Bc Report on Csr Final

8/10/2019 Bc Report on Csr Final

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CORPORATE SOCIALRESPONSIBILITY

Submitted to: Sir Abdullah

Submitted by:

Asma Siddiq

Zaib Mirza

Submitted on: 10th

- June -2014


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Table of Contents1. Introduction ........................................................................................................................................................................5

1.1. Evaluation of concept ............................................................................................................................................... 5

1.2. History ........................................................................................................................................................................... 5

2. What is Corporate Social Responsibility ..............................................................................................................6

2.1. Definition ........................................................................................................................................................................ 6

3. Need for Corporate Social Responsibility ...........................................................................................................8

4. Four pillars of CSR...9

4.1. Focus .............................................................................................................................................................................. 9

4.2. Commitment ............................................................................................................................................................... 9

4.3. Integration ................................................................................................................................................................... 9

4.4 Transparency ................................................................................................................................................................ 9

5 Responsibilities of CSR ................................................................................................................................................10

5.1. Economic Responsibility .................................................................................................................................... 10

5.2. Legal responsibility ................................................................................................................................................ 10

5.3. Ethical Responsibility .......................................................................................................................................... 105.4. Philanthropic ........................................................................................................................................................... 11

6 CSR and Long-Term Business Success12

6.1. The importance of CSR in a competitive market12

6.2. Business Branding and Winning Customers ............................................................................................... 12

6.3. Recruitment and Human Resources ............................................................................................................... 12

6.4. Risk Management .................................................................................................................................................. 12

6.5. Government Support and Incentives .............................................................................................................. 13

7 Implementing CSR .........................................................................................................................................................13

8 How CSR is changing with Globalization ............................................................................................................14

8.1. Business Case ............................................................................................................................................................ 148.1.1. Improved Financial Performance ................................................................................................................ 14

8.1.2. Slide in Operating Costs14

8.1.3. Brand Image and Reputation. 15

8.1.4. Growing Sales and Customer loyalty15

8.1.5. Productivity and Quality Enhancement.. 15

8.1.6. Employee Retention ... 15

8.1.7. Less Scrutiny by Regulatory Bodies ............................................................................................................ 15

9. HOW DOES CSR FIGURE IN THE PAKISTAN CONTEXT ...............................................................................16

9.1 CSR Practices in Pakistan.16

10. Survey 17-18

11. Data Analysis ......... 19

12. Methodology 20

13. Conclusion . 20

14. RECOMMENDATION FOR CSR STRATEGY.. 21

15. References . 22

16. Appendix . 23


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Letter of Memo

Topic:Corporate Social ResponsibilityConclusion:Corporate Social Responsibility is a difficult and elusive topic for companies to deal

with. It can often be very costly and yield benefits that are hard to quantify.

Perhaps this is one reason why companies, according to the survey, have put so much

focus on the internal improvements that can be made, such as improving corporate

governance and transparency. This could also explain why the most important

stakeholders, after customers, are the traditionally important employees and shareholders.

Recommendation:There exists a dire need to improve the quality and quantity of corporate social

responsibility. A wide-ranging and multi -tiered awareness campaign needs to be

organized in order to make the various stakeholders and businesses understand the

necessity and advantages of CSR and remove any misconceptions related to it.

Authorization:

We would like to confer our heartiest thanks to our coordinator of Business

Communication Sir Abdullah for giving us the opportunity to expel and work in the field

of Business Communication. While preparing our term paper we got to have an in depth

knowledge of practical applications and definitely the things which we have learned willundoubtedly help us in future, to analyze many processes going on in our economy.

We would also like to thank all those people who directly or indirectly helped us in

accomplishing this project.


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Literature Review

Competitiveness of corporate sector is a very broad multi-dimensional concept that

embraces numerous aspects such as price, quality, productivity, efficiency and

macro-economic environment as well as the ethical behavior and the social

responsiveness of a company. There are numerous studies on Corporate Social

Responsibility published by industry associations, consultancy organizations,

research bodies and peer-reviewed journals. In many countries the businessman

has been under incessant attack both by the government and the public. Many

reports such as Ambreen Waheeds report on RBI (responsive business initiatives)(2005), the P. C. Mahalanobis Committee Report on the Distribution of Income

and Levels of Living (1964); K. C. Dasgupta Report on Monopolies (1965), Prof.

