Corporate Social Responsibility

• Corporate social responsibility is the term used to describe the way that a business takes into account the financial, environmental and social impacts of decisions and actions it is involved in.

• It is an increasingly important issue in business, as managers, consumers, investors and employees have begun to understand how economic growth is linked to social and environmental well-being.

Why is it important to organizations?

• There have been increased demands from employees, customers and government bodies for businesses to be more open about their activities and that they reach and maintain acceptable standards in their business practice.

• For employers, CSR is now seen as an important way to increase competitive advantage, protect and raise brand awareness and build trust with customers and employees.

Types of corporate social responsibility

• Here are a few of the broad categories of social responsibility that businesses are practicing:

Environment

• One primary focus of corporate social responsibility is the environment.

• Businesses, both large and small, have a large carbon footprint.

• Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

Philanthropy(Charity)

• Businesses also practice social responsibility by donating to national and local charities.

• Whether it involves giving money or time, businesses have a lot of resources that can benefit charities and local community programs.

Ethical labor practices

• By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility.

• This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

Methodology of Corporate Social Responsibility

• CSR is the procedure of assessing an organization’s impact on society and evaluating their responsibilities.

• It begins with an assessment of the following aspects of each business:

1. Customers 2. Suppliers 3. Environment 4. Communities 5. Employees

Examples of Corporate Social Responsibility in India

• Tata Group in India has a range of CSR projects, most of which are community improvement programs.

• For example, it is a leading provider of maternal and child health services, family planning, and has provided 98 percent vaccination in Jamshedpur.

• The company also endorses sports as a way of life. It has established a football academy, archery academy, and promotes sports among employees.

• It offers healthcare services all over the country with programs like rural health development. -

Aptech

• Aptech a leading education player with a global presence that has played a broad and continued role in encouraging and nurturing education throughout the country since its inception.

• As a global player with complete solutions-providing capabilities, Aptech has a long history of participating in community activities.

• It has, in association with leading NGOs, provided computers at schools, education to the deprived, and training and awareness-camps.

Infosys• Infosys is aggressively involved in a

variety of community growth programs. • In 1996, the company created the Infosys

Foundation as a not-for-profit trust to which it contributes up to 1 percent of profits after tax every year.

• Moreover, the Education and Research Department at Infosys also works with employee volunteers on community development projects.

• The management team at Infosys continues to set examples in the area of corporate citizenship and has involved itself vigorously in key national bodies.

• They have taken initiatives to work in the areas of research and education, community service, rural outreach programs, employment, healthcare for the poor, education, arts and culture, and welfare activities undertaken by the Infosys Foundation.

Mahindra & Mahindra • At Mahindra & Mahindra, The K. C.

Mahindra Education Trust was established in 1953 with the purpose of promoting education.

• Its vision is to renovate the lives of people in India through education and financial assistance across age groups and across income strata.

• The K. C. Mahindra Education Trust undertakes a number of education plans, which make a difference to the lives of worthy students. T

• he Trust has provided more than Rs. 7.5 crore in the form of grants, scholarships and loans.

• It promotes education mostly by the way of scholarships. T

• he Nanhi Kali (children) project has over 3,300 children under it and the company aims to increase the number to 10,000 in the next two years by reaching out to the underprivileged children, especially in rural areas.

ICICI Bank Ltd

• The Social Initiatives Group (SIG) of ICICI Bank Ltd works with a mission to build the capacities of the poorest of the poor to participate in the larger economy.

• The group identifies and supports initiatives designed to break the intergenerational cycle of poor health and nutrition, ensure essential early childhood education and schooling as well as access to basic financial services.

• Thus, by promoting early child health, catalyzing universal elementary education and maximizing access to micro financial services.

• The SIG works by understanding the status of existing systems of service delivery and identifying critical knowledge and practice gaps in their functioning.

• It locates cost effective and scalable initiatives and approaches that have the potential to address these gaps and supports research to understand their impact.

Dalmia Cement (Bharat) Limited

• The water source for the villages in and around the Dalmia Cement factory is dependent on rains. During summer months, the villagers. Considering the difficulties and hardship faced by the people, the company, took the initiative of making water availableby:

• Providing deep bore wells. So far, 45 bore wells have been provided in various villages, namely Kallakudi, Pullabmadi, Edayathankudi etc. Approximately, 300 to 400 people get adequate drinking water from each bore well.

• Water tanks to store the water.• Rain and seepage water is harvested in

the quarries of the company is pumped into a tank and supplied to inhabitants.

• 44,000 trees were planted and nurtured over a period of eight years.

CISCO System Inc.

• Philanthropy at Cisco is about building strong and productive global communities - communities in which every individual has the means to live, the opportunity to learn, and the chance to give back.

• The company pursues a strong “triple bottom line” which is described as profits, people and presence.

• The company promotes a culture of charitable giving and connects employees to nonprofit organizations serving the communities where they live. Cisco invests its best-in-class networking equipment to those nonprofit organizations that best put it to work for their communities, eventuating in positive global impact.

• It takes its responsibility seriously as a global citizen. Education is a top corporate priority for Cisco, as it is the key to prosperity and opportunity.