Corporate Social Responsibility -(CSR)

<–2/”>a >Corporate Social Responsibility (CSR) is increasingly an essential issue for companies. It is a complex and multi- dimensional organisational phenomenon that is understood as the scope for which, and the ways in which, an organisation is consciously responsible for its actions and non-actions and their impact on its stakeholders. It represents not just a change to the commercial setting in which individual companies operates, but also a pragmatic response of a company to its consumers and Society. It is increasingly being understood as a means by which companies may endeavour to achieve a balance between their efforts to generate profits and the societies that they impact in these efforts. This chapter discusses these issues. First, it describes CSR and its core principles. Second, it describes CG and narrates CG‘s convergence with CSR. Third, it highlights how different economies are incorporating CSR notions in their corporate regulation.
The convergence of Corporate Social Responsibility(CSR) and Corporate Governance(CG) has helped to develop the standardisation regime. Most global companies have acknowledged this development. They exclusively consider certain of these initiatives to measure their suppliers‘ performance Some of them weed out suppliers from their chains on the results of performance tests based on these initiatives. Using these initiatives they select strategic suppliers to

(a) reduce their transaction costs;

(b) increase their profitability;

c) reduce costs as a result of a reduced need to switch suppliers; and

(d) increase their competitiveness in the marketplace through improved relationships with consumers.

GOI issued the Companies (Corporate Social Responsibility Policy) Rules, 2014 (CRS Rules) which has come into effect from 1 April 2014. Under Section 135 of the Companies Act ,it provides the threshold limit for applicability of the CSR to a Company i.e.

(a) net worth of the company to be Rs 500 crore or more;

(b) turnover of the company to be Rs 1000 crore or more;

the provisions of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign company in India.

Under the rules, Every qualifying company requires spending of at least 2% of its Average net profit for the immediately preceding 3 financial years on CSR activities. Further, the qualifying company will be required to constitute a committee (CSR Committee) of the Board of Directors (Board) consisting of 3 or more directors. The CSR Committee shall formulate and recommend to the Board, a policy which shall indicate the activities to be undertaken (CSR Policy); recommend the amount of expenditure to be incurred on the activities referred and monitor the CSR Policy of the company. The Board shall take into account the recommendations made by the CSR Committee and approve the CSR Policy of the company.

The activities that can be done by the company to achieve its CSR obligations include eradicating extreme hunger and POVERTY, promotion of Education, promoting Equality/”>Gender Equality and empowering Women, reducing child mortality and improving maternal Health, combating human immunodeficiency virus, acquired, immune deficiency syndrome, malaria and other diseases, ensuring environmental sustainability, EMPLOYMENT enhancing vocational skills, social business projects, contribution to the Prime Minister’s National Relief Fund or any other fund set up by the Central Government or the State Governments for socio-Economic Development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women and such other matters as may be prescribed.,

Corporate Social Responsibility (CSR) is a term used to describe the actions of a company that are intended to have a positive social and environmental impact. CSR can take many forms, such as environmental sustainability, social responsibility, economic development, community engagement, Human Rights, labor standards, product safety, Consumer protection, fair trade, sustainable investing, corporate governance, ethical Marketing, philanthropy, volunteering, donations, cause marketing, social enterprise, social impact investing, impact investing, social return on Investment (SROI), triple bottom line (TBL), Sustainable Development goals (SDGs), United Nations Global Compact, carbon footprint, water footprint, Ecological Footprint, Social Impact Assessment (SIA), environmental impact assessment (EIA), life cycle assessment (LCA), materiality assessment, risk management, compliance, Auditing, reporting, Communication, transparency, and accountability.

CSR is important for a number of reasons. First, it can help companies to improve their reputation and attract and retain customers and employees. Second, it can help companies to reduce costs and risks. Third, it can help companies to comply with regulations. Fourth, it can help companies to attract investors. Fifth, it can help companies to make a positive impact on the world.

There are a number of ways for companies to implement CSR. One way is to develop a CSR policy. This policy should outline the company’s commitment to CSR and the specific actions that the company will take to achieve its CSR goals. Another way to implement CSR is to create a CSR committee. This committee should be responsible for overseeing the company’s CSR efforts and ensuring that they are aligned with the company’s overall strategy. Finally, companies can implement CSR by engaging in a variety of activities, such as environmental sustainability, social responsibility, economic development, community engagement, human rights, labor standards, product safety, consumer protection, fair trade, sustainable investing, corporate governance, ethical marketing, philanthropy, volunteering, donations, cause marketing, social enterprise, social impact investing, impact investing, social return on investment (SROI), triple bottom line (TBL), Sustainable Development Goals (SDGs), United Nations Global Compact, carbon footprint, water footprint, ecological footprint, social impact assessment (SIA), environmental impact assessment (EIA), life cycle assessment (LCA), materiality assessment, risk management, compliance, auditing, reporting, communication, transparency, and accountability.

