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Workshop

London, UK

VPM's London Academy of Education


14 May 2019 and Research
“No country other than India,
and no religion other than
Hinduism could have
produced a Mahatma
Gandhi.”

- London
Times
VPM's London Academy of Education
14 May 2019 and Research
Corporate Social Responsibility
(CSR)
Section – I : Introduction to CSR
Section – II : Global Conferences and
Thinking
Section – III : Why CSR?
Section – IV : Spectrum of CSR Activities
Section – V : Issues and Responses
Section – VI : Other Global Responses
Section – VII : CSR - Ethics
VPM's London Academy of Education
14 May 2019 and Research
Section - I

Introduction to CSR
VPM's London Academy of Education
14 May 2019 and Research
‘there is enough for everybody to
satisfy their need but
not greed’

Mahatma Gandhi
VPM's London Academy of Education
14 May 2019 and Research
‘property must serve the cause of
human happiness and should also
uplift the person who manages it.’
There is a need to practice
‘Aparigraha’ (non-possession).
Mahatma Gandhi
VPM's London Academy of Education
14 May 2019 and Research
Definition

CSR
Broadly applicable to business
sector, CSR is about meeting
the growing social and environmental
expectations for improving business
performance and sustaining it.

VPM's London Academy of Education


14 May 2019 and Research
Global sustainability has been defined as the
ability to "meet the needs of the present
without compromising the ability of future
generations to meet their needs."

VPM's London Academy of Education


14 May 2019 and Research
“CSR is about businesses and other organisations going beyond
the legal obligations to manage the impact they have on the
environment and society. In particular, this could include how
organisations interact with their employees, suppliers, customers
and the communities in which they operate, as well as the extent
they attempt to protect the environment”
The Institute of Directors, UK

“CSR is the acknowledgement by companies that they


should be accountable not only for their financial
performance, but for the impact of their activities on
society and/or the environment.”
14 May 2019
VPM's London Academy of Education
and Research
CBI, UK
CSR DEFINED
European Commission (2006):- Policy
communication on CSR

 CSR is a concept whereby companies integrate social


and environmental concerns in their business operations
and their interaction with their stakeholders on a
voluntary basis.
 ‘Implementing the partnership for growth and jobs:
Making Europe a pole of excellence on CSR’.

VPM's London Academy of Education


14 May 2019 and Research
“the continuing commitment of business to behave
ethically and contribute to economic development
while improving the quality of life of the workforce
and their families as well as of the local community
and society at large.”

- The World Business


Council for Sustainable
Development
(WBCSD) www.wbcsd.org
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14 May 2019 and Research
Early conception of CSR refers to-

“the businessman’s decision and actions


taken for reasons at least partially
beyond the firm’s direct economic or
technical interest.”

VPM's London Academy of Education


14 May 2019 and Research
Broader view is that they are obliged to-

“pursue those policies, to make those


decisions, or to follow those lines
of action which are desirable in
terms of the objectives and values
of our society”.

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14 May 2019 and Research
Wider dimension as follows -

 By “social responsibility” we mean the intelligent


and objective concern for the welfare of society that
restrains individual and corporate behaviour from
ultimately destructive activities, no matter how
immediately profitable, and leads in the direction of
positive contributions to human betterment,
variously as the latter may be defined.
Bhattacharya Jayanta, ‘Corporate Social Responsibility: Ethical and
Strategic Choice’, pp 2-3

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14 May 2019 and Research
Sustainable development "is a process of achieving
human development... in an inclusive, connected,
equitable, prudent and secure manner. A secular
sustainable enterprises, therefore, is one that
contributes to sustainable development by delivering
simultaneously economic, social, and environment
benefits - the so called triple bottom line."

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14 May 2019 and Research
Definition
LATERAL VIEW

Corporate Social Responsibility

“fatuous drivel created by conmen for idiots”

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14 May 2019 and Research
What do we call it?
 There are 350 names for CSR

 Corporate Social Responsibility (CSR)


 Corporate Responsibility
 Corporate Citizenship
 Responsible Business Practice
 Sustainable Development
 Corporate Citizenship
 Corporate Sustainability /Organisational Sustainability
/Institutional Sustainability
 Business Excellence
 Corporate Governance
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14 May 2019 and Research
How do we talk about it?
“Achieving strategic control of Organisational
Sustainability”

“Leading the development of the University Ethos”

“Leadership, choices and excellence not control”

“The organisation must communicate the reasons


(motivations) that are appropriate”

“delivering relevant messages to different audiences ”

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14 May 2019 and Research
 Corporate social responsibility; fraud
management and control are two key issues
facing World Inc.

