Introduction to Corporate Social Responsibility

Introduction… CSR covers the relationship between corporations and the societies with which they interact It also includes the responsibilities that are inherent on both sides of these relationships. CSR defines society in it’s widest sense The literature on CSR and Sustainability, developed predominently in Europe, North America and UK : Corporate Philanthropy (1950’s) ; Public welfare

….. In India : First Phase of Philanthropy (1850-1914) : Trust and institutions for social and humanitarian purposes. In 1912 : Sir Ratan Tata Foundation was set up in the London School of Economics (Department of Social Sciences). G D Birla and J R D Tata developed the Bombay plan in 1944 . In 1982 : Tata foundation established scholarships for students who wanted to study overseas.

…. Despite the lack of a single definition, my own research has shown that by examining different definitions from around the world, it is clear that there are commonly held understandings about what constitutes CSR. Let’s firstly examine some of these definitions----- then I will address the common understanding.

Definitions….. Canadian Government: “CSR is generally understood to be the way a company achieves a balance or integration of economic, environmental and social imperatives while at the same time addressing shareholder and stakeholder expectations.”

….. UK Government: “The Government sees CSR as the business contribution to their sustainable development goals. Essentially it is about how business takes account of its economic, social and environmental impacts in the way it operates – maximising the benefits and minimising the downsides.”

…. European Union: “[CSR is] a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”

…. World Business Council for Sustainable Development: “We define CSR as business' commitment to contribute to sustainable economic development, working with employees, their families, the local community, and society at large to improve their quality of life.”

….. The Kennedy School of Government (Harvard University), CSR Initiative: “The term [CSR] is often used interchangeably with others, including corporate responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance. Though these terms are different, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the social roles corporations are expected to play.”

What do these definitions tell us about CSR? What are some of the common understandings that emerge? How does CSR relate to other concepts? What other issues arise?

CSR is an idea whereby companies integrate economic, social and environmental concerns in their business operations Many definitions describe CSR as the business pursuit of sustainable development. Sustainable development: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” (1987 Brundtland Report). Like CSR, sustainable development is also recognized as having three fundamental pillars: economic development, social development and environmental protection.

Common Understanding Two: CSR relates to the idea whereby a business addresses and balances the needs of stakeholders. Who/what are stakeholders? “Individuals and groups who may affect or be affected by the actions, decisions, policies, practices or goals of an enterprise.” Examples: Shareholders and other investors Employees Customers Governments Local communities NGOs Environment