What is Corporate Social Responsibility?

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WHAT IS CORPORATE SOCIAL RESPONSIBILITY?
Corporate Social Responsibility has been evidently growing with Liberalization, Privatization and Globalization. As said by William Jr. Ford, Chairman, Ford Motor Co. "A good company delivers excellent products and services, and a great company does all that and strives to make the world a better place", therefore booking profits for yourself in such a manner that is socially, environmentally and ethically acceptable thereby leading to an overall positive impact on society. 10 CSR PRACTICES TO BE FOLLOWED BY FMCG SECTOR

CSR IN INDIA
The concept of Corporate Social Responsibility (CSR) is not new in India. It emerged from the ‘Vedic period” when history was not recorded in India. In that period, kings had an obligation towards society and merchants displayed their own business responsibility by building places of worship, education, inns and wells. Although the core function of business was to create wealth for society and was based on an economic structure, the business community with their rulers believed in the philosophy of “Sarva loka hitam” which means ‘‘the well-being of all stakeholders. Also some instances could be gathered from Mythology such as encounter of Kubera ( Hindu Lord of Wealth) and Ganesha( Son of Lord Shiva and Parvati) that give the key learning that if you have been provided with excess of wealth, you owe an additional responsibility of upliftment of society, be it socially, environmentally or ethically, otherwise a day would come, when imperialism and ecological disturbances created in society would be a black hole for you that will swallow you and all your efforts throughout the years would turn kaput. Chapple and Moon (2005) while analyzing the CSR activities in Asia found out that in India 72% of the companies claim to have a CSR strategy that is three times higher than other developing countries in the continent. CSR IN FMCG SECTOR

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), recently released a report saying that Indian companies engaged in FMCG and chemical sectors were most active in CSR. Out of 175 Indian companies studied, 52 companies in the FMCG sector have taken the most amount of CSR initiatives. This was followed by the chemical sector and then the IT sector. Community welfare is the top CSR priority area for most Indian companies. The second most sought out CSR initiative was providing education and enlightening rural youth in the country. Environment based CSR initiatives placed third with big corporates placing importance on carbon auditing and working towards reducing their impact. Finally, the corporate sector is involved in health care by providing methods to eradicate diseases and educating rural people about hygiene and disease prevention. CSR forms an important tool in branding especially for FMCGs. The Indian FMCG sector is the fourth largest sector in the economy and is set to grow to US$ 33.4 billion by 2015. It is characterized by many MNCs operating out of India as well as good distribution networks. The FMCG sector is also the sector that contributes most towards a growing waste problem within the country and this is something that the sector must address. The food-processing industry alone is set to grow by billions of dollars and this will create its own waste streams. The potential for CSR in this sector is vast and hopefully companies galvanize on their growth will continue to invest in CSR as well. As well said by Carter Roberts “It doesn’t matter what industry you’re in, the supply chain will include products from all around the world. Whether we’re talking about fabric made in China, soybeans grown in the Amazon, palm oil harvested in Indonesia, biofuels created in Africa—companies will have to know how their products and the raw materials they use in their operations are affecting places, people, biodiversity, and the environment” But as FMCG sector consume major of the resources of nature,...
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