Corporate social responsibility

Corporate social responsibility is operating a business in a manner which meets or excels the
ethical, legal, commercial and public expectations that a society has from the business.
Business entity is expected to undertake those activities, which are essential for betterment of
the society. Every aspect of business has a social dimension. Corporate Social Responsibility
means open and transparent business practices that are based on ethical values and respect
for employees, communities and the environment.
It is designed to deliver sustainable value to society at large as well as to shareholders.
Corporate Social Responsibility is nothing but what an organisation does, to positively influence
the society in which it exists. It could take the form of community relationship, volunteer
assistance programmes, and special Scholarships, preservation of cultural heritage and
beautification of cities.

The philosophy is basically to return to the society what it has taken

from it, in the course of its quest for creation of wealth.
CSR is not Philanthropy

Philanthropy means the act of donating money, goods, time or effort to

support a charitable cause in regard to a defined objective. Philanthropy
can be equated with benevolence and charity for the poor and needy.
Philanthropy can be any selfless giving towards any kind of social need
that is not served, underserved, or perceived as unnerved or
underserved. Philanthropy can be by an individual or by a corporate. It
is the active effort to promote human welfare.
Corporate Social Responsibility on the other hand is about how a
company aligns their values to social causes by including and
collaborating with their investors, suppliers, employees, regulators and
the society as a whole. The investment in CSR may be on people centric
issues and/ or planet issues. A CSR initiative of a corporate is not a
selfless act of giving; companies derive long-term benefits from the CSR
initiatives and it is this enlightened self-interest which is driving the CSR
initiatives in companies.

Four Components of Corporate Social Responsibility.or

The Pyramid of Corporate Social Responsibility:
Economic

Corporate social responsibility is comprised of four components -- the first is economic.

Economist Milton Friedman wrote that the social responsibility of business is to increase
its profits.

If a company does not make money, it won't last, employees will lose jobs and the
company won't even be able to think about taking care of its social responsibilities.
Before a company thinks about being a good corporate citizen, it first needs to
make sure that it can be profitable.

Legal
Businesses, to be socially responsible, must compete within the rules society has
established through its laws and regulations. This includes producing goods that
meet safety standards in workplaces that also are safe and free from discrimination
based on gender, race or religion. It means living up to contractual obligations.
Ethical
Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do business
with oppressive countries Ethical

responsibilities also involve the fundamental ethical

principles of moral philosophy, such as justice, human rights, and utilitarianism.
Philanthropic
Philanthropic responsibilities are responsibilities that go above and beyond what is
simply required or what the company believes is right. They involve making an
effort to benefit society -- for example, by donating services to community
organizations, engaging in projects to aid the environment or donating money to
charitable causes

Corporate sustainability
(CS) refers to corporate activities demonstrating the inclusion of social and
environmental as well as economic responsibilities in business operations as they
impact all stakeholders.
Corporate sustainability has been recognized by the financial markets because it
creates
long-term shareholder value by embracing opportunities and managing risks as the
result of
economic, social, and environmental developments.
Corporate sustainability encompasses strategies and practices that aim to meet the needs of the stakeholders
today while seeking to protect, support and enhance the human and natural resources that will be needed in the
future.

To be sustainable, companies must do five things:

1. Foremost, they must operate responsibly in alignment with
universal principles
2. Take actions that support the society around them.
3. Then, to push sustainability deep into the corporate DNA,
companies must commit at the highest level.
4. Report annually on their efforts,
5. And engage locally where they have a presence.
CORPORATE SUSTAINABILITY IS A COMPANYS DELIVERY OF LONG-TERM
VALUE IN FINANCIAL, ENVIRONMENTAL, SOCIAL AND ETHICAL TERMS.
Corporate sustainability starts with a companys value system and a
principled approach to doing business. This means operating in ways
that, at a minimum, meet fundamental responsibilities in the areas of
human rights, labour,environment and anti-corruption.

Responsible businesses enact the same values and principles wherever

they have a presence,and know that good practices in one area do not
offset harm in
another. By incorporating the Global Compact principles into strategies,
policies and procedures, and establishing a culture of integrity,
companies are not only upholding their basic responsibilities to people
and planet, but also setting the stage
for long-term success.