MEANING: Corporate Social Responsibility is defined as operating a business that meets or e ceeds the ethical! legal!

commercial and public e pectations that society has of business"# Corporate social responsibility $CSR! also called corporate responsibility! corporate citi%enship! responsible business and corporate social opportunity& is a concept 'hereby organi%ations consider the interests of society by ta(ing responsibility for the impact of their acti)ities on customers! suppliers! employees! shareholders! communities and other sta(eholders! as 'ell as the en)ironment" *his obligation is seen to e tend beyond the statutory obligation to comply 'ith legislation and sees organi%ations )oluntarily ta(ing further steps to impro)e the +uality of life for employees and their families as 'ell as for the local community and society at large" S,CIA- C,M.-IANCE S,CIA- RES.,NI0I-I*1: ! S,CIAACC,/N*A0I-I*1 2 C,R.,RA*E

*he idea of responsible business beha)ior is far from ne'" 0ut since the 3445s! increasing concern o)er the impacts of economic globali%ation has led to ne' demands for corporations to play a central role in efforts to eliminate po)erty! achie)e e+uitable and accountable systems of go)ernance and ensure en)ironmental security" In essence! the approach is to )ie' business as part of society and to find 'ays to ma imi%e the positi)e benefits that business endea)or can bring to human and en)ironmental 'ell6 being 'hilst minimi%ing the harmful impacts of irresponsible business" *he agenda that has resulted from these concerns has )ariously been called 7corporate citi%enship8! 7corporate social responsibility8 $CSR&! 7corporate accountability8 or simply 7corporate responsibility8" As 'e all (no'! Corporate Social Responsibility $CSR& is an e pression used to describe 'hat some see as a company7s obligation to be sensiti)e to the needs of all to ta(e account not only of the financial9economic dimension in decision6ma(ing! but also the social and en)ironmental conse+uences" 3" S/S*AINA0-E :E;E-,.MEN*: ,NE of the most significant de)elopments in the field of CSR o)er the past fe' years has been the gro'th in public e pectations that the companies not only ma(e commitments to its sta(eholders in its business operations" *he principle is closely lin(ed 'ith the imperati)e of ensuring that these operations are <sustainable! that is! that CSR is recogni%ed as not only necessary but also de)elop systems to manage implementation and systematically assess and report on progress relati)e to those commitments" Corporate accountability encompasses the systems a company establishes to de)elop policies! indicators! targets and processes to manage the full range of acti)ities" *he scope of operations for 'hich companies are e pected to be accountable has increased

dramatically in recent years to include not only company7s o'n performance but also that of the business partners and other actors throughout the company7s )alue chain" *he mechanisms a company uses to demonstrate accountability are )aried and ine)itably need to change and gro' as a company e)ol)es= at the same time effecti)e systems for increasing accountability generally allo' the company to be inclusi)e! responsi)e and engaged 'ith its sta(eholders" >" C,R.,RA*E ACC,/N*A0I-I*1: Accountability in its basic sense implies rendering of accounts and! by e tension! indicate ans'er6ability to an e ternal agency or group and! further! implies ensuring propriety! legality and safeguarding public interest in satisfaction of the e pectations of the e ternal agency or group" Social Accountability suggests accountability to the people= this is a core )alue in a democratic set6up" In a decentralised democracy the basic ob?ecti)e is po'er to the people" Corporate accountability today spans emerging CSR issues li(e business ethics! di)ersity! mar(etplace beha)ior! go)ernance! human rights and labour rights as 'ell as more traditional areas of financial and en)ironmental performance" *herefore! an increasing number of companies are reporting publicly on their social! en)ironmental and ethical performance! both as a communication to sta(eholders and as a management tool" @o'e)er! as this practice has only become more 'idespread since the mid63445s! there are as yet no standard formats to address the type of information companies choose to report! or ho' that information is collected! analysed and presented" Effecti)e and accountable management systems help companies shape cultures that support and re'ard CSR performance at all le)els" As part of this effort! many companies are 'or(ing to increase accountability for CSR performance at the 0oard le)el" *his can lead to changes in 'ho ser)es on the 0oard! ho' :irectors handle social and en)ironmental issues! and ho' the 0oard manages itself! and fulfils its responsibilities to in)estors and other sta(eholders" Companies are also see(ing to build accountability for CSR performance at the senior management le)el! in some cases by creating a dedicated position responsible for broad o)ersight of a company7s CSR acti)ities" Ainally! many companies are 'or(ing to integrate accountability for CSR performance into actions ranging from long6term planning to e)eryday decision6ma(ing! including rethin(ing processes for designing products and ser)ices and changing practices used to hire! retain! re'ard! and promote employees" At the same time! many sta(eholders are becoming increasingly sophisticated in the type and +uality of information they are demanding from companies" In an effort to meet these demands as 'ell as to strengthen the credibility of their social and en)ironmental reports some companies are choosing to ha)e their reports e ternally )erified" In doing so! the companies recognise that )erification by a third party can add )alue to the o)erall social and en)ironmental reporting process by enhancing relationships 'ith sta(eholders! impro)ing business performance and decision6ma(ing! aligning practice 'ith organisational )alues! and strengthening reputation ris( management"

