Corporate Social Responsibility

Only available on StudyMode
  • Download(s) : 382
  • Published : September 17, 2008
Open Document
Text Preview
CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit. A company’s stakeholders are all those who are influenced by and can influence a company’s decisions and action, both locally and globally. Business stakeholders include(but are not limited to) employees, suppliers, customer, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, shareholders(or a sole owner in case it is sole proprietorship business) and most importantly environment. Corporate social responsibility is not a charity work as understood by many. Corporate social responsibility can be classified in different heads as shown :

Here the overlapping area shows mutual benefits as against philanthropy model where one party gets benefited at the expense of other. So in the model called corporate social responsibility a partnership exists between companies, individual and NGOs for mutual benefits.

Existing E-CRM Models(cause related marketing)

The above mix is what is existing a present and the mix is very well ensuring that the blend of profit making, branding and social responsibility is being achieved by the companies. The under mentioned models are practiced by Indian Inc. at present. Charity Portals are portal sites that list non profit organizations (NPOs) and encourage donations to those organizations listed. These sites may list an NPO on their site for no charge, or they may charge a small fee. Usually, they obtain revenue through the sale of advertising space. Payment Service Providers are companies that setup a method for NPOs to conduct secure credit card transactions. Once a user decides to make a donation, he or she is taken to the payment service provider's site where the transaction takes place. Usually the provider establishes a fee structure with participating NPOs based on contributions received. Cross Promotions that promise a donation to a charitable cause based on the purchase of the company's product. Herein a certain percentage of the cost of purchase is diverted towards the cause. The idea being to take an issue that carries weight with the masses or the targeted customers, which entices them to choose the brand associated, over the competitors and in the process promoting the cause with monetary aid. Advocacy Advertising of social issues and corporate volunteerism in community activities that are sponsored by corporate. This kind of promotion helps increase awareness of the social cause. “Advocacy campaigns such as Shell Oil’s ads on driver safety or Budweiser’s effort to promote ‘responsible drinking and driving’ differ from public service campaigns in that they not only promote a common good, but also focus on protecting the company’s market,’’ runs an international marketing journal. Sponsoring an Event Or Show where the proceeds of which go towards a cause. The promotion helps raise funds for and increase awareness of the cause, enhancing the brand image of the corporate sponsoring the event.

CSR and its Integration into Companies Work Culture
• The first step is a written policy statement on CSR, which should be tracked through the year and the progress noted in the company’s annual report. • The CSR activities may also be included in both internal and external newsletters, press releases notes, etc, to make the employees and public aware of the initiatives. • The company must also entrust specific CSR tasks to certain members in the organization. The learning experiences should also be documented while going through the CSR activities to make others learn from it. • The top management provides the required thrust and focus to a...
tracking img