5 mainstreaming csr group 5 setion_c (1)

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Mainstreaming CSRGROUP 5ANKIT SAKLANI, 13P125ASHIMA TAYAL, 13P130JAIN HIMANSHU HEMANT, 13P143KAUSHIK TRILOK NIHALANI, 13P148RATTANPREET SINGH, 13P161SHASHANK SHUKLA, 13P166

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Corporate Social Responsibility

Concensus Definition Obligations of the firm to the society

Precise Definition CSR is understood to be the way firms

integrate social, environmental and economic concerns into their values, culture, decision making, strategy, operations n a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society

Concise Definition Beyond law commitments and activities

pertaining to a wide range of programs

It Encompasses► Corporate Governance and ethics programs► Health, safety and environment programs► Human and labor rights► Human resource management policies► Community involvement► Respect for indigenous groups and

minorities► Corporate philanthropy and employee

volunteering► Principles of fair competition, anti-bribery

and anti-corruption measures► Accountability, transparency and

performance reporting► Responsible supplier relations

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Mainstreaming

That the activity under consideration is seen to be on the company’s agenda in a legitimate, credible and ongoing manner and it is incorporated into day-to-day activities in appropriate and relevant ways.

For something to be mainstreamed it needs to be included in the company’s

Policy development

Technical tools

Performance measures

Political agenda setting processes

Coupled(Well

funded, Highly visible, firm’s

identity)

Decoupled(Short term,

easily terminated, not diffused

in other aspects)

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Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights

Principle 2: make sure that they are not complicit in human rights abuses

LabourPrinciple 3: businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour

Principle 6: the elimination of discrimination in respect of employment and occupation

http://www.unglobalcompact.org/abouttheGc/TheTenprinciples/principle1.html

http://www.unglobalcompact.org/abouttheGc/TheTenprinciples/Principle2.html

5Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges

Principle 8: undertake initiatives to promote greater environmental responsibility

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-corruption

Principle 10: businesses should work against corruption in all its forms, including extortion and bribery




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CSR Literature

• Focused on how customers respond to CSR at individual level• CSR have positive effect on consumer's attitude

Research emanating from

Marketing

• Whether the firm should engage in CSR and its effect on financial bottom line

• Positive relationship between CSR and profitability• Jantzi Social Index

Research emanating from Management

Literature

Different views on CSRMilton Friedman’s View► Maximize wealth► Enterprise dependent and accountable to stakeholders► Firms go through different stages of CSR: Elementary, transformational, value-led

programs

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Vogel’s Conceptualization

CSR activity as a function of an external market for virtue

Markets vary in their demand for CSR: Socially conscious market& Social Economic Market

Firms may vary in their inclination towards CSR performance: CSR sensitive suppliers & Business as Usual Suppliers

Existence of Heterogeneity in market demand and supply

Society has created varying demand for business virtue & firms have responded, rewarded accordingly

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Normative Logics

Business Case Model

Social Values led Model

Syncretic Stewardship Model

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Business Case Model

CSR relevant when it translates to a competitive advantage to the firm

Characterstics

Existence of standards so that socially conscious consumers have a decision criteria

CSR does not raise the consumer’s price drastically

Enabled the company to leverage its core competence in a manner that expands the market for CSR

Mainstreaming CSR means aggressively pursuing business opportunities with a CSR dimension

CSR entrepreneurs in these firms only use economic arguments to advocate CSR

CSR efforts restricted to organizational silos where business case is clear

Employees perceived the firm’s commitment as less than genuine

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Social Values led Model

CSR defined around a particular social issue

Mainstreamed as a force that drove the organization

Noneconomic criteria and the stakeholders associated with them are dominant

Economic criteria and external market for virtue are irrelevant

It is a hybrid organization between for-profit and non-profit sectors

Social vision integral to the fabric of the firm right from inception

Establish authenticity of its business purpose and goals

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Syncretic Stewardship Model

Syncretism is combination of different beliefs or practice

Has constituents that impact profitability and social concerns

Encompass a larger and more diverse set of stakeholders

Often rife with paradoxes and contradictions

CSR narrative is complex, nuanced, negotiated

CSR Entrepreneurs need to be effective politicians and diplomats who can negotiate, persuade and communicate among internal and external stakeholders

Motivation often appeared to be mixed – economic and noneconomic

Emphasis on how CSR impacts company culture

Striking a balance between demand and rewards for noneconomic vs economic criteria at the individual and organizational level

