Corporate Social Responsibility or CSR is a comprehensive term that includes the concept of social,

environmental, financial and legal obligations of a company.CSR cannot be simply labeled as a strategic,
marketing or business issue as its a mixture of all these factors. Against a backdrop of accounting and
fraud scandals unearthed, implementation of CSR has become essential to ensure the long term
commercial success and survival of an organization. It helps to broaden the companies accountability to
include all stakeholders- suppliers, investors, employees, customers and the wider community. When
analyzed as a strategic issue, it prompts the company to evaluate its mission and provides a framework
to build credibility with customers and employees. The risk of damage to business reputation due to
corporate misbehavior can be mitigated by using CSR as a tool to restore trust in the companies
behavior, products and services. This can help to tackle the business issue arising due to mounting
pressure from NGOs who are demanding companies to show awareness and concern for environment as
well as for the rights and interests of employees.
Companies will not be able to fulfill their CSR responsibilities by merely undertaking some
noncommercial activities to boost their brand image. It requires a holistic view of the organization,
review of business values and acceptance of the moral commitment of the firm. A proper and
systematic approach in enforcement of CSR initiatives will aid in securing the companys license to
operate as employees and consumers are placing more importance these days on the brand image and
ethical values of the firm. A business which fails to identify its purpose in relation to progress of human
welfare in some way will find it difficult to sustain its operation.
Relationship of the organization with employees forms an integral part of CSR as employees are an
important part of the community. Its in this context that HR managers play a significant role as
employee champion. HR managers have the responsibility to make employees aware of the reason
behind implementation of CSR initiatives without which the efforts are bound to be unsuccessful. They
can help in handling employee relationships, manage risk by maintaining efficient internal control and
ensure effective implementation of corporate policies. Survival of CSR depends on the extent to which
these initiatives are incorporated in the organizations culture which requires the specific expertise of
HR managers to manage change, risk and inculcate trust. CSR initiatives broaden their agenda and offers
new avenues for extending their existing knowledge and skills. Proper treatment of employees by a firm
will ensure employee retention and improve the image of the firm. Developing a suitable way of
implementing whistleblower policies, an open communication system and devising correct solutions to
employee grievances also falls under the purview of HR manager. A model of psychological contract can
be used to analyze employee satisfaction and a positive psychological contract can be established by
having a fair and favorable workplace. Companies should make efforts to build its corporate image as a
good employer and as a company that follows ethical practices to attract and retain employees and
consumers. Starting point for developing CSR activities can be done by listing the code of ethics that
must guide employees behavior. Ensuring support of top management, identification of core values,
key stakeholders and issues affecting stakeholder relationships, consultation and implementation are
the main steps to implement CSR. HR managers have the duty to make CSR a reality after taking
valuable inputs from employees. A balanced scorecard approach can be used to measure outcome.
Public sector should also give priority to CSR initiatives considering the increased relevance of CSR in the
present scenario.