CSR

Outline:
 Corporate Social responsibility.
 Types and nature of social responsibilities.
 CSR principles and strategies.
 Models of CSR.
 Best practices of CSR.
 Need of CSR.
 Arguments for and against CSR.

Meaning:
 Corporate social responsibility is a gesture of showing the
company’s concern & commitment towards society’s
sustainability & development.
 CSR is the ethical behaviour of a company towards society.

Responsibility towards Society
 Carrying on business with moral& ethical standards.
 Prevention of environmental pollution.
 Minimizing ecological imbalance.
 Contributing towards the development of social health,
education
 Making use of appropriate technology.
 Overall development of locality.

Responsibility towards
Government Obey rules & regulations.
 Regular payment of taxes.
 Cooperating with the Govt to
promote social values.
 Not to take advantage of
loopholes in business laws.
 Cooperating with the Govt for
economic growth &
development.

Responsibility towards Shareholders To ensure a reasonable rate of
return over time.
 To work for the survival & the
growth of the concern.
 To build reputation & goodwill
of the company.
 To remain transparent &
accountable.

Responsibility towards Employee To provide a healthy working environment.
 To grant regular & fair wages.
 To provide welfare services.
 To provide training & promotion facilities.
 To provide reasonable working standard &
norms.
 To provide efficient mechanism to redress
worker’s grievances.
 Proper recognition of efficiency & hard work.

Responsibility towards consumers Supplying socially harmless
products.
 Supplying the quality, standards,
as promised.
 Adopt fair pricing.
 Provide after sales services.
 Resisting black-marketing &
profiteering.
 Maintaining consumer’s
grievances cell.
 Fair competition.

CSR Principles & Strategies. Respect for human rights.
 Respect for the differences of views.
 Diversity & non-discrimination should be the guiding
principle.
 Make some social contribution.
 Enter into e dialogue
 Self-realization & creativity.
 Fair dealings & collaboration.
 Feedback from the community.
 Positive value- added
 Long term economic & social development.

Models of corporate social responsibility
 Friedman model
 Ackerman Model
 Carroll Model
 Environmental Integrity & Community Model.
 Corporate Citizenship Model.
 Stockholders & Stakeholders Model.

Friedman Model(1962-73)
 A businessmen should perform his duty well, he is
performing a social as well as a moral duty.
 A businessmen has no other social responsibility to
perform except to serve his shareholders & stockholders.

Ackerman Model (1976) The model has emphasized on the internal policy goals &
their relation to the CSR.
 Four stages involved in CSR.
 Managers of the company get to know the most
common social problem & then express a
willingness to take a particular project which will
solve some social problems.
 an intensive study of the problem and finding out
solutions by hiring experts
 implementation of the proposed solutions
 http://dspace.iimk.ac.in/bitstream/handle/12345678
9/864/141-155.pdf?sequence=1&isAllowed=y

Carroll Model(1991) Philanthropic requirements: Donation, gifts, helping the
poor. It ensure goodwill & social welfare.
 Ethical responsibility: Follow moral & ethical values to
deal with all the stakeholders.
 Economic responsibility: Maximize the shareholders
value by paying good return.
 Legal responsibility: Abiding the laws of the land.

Environmental Integrity & Community
Health Model.
 This model developed by Redman.
 Many corporate in US adopted this model.
 Corporate contribution towards environmental integrity &
human health, there will be greater expansion opportunities.
 Healthy people can work more & earn more.
 CSR is beneficial for the corporate sector.
 CSR in a particular form is welcome.

Best Practices of CSR To set a feasible, Viable & measureable goal.
 Build a long lasting relationship with the community.
 Retain the community core values.
 The impact of the CSR needs to be assessed.
 Reporting the impact.
 Create community awareness.

Need for Corporate Social Responsibility
 To reduce the social cost.
 To enhance the performance of employees.
 It a type of investment.
 It improves the public image.
 Can generate more profit.
 To provide moral justification.
 It satisfies the stakeholders.
 Helps to avoid government regulations & control.
 Enhance the health by non polluting measures.

2:177
 Righteousness is not that you turn your faces toward the east
or the west, but [true] righteousness is [in] one who believes in
Allah , the Last Day, the angels, the Book, and the prophets
and gives wealth, in spite of love for it, to relatives, orphans,
the needy, the traveler, those who ask [for help], and for
freeing slaves; [and who] establishes prayer and gives zakah;
[those who] fulfill their promise when they promise; and
[those who] are patient in poverty and hardship and during
battle. Those are the ones who have been true, and it is those
who are the righteous.

 “And measure full when you measure. And weigh with
an even balance. This is better and its end is good.”
[Al-Bani-Israel: 35].

1) Islamic CSR (philanthropic activities/charities)
 "Generosity is close to Allah, close to Paradise, close to
the people and far from the Fire. Stinginess is far from
Allah, far from Paradise, far from the people and close
to the Fire. The ignorant generous person, is more
beloved to Allah than the worshiping stingy person.“
 Reference : Jami` at-Tirmidhi 1961

4. CSR on Philanthropic
Responsibilities Islam allows its followers to conduct business for profit without
harming others or the environment.
 People are expected to ensure justice to stakeholders and welfare to
mankind.(Qur’an, 16: 90)

5. CSR in Economic Responsibility
 In Islam, business activities are not assumed to satisfy
only material needs and desires; rather, these activities
should be undertaken to fulfill religious
responsibilities as well.
 God has permitted trade (i.e. buying and selling) but
has forbidden riba, or interest, in business
transactions (Qur’an, 2:275). He has encouraged
mankind to exercise mutual cooperation in good
deeds, but has forbidden people from helping one
another to further evil acts and enmity. (Qur’an, 5:2)