 CSR has to address not the superfluous and


superficial issues to gain publicity and mere
building of brand value or enhancing market
capitalisation.

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14 May 2019 and Research
It shall be the endeavour of VPM’s
group of institutions and VPM’s
London Academy of Research and
Education to spread this message
across and make sure that a viable
novel concept of CSR emerges to bring
about a paradigm shift in the
approach of corporates
towards the responsibilities to
mankind at large.
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14 May 2019 and Research
CSR has to go to the heart of the problems
faced by the human race viz.
 global warming
 environmental and ecological devastation
 abuse of child labour
 sexual harassment
 women empowerment
 moral re-armament of society
 elimination of various kinds of delinquencies in the World
 human rights in the place of work and in society and efforts to
provide basic amenities of
 food

 clothing and

 shelter

to every member of the human race across countries &


continents. VPM's London Academy of Education
14 May 2019 and Research
CSR in practice

 To treat employees fairly and equitably


 To operate ethically and with integrity
 To respect human rights
 To sustain the environment for future generations
 To be a caring neighbour in local communities
 To have the appropriate structure and policies in
place to interact responsibly with stakeholders
 To monitor, evaluate and report the company's level
of responsibility
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The Rise of Corporate Philanthropy

Increasing strategic impact 2009 – emerging market


partnerships
2008 – skills-based giving
2006 – employee recruitment
2002 – leadership development

1998 – employee response & engagement

1950 – good community citizen

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14 May 2019 and Research
The Evolution and growth of CSR
17th-18th century

Philanthropy ---- religious practices


benevolence of the wealthy

Corporate ---- - growth of Trust/Foundations


Philanthropy
20th century

CR/CSR/SR ----- business strategy


21st century

CSR/SA/GRI…----- visibly felt contribution


VPM's London Academy of Education
14 May 2019 and Research
The Evolution and growth of CSR
17th-18th century

Philanthropy ---- religious practices


benevolence of the wealthy

Corporate ---- - growth of Trust/Foundations


Philanthropy
20th century

CR/CSR/SR ----- business strategy


21st century

CSR/SA/GRI…----- visible felt contribution


VPM's London Academy of Education
14 May 2019 and Research
The root and growth of CSR
17th-18th century

Philanthropy ---- religious practices


benevolence of the wealthy

Corporate ---- - growth of Trust/Foundations


Philanthropy
20th century

CR/CSR/SR ----- business strategy


21st century

CSR/SA/GRI…----- visible felt contribution


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14 May 2019 and Research
“Every Company has a special
continuing responsibility towards
the people of the area in which it
is located and in which its
Shri J.R.D.Tata
employees and their families live.”

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14 May 2019 and Research
Today’s scenario

Resource management & pollution control prioritized


Health & Safety of workers underlined
Consumer interests addressed
Social needs of host communities served Trust
Partnership with environmental NGOs

Commitments to international laws,


protocols and guidelines made Reputation

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14 May 2019 and Research
CSR vs Financial Crisis

The ongoing financial crisis and its effects on the


global
economy have made it clear that the stability of our
global market system depends on responsible
behaviour,
sustainable business models and proactive
management
of business impacts on society as well as regulatory
frameworks.

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14 May 2019 and Research
 68 % business leaders in USA are using CSR to create
new revenue streams
----- survey conducted by Environmental Leader (think tank) US.

 69 % private and public organizations worldwide


opt for increases in their CSR budget to have positive
impacts
---- IBM survey 2008

 Marks & Spencer to invest over US$ 300 million on


green retailing
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14 May 2019 and Research
The business of business is business
---- Milton Friedman

Business has no responsibilities other than to


maximize profits for the shareholders

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14 May 2019 and Research
SECTION - II

Global Conferences and


Thinking
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BOX 1

Universal Declaration of Human Rights


(UDHR) 1948

 recognizes the universality of human rights.


 provides a common standard of
achievement for all people and all nationals.

