Corporate social Responsibility
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Presented by- ANJU Need for the CORPORATE SOCIAL RESPONSIBILITY for Consumer, Labour and Society 1
description
Corporate Social Responsibility (CSR), can be described as, the continuous commitment by corporations towards the economic and social development of communities in which they operate.
Transcript of Corporate social Responsibility
Presented by- ANJU
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Need for the CORPORATE SOCIAL RESPONSIBILITY
for Consumer, Labour and
Society
Presented by- ANJU
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Corporate social responsibility
Corporate Social Responsibility (CSR), can be described as, the continuous commitment by corporations towards the economic and social development of communities in which they operate.
The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere..
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PHILANTHROPY BASED MODEL
The conceptualization of corporate social responsibility uptill the 1990’s was purely in terms of philanthropy or charity.
Welfare programs or initiatives were introduced not as a duty or a responsibility but as a form of charity that was supposed to indicate the virtues of the company or the organization.
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Post-liberalization phase has seen a fundamental shift from this philanthropy-
based model of corporate social responsibility to a stakeholder-
participation based model.
PHILANTHROPY BASED MODEL
STAKEHOLDER PARTICIPATIO
N BASED MODEL
LIBERALIZATION
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Stakeholder- participation based model.
In the stakeholder model the community in which the corporation is present in is seen as a stakeholder in the company and therefore, the company has certain obligation and duties towards it like it has towards its other stakeholders (customers, employees, shareholders).
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Reasons for shift from charity based model to stakeholder based model
Corporate social responsibility is basically a new business strategy to reduce investment risks and maximize profits by taking all the key stakeholders into confidence.
Social and environmental stability and sustainability is necessary for the survival of a free-market economy in the long run.
The importance being attached to accountability, transparency and social and environmental investment as the key aspects of corporate governance in the era of globalization.
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Need for CSR
Issues such as environmental damage, improper treatment of workers, and faulty production leading to customer inconvenience or danger are being highlighted.
Investors and investment fund managers have began to take account of a firm’s CSR policy in making investment decisions.
Some consumers have become increasingly sensitive to the CSR programmes of the firms from which they buy their goods and services.
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NEED OF CSR FOR CONSUMER
Important for encouraging businessesConsumer preferenceConsumer opinionsIssues mainly emphasized on by consumers:
Product qualityMoney valueTechnological advancements
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NEED OF CSR FOR SOCIETY
• Leads to increase in the awareness of the society• Helps in dealing with societal matters
such as:• Nutrition & health issues• Human rights & gender• Labor practices• Involvement in community issues
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CONCLUSION
The new economic era in India i.e. the post-liberalization phase of the Indian economy was a catalyst for the radical transformation in the corporate social responsibility related practices in the country
The change was two fold: transformation of the conceptual understanding of corporate social responsibilityinnovations at the implementation level
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PRESENTED BY:ANJU
