Corporate Social Responsibility Understanding Dimensions

CORPORATE SOCIAL RESPONSIBILITY - Definition In both the corporate and the academic world there is uncertainty as to how CSR should be defined. The definitional confusion surrounding CSR might potentially be a significant problem. If competing definitions have diverging biases, people will talk about CSR differently and thus prevent productive engagements.

CSR - as a social construction How CSR is defined in existing definitions? Study the similarities and differences in between the available definitions. The definitions are categorized into five dimensions How consistently these dimensions are invoked ?will help in finding How CSR, as defined by the definitions, is to be understood?

Categorization of Dimensions of each Definition Dimensions The environmental dimension The social dimension The economic dimension The stakeholder dimension The voluntariness dimension Dimension refers to The natural environment The relationship between business and society Socio-economic or financial aspects, including describing CSR in terms of a business operation Stakeholders or stakeholder groups Actions not prescribed by law

Dimension score and Dimension ratio : 5 dimensions in CSR definitions

How CSR is Defined ? All of the dimensions are necessary in order to understand how CSR is defined. Further, the analysis shows that there is a 97% probability that at least three of the dimensions are used in a random definition It is not possible to separate the definitions into different schools of thought. Altogether, this shows that the five dimensions are used consistently in the definitions.

How CSR to be understood ? The social, environmental and economic dimensions are merely different categories of impacts from business. Definitions do not provide any descriptions of the optimal performance or how these impacts should be balanced against each other in decision-making. It is interesting to observe that none of the definitions actually defines the social responsibility of business

CSR and Social Construction Thus, further knowledge of how CSR is socially constructed in a specific context must be obtained by other means than through a definition of CSR Therefore, the challenge for business is not so much to define CSR, as it is to understand how CSR is socially constructed in a specific context and how to take this into account when business strategies are developed.

Development & Deployment of CSR in India Out of the top 500 companies, 229(51%) did not report on CSR activities 49% of the remaining 271 companies were reporting on CSR. Many companies are making token gestures towards CSR and only a few companies have a structured and planned approach. Several companies spread their CSR funds very thinly across many activities. Every company defines CSR in their own ways as per their needs. CSR is on an upward learning curve and is primarily driven by philanthropy. Practical implications -The study clearly maps the CSR performance of 500

Development & Deployment of CSR in India Out of 500 companies, 229(51%) companies got a ‘0’ rating and were not showing any CSR activity Rest 271 companies 26 companies are reporting on environment in the name of CSR. Final list of 245 companies was obtained The assessment of 245 companies was done by mapping their reported aspects against the 18 GRI social aspects which are globally accepted & most widely used.

Deployment of CSR in India The CSR reports (245 companies) were thoroughly examined to find out the use of : GRI social aspects Linkage of CSR initiatives to business & The innovativeness in CSR Focus area of CSR in each company.

CSR Ratings of top 500 Companies

Findings Every company defines CSR in their own ways as per their needs. Very few companies have a clearly defined CSR philosophy. Most implement their CSR in an adhoc manner, unconnected with their business process. Most companies spread their CSR funds thinly across many activities, thus somewhere losing the purpose of undertaking that activity. Many companies are making token gestures towards CSR and only a few companies have a structured and planned approach.

Findings Generally speaking, most companies seem either unaware or don’t monitor their company’s CSR. The overall approach still seems to be driven by philanthropy rather than integrating it with business as has been happening in the west. However, all companies can be considered to be an upward learning curve with respect to CSR.