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11 CSR

Corporate social responsibility (CSR) involves businesses making ethical and sustainable decisions that consider stakeholders, the law, and the environment. CSR includes philanthropic donations, operating responsibly through integrity and fairness, and being a good citizen through legal compliance, community investment, and environmental stewardship. While CSR was once seen narrowly as philanthropy, it now encompasses how companies manage their environmental and social impacts and relationships. Proper CSR requires identifying risks, preventing pollution, conserving resources, and engaging with stakeholders to develop formal CSR policies and strategies.

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207 views25 pages

11 CSR

Corporate social responsibility (CSR) involves businesses making ethical and sustainable decisions that consider stakeholders, the law, and the environment. CSR includes philanthropic donations, operating responsibly through integrity and fairness, and being a good citizen through legal compliance, community investment, and environmental stewardship. While CSR was once seen narrowly as philanthropy, it now encompasses how companies manage their environmental and social impacts and relationships. Proper CSR requires identifying risks, preventing pollution, conserving resources, and engaging with stakeholders to develop formal CSR policies and strategies.

Uploaded by

Munnah Bhai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Corporate Social

Responsibility
Dr Safdar A Butt

1
Concept
Business decision making linked with:
 Ethical values

 Compliance with the law

 Respect for people, communities and the


environment.

2
Another definition
Lord Holme and Richard Watts define CSR as:
 CSR is the continuing commitment

 By a business firm (company)

 To behave ethically, and

 Contribute to economic development

 While improving the quality of life of:


 the workforce
 as well as the community and society at large.

3
The American &
European Concepts
 American businesses mostly think CSR is only
about giving money for worthy causes.
 Europeans think CSR is a tool for promoting
business. Treat the society well so that society
can buy your products. Do more CSR when
times are bad.

4
Trusteeship Theory
 Companies really does not belong to any one.
 Shareholders own share of “what remains” but
not specific assets of the company.
 Directors hold the assets of the company in
trust on behalf of not just shareholders but the
society at large.
 A company is a social asset.

5
Historical Perspective
 CSR came in fact much after Business Ethics.
 Business have learned that chasing only profit
does not give enough profit;
 CSR can actually improve their profitability and
sustainability of their ventures.

6
Scope of CSR
 Philanthropy
 Doing Business Responsibly
 Being a good citizen

7
Philanthropy
 Financial donations to worthy causes
 Do not just throw away money – be careful
 Do not wait for disasters to show your kindness

 Setting, running or supporting socially desirable


bodies.
 Monitoring and evaluating them in the process
 Supplementing the governmental efforts
towards social welfare

8
Doing business responsibly
 Essentially ethics.
 Integrity in all that you do
 Fairness
 To every one: employees, clients, suppliers, all
 Protection of all stakeholders’ interest
 Serving the common interest of all stakeholders

9
Being a good citizen
 Compliance with law.
 Paying your dues
 No tax evasion, directly or indirectly
 Investment in community:
 Capital nature rather than recurrent
 Concern for environment

10
Concern for Environment
 Eco-balance
 Deforestation
 Soil degradation

 Atmospheric changes

 Pollution
 Waste/Discharges management
 Depletion of resources
 Emphasis on creating re-usable resources

11
Environmental Risk Management
 Identify and define risks being posed (or faced)
by the company.
 Establish the extent and probability of risks.
 Asset cost of:
 When the risk takes place
 Preventing it from happening

 Assign specific responsibility

12
ERM -2
 Define means of handling it.
 Preventing it through:
 Better technology
 Better materials

 Better maintenance

 Insurance
 Actual loss
 Claims against the company

13
Strategies for
Prevention of Industrial Pollution
 Environmental processes’ audit
 Waste management audit
 Material usage review
 Non-solid effluents audit

 Financial considerations
 Cost benefit analysis of being eco-balanced
 Use of new cleaner technology
 Life cycle assessments

 Spreading awareness among users


14
Resource Management
 Energy resources (fossil fuels vs. others)
 Re-cycling of materials
 Using re-cycled material
 Using bio-degradable material

 Conservation of life supporting systems


 Forests, tree, water sources
 Wild life

 Responsible use of land

15
EP Law
 The law is there.
 EPA has been set up.
 But law does not make any one responsible.
 Companies have to want to be environmentally
responsible.

16
Some Big
Environmental Disasters
 Chernobyl Nuclear Disaster (1986)
 Nuclear reactors went berserk
 Exxon Valdez (1989) in Alaska
 11.5 million barrels of crude spilled
 Tokiamora Accident (1999)
 Nuclear radiation leaked
 Bhopal Tragedy (1984)
 Leakage of poisonous gas, killing 300 and affecting 400,000
persons
 Gulf of Mexico (2010)
 Leakage of crude oil, polluting virtually the entire gulf

17
Shades of CSR
 Official posture and reality
 Spending more money on publicizing CSR than
actual CSR work.
 Lip service: strings attached help
 IPPR says most CSR is lip service

18
CSR – Who is watching
what?
 Institutional investors
 PIRC provide web based data on how
companies are acting on CSR, ethics,
environment, etc.
 Regulators / Kings Report in SA
 Disclosure Requirements

19
Formulating CSR Policy
 Set a Code of Ethics outlining CSR Values
to be upheld
 Establish current position on CSR values
 Discuss with relevant stakeholders
 Employees
 Pressure groups

 Clients

 Draw up a formal CSR Policy

20
CSR Policy
 Formally promulgate the CSR policy
 Prescribe systems
 Establish responsibility for each party
 Set realistic strategies and targets
 Keep all concerned informed
 Monitor achievements
 Revise policy or targets as necessary

21
Bench Marking in CSR
 You do as much as others are doing.
 Can any one set “minimums”?
 Who ensures compliance?
 How to monitor compliance?

22
CSR in Pakistan
 Mostly companies consider philanthropy to be
the only means of CSR.
 However change is coming.
 Telenor’s Karo Mumkin
 PTC’s tree planting
 Mobilink’s medical helpline

23
CSR Survey
People in Pakistan want companies to:
 Promote education

 Create employment

 Provide health care to public

 Reduce pollution

 Provide better work place

24
Thank you
Dr S A Butt

25

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