CSR_Book_RNSKnt5Yt8.pdf

CSR_Book_RNSKnt5Yt8.pdf - N M IM S Corporate Social...

This preview shows page 1 out of 416 pages.

Unformatted text preview: N M IM S Corporate Social Responsibility COURSE DESIGN COMMITTEE Chief Academic Officer Dr. Arun Mohan Sherry M.Sc. (Gold Medalist), M.Tech. (Computer Science -IIT Kharagpur), Ph.D. NMIMS Global Access – School for Continuing Education Content Reviewer N M IM S Prof. Deepak R. Gupta Assistant Professor, NMIMS Global Access - School for Continuing Education Specialization: Marketing Author : Arpita Singh Reviewed By: Prof. Deepak R. Gupta Copyright: 2018 Publisher ISBN: 978-93-86052-38-4 Address: 4435/7, Ansari Road, Daryaganj, New Delhi–110002 Only for NMIMS Global Access - School for Continuing Education School Address V. L. Mehta Road, Vile Parle (W), Mumbai – 400 056, India. NMIMS Global Access - School for Continuing Education C ONTENT S CHAPTER NAME PAGE NO. 1 Globalisation and Corporate Social Responsibility 1 2 Corporate Stakeholders 29 3 Philosophical Model of Csr 65 4 Introduction to Corporate Social Responsibility 87 5 Developing a Csr Strategy 129 Implementing Csr Strategy 155 Non-Governmental Organisations 191 Monitoring and Measurement of Csr 219 Csr Reporting 249 10 Role of Government and Voluntary Codes in Csr 287 11 Corporate Ethics and Governance 319 12 Case Studies 355 8 9 IM 7 N M 6 S CHAPTER NO. NMIMS Global Access - School for Continuing Education iv C o r p o r at e S o c ia l Re s po n s ib ility cu r r i cu l um Globalization and its Impact: Economic, Social, Sustainable Development, Role of Business in Sustainable Development, Business Organizations as Systems. Corporate Stakeholders: From Shareholder Theory to Stakeholder Theory, Stakeholder Concept, Typology of Stakeholders and their Influence, Stakeholder Engagement, Stakeholders versus Shareholders, Dynamic Environment of Business. IM S History of CSR in India: Pre-Independence Period, Post-Independence India, Liberalization and CSR, Emerging CSR Trends, Contemporary Scenario: Achievements, Theories of CSR: Friedman’s Theory/Fundamentalist Theory, Social Contract Theory, Social Justice Theory, Rights Theory, Deontological Theory, Stakeholder Theory, Gandhi’s Trusteeship Theory. Corporate Social Responsibility: The Pyramid of Corporate Social Responsibility, Generations of CSR, Changing Trends: Philanthropy, Strategic Philanthropy, CSR Arguments against CSR, The Business Case for CSR, Importance of CSR for India: Current Business Scenario in IndiaContemporary Drivers for CSR. N M Developing A CSR Strategy: Steps in Designing CSR Strategy, Develop a Working Definition of CSR, Review Corporate Documents, Processes and Activities, Developing a CSR Strategy: Build Support with Senior Management and Employees, Research what others are doing, Prepare a Matrix of Proposed CSR Actions, Develop Options for Proceeding and Develop the Business Case for CSR Action, Decide on Direction, Approach and Focus Areas Implement CSR Commitments: Develop an Integrated CSR Decision-making Structure, Prepare and Implement CSR Business Plan, Set Measurable Targets and Identify Performance Measures, Engage Employees and Others to Whom CSR Commitments Apply, Design and Conduct CSR Training, Establish Mechanisms for Addressing Problematic Behaviour, Create Internal and External Communication Plan. Implementing CSR Strategy: Areas of CSR Implementation, CSR at Market Place: Benefits of Marketplace CSR, Designing Market Place CSR Activities, CSR at Workplace: Benefits of CSR at Workplace, Designing Work Place CSR Activities, Environmental CSR: Benefits of Environmental CSR, Designing Environmental CSR, CSR with Communities, Types of Interventions: Benefits of Community Interventions, Steps to Design CSR Intervention, Strategic Partnerships: Reasons for Corporate NGO Partnership, Criteria for Selecting NGO Partner, NGO Strategies to Influence CSR. CSR Monitoring and Measurement: Focus of Measurement , Measure Fewer Things Better, Measure What Matters, Communicate Fewer Metrics in Multiple Ways, What is Monitoring?, Internal Compliance Monitoring, External Monitoring and Measurement Importance. NMIMS Global Access - School for Continuing Education v CSR Reporting: Benefits of Reporting: Whom to Report, How to Report, Contents of CSR Report, Formats of CSR Communication and Reporting, The Reporting Team, Additional References for CSR Reporting. Role of Government And Voluntary Codes In CSR: Role of Government, Government Support at International Level, Voluntary Codes in CSR: OECD Guidelines for Multi-national Corporations, ILO Conventions, ISO 9000 & ISO 14000, SA8000, UN Draft Principles for Behaviour of Trans-national Corporations, LEED, GRI, DOW Jones Sustainability Index, FTSE4GOOD, Smart Growth Network, Equator Principles, UN Global Compact, Coalition of Environmentally Responsible Economies (CERES). N M IM S Corporate Ethics and Governance: What is Corporate Governance, Constituents of Corporate Governance, The Corporate Governance Debate, Theories and Responsibilities of Corporate Governance, Global Growth of Corporate Governance, History of Corporate Governance in