Hazaris Report on the Industrial

Licensing System (1966) and the Dutta Committee Report on Industrial Licensing

Policy (1969) are very critical of the unethical role of the Businessman today. In

this section, various studies on the Corporate Social Responsibility are reviewed,

under different heads pertaining to ethical behavior, namely, importance and need

for CSR, implementation.


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1. Introduction

1.1 Evolution of the concept

The phrase Corporate Social Responsibility wascoined in 1953

with the publication of Bowen's 'Social Responsibility

of Businessmen', which posed the question 'what

responsibilities to society can business people be

reasonably expected to assume? Writing on the

subject in the 1960s expanded the definition,

suggesting that beyond legal obligations companies

had certain responsibilities to society. In 1984, the celebrated management consultant

Peter Drucker wrote about the imperative to turn social problems into economicopportunities.

Throughout the 70s and 80s academic discussion of the concept of CSR grew, but the

first company to actually publish a social report was Ben and Jerry's in 1989, and the first

major company was Shell in 1998.

1.2 History

The CSR concept evolution started with the concerns related to the damage created bybusiness on environment and society at large by way of activities linked to their business

operation. Businesses are expected to clean up the mess they have generated to the

environment. Until the 1980s CSR was considered same as corporate philanthropy. The

current CSR concept started formulating in early 80s. In 1980s and1990s events like

Shell spoiling the environment and violating the human rights in Nigeria started a new

wave of criticism which triggered a completely different thinking on CSR and hence

many CSR definitions emerged during this period. Customer expectations and demand

for clean and green companies have led to a number of benchmarks and guidelines,

such as the Sullivan Principles, the UN Global Compact etc. Hence, CSR has continuedto evolve rapidly over the last thirty years and companies now all over the world are

expected to engage in CSR activities to be recognized as a socially responsible company

that not only looks after the interests of itself but also after the interests of the society


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2. What is CSR?

CSR is a concept that frequently overlaps with similar

approaches such as corporate sustainability, corporate

sustainable development, corporate responsibility, andcorporate citizenship. While CSR does not have a

universal definition, many see it as the private sector's

way of integrating the economic, social, and

environmental imperatives of their activities. As such,

CSR closely resembles the business pursuit of

sustainable development and the triple bottom line. In

addition to integration into corporate structures and

processes, CSR also frequently involves creating innovative and proactive solutions to

societal and environmental challenges, as well as collaborating with both internal andexternal stakeholders to improve CSR performance.

2.1Definition

According to the guidelines on Corporate Social Responsibility (CSR) designed by the

National Empowerment Foundation (NEF), Corporate Social Responsibility (CSR) is the

concept whereby companies act to balance their own economic growth with the

sustainable social and environmental development of their areas of operation. A company

performing highly in CSR is one that goes beyond compliance with the legal framework

to actively pursue positive impacts on local communities and its environmental footprint.

The companies argument for social responsibility is influence by different factors those

are:

Changed public expectations of business

Public image

Avoidance of government regulation

Business has the resources


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Prevention is better than cure


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3. Need for Corporate Social Responsibility

There are many situations where social responsibility of a business becomes necessary.

Few of these situations which show the need for Corporate Social Responsibility are

discussed below.

1. A societal approach to business is the contemporary business philosophy, which

demands business organizations to be responsive to the social problems.

2.As a result of globalization of business, global companies and MNCs operate in a big

way in their host countries. In order to establish a good corporate image, they include

social responsibility as a corporate objective.

Indigenous companies are forced to follow suit for maintaining their corporate identity.

3. In the terms and conditions of collaborations agreements, very often, social welfare

terms are included which necessitates the collaborating company to take up social

responsibility of business.

4.On the basis of legal provisions, companies have to concentrate on social problems.

For example an industrial organization in one country must obtain a certification from

Pollution Control Board.

5. Corporate donations of social welfare projects of approved NGOs areexempted from

income tax.

6.An organizations commitment to social responsibility creates a good corporate image,

and there by a better business environment.

7. Social responsibility of business enables the organization to improve its product

positioning and thereby improve its market share.

