UNIT I — Corporate Social Responsibility (CSR): Concept, History,
and Evolution
1. Meaning of CSR
Corporate Social Responsibility (CSR) means the responsibility of
businesses to work not just for profit but also for the welfare of
society and protection of the environment.
It involves ethical business practices and contributing to the
economic development of society while improving the quality of
life of the workforce, community, and the planet.
2. History and Evolution
Ancient Times: In ancient India, concepts like daan (charity), seva
(service), and dharma guided social responsibility. Kings and
wealthy merchants funded temples, water tanks, and schools.
Industrial Revolution (18th–19th century): The rise of large
industries created social issues like poor working conditions.
Philanthropy became popular — industrialists started donating for
schools, hospitals, etc.
20th Century: Businesses realized they should be accountable for
environmental and social impacts, not just economic profit.
Modern CSR: Globalisation, environmental concerns, and human
rights awareness have made CSR a standard part of corporate
policies. Now CSR is guided by laws, standards, and voluntary
commitments.
3. Components of CSR
Ethical Responsibility: Fair business practices, honesty,
transparency.
Legal Responsibility: Following all laws (e.g., Companies Act 2013
in India).
Economic Responsibility: Providing goods/services efficiently and
profitably.
Philanthropic Responsibility: Supporting community projects,
charity, donations.
Environmental Responsibility: Reducing pollution, waste
management, sustainable resource use.
4. Approaches to CSR
Philanthropic Approach: Donations to charity, funding education,
healthcare.
Ethical Approach: Following moral values in all decisions.
Strategic Approach: CSR activities aligned with the company’s
business strategy (e.g., a tech company training rural youth in
digital skills).
Shared Value Approach: Creating business value while solving
social issues.
5. Globalisation and CSR
Globalisation has increased competition and public awareness.
Multinational companies are expected to:
Maintain uniform CSR standards globally.
Respect cultural differences but follow international human rights
norms.
Be accountable for their supply chains (no child labor, safe
working conditions).
6. Opportunities and Threats in CSR
Opportunities:
Improves brand image.
Builds customer trust.
Attracts and retains employees.
Opens new markets (eco-friendly products).
Threats:
Can be expensive for small companies.
Risk of “greenwashing” — companies pretending to be socially
responsible without real action.
May divert focus from core business if poorly planned.
Arguments For CSR:
Moral duty towards society.
Long-term profitability.
Better stakeholder relations.
Arguments Against CSR:
Businesses should focus on profit, not social work.
CSR may increase costs and reduce competitiveness.
Governments, not companies, should handle social welfare.
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UNIT II — Global and National Legal Framework of CSR
1. Global Legal Framework
UN Conventions: Agreements between countries to protect human
rights, labor rights, and the environment.
UN Global Compact: Voluntary commitment by companies to
follow 10 principles in human rights, labor, environment, and anti-
corruption.
ILO Declaration: Protects workers’ rights — fair wages, safe
working conditions, no child labor.
SAI (Social Accountability International): Certification system
(SA8000) ensuring ethical working conditions.
OECD CSR Policy Tool: Guidelines for multinational companies on
responsible business conduct.
2. National Legal Framework (India)
Companies Act 2013:
Companies with net worth ≥ ₹500 crore, turnover ≥ ₹1,000 crore,
or net profit ≥ ₹5 crore must spend at least 2% of average net
profit of last 3 years on CSR.
CSR Committee to plan and monitor activities.
CSR activities must be in Schedule VII (e.g., education,
environment, rural development).
National Voluntary Guidelines: Encourages businesses to go
beyond legal requirements for sustainability.
Sectoral Guidelines: Rules for industries like mining, chemicals,
etc., to reduce harm.
3. CSR Planning and Strategising
Steps:
1. Needs Assessment: Identify community needs (e.g., clean
water, education).
2. Goal Setting: Define clear objectives (e.g., train 500 women in
tailoring).
3. Budgeting: Allocate funds as per law and need.
4. Partnerships: Work with NGOs, government bodies.
5. Implementation: Carry out the planned activities.
6. Monitoring & Evaluation: Measure results, make improvements.
CSR as a Process:
CSR is continuous — plan → implement → evaluate → improve →
repeat.
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UNIT III — Scope and Practices of CSR in India
1. Scope of CSR in India
CSR in India covers:
Education: Building schools, providing scholarships, skill training.
Healthcare: Free medical camps, building hospitals, supporting
vaccination.
Environment: Tree plantation, renewable energy projects.
Livelihood: Skill development, supporting small businesses.
Community Development: Rural infrastructure, drinking water,
sanitation.
2. Internal CSR Practices
CSR inside the company for employees:
Safe working conditions.
Employee welfare programs.
Diversity and inclusion policies.
3. External CSR Practices
CSR for communities and environment:
Rural development projects.
Women empowerment programs.
Disaster relief work.
4. CSR in Leading Indian Organisations
Tata Group: Education, healthcare, rural development.
Infosys: Education, environment, arts and culture.
ITC: E-Choupal for farmers, watershed development.
Reliance: Health programs, rural transformation.
5. Educational Tour of Communities Engaged through CSR
An important part of learning CSR is visiting communities where
CSR projects are active. This helps:
Understand real challenges.
See impact of CSR on people’s lives.
Learn from successful models.
