Emerging Challenges for Sustainable Businesses

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ISBN - 978-93-81583-46-3 

“Why are Companies Engaging in CSR Initiatives?”
Himani Grewal Assistant Professor Shree Satya Institute of Management, Moradabad

himanigrewal@yahoo.com

National Conference on Emerging Challenges for Sustainable Business 2012 687 

Why Are Companies Engaging in Csr Initiatives

“Why are Companies Engaging in CSR Initiatives?”
ABSTRACT 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. There are a variety of definitions of CSR and no overall agreement. My own definition is: CSR is concerned with treating the stakeholders of the firm ethically or in a responsible manner. CSR is confusing, not only to those that do not yet know what these three letters stand for, but also to those who do and yet see it used in contexts in which corporate environmental or financial performance is the issue we prefer the simple ‘corporate responsibility’ because it’s not at all confusing, does not exclude environmental and financial aspects of corporate performance and does not represent too great a departure from the current, unsatisfactory ‘CSR’. This paper tries to identify the main reason behind the engagement of corporations in CSR.

Key words: CSR (Corporate Social Responsibility), corporate philanthropy, CSR Parameters. INTRODUCTION “Corporate social responsibility must not be defined by tax planning strategies alone. Rather, it should be defined within the framework of a corporate philosophy which factors the needs of the community and the regions in which a corporate entity functions. This is part of our cultural heritage. Mahatma Gandhi called it trusteeship….I invite corporate India to be a partner in making ours a more humane and just society… We need a new Partnership for Inclusive Growth based on what I describe as a Ten Point Social Charter...first, we need to have healthy respect for your workers and invest in their welfare…”.

“88% of consumers said they were more likely to buy from a company that supports and engages in activities to improve society.” - Better Business Journey, UK Small Business Consortium DEFINITION OF CSR Corporate social responsibility (CSR) is also known By a number of other names: corporate responsibility, corporate accountability, corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line and responsible business, to name just a few.CSR is an evolving concept that currently does not have a universally accepted definition. Generally, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby

Indian Prime Minister, Manmohan Singh in 2007

National Conference on Emerging Challenges for Sustainable Business 2012 688 

Why Are Companies Engaging in Csr Initiatives

establish better practices within the firm, create wealth and improve society. The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. Building on a base of compliance with legislation and regulations, CSR typically includes "beyond law" commitments and activities pertaining to: • • • • • • • • • • • •

corporate governance and ethics health and safety environmental stewardship human rights (including core labor rights) human resource management community involvement, development and investment involvement of and respect for Aboriginal peoples corporate philanthropy and employee volunteering customer satisfaction and adherence to principles of fair competition anti-bribery and anti-corruption measures accountability, transparency and performance reporting Supplier relations, for both domestic and international supply chains. CSR is a long-term approach to business that addresses the needs of communities,...
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