8.Very often situations demand due to natural calamities, accidents and so on.


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4. Four Pillars of Corporate Service Responsibility

4.1 Focus a companys CSR programs should properly address a specific concern

among the shareholders and the community. Pointing out the exact issue to be addressed

and the best plan of action to solve this problem will lead to better distribution of

resources and faster viewing of results. Objectives must be properly defined to facilitate

better resource allocation and avoid unwanted wavering of attention.

4.2 Commitment-long-term support for the companys CSR programs is required in

order to succeed in delivering the intended service. A business should prioritize its CSR

even in times of crisis and financial challenges. Making CSR a central part of a

companys business plan will build a culture of commitment and loyalty to the

stakeholders inside the firm and out to thecommunity.

4.3 Integration- CSR should be embedded and integrated into the business system

and not treated as a bolt-on activity employedonly when the need arises. A culture of

doing the right and ethical thing should be learned and practiced not only inside the

realm of the business but outside its four cornersas well.

4.4 Transparency- a company should have a transparent, open and balancedcommunication with its stakeholders. Allowing the community to know about the

ongoing activities, current plans and future endeavors of the company is necessary to

build a strong relationship with people. Building trust is very important in any business

and transparency forms a stronger trust coming from the employees, the customers and

the community.


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5.The Responsibilities of Corporate Social Responsibility

For CSR to be accepted by a conscientious business person, it should be framed in such a

way that the entire range of business responsibilities is embraced. It is suggested here that

four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and

philanthropic. Furthermore, these four categories or components of CSR might be

depicted as a pyramid. To be sure, all of these kinds of responsibilities have always

existed to some extent. But it has only been in recent years that ethical and philanthropic

functions have taken a significant place. Each of these four categories deserves closer

consideration.

5.1

Economic ResponsibilitiesHistorically, business organizations were created as economic entities designed to

provide goods and services to societal members. The profit motive was established as the

primary incentive for entrepreneurship. Before it was anything else, business organization

was the basic economic unit in our society. As such, its principal role was to produce

goods and services that consumers needed and wanted and to make an acceptable profit

in the process. At some point the idea of the profit motive got transformed into a notion

of maximum profits, and this has been an enduring value ever since. All other business

responsibilities are predicated upon the economic responsibility of the firm, because

without it the others become moot considerations.

5.2 Legal Responsibilities

Society has not only sanctioned business to operate according to the profit motive; at the

same time business is expected to comply with the laws and regulations promulgated by

governments as the ground rules under which business must operate. As a partial

fulfillment of the "social contract" between business and society firms are expected to

pursue their economic missions within the framework of the law. Legal responsibilities

reflect a view of codified ethics" in the sense that they embody basic notions of fairoperations as established by our lawmakers. They are depicted as the next layer on the

pyramid to portray their historical development, but they are appropriately seen as

coexisting with economic responsibilities as fundamental precepts of the free enterprise

system.


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5.3 Ethical Responsibilities

Although economic and legal responsibilities embody ethical norms about fairness and

justice, ethical responsibilities embrace those activities and practices that are expected or

prohibited by societal members even though they are not codified into law. Ethical

responsibilities embody those standards, norms, or expectations that reflect a concern forwhat consumers, employees, shareholders, and the community regard as fair, just, or in

keeping with the respect or protection of stakeholders' moral rights.

5.4 Philanthropic Responsibilities

Philanthropy encompasses those corporate actions that are in response to societys

expectation that businesses be good corporate citizens. This includes actively engaging in

acts or programs to promote human welfare or goodwill. Examples of philanthropy

include business contributions to financial resources or executive time, such as

contributions to the arts, education, or the community. A loaned-executive program that

provides leadership for a communitys United Way campaign is one illustration of

philanthropy.


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6. CSR and Long-Term Business Success

6.1The importance of CSR in a competitive

marketIncreasing pressures from the recent global financial

crisis and from several governments taking measures to

protect its environment and people have led to the

sudden rise of CSR. Because of the drastic fall in the

finance market and the increased competition between

companies, avant- garde businesses implemented CSR

to veer away from their competitors. Consumers value honesty, charity and competencyand often use it as a guide in looking for a business to support. And in a steadily

increasing competition between companies and global brands, embedding CSR in the

business model of a company produces positive results not only for the company and but

for the shareholders as well.

