Csr presentation 1

Corporate Social Responsibility in Rural Development

“What responsibility to society can business people be reasonably be expected to assure.” Bowen

Doctrine of social responsibility - an entity, whether it is government, Private Corporation or Public Organization, having a responsibility towards the society in which they live and where they operate their businesses or carry out administration. Concept includes the openness and transparency of the companies as well as taking into consideration the will and expectations of their stakeholders. Is synonymous to corporate conscience, corporate citizenship, social performance or sustainable responsible business etc. CSR policy functions as a built-in, self regulating mechanism whereby a business house monitors and ensures its active compliance with the law, ethical standards and international norms.

Kautilya -mentions traders’ responsibilities to the local society.

In ancient India, such responsibilities were voluntary

Was perhaps used for the first time in 1953 when Bowen raised the basic question “What responsibility to society can business people be reasonably be expected to assure.”

Came into common use in the late 1960s and early 1970s at that time US had lots of social problems like poverty, unemployment.

During the 1980s to 2000, corporations recognized and started accepting a responsibility towards society.

Focuses on the wealth creation for the optimal benefit of all stakeholders

The term stakeholder means all those on whom an organization's performance and activities have some impact either directly or indirectly.

Bowen (1953) CSR is the obligation of businessmen to pursue those policies to make those decisions or to follow those lines of relations which are desirable in terms of the objectives and values of our society.

Frederick (1960) Social responsibility means that businessmen should oversee the operation of an economic system that fulfils the expectations of people.

CSR programs with respect to rural development through four types of institutions

•CSR activities implemented directly by the company through its own(i)CSR division,(ii) Human Resource Department(iii) Local management of manufacturing unit;

•CSR activities implemented through a foundation;

•CSR activities implemented through partnership with NGOs ,academic institutions, international agencies;

•CSR activities implemented through partnership with Government.

Table-1 No. of Companies taking CSR initiatives for Rural Development

itiatives

Table-1 No. of Companies taking CSR initiatives for Rural

DevelopmentS.No. for Rural Development

  1 Livelihood 12  2 Health 13  3 Education 14

  4 Environment 8

  5 Infrastructure 7

Company Thematic Areas CSR Initiatives for Rural Development

Vedanta Alumni Ltd. Livelihood Capacity building

HealthHealth awareness camps, use of IEC materials, Family planning

Education

Child care centres, education to all children, computer education,

Environment Environment protection

InfrastructureRenovation of village schools

Aditya Birla Group LivelihoodEmployment generation schemes

HealthHealth care, safe drinking water

Education Education and training

Dr.Reddy’s Labs LivelihoodJob oriented course to youth

Health Hospitality services

EducationEducation,child rights programme

Table-2: Details of CSR initiatives of Indian Companies

CONCLUSION AND RECOMMENDATIONS

Most of the companies design and implement CSR initiatives in the vicinity of their works cover entire community.

Initiatives ranging from income generation activities for livelihood, health check-up camps, mobile health services, education, adult literacy, agricultural development, provision of drinking water etc.

Approach to work is from philanthropic to welfare and sustainable development

Promote and implement through HRD, foundation or in partnership with NGOs, but do not have full fledged CSR department.

CSR initiatives have a positive impact in overall development of society and their business.

Points to be considered for sustainable development

•Must align the CSR goals with the national goals set up under MDG.

•Should have a dedicated CSR division with well trained, qualified and experienced professionals from social science.

•should be based on the felt-need of the local people

•Social audit should be conducted by an external agency

•Government can encourage economic players to consider ethical, social and environmental criteria. Government should play the role of motivator, enabler, facilitator rather than director of corporate social responsibility.

•A annual report on Corporate Social Responsibility should be prepared.

REFERENCES• Arora,B.and Puranik.(2004),“A Review of Corporate SocialResponsibility in India”,Development,47(3), pp.93-100.

• Conway, C.(2003), “Tracking Health and Well being in Goa’s Mining Belt”, Case Study 5,Ecosystem Approach to Human Health, International Development Research Centre, Canada.

• Chappel, M. and Moon, J. (2005), “Corporate Social Responsibility (CSR) in Asia: A Seven country study of CSR”, Business and Society,44(4),pp 415-441.