Corporate Social Responsibility –
Issues and Challenges with reference to Bhopal city.
Ms Charu Modi Ms Ankita Rajdev Ms Meenal Pathak
Assistant Professor Assistant Professor Assistant Professor
JSSGIW – FOM JSSGIW – FOM JSSGIW – FOM
08871312197 09893299224 09989773177
Corporate Social Responsibility is the term used to define organisation’s commitment to the society and the environment within which it operates. Corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators ...view middle of the document...
Keywords: Social Responsibility, CSR, Issues and Challenges
“Corporate Social Responsibility is a concept whereby Companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis”.
Some perceive it to be a commitment of a company to manage its various roles in society, as producer, employer, customer and citizen in a responsible manner while for others it is synonymous to Corporate Responsibility (CR) or Corporate Citizenship or Social Action Programme (SAP). Many of the leading corporations across India had realized the importance of being associated with socially relevant causes as a means of promoting their brands. Cause-related marketing and corporate social responsibility has provided companies with a new tool to compete in the market. CSR refers to the corporation’s obligation to all the stakeholders. It stems from the desire to do well and get self satisfaction in return as well as societal obligation of business. This could be a strategic marketing activity a way for a company to do well by doing good-distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate Samaritan acts and public relations. Now, it is assumed to be responsibility of the business houses too. An insight into the history of CSR reveals that till 1990s it was solely dominated by the idea of philanthropy. Considering CSR
as an act of philanthropy, businesses often restricted themselves to one time financial grant and did not commit their resources for such projects. Moreover, businesses never kept the stakeholder in mind while planning for such initiatives, thereby reducing the efficacy and efficiency of CSR initiatives. However,
over the last few years, the concept of CSR has been changing. There has been an apparent transition from giving as an obligation or charity to giving as a strategy or responsibility. Review of the case studies and work done on CSR by companies in India suggests that the CSR is slowly moving away from charity
and dependence and starting to build on empowerment and partnership.
Overview of issues
* General business ethics
* Ethics of accounting information
* Ethics of human resource management
* Ethics of sales and marketing
* Ethics of production
* Ethics of intellectual property, knowledge and skills
Benefits of adopting a policy of social responsibility:
* Improved financial performance;
* Lower operating costs;
* Product safety and quality.
* Greater use of renewable resources;
* Access to capital;
* Workforce diversity;
* Employee volunteer programmes;
* Better product durability and functionality;
* Enhanced brand image and reputation;
* Increased sales and customer loyalty;
* Greater productivity and quality;
* More ability to attract and retain employees;
* Reduced regulatory oversight;
* Product safety...