BUSINESS ETHICS & CORPORATE GOVERNANCE

Assignment on
Corporate Social Responsibility

Submitted To-
Prof. Manas Chakravarty

Submitted By-
Himanshu Chouhan
15P048
Section-01
Batch- 2015-17
CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility (CSR) is a self-regulatory mechanism incorporated by
corporations in their business model. The term CSR is also used for activities carried out by
companies around the globe to give back to the society. The concept of CSR has been
acknowledged by companies around the world and it is considered to an essential part of the
operations of the companies. In the recent past, there have been several advancements in the
corporate world which have necessitated the need for incorporating CSR in the core business
model, specifically for large scale corporations with operations situated in multiple territories all
around the world.
Although CSR is largely unregulated, corporations have acknowledged that carrying out CSR
activities reflects positively on their brand image. In case of financial reporting, companies are
required to follow strict standardized requirements; however in case of CSR, there are no strict
regulations which make CSR mandatory. Despite the lack of regulations, the regulatory
authorities encourage companies to engage in CSR as expenses incurred under CSR are
deductible for tax purposes depending upon local laws. In the race to outrun their competitors,
corporations conduct bigger and bigger CSR activities to earn higher goodwill among
consumers. Corporations benefit from CSR as well because consumer prefer carrying out
business with companies which have a positive image in the market.

The debate about CSR has been said to have begun in the early 20th century, amid growing
concerns about large corporations and their power. The ideas of charity and stewardship helped
to shape the early thinking about CSR in the US. There is no universally accepted definition of
CSR- Selected definitions by CSR organizations include:

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"
World Business Council for Sustainable Development
"CSR is about how companies manage the business processes to produce an overall
positive impact on society."
"Corporate social responsibility is undertaking the role of "corporate citizenship" and
ensuring the business values and behaviour is aligned to balance between improving and
developing the wealth of the business, with the intention to improve society, people and
the planet"
 "CSR is a company's commitment to operating in an economically, socially and
environmentally sustainable manner whilst balancing the interests of diverse
stakeholders." CSR Asia
"Corporate social responsibility is the commitment of businesses to contribute to
sustainable economic development by working with employees, their families, the local
community and society at large to improve their lives in ways that are good for business
and for development." International Finance Corporation

There are major challenges in today's corporate arena that impose limitations to the growth and
potential profits of an organization. Government restriction, tariffs, globalization,
environmentally sensitive areas and exploitation are problems that are costing millions of dollars
for organization. It may be apparent that in some cases, ethical implications are simply a costly
hindrance that potentially forces businesses to finding alternative means to shift viewpoints.

It is certainly a potential strategic tactic to gain public support to sustain a competitive

advantage. Another plausible driver of CSR is by independent mediators to ensure that corporate
goals don't harm or disadvantage anyone or environment. Unfortunately many consequential
events are a reason why CSR policies become evident. But CSR opens up a whole new horizon
for safer and better opportunities for both the employer and employee. It is now for more
organizations to realize the importance of CSR, and take the right step towards success.