6.2 Business Branding and Winning CustomersIn a competitive marketplace, companies look for ways to separate themselves from the

rest of the competition. By adopting CSR, building a unique brand and image in the

minds of the customers is further improved. Several major brands such as McDonalds

and Adidas spend not only years but decades to build a certain image in the eyes of

consumers. By practicing CSR through supporting sports events, headlining feeding

campaigns, creating charities and developing output-based community projects, both

McDonalds and Adidas in directly say to the stakeholders that for every hundred

dollars you give, we give ten dollars back. This mentality leads the customers to

consciously take part in the companysadvocacy by supporting not only its products but

its CSR endeavors as well

6.3 Risk ManagementA companys image takes years, sometimes even decades, to develop and market

effectively. Managing risks is an important corporate strategy employed by top-level

companies to avoid the possible damage to its brand and reputation. Sometimes, incidents

such as allegations of corruption, scandals, environmental accidents and intellectual

dishonesty can instantly ruin the customers trust. Creating diversion and maintaining a

goodtrack record by adopting CSR can neutralize or reduce the damaged one by these

incidents.


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6.4 Recruitment and Human ResourcesBy gaining the trust of the community and the customers, a company with an embedded

CSR plan inside its business model attracts potential employees. A company that

proposes a clear and definite CSR plan to its employees and staff can also gain the

respect and dedication needed for a healthy workforce. CSR provides a unique brand ofservice and identity in stilled in the culture of the business. Involving the workforce in

cause-oriented activities such as tree planting, fund raising, charity work and socially-

relevant activities can change the perception of the workforce regarding the company.

This direct involvement leads to loyalty and a sense of belongingness within the

companyswork group.

6.5 Government Support and IncentivesCompanies are keen to avoid any interference from the government in their businesses.

By doing voluntary steps and actions to promote environmental concern, better employer-

to- employee relations, equal opportunity and support to charity, companies gain notonly the support but also the trust of the government and the customers. Potential

customers can be transformed into loyal buyers if they know that the business is doing its

part in protecting the environment and helping people. Governments can also offer

incentives such as tax reduction and flexible working terms for companies maintaining a

good CSR implementation.

7. Implementing CSR

CSR is about common sense policies that represent a

means of integrating a complete social perspective into

all aspects of operations. The goal is to maximize true

value and benefit for an organization, while protecting the

huge investments corporations make today in their brands.

Key steps on the road to integrating CSR within all aspects of operations include:

Ensure the commitment of top management, and particularly the CEO, is

communicated throughout the organization

Appoint a CSR position at the strategic decision-making level to manage the

development of policy and its implementation


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Develop relationships with all stakeholder groups and interests (particular

relevant NGOs)

Incorporate a Social or CSR Audit within the companys annual report

Ensure the compensation system within the organization reinforces the CSRpolicies that have been created, rather than merely the bottom-line

Any anonymous feedback/whistle-blower process, ideally overseen by an

external ombudsperson, will allow the CSR Officer to operate more effectively

8. How Is CSR Changing With Globalization

8.1 Business Case

Our research also focuses on different definitions and benchmarks being used globally in

major regions and at how business is being impacted in terms of their profitability and

productivity by implemented CSR practices.

The challenge is to create companies that have the vision and capacities to create socially

and environmentally responsible business models that can outperform competitors who

do not accept this challenge. Some of the proven benefits to business are discussed

below:

8.1.1Improved Financial Performance

Several academic studies have shown the connection between socially responsible

business practices and positive financial performance. Its found out that unethical

corporate behavior directly affects the stock prices.

8.1.2Slide in Operating Costs

Environmental stewardship and workplace safety initiatives help improve work place

practices, and processes, reduce wastes, and resource consumption. Thus they improve

productivity and reduce costs. Enhancement of social standards and benefits result in

employee retention which saves hiring and training cost and increase profit by improved

productivity through stable work force.


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9. HOW DOES CSR FIGURE IN THE PAKISTAN CONTEXT?

