Corporate Social Responsibility Of India Essay

Corporate Social Responsibility (CSR) is a very controversial topic. A question that has been debated for the past few decades is; is it corporately viable to introduce social responsibility as a proposed addition to the work ethic of business organisations. As well as, if adopting the framework of corporate social responsibility would yield positive improvements for those organisations.

The organization’s strategy plan for any gaps in social responsibility that might be potential risks to internal and external stakeholders is challenging, but this company certainly does not allow for corruption. On April 1 “India has become the only country in the world with legislated corporate social responsibility (CSR) and a spending threshold of up to $2.5 billion (Rs 15,000

Company Q is a small grocery store chain who has struggled to maintain social responsibility. The company decided to close down two of their stores which were operating at a loss due to being located in high crime areas. In the existing stores, Company Q has answered to the demands of their customers by offering a limited amount of health-conscious and organic products, but has declined to help out the community by throwing out day-old foods instead of donating them to the local food bank. The decision to throw out the day-old foods was brought on by lost revenue due to possible employee theft and fraud.

“Economic, social, ethical and environmental responsibilities, some of which require compliance with the law others requiring discretionary action to ensure that the company does not knowingly operate to the detriment of society” – McIntosh et al, 1998, Pg. 284

The environmental aspect of Corporate Social Responsibility refers to operating a business in a way that promotes responsibility and accountability for the environment. There are three main initiatives implemented by Verizon to meet their corporate environmental obligations. These initiatives are: recycling, reducing energy consumption and obtaining “clean” (conflict free) resources.

A corporation must try to avoid egregious negative externalities, must actively promote corporate social responsibility (CSR), and must engage in philanthropy. Let’s take the example of the mining industry, in which 75% of mining companies (diamonds, copper, uranium, cobalt, etc.) are listed on the Toronto Stock Exchange1. For Canada, mining is a source of economic prosperity that brings along with it some risks. To maintain their competitive advantage, it is crucial for Canadian firms involved in mining to invest in programs that bring about long term prosperity for Canada as well as the populations in countries where the natural resources are extracted. One way that CSR is linked to competitive advantage is that it allows firms to anticipate potential negative changes in the firm’s external environment. For example, global capital markets adversely reacting to a Canadian mining firm’s exploitation of workers in the Congo, or increased pressure from sophisticated Non-Governmental Organizations using the media, or boycott campaigns.

Corporate Social Responsibility (CSR) is the concept that corporations are expected to perform certain acts for the betterment of society. The article “Doing Right Leads to Doing Well”, explores CSR by contending that although firms use these tactics for some societal good, they may also be linked with increased brand identification and consumer trust, which may bloat the firm’s bottom line. The authors maintain that CSR outputs such as sponsorship, cause-related marketing, and pure philanthropy can be positively correlated to both “in-role” and “extra-role” consumer behaviors. In-role behaviors consist of directly supporting the company through acts such as purchasing, while extra-role behavior is the indirect support

On September 13, 1970, Milton Friedman wrote and article, Social Responsibility of Business is to Increase its Profits. One of Milton’s theories suggested that the only legitimate incentive for a corporation to exist is to maximize its profits with its shareholders. As companies progress over time, so does the reason for the company existence. “What makes a stake holder?” Isabel Hilton (GE Stakeholders 2009)

Corporate Social Responsibility (CSR) is becoming an important aspect when it comes to running a business because it shows the people that how much a company values its customers and its society. CSR is known to be a business approach that contributes to the sustainable development by providing economic, social and environmental benefits for all shareholders. Nowadays, the majority of the companies are starting to adopt the CSR approach in their business models due to its benefits such as helping the environment, lowering cost of operation, promoting safe workforce, etc. More on, the biggest benefit of all is that it makes customers and employees happy, and that brings in more revenue and productivity into the company. According to an article by better business journey, “88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.” This study proves that how much important it is for a company to engage with its customers. When it comes to CSR, the first company that comes to my mind is the Walt Disney company due to their engagement with the society all over the world. I think Disney has become one of the biggest company that has embodied the CSR approach in their business model and continuously contributes to society to make the world a better place. In this paper, I will be focusing on Disney’s CSR report and discuss its positive outcomes.

With the interest in Corporate Social Responsibility growing, increasing numbers of organisations are incorporating CSR into their business operations in an effort to be seen acting as good corporate citizens, so what is CSR & what is it's role in today's organizations?

Before we can fully understand Corporate Social Responsibility Reporting (CSR) and its key aspects, we need to first understand the inherent limitations of annual reports provided by many of the globally listed companies. Everything that we have analysed in the prior week’s regarding IFRS accounting policies, practices and regulations plays a role in the lack of CSR practices of firms. This is because IFRS accounting policies and regulation only represents a very limited financial or economic view of the operations of these listed companies. There seems to be no accountability for the impact that these globally listed corporations have on the environment or on society. Therefore, these listed companies only focus on one bottom line in their annual reports, a bottom line that is based on financial profit only. There also does not seem to be any mandatory IFRS standards in place to require companies to set aside profits that should be used to repair the negative impacts on the environment, employee rights and conditions that are consequences of their actions (Taylor, 2016c).

The paper addresses the concept of business ethics and law of Corporate Social Responsibility. The study of behaviour of the organisations should include how responsible it is towards the community and its employees, customers and investors.

After reading these three articles, from my point of view, the main concern is the concept of corporate and social responsibility that businesses have to employees, consumers, investors, stakeholders and society in general. And if there should or should not be any responsibility at all. We can see how this idea evolved in the United States throughout the 20th

‘Corporate social responsibility’ (CSR) means that the firm has wider responsibilities in relation to objectives and people apart from the owners or shareholders (Beal and Goyen 2005). These responsibilities are achieved when the firm adapts all of its practices to ensure that it operates in ways that meet, or exceed, the ethical, legal, commercial and public expectations that society has of business. Objectives often associated with CSR include a responsibility to manage natural assets sustainably and not to pollute by chemical discharge, smell, noise, dust or other irritants; fair treatment of employees and ethical attitude towards clients. The other people include employees, customers, suppliers,

In recent past, the concept of Corporate Social Responsibility has gained much attention. The CSR and citizenship which aims at invoking the corporate conscience whereby the companies incur short term cost but these short term cost do not provide immediate financial benefit, instead these costs promote positive social environmental change. The Companies Act of 2013 which replaced the 60 years old Act of 1956 gave a provision with the concept of mandatory CSR. This research paper is focused on the provision relating to mandatory spending and disclosure relating to Corporate Social Responsibility activities. It also discusses the major loopholes of provision which hinders the practical applicability of Section 135 of the Companies Act, 2013