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Feature Business Case Social Values led Case

Syncretic Stewardship case

Role of the external virtual market

Dominant driver of CSR Secondary influencer of CSR

Important, integrated influencer of CSR

Role of the internal virtual market

Weak in influencing CSR Dominant influencer of CSR

Important, integrated influencer of CSR

Objectives Economic Noneconomic Economic / Noneconomic

Bottom Lines Financial Social/Noneconomic Balanced, mixed

Key Challenge Find nexus of business opportunity and social responsibility

Business viability Balancing economic and noneconomic criteria

Narrative Competitive advantage Evangelism Interdependence

CSR Leadership philosophy

Primacy of stockholders True-believer in social cause

Servant of diverse stakeholders

CSR Mainstream Orientations

13SPICE (Society, Partner, Investor, Customer, Employee)

Social Model

SPICE

Business Case ModelP

ICE

SS

I,E

C,P

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Internal Market for Virtue

The internal market for virtue captured the extent and

manner in which CSR actions are demanded, encouraged

and rewarded by senior managers and board of directors as well as the

propensity of employees to provide, supply or deliver on

such demand

Quantity of CSR

Inte

rnal p

rice o

f C

SR

Business Oriented

Syncretic steward

Value Led

Standard self interest

Social Entrepreneurs

Socially Conscious

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Degree to which performance improvement &excellence are rewarded

Business Case firms

•Rewarded for achievement of economic goals

Social Values led firms

•Rewarded for achievement in non-economic goals

Syncretic stewards

•Rewarded for balance of economic and non-economic goals

Business Case firms•Considerable power distance between the company and non-profit social partner•The firm wielding power


•Counter intuitively, there were power distance differences•Founder regarded as a messiah-like person•Founder wields power

Syncretic stewards

•Power distance low •Participation by both internal and external stakeholders•Increased employee participation in CSR initiatives

Performance orientation

Power distance

Degree to which members of a collective expect power to be distributed unequally

Cultures of CSR

16Degree to which organizational members use norms, rules or procedures to alleviate unpredictability

Business Case firms•Highest on uncertainty avoidance•Planned extensively, had to produce quarterly results•Followed well established routines


•The lowest on uncertainty avoidance•Founders of the firms moved forward with a strong sense of mission not understanding how to accomplish it

Syncretic stewards

•– low on uncertainty avoidance•Understood the possibility of conflicting duties and problems•Relied on negotiations and creative approaches to problem solving

Business Case firms

•These firms put profits and timelines before people


•High on human orientation•Focus on people and their quality of life high

Syncretic stewards

•High on human orientation•Focus on people and their quality of life high

Uncertainty avoidance

Humane orientationDegree to which organization rewards individuals for being fair, altruistic and caring. It can be judged by how the firm treats its employees, external stakeholders

17Degree to which individuals are confrontational or aggressive in their relationships

Business Case firms•High on assertiveness•Highly confrontational and competitive internally, pitting one group against the other


•Highly assertive when it came to making decisions about their focal issue, but were less aggressive in their approach

Syncretic stewards

•Mixed and nuanced on assertiveness•Were less assertive while dealing with stakeholders but more assertive with the press or industry trade groups

Business Case firms

•low on future orientation and more short term in their CSR planning

•They need to be flexible and adapt to changing market conditions quickly


•Mid-range in future orientation•Clearly understood their long term challenge of dealing with a major social issue

Syncretic stewards

•highest in future orientation•Saw the importance of stakeholder engagement as a route to long-term legitimacy and viability

Assertiveness

Future orientationDegree to which organization encourages its members to plan for the future versus the present

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Cultures of CSR

Dimension of organizational

culture

Business Case Social Values led Syncretic Stewards

Performance High on Economic High on Noneconomic High on economic / Noneconomic

Power Distance High Mixed Low

Uncertainty High Very Low Low

Humane Low High High

Assertiveness High High Mixed

Future Low Low to Medium High

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In Conclusion

Many large public companies, at least in Europe and North American multi-nationals are adopting the Syncretic Stewardship Model in stead of the Business case model

Firms internal market is playing a very crucial role in the way CSR is integrated and mainstreamed into the regular operations of the company

In the long run, the companies following Business Case model need to look into the social implications to stay socially relevant. Companies following the Social Values model need to look into the financial sustainability of the project as well

Hence, we can conclude that to remain socially relevant and sustain the initiative over a longer period of time, all the companies will soon start following the Syncretic Stewardship Model

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Thank You