23-01-2013, 03:43 PM
A PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITY OF NTPC LTD.
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ABSTRACT
Corporate Social Responsibility (CSR) has been attracting attention recently by
The corporate world worldwide. The corporation discharge their CSR through
social development in various ways in varying degree. However the practice of
CSR has also attracted controversy and criticism. There are two opposite
arguments namely (1) the corporation profit in manifold ways by spending on
CSR projects, and (2) CSR is criticized and opposed in that it makes the
Corporation deviate from their primary economic roles in doing business. This
debate and criticism revolve around the basic objective of the firm. Modern
scholars have proposed many different objectives for firms which again are also
abound with raging controversy and criticism . This paper attempts to identify the
primary objective of a firm from the primary objective of an economy and
synthesizes the hitherto different objectives with CSR to get a holistic view. This
will not only put the controversy regarding the objectives of the firm to rest but
also has interesting implications for the recent corporate social responsibility of
business, environmental concerns, and questions the need for a separate theory
of public firm as well.
Introduction-
The concept or policy of CSR gained prominence first in the US in the early 1950s from where it spread to other parts of the world. This is not to say that social concerns are only a product of contemporary world of business entities. Evidence of support for social concerns and conditions dating as far back as the 18th century, can be found in countries like- France, Britain, Germany, US etc. This was particularly reflected in the attitude and policies of the respective government to education, transport housing, health and other welfare services. Today CSR is not only the concern of international organizations like the UN, OECP, EV, ILO, ECOWAS, business entities and national government, but has also received the attention of some religious organizations like the Evangelical Lutheran Church in America. In addition, many professional associations and NGO’s have driven CSR issues to the front burners of public opinion. For example the council of Bars and Law Societies of the European Union (CCBE) is playing a vital role on CSR issues.
CSR today therefore is a global and multi dimensional issue. Many multinational like- Shell, Agip, Chevron-Texaco, Totas, BP, Exxon Mobil, Cadbury, etc, have CSR policies as do other MNCs like General Motors, Tesco, McDonald, Kmart, Bast, Roche Volks Wagen, Cosvs, Matav, Acome.,
What is CSR all about?
Although the concept of CSR has been developing since the early 1970s, there is no single, commonly accepted definition of CSR. Below we provide some examples of CSR definitions.
1. "CSR is defined as operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. CSR is seen by leadership companies as more than a collection of discrete practices or occasional gestures, or initiatives motivated by marketing, public relations or other business benefits. Rather, it is viewed as a comprehensive set of policies, practices and programs that are integrated throughout business operations, and decision-making processes that are supported and rewarded by top management."
2. "CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
3. "CSR is a public movement, which has gained more momentum as citizens demand corporations to be accountable for their impacts. Consumers, investors and employees alike are recognizing the power held by corporations and efforts are being made on several levels to create global change with the hope that earth will become a better place."
4. “CSR is the concept that an enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.”
5. “CSR is a term describing a company's obligation to be accountable to all of its stakeholders in all its operations and activities. Socially responsible
CSR generally refers to:
1. A collection of policies and practices linked to relationship with key stakeholders, values, compliance with legal requirements, and respect for people, communities and the environment; and
2. The commitment of business to contribute to sustainable development, commonly understood as sustainable development is the ability of the current generation to meet its needs without compromising the ability of future generations to meet theirs.
CSR Main Components
The scope of CSR is conceptually quite unbound at the present time. The debate between the private sector, civil society and governments focuses on a few key issues. As there is no single, commonly accepted definition of CSR, there is also no commonly accepted classification of the main components of CSR. Often, CSR is related to:
Environmental protection –
The focus is on finding sustainable solutions for natural resources use to reduce company’s impact on the environment. Over the past several years, environmental responsibility has expanded to involve substantially more than compliance with all applicable government regulations or even a few initiatives such as recycling or energy efficiency. Many citizens, environmental organizations and leadership companies now define environmental responsibility as involving a comprehensive approach to a company's operations, products and facilities that includes assessing business products, processes and services; eliminating waste and emissions; maximizing the efficiency and productivity of all assets and resources; and minimizing practices that might adversely affect the enjoyment of the planet's resources by future generations
Labor Security –
It includes freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced and compulsory labor; the effective abolition of child labor; and the elimination of discrimination in respect of employment and occupation.
Human rights –
Business practices can profoundly affect the rights and dignity of employees and communities. The main focus is on developing workplaces free from discrimination where creativity and learning can flourish decent codes of professional conduct, and where a proper balance can be maintained between work and other aspects of our lives. Behaving irresponsibly on the issue of human rights could be costly because their reputation and bottom line is at stake. This is also related to globalization and increasing international trade and the challenge of findings ways of doing business world-wide that respect human rights and social justice and facilitate the appropriate development of the emerging economies. Countries are expected to support and respect the protection of international human rights within their sphere of influence; and sure their own corporations are not complicit in human rights abuses. Paying workers a living wage and protecting them from harassment may cost a little more in the short run, but if it improves morale and reduces turnover then it may still be good for profits after a few years. So socially responsible management practices may contribute directly to profits.
Community involvement –
It includes: community partnership, employee giving, global community involvement, philanthropy, product and services donations, release time, volunteerism etc. Corporate community involvement refers to a wide range of actions taken by companies to maximize the impact of their donated money, time, products, services, influence, management knowledge and other resources on the communities in which they operate. When strategically designed and executed, these initiatives not only bring value to recipients, but also enhance the reputation of companies and their brands, products and values in local communities where they have significant commercial interests -- as well as around the world. Business standards cover a broad area of corporate activities such as ethics, financial returns, environmental protection, human rights and labor standards.