| Corporate social responsibility (CSR) is the | | | | would put pressure on them through media or the |
| responsibility recognized by the companies for acting | | | | other channels. This analysis however fails to |
| in socially responsible manner. There is no single | | | | appreciate much of the social contributions businesses |
| universally accepted definition of corporate social | | | | have been making since long back. We have the |
| responsibility, it has generally come to mean business | | | | example of Joseph Rowntree and others and the |
| decision making linked to ethical values, legal | | | | way they developed their workforces. In 1980s, a |
| compliance, and respect for people, community, and | | | | network of companies came together to establish |
| environment. CSR accepts a company to go further | | | | Business in the Community (BITC). Later, they |
| than required by law so as to: | | | | launched Per Cent Club whose members donate 1 |
| - treat employees fairly and with respect | | | | percent of pre-tax profits to the community. BITC is |
| - operate with integrity and in an ethical manner in all | | | | a very widely acknowledged and influential force |
| its business dealings with customer, suppliers, lenders, | | | | within business and in CSR arena. |
| and others | | | | A set of indicators for the companies wanting to |
| - respect human rights | | | | measure and report CSR has been developed by the |
| - sustain the environment for future generations | | | | BITC. The Indicators that Count addresses four |
| - be a responsible neighbor in the community and a | | | | impact areas: workplace, market place, environment |
| good 'corporate citizen'. | | | | and community. The indicators have been classed into |
| Occupational welfare and corporate community | | | | two groups. The core indicators consist of 27 basic |
| welfare or corporate social responsibility (CSR) are of | | | | indicators on which all the companies are expected to |
| growing importance to governments and service | | | | report. The six advanced indicators are judged more |
| providers as they promise to meet challenges of | | | | difficult to measure. The other group, made up of 17 |
| social problems within changing welfare environments. | | | | specific indicators, may not be relevant to all |
| The modern governments have increasingly resorted | | | | companies. |
| to corporate involvement in local services and have | | | | There are also specific projects for the measurement |
| also encouraged the expansion of occupational | | | | and reporting of particular aspects of responsible |
| welfare. Despite its growing importance CSR remains | | | | business, as for example, Human Capital and Disability. |
| an under researched area even as business | | | | Human capital management and disability will have |
| organizations have faced new demands for increasing | | | | growing importance in CSR reporting. In the UK, |
| levels of occupational provision and involvement in | | | | Accounting For People Taskforce has proposed a |
| local partnerships with public services. | | | | reporting framework for human capital management |
| Over the last twenty years an increasingly large | | | | (HCM). This taskforce, appointed by the UK |
| number of business houses have responded positively | | | | government was represented by Denise Kingsmill as |
| to the banner of CSR. This has perhaps been partly | | | | chairman, and a number of other business leaders. |
| due to their aspiration to make their operations more | | | | According to the Taskforce report, even as people |
| ethical. While for the government, the role the | | | | typically account for up to 65 percent of a |
| businesses can play in the development of society is | | | | company's costs, there has been, however, little |
| quite crucial, the activist community might like to take | | | | reporting on how companies develop their people. |
| credit for the growing importance of CSR as a clear | | | | The companies may either include CSR report in their |
| victory for their efforts in pressurizing the activities | | | | annual report and accounts or may publish their |
| of companies. To put the same in other words, | | | | separate corporate responsibility report which may |
| companies introduced CSR reports and programs as | | | | be called a 'social and environmental report' or a |
| a response against damage inflicted on their sale and | | | | 'sustainability report'. These reports indicate a |
| reputation by attacks from activist groups who aided | | | | company's commitment toward ethical behaviour and |
| by 24 hour news media in which corporate | | | | highlight their progress towards achieving their |
| wrongdoing has been especially highlighted. While on | | | | strategic CSR objectives. |
| the one hand this makes compelling news, it puts an | | | | Increasingly more and more companies have begun |
| ethical pressure on the companies to give back at | | | | to incorporate ethics and CSR in their strategic |
| least a part to society in return what they have | | | | planning and objectives. Many large companies have |
| gained from it. It is therefore, no longer important for | | | | adopted formal environmental policies with the |
| companies to just make profit, the way this profit is | | | | objectives of creating a sustainable business and |
| generated is deeply investigated by the activists. A | | | | being environment friendly. For instance, a company |
| company must not be seen violating ethics or law in | | | | that uses large quantities of timber as raw material |
| any of the areas like market behavior, trade policies, | | | | might adopt a policy of re-forestation to replace the |
| employment relations, sourcing of raw materials, | | | | trees they have cut down. |
| human rights, environmental laws or the activists | | | | |