programmes
The Health for all initiative focuses on the provision of good quality primary care
through its mobile and static medical units and caters to the needs of the lower income
group families in the area. It also aims at establishing an effective referral system to
streamline the flow of patients to the higher centres of care. More than 350,000
individuals have enrolled for the services and nearly 52,600 patients have benefitted from
the services within one and half years of initiating the programme. Similar mobile
medical units are operating in Uttarakhand and Madhya Pradesh. More than 14,300
patients from nearly 150 villages in Madhya Pradesh and Uttarakhand have benefitted
from the services of the mobile medical units in this year.
CONCULSION
Organizations are coming to realize the bottom-line benefits of incorporating
sustainability into their DNA. Its beneficial for attraction and retention and its the right
thing to do. HR is a key organizational leader and can take the lead or partner with other
executives to work cross-functionally to integrate CSR objectives into how business gets
conducted. HR practitioners can act as translators of the organizations CSR commitment
vertically and horizontally across departments. Most will find upon reading this report
that they have many good practices underway. Many will find they have a new structure
for their thinking they can apply practically in the workplace. Some will believe the
current economic downturn will put these ideas on the backburner until the economy
rebounds, while others think that organizations which abandon their CSR integration in
the downturn will lose ground and breed cynicism in brighter times. Regardless of the
point of view, all agree that effective HR leadership on CSR integration requires
Board, CEOand executive commitment to be successful. Indeed, the roadmap is
predicated on the assumption of this top level commitment. However, more and more
organizations are committing to sustainability and to embedding CSR into all that we
do, so it is hoped the 11 steps provide some guidance as to how to go about doing this.
The firm of the future is expected to have undergone significant transformation such that
CSR no longer becomes managed as a separate deliverable, but is part of the experience
of being an employee in an organization that lives its values. For human resource
professionals embarking on CSR or deepening their CSR experience, this roadmap can
help them understand their role in sustainability and CSR and how they can foster an
environment that embeds a CSR ethic in the way we do business around here.
The industrialised countries of the world benefit from the lower costs of labour in countries such as
Bangladesh and India. However, more consumers are now asking if this is ethical and
questioning its sustainability.
Some trade-offs between stakeholder needs are inevitable. CSR does not come free. It
involves a real commitment of resources, management time and energy. On the other
hand, as studies of the HERproject in other countries have shown, each dollar invested in
the health of female employees can yield more than three dollars in business benefits. In
addition, the improvements in human well-being are incomparable. Despite criticism of
globalisation, business and trade can be a force for good. This is increasingly recognised
in the ways that consumers assign values to brands. Primark is making progress in taking
on wider responsibilities and devising relevant projects that work on the ground. It has
done this with help from NGOs and organisations such as BSR. Its approach with the
HERproject is not purely about business benefits, but focused on making a difference to
the lives of its supplier workers.
To date, 4,500 women in Primarks factories have been trained under the HERproject in
Bangladesh. The project results have shown such benefit that the project is being rolled
out to Primarks and India. Primarks ongoing involvement with the women workers in
Bangladesh and other supplier countries will help to provide it with a sustainable and
ethical business model.
References
. http://www.rilfra.com
http://www.reliancepower.co.in
. http://en.wikipedia.org/.wiki/evolution_corporate_social_responsibillity_in_india
. www.mallenbanker.net
. http://en.wikipedia.org/wiki/Reliance_Retail 10. http://home.redfame .com/csr/