India, The Current State of Corporate Governance in India, Board Composition in India, Corporate Governance: Need to Strengthen: How to Improve Corporate Governance, Benefits of Corporate Governance, Efforts to Improve Corporate Governance, Corporate Governance and CSR. NMIMS Global Access - School for Continuing Education S IM N M C h 1 a p t e r GLOBALISATION AND CORPORATE SOCIAL RESPONSIBILITY S CONTENTS N M IM 1.1 Introduction 1.2 Globalisation and its Dimensions 1.2.1 Sustainable Development: Economic Social and Environmental Impacts Self Assessment Questions Activity 1.3 Role of Business in Sustainable Development Self Assessment Questions Activity UN Post 2015 Agenda 1.4 Self Assessment Questions Activity 1.5 Indian Companies Act 2013 Self Assessment Questions Activity 1.6 World Bank Group Goals 2030 1.6.1 India and World Bank Group Partnership Strategy Self Assessment Questions Activity 1.7 Business Organisations as Systems Activity 1.8 Summary 1.9 Descriptive Questions 1.10 Answers and Hints 1.11 Suggested Readings & References NMIMS Global Access - School for Continuing Education 2  CORPORATE SOCIAL RESPONSIBILITY e s Introductory Caselet SIEMENS’ SUSTAINABLE POWER SUPPLY SOLUTION FOR CITIES S t Source: Nearly two-thirds of the energy consumed across the world takes place in the cities. This calls for energy efficient and sustainable power supply solutions. Efficiency in power plant operations, higher usage of renewable resources and low-loss power transmission are the cornerstones of a reliable energy supply. IM o HIGHER ENERGY EFFICIENCY WITH COMBINED CYCLE POWER PLANTS N M n Combined cycle power plants make use of hot exhaust fumes from gas turbines instead of wasteful emission into the air and instead it is directly fed into special turbines that generate steam. As a result, there is a substantial increase in energy efficiency. This helps in saving energy. Combined cycle power plants can have a great role to play in the supply of urban power and energy infrastructure. Siemens is a key components supplier for Dhuvaran combined cycle power plant located in Gujarat, Western India. The power plant supplies eco-friendly electricity to Vadodara, an industrial city in Gujarat. LOW-LOSS POWER SUPPLY WITH HVDC Energy efficiency in power generation is a major component for sustainable power supply for cities. The low-loss power transmission that takes place from the source of power generation to the site of energy consumption mainly the cities, is an important factor too. High-voltage, direct current transmission (HVDC) technology is an efficient and highly recommended method for achieving low loss power transmission. When power transmission is needed over long distances, especially in the geographical topology of large countries like India, this technology is highly suitable. HVDC is not only reliable and safe, but it also occupies little NMIMS Global Access - School for Continuing Education GLOBALISATION AND CORPORATE SOCIAL RESPONSIBILITY  3 Introductory Caselet space and still yields significant energy savings. Siemens is also in the process of the installation of a HVDC power transmission system that connects the city of Mundra located in India’s west coast with the industrial regions of the state of Haryana near New Delhi. Spanning over approximately 960 kilometers, the system has a capacity of 2,500 megawatts, being Siemens’ third HVDC system in India. A system that connects Bangalore with Talcher is the world’s second, longest at 1,450 kilometers and another connecting Ballia with Bhiwadi near New Delhi 80 kilometers are the company’s other two systems. SIEMENS WIND ENERGY PLANTS IN INDIA N M IM S Wind energy is considered to be a vital source of power supply. Cities cause nearly 70 per cent of the world’s greenhouse gas emissions, hence it is beyond any doubt that energy efficient and green power supply is one of the important sustainable development solutions for urban areas. This is so because it not only fulfils the energy requirement but also helps in the conservation of natural resources and the environment. Siemens launched an innovative direct-drive wind turbine in India in 2011. This turbine is high energy efficiency and uses renewable energy sources to support the sustainable development of India’s energy infrastructure. The company now plans to manufacture these turbines in Vadodara. The company is also currently investing in a research and development technology centre. NMIMS Global Access - School for Continuing Education n o t e s 4  CORPORATE SOCIAL RESPONSIBILITY e s learning objectives After studying this chapter, you will be able to: Describe the concept of globalisation and its impact on economic, social and environmental dimensions Discuss the role of business in sustainable development Discuss the UN Post 2015 agenda Describe the Indian Companies Act, 2013 and CSR Discuss the World Bank Group’s Goals by 2030 Enumerate World Bank Group Goals 2030 and describe India and World Bank Group partnership strategy Explain the concept of business organisations as systems >> >> >> >> >> >> >> S t 1.1 INTRODUCTION IM o In this chapter, you will study the