Ways Companies Integrate Ethics
 Top management commitment in word and deed
 Company codes of ethics
 Supply chain codes
 Develop, monitor, enforce ethical behavior
 Seek external assistance

External Assistance with Ethics
 Industry or professional codes
 Certification programs, e.g., ISO 9000
 Adopt/follow global codes
 Caux Round Table Principles

 IBM UK - Reinventing Education Partnership programmed
Interactions and sharing of knowledge through a web-
based technology - the “Learning Village” software. Culture
of openness and sharing of good practice
 AVON - a partnership with Breakthrough Breast Cancer,
and its Breast Cancer Crusade has raised over 10 million
pounds since its launch 12 years ago

Case Study
Jack Cohen founded Tesco in 1919
when he began to sell surplus
groceries from a stall in the East
End of London.The Tesco brand
first appeared in 1924. The name
came about after Jack Cohen
bought a shipment of tea from
T.E. Stockwell. He made new
labels using the first three letters
of the supplier's name (TES), and
the first two letters of his
surname (CO), forming the word
TESCO. The first Tesco store was
opened in 1929 in Burnt Oak,
Edgware, Middlesex. Tesco was
floated on the London Stock
Exchange in 1947 as Tesco Stores
(Holdings) Limited.

Corporate Social Responsibility of Tesco
 Tesco has made a commitment to corporate social responsibility, in the form of
contributions of 1.87% in 2006 of its pre-tax profits to charities/local community
organisations.
 In 1992 Tesco started a "computers for schools scheme", offering computers in
return for schools and hospitals getting vouchers from people who shopped at
Tesco. Until 2004, £92 million of equipment went to these organisations. The
scheme has been also implemented in Poland.
 Starting during the 2005/2006 football season the company now sponsors the
Tesco Cup, a football competition for young players throughout the UK. The cup
now runs a boy's competition at Under 13 level and two girl's cups at Under 14
level and Under 16 level. Over 40,000 boys alone took part in the 2007/08
competitions.
 In 2009 Tesco used “Change for Good” as advertising, which is trade marked by
Unicef for charity usage but is not trademarked for commercial or retail use which
prompted the agency to say "it is the first time in Unicef’s history that a
commercial entity has purposely set out to capitalise on one of our campaigns and
subsequently damage an income stream which several of our programmes for
children are dependent on”.

Pakistan state oil (PSO)
Core areas that PSO is doing CSR in
34

PSO in Education
 Partnering with The Citizens Foundation (TCF),
the leading education based NGO in Pakistan for
the education of 125 children hailing from all
provinces of the country.
 Working for elimination of child labor, PSO
worked with Zindagi Trust and Child Care
Foundation to take 520 children off the streets
and into classrooms and provide them with
education.
35

PSO health care
 Enabled the purchase of medical machinery including
dialysis machines for Sindh institute of Urology and
Transplantation (SIUT), anesthesia and ventilator
machines for Al-Shifa Trust, eye treatment machines
for Al-Ehsan Eye Hospital etc.
36

Community Building and
Environment
 Helped the Heritage Foundation set up 20
hand pumps and worked with other
organizations including Seed Pakistan and
the Taraqee Foundation to set up clean
drinking water plants for the populace in
rural Sindh and Balochistan.
 Helped house and educate over 250
orphans and elderly persons by extending
support to Roshni Homes, Panah
Shelter Homes and other credible
organizations.
37

Bahria Dastarkhwan Bahria Town Dastarkhwan is providing following services:
• Accommodation for up to 3000 people
• Free lunch and dinner daily
• Separate seating arrangements for ladies and gents
• Hygienic food in an excellent environment
• Mix daal or meat served with roti and salad
• Weekly rotating menu
• Special arrangement for Iftar in Ramazan
39

Bahria Health Care
Akhtar Rukhsana Memorial Trust by Bahria Town
Providing;
 Regular financial support is being provided to Al-Shifa
Trust, Shaukat Khanum Memorial Trust, Sahara Trust,
SOS Village. Nearly Rs. 200 million has so far been
spent on medical treatment of various Patients in
Rawalpindi and Lahore.
40

Bahria Education
 Bahria Town running FREE education centers for over
4,000 orphans with educational and lodging facilities.
Providing micro-finance loans to students in
Rawalpindi Agricultural University.
41

Bill & Melinda Gates Foundation is the
largest private foundation in the world, founded
by Bill and Melinda Gates.
The primary aims of the foundation are,
globally, to enhance healthcare and reduce
extreme poverty, and expand educational
opportunities and access to information
technology.

 Tackle problems in following areas :-
Global Development Global Health
- Water, sanitation, hygiene. -HIV.
- Vaccine delivery. -Malaria.
-Agriculture& Nutrition. -Tuberculosis.
Avahan is an initiative sponsored by the
BMGF to reduce the spread of HIV in India.
Reduce hunger and poverty for millions of farming
families by increasing agricultural productivity.

Reference
 http://dspace.iimk.ac.in/bitstream/handle/123456789/864/141-
155.pdf?sequence=1&isAllowed=y
 http://bahriatown.com/index.php?option=com_content&task=view&i
d=276
 http://www.psopk.com/en/csr
 https://www.slideshare.net/madangkiramaswaamy/bgs-7

CSR

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CSR