Role of Various Institutions in

CSR
 ROLE OF VARIOUS INSTITUTIONS IN CSR
 INTRODUCTION

 CSR signifies the concept that it is better to have a shared interest in a

successful development process than to dominate a failed, dissatisfied,
socio-economic structure. Therefore, the role of major institutions in
the CSR process needs to be analysed and understood.

© Oxford University Press 2011. All rights reserved. 2

 ROLE OF VARIOUS INSTITUTIONS IN CSR

• ROLE OF GOVERNMENT

• DIFFERENT MARKETS – capital market, labour market,

consumer market

• Role of NGOS and not for profit organizations

• Role of educational institutions

• Role of the media

© Oxford University Press 2011. All rights reserved. 3

 Role of government
The Role of Governments in Promoting Corporate Responsibility and Private Sector
Engagement in Development, UN Global Compact, www.unglobalcompact.org/:

• Awareness-raising efforts to create a shared understanding of corporate

responsibility among companies and the broader public, including what business
can do to implement it.

• Partnerships designed to create win-win situations in which various stakeholders

work collectively toward a shared goal.

• Soft law approaches that promote and incentivise voluntary action by business as a
complement to state regulation.

• Mandating instruments that allow governments to monitor and enforce corporate

accountability.
 A six-step model provides governments with a compass
intended to assist in designing the policy framework for
corporate responsibility and business engagement in
development that is right for them. The six steps are:

• Understanding the CR-relevant context.

• Defining corporate responsibility.
• Situating CR within a government structure.
• Defining the CR public policy rationale
• Identifying appropriate types of policy intervention for CR.
• Monitoring and impact assessment.
Capital market is a market where buyers and sellers engage in trade of
financial securities like bonds, stocks, etc. The buying/selling is undertaken
by participants such as individuals and institutions.

The labor market refers to the supply and demand for labor, in which
employees provide the supply and employers the demand. It is a major
component of any economy, and is intricately tied in with markets for
capital , goods and service.

A consumer market is the very system that allows us to purchase products,

goods, and services. These items can be used for personal use or shared
with others. In a consumer market, you make your own decisions about
how you will spend money and use the products you purchase. The more
people who go out and actively purchase products, the more active is the
consumer market.
• NGOs and CSR

• Growing business demand for community programmes and

engagement with NGOS

• Innovative approaches from business, government and NGOs

are emerging

• Corporate foundations are leading strategic development

Role of media in CSR

• Creating appealing and conscious ads

• Spreading awareness about CSR to the people at large.

• Sseeking volunteers from the society or the specific places where the
corporations are launching their CSR initiatives.

• Publishing articles pertaining to the values and the mission of the

company in promoting CSR.

• Acting as a conscience keeper by constantly reminding corporations about

the need to give back to society and to look beyond profits.
 ROLE OF VARIOUS INSTITUTIONS IN CSR

 To address challenges businesses have to redefine their: processes,

products, employee relations, and other factors in the value chain. This
is where each institution can help to provide the necessary support to
ensure long-term success.

 Therefore, they help to create ‘ambidextrous’ organizations (idea

adapted from O’reilly and Tushman 2004) that balance between
earning profits from society and giving back to society by honouring the
trust of society on business.

© Oxford University Press 2011. All rights reserved. 9