concept of Globalisation and Corporate Social Responsibility (CSR) or Corporate Citizenship. CSR is a way of an organisation to monitor its internal operations so as to ascertain that local laws, international norms and ethical standards are being complied with. CSR is considered to be a vital element in a corporate’s relationship with the society in which it functions and its stakeholders including governments and individuals. A series of economic, social, technological and political changes lead to globalisation. The world is now considered to be a flat or a borderless world as business enterprises now span across borders of different countries and operate across national boundaries. N M n According to some world historians, the concept of globalisation dates back to 1492 when Christopher Colombus stumbled on the Americas in search of spices and 1498 when Vasco da Gama travelled around Africa competing with the Arab and Venetian spice traders. On the other hand, some historians believe that globalisation dates back even earlier. Another view is that the world economy may have been globalised before the 19th century. The Oxford dictionary defines globalisation as the process by which businesses or other organizations develop international influence or start operating on an international scale. The Carnegie Endowment for International Peace defines globalisation as a process of interaction and integration among the people, companies, and governments of different countries, a process driven by international trade and investment and aided by information technology. This process affects the environment, culture, political systems, economic development and prosperity, and physical human well-being in societies around the world. NMIMS Global Access - School for Continuing Education GLOBALISATION AND CORPORATE SOCIAL RESPONSIBILITY  5 n Thus, globalisation is considered as a process of creating a worldwide network in which economies and societies are integrated. As the pace of global integration is increasing new changes in communication, transportation and information technology have made the world more interdependent than ever. Globalisation has removed barriers between different countries to encourage the flow of goods, services, capital and labour. Moreover, lowering or removal of tariffs and quotas has helped in globalising the world economy at greater pace. It resulted in the easy movement of resources, money and technology across national borders. Globalisation has also helped in the expansion of foreign trade in the world, which enabled countries to export and import across the globe. IM S In addition, globalisation has helped in developing a global market by enabling multinational corporations to produce products in several countries and sell them to consumers across the world. Moreover, globalisation allowed the unrestricted circulation of ideas and cultures across the nations, which resulted in the formation of laws, economies and social movements at the international level. Globalisation has also resulted in an increased level of awareness towards human rights violation and environmental concerns. This compels organisations to protect the interests of their stakeholders first. N M One of the most positive effects of globalisation is an easy flow of foreign capital. India, for example, has been benefitted immensely with this positive side of globalisation. A lot of organisations have invested in India by setting up their facilities in the country. Apart from this, one of the most evident effects of globalisation is the improved quality of products/services due to global competition. In order to remain in competition and survive in the long run, organisations are compelled to raise their manufacturing standards and customer satisfaction levels. Besides several benefits mentioned above, globalisation also has its negative effects. It results in increasing job insecurity problem. Many organisations prefer to outsource several jobs in countries where the cost of manufacturing products and wages is lower than in their own countries. Though it is done as a cost-cutting measure, it results in lesser jobs for the people of countries that are outsourcing jobs to other countries. Another drawback of globalisation is that it may lead to fluctuations in prices. Due to an increase in competition, organisations are forced to lower down their prices for their products. IMPACT OF GLOBALISATION IN INDIA Globalisation has several positive and negative effects on culture, society and economy of India. It has paved a way for opening new markets for Indian organisations to sell their products and services. With cheap resources, such as labour, India can positively compete with other organisations at international level. Moreover, availability of NMIMS Global Access - School for Continuing Education o t e s 6  CORPORATE SOCIAL RESPONSIBILITY e s cheap resources has attracted a number of foreign investors in India to establish their business. This has increased the level of competition among organisations in the country. With increasing competition, organisations are producing quality