Corporate Social Responsibility : Issues & Challenges Ms Pinkey N Bhardwaj Corporate Social Responsibility : Issues & Challenges

Definition CSR is a new terminology, but its hardly a new concept. As in third century BC, Kautilya’s has dealt with the management of people and power commerce and taxations, standardization of weights and measures, and more peace.

Definition Raksha (protection): risk management Vriddhi (growth): stakeholder value enhancement Palana (maintenance): compliance with the law Yokakshema (well-being): corporate social responsibility

CSR Corporate Social Responsibility is defined as “achieving commercial success in ways that honor ethical values, respect people, communities & the natural environment.” We can also say that CSR means addressing the legal, ethical, commercial & other expectations society has for business, & making decisions that fairly balance the claims of all key stakeholders. In its simplest terms it is a moral check on: “what you do, how you do it”

Credibility Reputation and Brand Enhancement . Accountability and Transparency. Risk Management . Retention of staff It attracts green and ethical investment It attracts ethically conscious customers Reduction in costs through re-cycling It differentiates the firm from its competitor and can be a source of competitive advantage Increased profitability in the long run

Issues Health Environment Agriculture Microfinance Sanitation HIV Childcare Development Education

Issues Rehabilitation & Resettlement Slum Improvement Disaster Livelihood Women Enpowerment

Challenges How to measure CSR . Lack of Resources Accountability. Social Compliance Cultural Diversity & Understanding of Local Law. Lack of Role of Media No Guidelines No Knowledge Lack of consent in implementing the policies.

CSR Index A recent survey of 20,000 people in 20 countries offers some fascinating insights into the way consumers, and societies at large, perceive the social and environmental responsibilities of business. Corporate Social Responsibility Monitor 2001: Global Public Opinion on the Changing Role of Companies identifies those aspects of corporate practice that matter most to the general public. It also reveals some intriguing differences in priorities between different regions of the world. The survey was undertaken by Environics International, and involved interviews with around 1,000 people in each of 20 countries including the USA, Canada, Mexico, Britain, France, Germany, Japan, India, Russia and Nigeria. The key findings are as follows. 1. Significant numbers of investors take a company's social performance into consideration when making investment decisions In the USA, where 61% of people own shares, more than a quarter said they had bought or sold shares on the basis of a company's social performance. A similar picture emerged in Canada, Japan, Britain and Italy . Percentage of share-owners who have bought or sold shares because of a company's social performance, by country

Conclusion and Suggestions Conduct workshops to engage with staff and suppliers to explore areas of risk . Develop interactive intranet sites that show case examples of good practice, or build in opportunities for promotion of good practice at staff meetings . Review company policy and procedures to ensure values are consistent – procurement, recruitment, training, appraisals and exit interviews . Consult and involve staff more in the running of a business . Provide feedback questionnaires for employees, customers and suppliers – to show the organization is living its values .

Conclusion and Suggestions Employee Practices. Encourage Higher standards at Workplace. Encourage Community Activities.

CSR - SCORE In a report titled, 'Ethical Asia', by global research firm CLSA, Reliance Industries, Australian airline Cathay Pacific and Japanese conglomerate Mitsubishi UFG have been named as the companies maintaining the highest CSR standards in the region and have been termed the region's 'corporate good guys'.

Conclusion In conclusion, let me share a quotation from Aristotle: “We are what we repeatedly do. Excellence, therefore, is not an act, but a habit.” If ethical leadership, too, were to become not just an act, but a habit, leaders could truly make the world a better place to live in.