In the West CSR have become a touchstone of corporate trust and a predictor of business

longevity. In Pakistan, CSR is still a buzzword for most of the organizations and

individuals. Businesses are in a process of attaining the internationally accepted norms ofcorporate social responsibility often either misunderstanding the true philosophy of CSR

or ignoring it. The multinationals in Pakistan are ahead of this wave, due to their

international linkages and are actually adopting the standards followed in their head-

offices in the developed countries. The birth of several NGOs working for CSR related

issues have expedited the awareness process. The pressure raised by their voice has

actually instigated the government and the businesses to develop strategies complying

with the international standards. Still there is a need to involve civil society and the

academia to make a powerful CSR strategy for Pakistan that can be implemented in

addition to a strong national body that can enforce the regulations.

9.1 CSR Practices in Pakistan

State of CSR in Pakistan is still in its infancy. Only few companies have an existing CSR

strategy and mostly they are the multinationals who follow their own CSR policies and

standards. Unfortunately, the local industry is either unaware of the benefits brought by

CSR or they feel that even if they do not adopt such policies, they are not in any state of

danger. The apathy of the local business sector was highlighted in the 1996 by thebreakdown of the local carpet industry and the threat of damage to Sialkots sports

industry. Labor exploitation, child labor, inadequate employee benefits and unsuitable

working environment were few areas pinpointed by the international eye. Though taking

the reactive measures, the joint effort of the industrialists saved the greater damage

foreseen, but not much has been done to take more proactive measures.

In 2003 a multi stakeholder forum Pakistan Compliance initiative was launched with

support from international buyers, the textile sector, and the Ministry of Commerce. A

draft national standard was developed for use as compliance standard approved byGovernment to replace many International social and environment compliance standards

and buyers code of conduct. The result of this effort was inclusion of social compliance

in the trade policy and initiation of a project proposal by Ministry of Science and

Technology to European Union for encouraging SA800 implementation by subsidizing

consulting and implementation cost.


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In Pakistan CSR is frequently equated with corporate philanthropy, the terms being often

mistakenly used synonymously. Some consider CSR to be a simple compliance with law.

This creates a difficulty because top management is still uncertain about the true

meanings of CSR. This indicates the need for a mass awareness campaign supported by

the government, targeting businessmen, entrepreneurs and customers so that they are ableto appreciate CSR and also the general perils of non-compliance in todays environment.

Frequent and open discussion defining and understanding CSR, detailing its nature and

promoting and developing methodologies on how local businesses adopt and manage

their CSR obligations would be a useful first step.

Survey and F indings

Q: 1 Do you know what the term Corporate Social Responsibility means?

Q: 2 If knows, CSR means what does it mean?


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Q: 3 During the past years did any company ask you about CSR?

Q: 4 In the next year do you plan to spend more, less or the same amount on

products and services from socially responsible companies?


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Q: 5 Does your workplace employ any corporate responsibility practice?

10. Data Analysis

Ongoing debate on how countries are gaining competitive advantage using CSR as a

management tool reflects the importance this approach has for companies continuously

seeking the next formula for success. There is evidence that national strategies are being

developed to facilitate corporations overcome impediments that prevent them fulfilling

their corporate social responsibilities.

If CSR is to be regarded as an integral part of business decisionmaking, it merits a placein a companys core mission, vision and value statements, succinctly related to its

business goals.

From the findings of this research what appears to be a priority is a clear and realistic

appreciation of the business case for CSR and the systemic advantages it bestows on the

day to day running of a company. SECPs recent efforts indicate that it may be best

placed to provide the leadership for achieving consensus on a National CSR Strategy

developed through a consultative process and the active involvement of the corporate and

citizens sectors, and the 0.patronage of government ministries directly working for trade

promotion.


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11. Methodology

Based on available data on internet, a universe of companies was identified, stratified and

randomized. Different articles were analyzed. Secondary data was collected from

different websites. Results of different surveys were identified and analyzed. A surveyinstrument was designed in keeping with the data requirements reference to current

international CSR trends and issues and benchmarks.

This research is specific to the current state of corporate social responsibility that is being

practiced in different countries.

A detailed literature review was conducted to inform the context and the approaches

currently being followed and the type of organizational best practices relevant to

Pakistan.