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14 May 2019 and Research
BOX 2

Brundtland Report
1987
 UN Commission :
 identifies ways and means to improve human
welfare in the short term without disturbing
the ecological balance in the medium and
long-term.
 increasing consultation and cooperation
among member nations
 special role of World Inc. in achieving human
welfare without disturbing the nature.
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14 May 2019 and Research
BOX 3

United Nations Conference on


Environment and Development
-Rio Summit 1992

 Issues addressed :
 systematic scrutiny of patterns of production
 alternative sources of energy
 growing scarcity of water and extreme air
pollution
 achievement
 agreement on the climate change convention
VPM's London Academy of Education
14 May 2019 that in turn ledandto the Kyoto Protocol.
Research
BOX 4

Vienna Declaration on Human Rights


1993

 All human rights are :


 universal
 individual
 interdependent and
 interrelated.
VPM's London Academy of Education
14 May 2019 and Research
BOX 5

World Business Council for Sustainable


Development (WBCSD) Report
1995
 Coalition of 200 multinational companies:
 concerns over economic growth vis-à-vis ecological and
social imbalances
 commitment to ecologically sustainable economic
growth and social progress
 enterprise as a catalytic agent for motivating business
towards sustainable development
 a platform for identifying ways and means of
attaining and maintaining ecologically sustainable,
inclusive, competitive edge
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14 May 2019 and Research
To quote the WBCSD
“It is the continuing commitment of the
business to behave ethically and
contribute
to economic development while
improving
the quality of life of the workforce and
their
families as well as the local community
and
society at large.”
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14 May 2019 and Research
BOX 6

8
Millennium Development Goals
UN initiative for human welfare
in the new century

VPM's London Academy of Education


14 May 2019 and Research
 Eight goals include :

 eradicate extreme poverty and hunger


 achieve universal primary education
 promote gender equality and empower women
 reduce child mortality
 improve maternal health
 combat HIV/AIDS, malaria and other diseases
 ensure environmental sustainability
 develop global partnership

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14 May 2019 and Research
Millennium Development
‘Goals'
N.B:-

The deliberations of the millennium declarations were adopted in


September, 2000. The purpose was “to create an environment – at the national
and global levels alike – which is conducive to development and the
elimination of poverty.”

 More than 150 countries, nearly 200, have pledged the achievement of the
Millennium Development Goals by 2015.

VPM's London Academy of Education


14 May 2019 and Research
BOX 7

World Summit on Sustainable


Development, Johannesburg
2002

 Addressed :
 global issues of billions of people at the bottom of
the pyramid around the world
 critical role and responsibilities of enterprise in
addressing some of the most daunting and
intractable problems facing mankind.

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14 May 2019 and Research
Convergence of guidelines,
standards & benchmarks

Guidelines
OECD UN Global Compact

SRI
Sarbanes Oxley

GRI
ISO standards

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14 May 2019 and Research
Section - III

Why CSR?

VPM's London Academy of Education


14 May 2019 and Research
WHY CSR?
 Strong CSR/CR initiatives, strategies or commitments must be
designed to deliver benefits or gain advantages in the following
areas:

 Improved Ecologically Sustainable Financial


Performance
 Reduced Operating Costs
 Enhanced Brand Image / Corporate Reputation
 Increased Sales and Customer Loyalty
 Increased Productivity and Quality
 Increased Ability to Attract and Retain Employees
 Employees stay longer, reducing the costs and disruption
of recruitment and retraining

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14 May 2019 and Research
WHY CSR? Contd…
 Makes Business more competitive and reduces the
risk of sudden damage to reputation (and sales).
investors recognise this, and are more willing to
finance
 Reduced Regulatory Oversight
 Access to Capital
 Promote and Practise Social Good
 Project Enterprise as Friend of Society
 Minimise Government Intervention
 Harmonious Relationship between Different
stakeholders
 Improved Opportunities For New Products/
Services
 Help to manage risk
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14 May 2019 and Research
Church gives priests, nuns the
`green` signal
Practices the church wants members to
adopt:
 Green cover on at least 40% of church
properties
 Avoiding use of plastic
 Adopt rainwater harvesting
 Use of CFL bulbs to reduce energy
consumption energy
This is a kind of commitment we are making to God to preserve his divine
power in the environment.
Source : Mumbai Mirror, 24 October, 2009, p6
 The World Business Council for
Sustainable Development :

 Indicates enterprise has to “meet the


needs of the present without
compromising the ability of future
generations to meet their own needs.”
 Socially Responsible Investment (SRI), which
maximizes ROI after adjusting for the adverse
externalities and the concomitant costs, is the
order of the day.

