Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY

GROUP 3GANESH(CAPTAIN)

KALBEZAITONNATHAN

Prepared by KALBE BIN ABD GHANI

Contents What is CSR? Defination of CSR? Four Components of CSR Main Concept of CSR Stake Holder model Approaches to CSR Responsibilities Of CSR To Different Sections Of The Society Business Benefits of CSR Critics

Corporate social responsibility (CSR) is a form of corporate self-regulation aiming to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere.

What is CSR?

Define CSR

While there is no single, commonly accepted definition of

CSR. It generally refers to ‘business decision-making linked to ethical values, compliance with legal requirements, and respect for people, communities and the environment.’

CSR is also called as

corporate conscience corporate citizenship, social performance .

Do We Need CSR?

The term ‘Corporate social responsibility (CSR)’ is gradually gaining recognition as a strategic direction for large number of organizations, both

business and social driven, as well as public and private.

But there are still number of misnomers about CSR, (tension between profitability) in the corporate fraternity which is resulting in difficulties to

cope with this vast but intricate strategic discipline.

Economic Legal Social Ethical

Four Components Of CSR

CSR (Carrol , 1979) Firms have responsibilities to societies including economic, legal,

ethical and discretionary (or philanthropic). - See also De George (1999) on the “Myth of the Amoral Firm”

Social Contract (Donaldson, 1982; Donaldson and Dun fee , 1999) – There is a tacit social contract between the firm and society; the contract bestows certain rights in exchange for certain responsibilities.

Main Concepts of CSR

Stakeholder Theory (Freeman, 1984) – A stakeholder is “any group or individual who can affect or is affected by the achievement of an organizations purpose.” Argues that it is in the company’s strategic interest to respect the interests of all its stakeholders.

Stake Holder Model

CSR = political economy

The rights and responsibilities assigned to private

industry.

Approaches to CSR

New CSR Activities by Proton

1: Proton implement CSR workshop for 50 single mothers

- ‘Persona Empowerment’ workshop- Variety of activities to build their confident and

empower their self with knowledge- This workshop also serves as a platform for

sharing experiences, learning and motivating each other.

2. PROTON Provides Assistance To Flood - In Johor

- program aimed at assisting flood victims to get their life back on track

- distributed items including cooking stoves, school bags, new clothing and towels

3. Proton Treats School Children To The POWER of 1 Experience

- The POWER OF 1 event is an extensive event to showcase Proton’s milestones commemorating its technology advancements, engineering achievements, innovations and motorsports success.

- The special tour is intended to provide a different educational exposure and experience to the PINTAR School students and teachers involved

4. Proton gives orphans and school kids F1 experience

- offers the children the chance of a lifetime, to be part of the Formula One celebration with Proton

- 130 orphans and schoolchildren from Pertubuhan Kebajikan Yayasan Anak Yatim Piatu Darul Aitam and Rumah Bakti Nur Syaheera in Cheras, as well as schoolchildren from Sekolah Sultan Alam Shah, Putrajaya and SK Tanjung Malim Perak are joined this program.

5. Proton invest RM8 million a year to coaching new talent

- invested RM8 million a year through human capital training funds

- to produce more skilled workers- To meet the needs of particular companies in the automotive

field- PROTON is not exception from the positive trace of the

Economic Transformation Program (ETP)

- which is designed to elevate Malaysia as a developed country status by 2020

- On 27 September 2011, Proton also signed a memorandum of understanding (MoU) with the Department of Skill Development (DSD) and University of Kuala Lumpur (UniKL)

- This is all to improve technical and vocational skills of workers in the automotive field.

Responsibilities Of CSR To Different Sections Of The

Society

Responsibility to shareholders To safeguard the capital of the shareholders

To provide a reasonable dividend

By:

Strengthening & consolidating its position thru’ innovation &

growth

Responsibility to employees The payment of fair wages

The provision of the best possible working conditions

The establishment of fair work standards & norms

Provision of labor welfare facilities to the extent possible &

desirable

Arrangements for proper training & education of the workers

Responsibility to employees- cont… Reasonable chances & proper system for accomplishment &

promotion.

Proper recognition, appreciation & encouragement of special

skill & capabilities of the workers

The installation of an efficient grievance handling system

Opportunity to participate in managerial decision to the extent

possible

Responsibility to consumers To improve the efficiency of the functioning of the business so as to

Increase productivity & reduce prices

Improve quality

Smoothen the distribution system to make goods easily available.

To do research & development, to improve quality & introduce better & new

products

To take appropriate steps to remove the imperfections in the distribution

system, including black marketing or profiteering by middle men or anti social

elements

To supply goods at reasonable prices

Responsibility to consumers- cont… To provide the required after sales service.

To ensure that the product supplied has no adverse effect on the consumer

To provide sufficient information about the products, including their adverse

effects, risks, & care to be taken while using the products

To avoid misleading the customers by improper advertisements or otherwise

To provide an opportunity for being heard & to redress genuine grievances

To understand customer needs & to take necessary measures to satisfy these

needs.

Responsibility to the communityTaking appropriate steps to prevent environmental pollution &

to preserve the ecological balance

Rehabilitating the population displaced by the operation of the

business, if any

Assisting the overall development of the locality

Taking steps to conserve the scarce resources & developing

alternatives , wherever possible

Responsibility to the community- cont…

Improving the efficiency of the business operation

Contributing to R&D

Development of backward areas

Promotion of small scale industries

Making possible contribution to furthering social causes like the

promotion of education & population control

Contributing to the national effort to build up a better society.

Responsibility to the dealers Fairness & truthness of all the activities including pricing,

licensing to sell & rights to sell.

Ensure business activities are free from litigation

Develop long term stability in dealer relationship

Ensure that there is equity in relationship with all dealers.

Responsibility to the governmentTo behave like a law abiding citizen

To pay its dues & taxes to the state fully & honestly

Impartiality towards political affairs, i.e., to abstain from direct

political involvement, & not to support political parties

To follow honest trade practices & avoid activities leading to

restraint of trade

Responsibility to the government- cont…

Not to corrupt public servants for selfish ends

To sell commodities & services without adulteration

Use scarce national resources properly

Environmental protection & reduce pollution

Respect to the community & citizens of the country

Contribute to social development.

Lowering of tax rates Reducing regulatory interventions Improvement in market positions. Reputations of brand. Strengthen supplier relations. Cost saving. Improved relations with govt. authorities. Reduced interest rates.

Business Benefits of CSR

Violations to profit maximization. Dilution of purpose. Costs. Too much power. Lack of skill. Lack of accountability. May make organization more vulnerable to revelation of

bad/unethical business practice. A restriction to free trade.

Critics

Business should confine to its own business

Can adversely affect the economic health of a business

Can affect competitiveness if it causes an increase in the

price of the product

Can lead to an increase in the dominance of business

over the society

Critics