In -depth qualitative analysis. Recommendations were prepared for taking action toward

a National CSR Strategy. The research findings and recommendations were presented for

validation to the leaders of the participating companies and other major stakeholders

through.

12. Conclusion

Corporate Social Responsibility is a difficult and elusive topic for companies to deal

with. It can often be very costly and yield benefits that are hard to quantify. Perhaps thisis one reason why companies, according to the survey, have put so much focus on the

internal improvements that can be made, such as improving corporate governance and

transparency. This could also explain why the most important stakeholders, after

customers, are the traditionally important employees and shareholders.

Theres also the issue of just what standard of corporate social responsibility should

companies use and how far companies should go to perform their responsibilities beyond

what the laws call for. The issue of what is the responsibility of a corporation is far

from being settled, and there is an unresolved argument over what corporate social

responsibility means. Companies face a plethora of options among the various standards,guidelines, benchmarks and other proposed measures of corporate social responsibility.

One point that all can agree on is that corporate social responsibility is not a neutral topic.

There is a persistent debate about whether the corporate social responsibility movement

represents an unjustified intrusion into corporate affairs, and whether companies should

invest profits in their own corporate social responsibility


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13. RECOMMENDATION FOR CSR STRATEGY

There exists a dire need to improve the quality and quantity of corporate social

responsibility. A wide-ranging and multi -tiered awareness campaign needs to beorganized in order to make the various stakeholders and businesses understand the

necessity and advantages of CSR and remove any misconceptions related to it.

An effective regulatory authority is key to this strategic thrust, having the requisite

capacity to implement guidelines and monitor progress

Below are the areas of what this research has highlighted as areas for immediate

attention within the context of a CSR strategy. Each of these areas has the potential to

becoming a distinct hub of programmed activity or project:

1. Build Strong Conceptual Knowledge

2. Link CSR to Competitive Advantage

3. Enhance Effective Stakeholder Involvement

4. Harmonize and Standardize CSR Performance

5. Define and Promote Clear Incentives

6. Promote a Shared Strategic Vision

7. Promote Business Thinking for CSR Projects


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References

http://www.corporatewatch.org.uk/?q=node/2682%3F

http://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-

responsibility-background-a-perspective.html

http://www.slideshare.net/tiwrsaurabh/csr-ppt-10418775`

http://en.wikipedia.org/wiki/Corporate_social_responsibility

http://www.scribd.com/doc/19415805/Corporate-Social-Responsibility
http://www.corporatewatch.org.uk/?q=node/2682%3Fhttp://www.corporatewatch.org.uk/?q=node/2682%3Fhttp://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-responsibility-background-a-perspective.htmlhttp://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-responsibility-background-a-perspective.htmlhttp://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-responsibility-background-a-perspective.htmlhttp://www.slideshare.net/tiwrsaurabh/csr-ppt-10418775%60http://www.slideshare.net/tiwrsaurabh/csr-ppt-10418775%60http://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://www.scribd.com/doc/19415805/Corporate-Social-Responsibilityhttp://www.scribd.com/doc/19415805/Corporate-Social-Responsibilityhttp://www.scribd.com/doc/19415805/Corporate-Social-Responsibilityhttp://en.wikipedia.org/wiki/Corporate_social_responsibilityhttp://www.slideshare.net/tiwrsaurabh/csr-ppt-10418775%60http://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-responsibility-background-a-perspective.htmlhttp://infochangeindia.org/corporate-responsibility/backgrounder/corporate-social-responsibility-background-a-perspective.htmlhttp://www.corporatewatch.org.uk/?q=node/2682%3F


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Appendix

Q: 1 Do you know what the term corporate Social Responsibility means?

a.

Yesb.

No

c. Dont Know

Q: 2 If knows, means what does it mean?

a.

b.

c.

d.

Q: 3 during past years did any company ask you about CSR?

a.

Yes

b.

No

c.

Dont know

Q: 4 In the next year do you plan to buy less, more or the same amount on the products or

services of socially responsible company?

a.

Spend more

b.

Spend the same

c.

Spend less

d.

Dont know

Q: 5 Does your workplace employ any social responsibility practices?

a.

Yes

b.

No

c.

Dont know

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