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14 May 2019 and Research
 Natural resources are consumed by
enterprise through its activities –
 To make profit
 Obligation to replace,
 Otherwise, enterprise has to contribute to
social good in one form or the other.

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14 May 2019 and Research
Section - IV

Spectrum of CSR
Activities
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14 May 2019 and Research
Spectrum of CSR Activities
Economic Growth Urban Renewal and
and Efficiency Development
Enhancing Pollution Abatement
Competition Conservation and
Education Recreation
Employment and Culture and the Arts
Training Medical Care
Civil Rights and Government
Equal Opportunity

The U.S. Committee for Economic Development


Spectrum of CSR

Good CSR
Poor CSR
No employment Taking care of workers
No concern for indirect effect Low dependence on non
(land, water, air) renewable resources
Destruction of agricultural land High awareness about
Not willing to listen to other CSR initiatives
stakeholders Land compensation
Appropriation of land not being Increased monitoring
compensated. Non-compliance system
of rule of land
Environment responsibility
Present status of CSR
≈ Growing incubation by business
but mostly in the developed world
≈ Developing/underdeveloped countries
feel this as a new barrier
≈ Developed/underdeveloped countries lack
capacity to adopt CSR policies/strategies
≈ CSR activities are mainly devoted to uplift
programs in education and general health
services (reactive).
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14 May 2019 and Research
Guidance for Social Difference with CSR
Responsibility
ISO 26000 (in 2010)
ISO 26000
 Organizational governance
 Human Rights principles
 Environmental care
 Labour practices
 Fair operating practices
 Respecting consumer concerns
 Contributing to social uplift
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14 May 2019 and Research
 Length and breadth of CSR can not be
measured mathematically.

 CSR is not about doing something which


you expect or desire to do : It should be as
per the expectations of the society or more
precisely the Stakeholders.

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14 May 2019 and Research
Assessment of effectiveness of CSR
actions can be gauged on the Benefits
that the beneficiaries receive ----
tangible and visible.
ISO 26000 will not be any standard but
a guideline.
 It will not eclipse CSR but more
likely to strengthen CSR.

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14 May 2019 and Research
CSR – INDONESIA
 equilibrium between business state and
public.
 a public relations tool.
 reflects corporate accountability.
 business strategy and is used to build
public good will for Indonesia Inc.
 building a strong civil society in
Indonesia.

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14 May 2019 and Research
CSR – INDONESIA

 CSR includes
 standard reporting mechanism
 government regulation
 whistle blower law and
 training in CSR.

James J. Spillane, S. J., Professor of Economics, Sananta Dharma University in


Yogakarta
CSR Europa
According to the European Commission,
“CSR has been strategically defined as a concept whereby companies
integrate social and environmental concerns in their business operations
and their interaction with the stakeholders on a voluntary basis.”

 CSR Europe is an important European business network for CSR.

 Nordic countries are ranked high on business competitiveness


through responsible business practices.

 Swedish companies feature significantly in the Dow Jones


Sustainability World Index.

 Denmark has passed law requiring companies to report on their


corporate responsibility efforts
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14 May 2019 and Research
CSR Organizations Worldwide
UN Global Compact
Aims to promote social and environmental responsibility in global companies.

International Business Leaders Forum (IBLF)


Works with World’s top business and development leaders and creates
networks.

CSR International
Has evolved a new concept termed as CSR 2.0

CSR Asia
Aims to spread awareness of CSR in the Asia.

International Institute for Sustainable Development (IISD)


Leading humanitarian organization that upholds change towards sustainable
development.
CSR Excerpts and Bibliography

 Articles and Research Papers from reputed


International Journals.

 Journal of Business Ethics, Corporate Governance,


Business and Society, Journal of Global Business Issues

 CSR Research: Exploratory, Conceptual, Cases;


Qualitative and Quantitative

 Examples: CSR in the international operating banks,


CSR in European and American firms, Effect of CSR on
firms’ financial performance, Strategic CSR, Corporate
Citizenship
Section - V

Issues and Responses


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Climate Change and
Environmental Pollution
Issues

 Key concern of stakeholders; biggest social,


economic and environmental challenge
facing the planet;
 Concerns regarding availability of safe, clean
water, rising sea levels, increasing droughts
and health problems;
 Sourcing of Raw Materials, Waste
Management and Management of Toxics
Substances
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14 May 2019 and Research
Climate Change and
Environmental Pollution
Responses

 Companies to reduce their carbon impact


 CSR programmes will be shaped by
stakeholder priorities
 Partnerships for working on climate change
 Solution – oriented CSR to promote
sustainability and avert widespread
disaster
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14 May 2019 and Research
Corporate Governance
Issues

 recent economic turmoil / global meltdown;


 transparency

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14 May 2019 and Research
Corporate Governance
Responses

 Transparency
 Accountability
 Measures of acceptability which include
stakeholders welfare and social welfare.
 Perceive investments in any project as ‘Socially
Responsible Investment’.