B" CSR AN: G,,: G,;ERNANCE: ,ne of the most significant issues 'ithin the CSR agenda concerns the dynamic relationship bet'een CSR and good public go)ernance" *he limits both to corporate accountability through la' and to C)oluntary7 CSR6related actions by businesses lie 'ith the public good go)ernance agenda" -egislation to deal 'ith 'orst case instances of irresponsible beha)iour and to set a minimum floor for business conduct 'ill not 'or( in the absence of effecti)e dri)ers for business implementation and enforcement! 'hether they are mar(et6based! or a result of enforcement through the state"" *he need is to implement social! ethical and en)ironmental policy $commonly (no'n as codes of conduct& through the de)elopment of ob?ecti)es! programmes and mechanisms for monitoring social compliance performance" ,ne )ery important aspect of ensuring social accountability is establishing social compliance through continuous audit and monitoring" *he demand for increased corporate accountability today comes from all sectors" *hus social accountability ensures transparency! reduces lea(ages! forces proper spending of funds! generates trust and peace! and creates demand led impro)ement in ser)ices" In a sense! it is a continuing audit and a constant chec( on malfeasance" 0ENEAI*S ,A CSR: *he scale and nature of the benefits of CSR for an organi%ation can )ary depending on the nature of the enterprise! and are difficult to +uantify! though there is a large body of literature e horting business to adopt measures beyond financial ones found a correlation bet'een social9en)ironmental performance and financial performance" @o'e)er! businesses may not be loo(ing at short6run financial returns 'hen de)eloping their CSR strategy" *he definition of CSR used 'ithin an organi%ation can )ary from the strict Dsta(eholder impactsD definition used by many CSR ad)ocates and 'ill often include charitable efforts and )olunteering" CSR may be based 'ithin the human resources! business de)elopment or public relations departments of an organisation! of may be gi)en a separate unit reporting to the CE, or in some cases directly to the board" Some companies may implement CSR6type )alues 'ithout a clearly defined team or programme" 3" @/MAN RES,/RCES: A CSR programme can be seen as an aid to recruitment and retention particularly 'ithin the competiti)e graduate student mar(et" .otential recruits often as( about a firmEs CSR policy during an inter)ie'! and ha)ing a comprehensi)e policy can gi)e an ad)antage" CSR can also help to impro)e the perception of a company among its staff! particularly

