Role of Corporate Social Responsibility-
Corporate social responsibility for a business- these three consecrated words are not only intended to ensure sustainable business in a growing economy but also augment propitious persona in the milieu of social and economical status. I would like to moot different standpoints of CSR activities adopted by several businesses like bolstering the savour in education for the needs, enactment of several practice of Poverty Alleviation , buoying up for community mobilization and community development, environmental sustainability, Agriculture building, Accounting for Climate Change and Carbon Footprint, Social Entrepreneurship. CSR are not only contributing the socio-economical values but also empowers the national building. To bridge the gap for sustainable approach, manoeuvre should be made for the head honchos of businesses for managing the impact on society and its relationships with stakeholders. This is the time for the business to think beyond the ambit and to stagger along a different horizon.
There is a prolonged tradition of business and society as an area of academic study and public policy, but its primary concern has been how to regulate and motivate business so as to contribute more to the public good. In 1979, Caroll contributed a framework that pertains four types of responsibilities as follows:
CSR is being linked to many of the biggest challenges around the world. These include how we:
There should be solemn accountability for the businesses to enhance the socio-economic status of the stakeholders in the context of CSR. Many claims are made about how CSR can succour business to have a positive repercussion through its social, environmental, and
economic performance. This repercussion relates to the instrumental benefits of corporate responsibility, i.e. how it affects the financial bottom line. This can be considered as a sign of progress, in that it creates a link between good business management and corporate responsibility, but it can also be a cause for concern if it precludes companies from considering actions for which the business case is weak. It remains an open question for all whether the current understanding of this impact will affect CSR in future. Ultimately what we know about impact will depend on the demand for information and the current situation suggests that the various stakeholders are only beginning to understand what it is they need to know.
Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders (Commission of European Communities, 2004). As Warhust (2001) points out, the three major elements of CSR are product use which focuses on contribution of industrial products which help in well being and quality of life of the society, business practice which focuses on good corporate governance and gives high impetus for the environmental well being and equity which tries for distribution of profits equitably across different societies especially the host community.
The new Companies Bill, passed in the Lok Sabha in December 2012, made it mandatory for firms to report on how much they spend on CSR every year. If companies spend less than 2% of their average net profit over the last three years, they are required to explain the reasons. India is the first nation in the world to frame such legislation.
According to Abhishek Humbad, co-founder of sustainability management firm NextGen, one of the partners in the seminar: "In order to realise the full potential of Clause-135, the companies need to innovate and evolve new areas intervention like social entrepreneurship, startup incubation, social business models etc. and develop new methods of delivery. Greater collaboration and greater use of technology will play a critical role in the success of Clause-135."
Refer: http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/civil-societies-to-play-crucial-role-in-csr-agenda/articleshow/21685334.cms
The intensive repertoire of globalization are pertaining most business operations and this also brings opportunities and risk as well. In the meantime the challenge for the business world should be focussing on how they can create wealth or value benefits from alternative approaches which, in parallel, will contribute proactively and responsibly to the wider agenda and to real sustainable outcomes.
Commitment by Businesses to Improve the Social and Economic Status of Various Stake Holders Involved While Complying With All Legal and Economic Requirements
Corporate social responsibility for a business- these three consecrated words are not only intended to ensure sustainable business in a growing economy but also augment propitious persona in the milieu of social and economical status. I would like to moot different standpoints of CSR activities adopted by several businesses like bolstering the savour in education for the needs, enactment of several practice of Poverty Alleviation , buoying up for community mobilization and community development, environmental sustainability, Agriculture building, Accounting for Climate Change and Carbon Footprint, Social Entrepreneurship. CSR are not only contributing the socio-economical values but also empowers the national building. To bridge the gap for sustainable approach, manoeuvre should be made for the head honchos of businesses for managing the impact on society and its relationships with stakeholders. This is the time for the business to think beyond the ambit and to stagger along a different horizon.
There is a prolonged tradition of business and society as an area of academic study and public policy, but its primary concern has been how to regulate and motivate business so as to contribute more to the public good. In 1979, Caroll contributed a framework that pertains four types of responsibilities as follows:
- Economic Responsibility- Refers to the fundamental responsibility of business to produce goods and services that society wants and which it sells at a profit.
- Legal Responsibility- Refers to the obligation of business to fulfil its economic mission within the confines of the law.
- Ethical Responsibility- Refers to ethical responsibilities of companies that go beyond legal compliance.
- Discretionary Responsibility- Refers to voluntary responsibilities, such as philanthropy, which a company can assume even if there are no clear cut societal expectations.
CSR is being linked to many of the biggest challenges around the world. These include how we:
- Respond to climate change;
- Address the consequences of globalization
- Uphold international human rights
- Increase justice and equity, especially in the poorest countries
- Fight corruption and poor governance
- Achieve stable and sustainable socio-economic growth
There should be solemn accountability for the businesses to enhance the socio-economic status of the stakeholders in the context of CSR. Many claims are made about how CSR can succour business to have a positive repercussion through its social, environmental, and
economic performance. This repercussion relates to the instrumental benefits of corporate responsibility, i.e. how it affects the financial bottom line. This can be considered as a sign of progress, in that it creates a link between good business management and corporate responsibility, but it can also be a cause for concern if it precludes companies from considering actions for which the business case is weak. It remains an open question for all whether the current understanding of this impact will affect CSR in future. Ultimately what we know about impact will depend on the demand for information and the current situation suggests that the various stakeholders are only beginning to understand what it is they need to know.
Being socially responsible means not only fulfilling legal expectations, but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders (Commission of European Communities, 2004). As Warhust (2001) points out, the three major elements of CSR are product use which focuses on contribution of industrial products which help in well being and quality of life of the society, business practice which focuses on good corporate governance and gives high impetus for the environmental well being and equity which tries for distribution of profits equitably across different societies especially the host community.
The new Companies Bill, passed in the Lok Sabha in December 2012, made it mandatory for firms to report on how much they spend on CSR every year. If companies spend less than 2% of their average net profit over the last three years, they are required to explain the reasons. India is the first nation in the world to frame such legislation.
According to Abhishek Humbad, co-founder of sustainability management firm NextGen, one of the partners in the seminar: "In order to realise the full potential of Clause-135, the companies need to innovate and evolve new areas intervention like social entrepreneurship, startup incubation, social business models etc. and develop new methods of delivery. Greater collaboration and greater use of technology will play a critical role in the success of Clause-135."
Refer: http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/civil-societies-to-play-crucial-role-in-csr-agenda/articleshow/21685334.cms
The intensive repertoire of globalization are pertaining most business operations and this also brings opportunities and risk as well. In the meantime the challenge for the business world should be focussing on how they can create wealth or value benefits from alternative approaches which, in parallel, will contribute proactively and responsibly to the wider agenda and to real sustainable outcomes.
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