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14 May 2019 and Research
Human Resources
Issues

 Sweatshops:- Labour Rights as Human


Rights.
 Treatment of workers, particularly in the
lower level of the supply chains.
 Concerns about wages, discrimination,
human rights.
 Battle for Young talent who are not looking
for traditional employment.

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14 May 2019 and Research
Human Resources
Responses

 Comprehensive codes of conduct regarding


human rights, Supply Chain Management
and environment.
 Emphasis on work-life balance.
 Creative work environments and greater all
around flexibility seems to be necessary.

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14 May 2019 and Research
Product Responsibility and
Community Investment
Issues

 Product safety, quality, health concerns


 Issues of poverty, lack of awareness of
regions where company operates
 Institutionalisation of CSR

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14 May 2019 and Research
Product Responsibility and
Community Investment
Responses

 Increased pressure from regulator- Government


 Poverty alleviation.
 Health Management Initiatives
 Micro-finance initiatives
 Stress on long-term competitiveness than short-term profits.
 CSR 26000 is further institutionalisation of CSR and is
viewed as benchmark for the future of World Inc.

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Product Responsibility and
Community Investment contd…
Responses

 First tier audits to be replaced by audits across the supply


chain
 Issues regarding sweatshop labour, product safety and also
how products are made from safety and health point of
view.
 Product contamination and adulteration to be condemned
and control ab initio

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14 May 2019 and Research
ISSUES AND RESPOSNES –
A SUMMARY

 CSR is not a short-term phenomenon.


 CSR will move into board rooms and
tighten its influence on decision-making
processes.
 Innovation models of partnership based on
social enterprise and social
entrepreneurship will emerge.
 International guidelines to be adopted.
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14 May 2019 and Research
CAVEAT
Government’s Constitutional role should
not be usurped by business
Social environmental choices for the
community at large shall be made by the
will of the people or the competent
authorities mandated by the will

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14 May 2019 and Research
CAVEAT
 If business is substituted for Government
it may be a step in retrograde and
Governments may be replaced, on a de
facto basis, by ‘business statesmanship’
 This in turn may create the corporate
equivalent of the unitary state and the
remedy may be worse than the disease.

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14 May 2019 and Research
Section - VI

Other Global Responses


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World Bank has declared corruption as a
single greatest obstacle to economic
and
social development.

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 Enterprises should not offer, nor give into
demands, to pay public officials of the
employees of business partners any portion
of a contract payment.

1. Enterprises should enhance the transparency of


their activities in the fight against bribery and
extortion.

2. Enterprises shall not make illegal contributions


to candidates for public office or to political
parties, or to other political organizations.

- (OECD on “Combating Bribery)


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“The foundation of our corporate
governance at Infosys is the belief that
it is better to lose a billion dollars than
to act in ways that make one lose a
night’s sleep”.

Shri N. R. Narayana Murthy, Non Executive Chairman & Chief Mentor of Infosys,
“Blissful Knowledge-The Six Pillars of Corporate Wisdom”, The Times of India, 10th
August, 2001
THE NINE PRINCIPLES OF
GLOBAL COMPACT

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The Global Compact's nine principles in the areas
of human rights, labour and the environment
enjoy universal consensus, inasmuch as they
derive inspiration from :-

 The Universal Declaration of Human Rights

 The International Labour Organization's


Declaration on Fundamental Principles and Rights
at Work

 The Rio Declaration on Environment and


Development
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NINE PRINCIPLES

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Human Rights
Principle 1:- Businesses should support and
respect the protection of internationally
proclaimed human rights within their sphere
of influence and

Principle 2:- Do not be complicit in human


rights abuses.