'hen staff can become in)ol)ed through payroll gi)ing! fundraising acti)ities or community )olunteering" >" RISF MANGEMEN*: Managing ris( is a central part of many corporate strategies" Reputations that ta(e decades to build up can be ruined in hours through incidents such as corruption scandals or en)ironmental accidents" *hese e)ents can also dra' un'anted attention from regulators! courts! go)ernments and media" 0uilding a genuine culture of Edoing the right thingE 'ithin a corporation can offset these ris(s" B" 0RAN: :IAAEREN*IA*I,N: In cro'ded mar(etplaces! companies stri)e for a uni+ue selling proposition 'hich can separate them from the competition in the minds of consumers" CSR can play a role in building customer loyalty based on distincti)e ethical )alues" Se)eral ma?or brands! such as *he Co6operati)e Group and *he 0ody Shop are built on ethical )alues" 0usiness ser)ice organisations can benefit too from building a reputation for integrity and best practice" G" -ICENSE *, ,.ERA*E: Corporations are (een to a)oid interference in their business through ta ation or regulations" 0y ta(ing substanti)e )oluntary steps! they can persuade go)ernments and the 'ider public that they are ta(ing issues such as health and safety! di)ersity or the en)ironment seriously! and so a)oid inter)ention" *his also applies to firms see(ing to ?ustify eye6catching profits and high le)els of boardroom pay" *hose operating a'ay from their home country can ma(e sure they stay 'elcome by being good corporate citi%ens 'ith respect to labour standards and impacts on the en)ironment" C@A--ENGES ,A CSR AN: I*S S,-/*I,N: 3" C@A--ENGES IN CSR AN: S,CIA- ACC,/N*A0I-I*1: *he business case for CSR is not necessarily a simple one" Among the challenges is the fact that the social and9or en)ironmental impact differs across industries! complicated by the fact that the term CSR has different meanings to different industry sectors in different parts of the globe" Also! some may +uestion if the message CE,s communicate about CSR is an add on or part of company core business acti)itiesHor is it merely an insincere effort to boost public relationsI In some organisations! CSR is still considered to mean compliance and philanthropy! although some large companies are no' placing CSR in a more strategic frame'or("

Aurther! there is the +uestion of ho' to measure CSR" ,ne of the largest obstacles is lac( of a rigorous! credible business case bac(ed up by performance indicators and metrics that can be +uantified and benchmar(ed" Aurther! in)estment in CSR is not yet being ta(en seriously by some organisations" Not all organisations may ha)e the resources $for e ample! funds! time! staff& to funnel into CSR initiati)es" @o'e)er! CSR programmes may not be e pensi)e or re+uire a significant time commitment" ,rganisations that are interested in CSR may choose to start 'ith small pro?ects that sho'case their commitment to their 'or(force and the community" Social Jor( professionals 'ith their professional (no'ledge and e pertise can help address this challenge by considering different options and de)eloping creati)e approaches to CSR to in the company" *hus! it is at this point that the @R leadership! as the eyes and ears of the organisation! is (ey to the CSR e+uation" Social Jor( professionals as @R leaders ha)e the e pertise to manage programmes! policies and practices! to engage the organisation and its sta(eholders $for e ample! o'ners! employees! management! customers! creditors! the go)ernment and other public organisations& in the )alue of CSR by focusing on communications! employee relations! health! safety and community relations to pro)ide their organisations 'ith a competiti)e ad)antage" 0esides! the greatest challenge to CSR and accountability are in three areas" AIRS*! the companies ha)e to decide to loo( at CSR and accountability as a core part of their business" Many more companies are loo(ing at the 'orld that 'ay today than they 'ere ten years ago! but it probably still is a minority opinion and so part of the challenge is simply about the political 'ill on the part of companies to loo( at their impact through the prism of sustainability" SEC,N:-1! there are t'o communities out there that e ert immense influence on business across all sectors: consumers and financial institutions" Ainancialinstitutions ha)e actually started to mo)e significantly o)er the last couple of yearsHa )ery important de)elopment because it7s rema(ing the 'ay mar(ets 'or(" *he *@IR: actor is the go)ernment" Jhether it7s through global trade agreements and the J*, or 'hether it7s their o'n enforcement of la's or <smart regulation that loo(s at creating incenti)es to engage the business community as a partner! the go)ernment remains an incredibly significant actor and can be a net negati)e! net positi)e! or neutral in terms of influencing the (inds of decisions that businesses ma(e" >" C@A--ENGES *, S,CIA- C,M.-IANCE: *hough many multinational retailers can no' boast of a Code of Conduct! only a fe' ha)e been able to roll out a full scale and independent monitoring programme" *he issues in)ol)e from finding resources to conflicts 'ith short6term business ob?ecti)es" ,n the other hand! most suppliers consider compliance programmes a ne' burden resulting in

poor and untrust'orthy partnership 'ith their buyers 'hen it comes to implementing the code of conduct" E ternal challenges include cultural di)ersity! understanding the local la' and at times finding the local la'! finding local language and dialect s(ills! finding local audit and monitoring professionals 'ho are 'ell con)ersant 'ith the local issues! in)ol)ing 'or(ers! local communities! NG,s and other sta(eholders"