CSR can be a complex and challenging undertaking. However, it can also be a rewarding one. Companies that are committed to CSR can make a positive impact on the world and improve their bottom line.

Here are some examples of companies that are doing well in CSR:

Patagonia is a clothing company that is committed to environmental sustainability. The company uses recycled materials in its products and donates 1% of its sales to environmental causes.
Ben & Jerry’s is an ice cream company that is committed to social responsibility. The company sources its ingredients from fair trade suppliers and donates 7.5% of its pre-tax profits to social causes.
Starbucks is a coffee company that is committed to economic development. The company sources its coffee from fair trade suppliers and provides training and education to its employees.
Whole Foods Market is a grocery store chain that is committed to community engagement. The company donates 5% of its profits to local Charities and supports local farmers.

These are just a few examples of companies that are doing well in CSR. There are many other companies that are making a positive impact on the world through their CSR efforts.

What is Corporate Social Responsibility (CSR)?

CSR is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the Environment in all aspects of their operations.

What are the benefits of CSR?

There are many benefits to CSR, including:

Improved brand reputation: CSR can help to improve a company’s reputation and make it more attractive to customers, employees, and investors.
Increased sales: CSR can lead to increased sales by making customers more likely to buy from a company that they believe is doing good in the world.
Reduced costs: CSR can lead to reduced costs by reducing waste, improving efficiency, and attracting top talent.
Improved employee morale: CSR can improve employee morale by making employees feel like they are part of something bigger than themselves.
Increased innovation: CSR can lead to increased innovation by encouraging employees to come up with new ways to solve social and environmental problems.

What are some examples of CSR?

There are many examples of CSR, including:

Donating to charity: Companies can donate Money or products to charities that support causes that they care about.
Volunteering: Companies can encourage their employees to volunteer their time to help others.
Investing in the community: Companies can invest in the communities where they operate by supporting local schools, parks, and other Infrastructure-2/”>INFRASTRUCTURE.
Reducing their environmental impact: Companies can reduce their environmental impact by using less energy and water, and by recycling and composting.
Promoting ethical trade: Companies can promote ethical trade by ensuring that their suppliers pay their workers a fair wage and provide safe working conditions.

What are some challenges of CSR?

There are some challenges associated with CSR, including:

Measuring the impact: It can be difficult to measure the impact of CSR initiatives.
Managing expectations: CSR initiatives can raise expectations among stakeholders, which can be difficult to meet.
Avoiding greenwashing: Greenwashing is when a company makes false or misleading claims about its environmental performance.
Ensuring sustainability: CSR initiatives need to be sustainable in order to have a long-term impact.

What is the future of CSR?

The future of CSR is likely to be more focused on sustainability and impact. Companies will need to ensure that their CSR initiatives are sustainable in order to have a long-term impact. They will also need to focus on measuring the impact of their CSR initiatives in order to demonstrate their value.

Which of the following is NOT a common goal of corporate social responsibility?
(A) To improve the company’s reputation
(B) To increase profits
(C) To reduce environmental impact
(D) To improve the lives of employees and the community
Which of the following is an example of a corporate social responsibility program?
(A) A company donates money to a local charity.
(B) A company reduces its use of energy and water.
(C) A company offers its employees paid parental leave.
(D) All of the above
Which of the following is a benefit of corporate social responsibility?
(A) It can improve the company’s reputation.
(B) It can attract and retain top talent.
(C) It can reduce costs.
(D) All of the above
Which of the following is a challenge of corporate social responsibility?
(A) It can be difficult to measure the impact of CSR programs.
(B) CSR programs can be expensive.
(C) CSR programs can be time-consuming.
(D) All of the above
Which of the following is a way to measure the impact of a CSR program?
(A) Track changes in the company’s reputation.
(B) Track changes in employee satisfaction.
(C) Track changes in the environment.
(D) All of the above
Which of the following is a way to reduce the cost of a CSR program?
(A) Partner with other organizations.
(B) Use volunteers.
(C) Use donated goods and Services.
(D) All of the above
Which of the following is a way to save time on a CSR program?
(A) Plan carefully.
(B) Delegate tasks.
(C) Use technology.
(D) All of the above
Which of the following is a common mistake made when implementing a CSR program?
(A) Not setting clear goals.
(B) Not measuring the impact.
(C) Not getting employee buy-in.
(D) All of the above
Which of the following is a way to avoid common mistakes when implementing a CSR program?
(A) Do your research.
(B) Get expert advice.
(C) Pilot your program before launching it.
(D) All of the above
Which of the following is the most important thing to remember when implementing a CSR program?
(A) Be genuine.
(B) Be transparent.
(C) Be accountable.
(D) All of the above