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Labour Standards
Principle 3:- Uphold the freedom of association
and the recognition of the right to collective
bargaining;

Principle 4:- The elimination of all forms of


forced and compulsory labour

Principle 5:- The effective abolition of child


labour; and

Principle 6:- Eliminate discrimination in


respect of employment andof Education
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Environment
Principle 7:- Precautionary approach to
environmental challenges

Principle 8:- To promote greater environmental


responsibility and

Principle 9:- Encourage the development and


diffusion of environmentally friendly
technologies
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14 May 2019 and Research
PETER DRUCKER on CSR
 The sole purpose of being rich is to give away
money.
 God, Carnegie asserted, wants us to do well
so that we can do good.
 Rosenwald, modest, publicity shy,
unassuming, never preached, but his deeds
spoke louder than his words. “You have to be
able to do good to do well” was Julius
Rosenwald’s credo
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 Another American businessman
(William Norris-Chairman Control
Data Corporation) developed yet
another approach to social
responsibility.
 He said, “create a business that, while
solving a problem, would become self-
sustaining and profitable.”

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 Norris’s investments in social needs
aimed at creating human capital in the form
of individuals capable of performance and of
a healthy community able to help itself.

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“Only if business learns how to convert
the major social challenges facing developed
societies today into novel
and profitable business opportunities
can we hope to surmount these challenges in
the future.”

Source : Peter Drucker, The Frontiers of Management, pp 321-323

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Drink firms tackle child obesity

Global drinks firms,


including Coca-Cola
and Cadbury
Schweppes, have
unveiled a European
initiative aimed at
tackling the problem of
obese children.

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14 May 2019 and Research
Drink firms tackle child obesity

Unesda, the Union of


European Beverages
Associations, said it
would limit youth
advertising, control
sales in schools and
improve nutritional
labels.

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14 May 2019 and Research
Drink firms tackle child obesity

It also pledged a wide


range of drinks,
including sugar-free and
low-calorie, in container
sizes that limit intake.
The European Union has
singled obesity out as a
major threat to public
health.

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14 May 2019 and Research
McDonalds 'ignored health advice'
Fast food restaurant
chain McDonalds is
facing renewed legal
action in the US over
claims that the its food
was responsible for
health problems among a
group of obese American
children.

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14 May 2019 and Research
McDonalds 'ignored health advice'
The original complaint
was thrown out last
month, but US district
judge Robert Sweet left
the door open for further
litigation.

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14 May 2019 and Research
McDonalds 'ignored health advice'
His ruling pointed out the
possibility of a case to
prove that additives in
fast food meant there
were risks in eating it
that consumers were not
aware of.
The original case was
brought on behalf of a
group of overweight
teenagers in the Bronx
district of New York.
We were a bad environmental icon, we were a
bad animal rights icon. Today .. We’ll be the
leader on healthy lifestyles and nutrition..
Because it is important to all our customers…..
The company can certainly see the
inextricable link between brand and behavior

James Calapuno, CEO McDonalds


Financial Times, Aug 9,2003

VPM's London Academy of Education


14 May 2019 and Research
“Like it or not, the
Days when portfolio
Decisions could be
Made in a complete
Moral and social
Vacuum are
Numbered”

Financial Times editorial


VPM's London Academy of Education
14 May 2019 and Research
Section - VII

CSR - Ethics

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14 May 2019 and Research
Definitions and Relationships

 CSR is the process by which businesses negotiate


their role in society
 Ethics is the study of morally appropriate
behaviors and decisions, examining what "should
be done”
 Although the two are linked in most firms, CSR
activities are no guarantee of ethical behavior

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14 May 2019 and Research
Recent Evidence of CSR Interest
An Internet search turns up 15,000 plus
response to “corporate citizenship”
Journals increasingly “rate” businesses
(and NGOs) on socially responsive
criteria:
 Best place to work
 Most admired
 Best (and worst) corporate reputation
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14 May 2019 and Research
Corporate Social Responsibility
Continuum
Maximize firm’s profits
to the exclusion of all
Fight social responsibility else Do what it takes to make a
initiatives profit; skirt the law; fly
below social radar

Do more than required; e.g. Comply; do what is legally


engage in philanthropic required
giving

Integrate social objectives Articulate social value


Balance profits and
and business goals objectives
social objectives

Lead the industry and


other businesses
with best practices
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14 May 2019 and Research
The Evolving Context for Ethics

