Corporate Social Responsibility

Corporate Social Responsibility -

Issues and Challenges with reference to Bhopal city.

Ms Charu Modi Ms Ankita Rajdev Ms Meenal Pathak

Assistant Professor Assistant Professor Assistant Professor

JSSGIW - FOM JSSGIW - FOM JSSGIW - FOM

Abstract

Corporate Social Responsibility is the term used to define organisation's commitment to the society and the environment within which it operates. Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups. Stakeholders like employees, community, suppliers and shareholders, today are redefining the role of corporate taking into account the corporate' broader responsibility towards society and environment, beyond economic performance, and are evaluating whether they are conducting their role in an ethical and socially responsible manner. As a result of this shift many forums, institutions and corporate are endorsing the term Corporate Social Responsibility (CSR).

In Bhopal companies like BHEL and Crompton and Greaves etc are practicing the Corporate Social Responsibility (CSR). But still there are many companies that are lacking behind in CSR practices. A lack of understanding, inadequately trained personnel, non availability of authentic data and specific information on the kinds of CSR activities, coverage, policy etc. further adds to the reach and effectiveness of CSR programmes. But the situation is changing. Large number of companies are undertaking these activities superficially and promoting/ highlighting the activities in Media. This research paper focuses on the finding & reviewing of the issues and challenges faced by CSR activities in Bhopal.

Keywords: Social Responsibility, CSR, Issues and Challenges

Introduction

"Corporate Social Responsibility is a concept whereby Companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis".

Some perceive it to be a commitment of a company to manage its various roles in society, as producer, employer, customer and citizen in a responsible manner while for others it is synonymous to Corporate Responsibility (CR) or Corporate Citizenship or Social Action Programme (SAP). Many of the leading corporations across India had realized the importance of being associated with socially relevant causes as a means of promoting their brands. Cause-related marketing and corporate social responsibility has provided companies with a new tool to compete in the market. CSR refers to the corporation's obligation to all the stakeholders. It stems from the desire to do well and get self satisfaction in return as well as societal obligation of business. This could be a strategic marketing activity a way for a company to do well by doing good-distinct from sales promotion, corporate philanthropy, corporate sponsorship, corporate Samaritan acts and public relations. Now, it is assumed to be responsibility of the business houses too. An insight into the history of CSR reveals that till 1990s it was solely dominated by the idea of philanthropy. Considering CSR

as an act of philanthropy, businesses often restricted themselves to one time financial grant and did not commit their resources for such projects. Moreover, businesses never kept the stakeholder in mind while planning for such initiatives, thereby reducing the efficacy and efficiency of CSR initiatives. However,

over the last few years, the concept of CSR has been changing. There has been an apparent transition from giving as an obligation or charity to giving as a strategy or responsibility. Review of the case studies and work done on CSR by companies in India suggests that the CSR is slowly moving away from charity

and dependence and starting to build on empowerment and partnership.

Overview of issues

* General business ethics

* Ethics of accounting information

* Ethics of human resource management

* Ethics of sales and marketing

* Ethics of production

* Ethics of intellectual property, knowledge and skills

Benefits of adopting a policy of social responsibility:

* Improved financial performance;

* Lower operating costs;

* Product safety and quality.

* Greater use of renewable resources;

* Access to capital;

* Workforce diversity;

* Employee volunteer programmes;

* Better product durability and functionality;

* Enhanced brand image and reputation;

* Increased sales and customer loyalty;

* Greater productivity and quality;

* More ability to attract and retain employees;

* Reduced regulatory oversight;

* Product safety and decreased liability.

Objectives

* To study the Issues in implementing CSR.

* To study the Challenges in implementing CSR.

Research Methodology

Available secondary data was extensively used for the study. The investigator procures the required data through secondary survey method. Different news articles, Books and Web were used which were enumerated and recorded.

Some Cases of CSR Initiatives in Bhopal

BHEL BHOPAL

Bharat Heavy Electricals Limited, the engineering major was presented the 'India Shinning Star CSR Award' for 'Outstanding CSR in the Capital goods sector' at the CSR Thought