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Intrroduction to CSR

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Dipankar BHattacharya
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10 views

Intrroduction to CSR

Uploaded by

Dipankar BHattacharya
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to CSR

What is CSR
Corporate social responsibility (CSR) is a broad business concept. It
usually describes a company's commitment to carry out its business in
an ethical way. This means managing their business processes while
taking account of their social, economic and environmental impact, and
considering human rights.
1. Sustainability: Ensuring that business practices are sustainable and do not harm the environment.

2. Stakeholder Engagement: Considering the interests and well-being of various stakeholders including
employees, customers, communities, and shareholders.

3. Transparency: Maintaining transparency in business operations and decision-making processes.


Legal Framework:

 Companies Act, 2013: India was the first country to mandate CSR through its Companies
Act of 2013. According to this Act, companies meeting certain criteria (such as a net worth
of ₹500 crore, revenue of ₹1,000 crore, or net profit of ₹5 crore) are required to spend at
least 2% of their average net profits of the previous three years on CSR activities.

 Schedule VII: This schedule of the Companies Act specifies the areas where CSR funds
should be allocated, including education, healthcare, environment, rural development, and
more.
CSR Areas in India:
1. Education: Many Indian companies invest in educational initiatives, including building
schools, providing scholarships, and supporting skill development programs.
2. Healthcare: CSR activities often include setting up hospitals, clinics, and health camps
to improve community health.
3. Environment: Companies engage in activities such as afforestation, water conservation,
and waste management to address environmental issues.
4. Rural Development: Companies support rural development projects including
infrastructure development and livelihoods enhancement.
5. Women Empowerment: Initiatives include supporting women entrepreneurs, providing
vocational training, and promoting gender equality.
Benefits of CSR for Companies
1. Enhanced Reputation: Companies that actively participate in CSR often enjoy a better
reputation among customers, investors, and the public.

2. Employee Satisfaction: CSR activities can lead to higher employee morale and retention,
as employees feel proud to work for a socially responsible company.

3. Customer Loyalty: Consumers are increasingly favoring brands that demonstrate social
responsibility, leading to increased customer loyalty.

4. Risk Management: CSR helps companies manage risks related to social and
environmental issues, potentially avoiding conflicts and scandals.
. Challenges in Implementing CSR

1. Lack of Awareness

2. Implementation Costs

3. Measuring Impact

4. Regulatory Compliance
Companies known for its CSR
initiatives
1. Tata Group: Tata Group invests in education, health, and rural development.
2. Infosys: They support various educational institutions and vocational training programs.
3. ITC Limited: “E-Choupal” program, which supports farmers by providing them with information and
resources to enhance their productivity.
4. Microsoft: AI for Accessibility' initiative centers around the creation of AI-driven tools aimed at
enhancing the quality of life for individuals with disabilities.
5. Google: The company aims to operate on 24/7 carbon-free energy by 2030
6. IBM: 'Corporate Service Corps' sends teams of employees on global assignments to tackle pressing
societal issues
7. Starbucks:'Coffee and Farmer Equity (C.A.F.E.)' program supports coffee farmers, promotes sustainable
agriculture
Emerging trends in CSR

• Employees involvement in CSR

• Sustainability

• Green Building

• Skill Development

• Mental Health
Companies with bad CSR reputation

•BP (British Petroleum): The Deepwater Horizon oil spill in 2010.

•Volkswagen: The emissions scandal (Dieselgate) in 2015.

Nestlé: Multiple controversies, including the promotion of infant formula in developing countries

•Amazon: Incident: Criticism over labor practices and environmental impact.

•Coca-Cola: Incident: Accusations related to water usage, pollution, and unhealthy products.

•Facebook (now Meta):Data privacy scandals, misinformation, and mental health concerns.

•Nike: Labor practices in supply chains.


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