 From domestic where ethics are shared


 To international where ethics are not shared when
companies:
 Make assumptions that ethics are the same
 Ethical absolutism—they adapt to us
 Ethical relativism—we adapt to them
 To global which requires an integrative approach to
ethics
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14 May 2019 and Research
Emergence of a Global Business Ethic

 Responsibility for righting social wrongs belongs to


all organizations
 Integrative mechanisms such as ethics
 Ethics reduce operating uncertainties
 Voluntary guidelines avoid government
impositions
 Ethical conduct is needed in an increasingly
interdependent world—everyone in the same game

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14 May 2019 and Research
Ways Companies Integrate Ethics

 Top management commitment in word and deed


 Company codes of ethics
 Supply chain codes
 Develop, monitor, enforce ethical behavior
 Seek external assistance

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14 May 2019 and Research
External Assistance with Ethics

 Industry or professional codes


 Certification programs, e.g., ISO norms
 Adopt/follow global codes

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14 May 2019 and Research
Four Challenges to a Global Ethic

 Global rules emerge from negotiations and will


reflect values of the strong
 Global rules may be viewed as an end rather than a
beginning
 Rules can depress innovation and creativity
 Rules are static but globalization is dynamic

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14 May 2019 and Research
In CSR communications,
as with most communications,
“show” is better than “tell.”

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14 May 2019 and Research
Be transparent

Employ third-party
verification
There’s no need to
Stretch the
truth
Six Cornerstones
For Communicating
‘CSR’
Remember
Take the employees
initiative
Explain your
metrics
14 May 2019
Business Environment

Media Employees
Customers
Shareholders
Providers

Consumers
Enterprise
Partners

Investors NGOs

Analysts Government
Regulators
Local Community
Academia
Local Authorities
CSR Communications
1. Transparency
2. Confidentiality
3. Competition
4. Legal implications
5. Cultural and social dimensions

Implications:
1. Market niche
Selection of:
• receivers 2. Market acceptance & credibility
• media
3. Financial results

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14 May 2019 and Research
Market Issues & Trends

1. Climate change
2. Responsible consumers
3. Corporate accountability
4. Socially responsible investments (SRI)
5. Business ethics
6. Supply chain principles
7. Moral values
8. Socially responsible entrepreneurship

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14 May 2019 and Research
The spirit is drawn from the vision of the
founder Mr. Jamshetji Tata, Founder of
Tata Steel -

“Be sure to lay out wide streets planted with shady


trees, every other one of a quick growing variety.
Be sure that there is plenty of space for lawns and
gardens. Reserve large areas for football, hockey and
parks. Earmark areas for Hindu temples,
Mohammedan mosques and Christian churches.”

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14 May 2019 and Research
CSR

Sustainable Development

Human well-being Social harmony


Economic growth

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14 May 2019 and Research
Thank you!!!

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14 May 2019 and Research
Case study -- Bangladesh
Readymade garments & textile industries

◘ Over 20000 industries of various sizes


◘ Over two million workers, mostly female-illiterate
◘ Mostly situated in non-industrial areas thus not
incorporating industrial infrastructure
◘ Only 50 per cent have proper ventilation
◘ Only 40 per cent have hygienic toilets
◘ Over 70 per cent do not have proper emergency
exits
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14 May 2019 and Research
Case study -- Bangladesh
Rice Mill tragedies

Over 40,000 rice mills (husking)


5 million workers (cheap labour, illiterate-mostly
women or vagrant males
Deplorable working conditions – open air- no
PPE- temporary employment
Boiler bursting – usual incidents
Over 1200 reported deaths due to boiler bursts. 5000
injured due to sun-stroke, respitory problems and
overload carrying
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14 May 2019 and Research
Millennium Development
‘Goals'
 Goal 1: Eradicate extreme poverty and hunger
 Goal 2: Achieve universal primary education
 Goal 3: Promote gender equality and
empower women
 Goal 4: Reduce child mortality

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14 May 2019 and Research
Millennium Development
‘Goals'
 Goal 5: Improve maternal health
 Goal 6: Combat HIV / AIDS, malaria and
other diseases
 Goal 7: Ensure environmental sustainability
 Goal 8:Develop a global partnership for
development
SOURCE: www.undp.org/mdg/goallist.shtml

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14 May 2019 and Research
Emissions of rich nations
countinue to rise
EMISSIONS LINKED TO
ECONOMIC ACTIVITY

TIMES OF INDIA

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