Corporate social responsibility

Corporate social responsibility is operating a business in a manner which meets or excels the ethical, legal, commercial and public expectations that a society has from the business.

Business entity is expected to undertake those activities, which are essential for betterment of the society. Every aspect of business has a social dimension. Corporate Social Responsibility means open and transparent business practices that are based on ethical values and respect for employees, communities and the environment.

It is designed to deliver sustainable value to society at large as well as to shareholders. Corporate Social Responsibility is nothing but what an organisation does, to positively influence the society in which it exists. It could take the form of community relationship, volunteer assistance programmes, and special Scholarships, preservation of cultural heritage and beautification of cities.

The philosophy is basically to return to the society what it has taken from it, in the course of its quest for creation of wealth.

CSR is not Philanthropy

Philanthropy means the act of donating money, goods, time or effort to support a charitable cause in regard to a defined objective. Philanthropy can be equated with benevolence and charity for the poor and needy.

Philanthropy can be any selfless giving towards any kind of social need that is not served, underserved, or perceived as unnerved or underserved. Philanthropy can be by an individual or by a corporate. It is the active effort to promote human welfare.

Corporate Social Responsibility on the other hand is about how a company aligns their values to social causes by including and collaborating with their investors, suppliers, employees, regulators and the society as a whole. The investment in CSR may be on people centric issues and/ or planet issues. A CSR initiative of a corporate is not aselfless act of giving; companies derive long-term benefits from the CSR initiatives and it is this enlightened self-interest which is driving the CSR initiatives in companies.

Four Components of Corporate Social Responsibility.orThe Pyramid of Corporate Social Responsibility:

EconomicCorporate social responsibility is comprised of four components -- the first is economic. Economist Milton Friedman wrote that the social responsibility of business is to increase its profits.

If a company does not make money, it won't last, employees will lose jobs and the company won't even be able to think about taking care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first needs to make sure that it can be profitable.

Legal

Businesses, to be socially responsible, must compete within the rules society has

established through its laws and regulations. This includes producing goods that

meet safety standards in workplaces that also are safe and free from discrimination

based on gender, race or religion. It means living up to contractual obligations.

Ethical

 Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do business

with oppressive countries Ethical responsibilities also involve the fundamental ethical

principles of moral philosophy, such as justice, human rights, and utilitarianism.

Philanthropic

Philanthropic responsibilities are responsibilities that go above and beyond what is

simply required or what the company believes is right. They involve making an

effort to benefit society -- for example, by donating services to community

organizations, engaging in projects to aid the environment or donating money to

charitable causes

Corporate sustainability

(CS) refers to corporate activities demonstrating the inclusion of social and environmental as well as economic responsibilities in business operations as they impact all stakeholders.Corporate sustainability has been recognized by the financial markets because it createslong-term shareholder value by embracing opportunities and managing risks as the result ofeconomic, social, and environmental developments.

Corporate sustainability encompasses strategies and practices that aim to meet the needs of the stakeholderstoday while seeking to protect, support and enhance the human and natural resources that will be needed in thefuture.

To be sustainable, companies must do five things:

1. Foremost, they must operate responsibly in alignment with universal principles

2. Take actions that support the society around them.

3. Then, to push sustainability deep into the corporate DNA, companies must commit at the highest level.

4. Report annually on their efforts,

5. And engage locally where they have a presence.

CORPORATE SUSTAINABILITY IS A COMPANY’S DELIVERY OF LONG-TERM VALUE IN FINANCIAL, ENVIRONMENTAL, SOCIAL AND ETHICAL TERMS.

Corporate sustainability starts with a company’s value system and a principled approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour,environment and anti-corruption.

Responsible businesses enact the same values and principles wherever they have a presence,and know that good practices in one area do not offset harm inanother. By incorporating the Global Compact principles into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stagefor long-term success.