09-05-2011, 10:16 AM
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EXECUTIVE SUMMARY
A Report on Corporate Social Responsibility
The report outlines important concerns about Corporate Social Responsibility related to Non-Governmental organization is an elective of Master of Management Studies syllabus of Mumbai University. For this subject on project was undertaken with SLUM REHABILATION SOCIETY which is pioneer in social work.
Corporate Social Responsibility was a well-established tradition in a number of organizations, including families, businesses with a strong ethic of community.
NGOs are typically independent of governments. Although the definition can technically include for-profit corporations, the term is generally restricted to social, cultural, legal, and environmental advocacy groups having goals that are primarily noncommercial.
It had been great pleasure to be part of this project. It has given us an opportunity to understand how NGO works. This has also given a preview of the real life scenario.
We would like to give our vote of thanks first and foremost to our professor Aftab who gave us the inspiration to work on this project.
We would also like to thank our class mates, who made this project look like a challenge and work on it relentlessly
Last but not least we would like to thank MR.ADOLF TRAGLOR and his staff.
INTRODUCTION TO THE CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business
A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis".
CSR is twofold. On one hand, it exhibits the ethical behavior that an organization exhibits towards its internal and external stakeholders (customers as well as employees). On the other hand, it denotes the responsibility of an organization towards the environment and society in which it operates.
Corporate social responsibility is not about planting trees in some vague corner of the world, but about how you do your business and how ethical you are as a corporation.
Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental, and social imperatives(“Triple-Bottom-Line- Approach”), People, Planet, and Profit. While at the same time addressing the expectations of shareholders and stakeholders. In this sense, it is important to draw a distinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy. Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of a company, and strengthen its brand, the concept of CSR clearly goes beyond that.
Promoting the uptake of CSR amongst SMEs requires approaches that fit the respective needs and capacities of these businesses, and do not adversely affect their economic viability. CSR programme on the Triple Bottom Line (TBL) Approach, which has proven to be a successful tool for SMEs in the developing countries to assist them in meeting social and environmental standards without compromising their competitiveness. The TBL approach is used as a framework for measuring and Reporting corporate performance against economic, social, and environmental performance.
It is an attempt to align private enterprises to the goal of sustainable global development by providing them with a more comprehensive set of working objectives than just profit alone. The perspective taken is that for an organization to be sustainable, it must be financially secure, minimize (or ideally eliminate) its negative environmental impacts and act in conformity with societal expectations.
Key CSR issues: Environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labour standards and working conditions, employee and community relations, social equity, gender balance, human rights, good governance, and anti-corruption measures.
A properly implemented CSR concept can bring along a variety of competitive advantages such as,
Enhanced access to capital and markets
Increased sales and profits
Operational cost savings
Improved productivity and quality
Efficient human resource base
Improved brand image and reputation
Enhanced customer loyalty
Better decision making
Risk management processes.
CSR ADDS GOODWILL TO THE COMPANY.
ADVANTAGES OF CORPORATE SOCIAL RESPONSIBILITY
BETTER FINANCIAL PERFORMANCE:
Studies and survey reveal that overall financial performance of socially responsible companies has been much better than of other companies.
HIGHER PRODUCTIVITY AND QUALITY:
Better working conditions, employee participation in decision making and environmental protection lead to increase protection lead to increased productivity and better quality work.
REDUCTION IN OPERATING COST:
Initiatives in corporate social responsibility can reduce operating cost significantly. For example, waste recycling reduces the waste disposal cost and recycle materials generate income. Similarly, work life programs such as flexible time help to reduce hiring and training cost by reducing labour absenteeism and turnover.
BRAND EQUITY AND REPUTATION:
A socially responsible company enjoys reputation with the public. Companies and brands that enjoy reputation draw customer.
HIGHER CUSTOMER LOYALTY AND SALES:
Companies which are perceived to be socially responsible, enjoy growing market for their products and services. Customers increasingly favour firms which do not employ child labour and which use environment friendly policies and practices.
LESSER REGULATIONS:
National and local government exercise less control over companies which are perceived to be socially responsible and ethical. Rewards and recognition are conferred on companies which contribute significantly to environment and public health. Such Finns are given preferential treatment in granting permission under various laws.
ACCESS TO PUBLIC MONEY:
Companies with high record in corporate social responsibility have better access to capital markets.
ACCESS TO TALENTS:
Socially responsible companies find it easier to recruit employees. People prefer to join and stay with such companies.