products at competitive prices. It is resulting in higher customer satisfaction as customers are getting quality products at reasonable prices. This scenario has led to the development of living standards of people in India. Organisations are becoming more modern and adopting new technologies to survive and grow in the market. With an increase in foreign investment, more and more employment opportunities are surfacing and developing the country’s economy. Apart from positive impacts, globalisation has put several negative impacts. With increasing industrialisation, the environment of the country is getting affected at large scale. As India provides cheap labour, there are multiple possibilities that human resource is exploited inefficiently and ineffectively. With the incoming of global players, it is becoming difficult for small local firms to compete with them at such scale. This situation in many cases is resulting in the closure of such small-scale local firms. S t IM o Globalisation has had a different impact in the different regions of the world; for example: ‰‰ Africa: The region faced a relatively negative impact of the change due to unfair practices, inability to repay foreign dues, public health issues like high prevalence of diseases like HIV/AIDS. Poor governance and low amount of foreign investments seems to have a huge migration from the place. N M n ‰‰ Asia: India and China witnessed a positive impact on economic growth and industrial productivity. There was also a decrease in unemployment and poverty. However, globalisation replaced many traditional occupations and led to mass migration of populations from rural to urban regions leading to inequalities in these regions. ‰‰ Europe and America: Liberalisation brought with it more opportunities for trade, inflow of capital and competition with international players in the European regions. However a rise in income disparities was seen as a downside there too. Outsourcing of backend jobs to lower-cost countries along with an increase in the competition led to financial constraints for the state. European Union was the outcome of response of the region to the rising pressures of globalisation. America, witnessed a more or less positive impact of the phenomenon of globalisation, though the pressure of competition was faced by companies there too, which resulted in reduction in wages and loss of unskilled jobs to outsourced countries. NMIMS Global Access - School for Continuing Education GLOBALISATION AND CORPORATE SOCIAL RESPONSIBILITY  7 n 1.2 GLOBALISATION AND ITS DIMENSIONS One of the most salient outcomes of globalisation has been an increase in the efficiency of trade operations and an increase in global competition. Further now there is an availability of many convenient sources of transportation, availability of advanced technology machinery for manufacturing, better modes of communication facilities through information technology, etc. There is no denying that global system development has brought together economies, there have been certain negative social impacts of globalisation. The impact of development needs to be studied on all dimensions. S 1.2.1 SUSTAINABLE DEVELOPMENT: ECONOMIC SOCIAL AND ENVIRONMENTAL IMPACTS There are many distinct dimensions of globalisation of which the most important ones are economic, social and sustainable development. IM The interplay between various dimensions of globalisation is shown in Figure 1.1: N M Social Bearable Equitable Sustainable Environment Viable Economic Figure 1.1: Interplay Between Various Dimensions of Globalisation Sustainable development is defined as a type of development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is a term that is used to describe an economy that is in equilibrium with the basic ecological support systems. Usually, the term sustainable development is understood as development that is done keeping in mind environmental issues. However, sustainable development means equilibrium between environmental sustainability, economic sustainability and socio-political sustainability. Sustainable development refers to meeting the diverse needs of people in different communities, maintaining social cohesion and creating equal opportunity to ensure a strong and healthy society. In other words, it can be said that sustainable development focuses on finding ways of doing things that do not affect the quality of people’s life. NMIMS Global Access - School for Continuing Education o t e s 8  CORPORATE SOCI...
View Full Document

  • Fall '19
  • Corporate social responsibility, Millennium Development Goals

{[ snackBarMessage ]}

Get FREE access by uploading your study materials

Upload your study materials now and get free access to over 25 million documents.

Upload now for FREE access Or pay now for instant access
Christopher Reinemann
"Before using Course Hero my grade was at 78%. By the end of the semester my grade was at 90%. I could not have done it without all the class material I found."
— Christopher R., University of Rhode Island '15, Course Hero Intern

Ask a question for free

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern