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All organizations have an impact on society and the environment through their operations, products or services, and through their interactions with key stakeholder groups including employees, customers/clients, suppliers, investors and the local community. While traditional business models primarily emphasize the economic aspects of organizational activity (e.g. profitability and growth), more modern conceptions of organizational behavior lay equal stress on social, ethical and environmental impacts as exemplified by the notion of ‘corporate social responsibility’. It would be fair to say that while some business organizations remain to be convinced that social responsibility is compatible with value creation, a growing number accept that they can and should manage their social and environmental impacts in ways which benefit both the organization and the wider society.
Corporate Social Responsibility
CSR is an evolving concept that currently does not have a universally accepted definition.  | The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. | | European Union says Enterprise is accountable for its impact on all relevant stakeholders. It is the continuing commitment by business to behave fairly and responsibly, 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. |
In more general terms, CSR is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society.
CSR since the early days of its incubation has focused on the philanthropic side of an organization, however certain social and market factors which have developed in the past decade have lead to the increasing adoption of CSR within the fabric of an organization. These factors include:
| Globalization with its attendant focus on cross-border trade is increasingly raising CSR concerns related to human resource management practices, environmental protection along with concerns about health and safety | | Increased demands for products which have been responsibly produced | | Growing stakeholder activism in the wake of a series of corporate scandals and environmental incidents | | Pressures exerted along the supply chain, particularly by larger enterprises seeking to enhance their own credentials | | Growing investor pressure for more ethical investment decisions, and responsible business practices |
Benefits of Socially Responsible Business | | Improves financial performance | | Reduces operating costs | | Enhances brand image and reputation | | Increases customer loyalty and sales | | Increases productivity and quality | | Increases ability to attract and retain employees | | Reduced regulatory oversight and access to capital | Many of our member companies are actively contributing to CSR through various initiatives like: - Encouraging employment of differently abled
- Initiatives for recruiting women
- Educating adults through the effective use of ICT
- Development of Microfinance Institutions through Management Information Systems (Mifos for MFIs)
- Improving access to quality health care services through Teleconsultation System
Where does NASSCOM Foundation pitch in?
NASSCOm Foundations focus in 2008-10 is to engage more actively our NASSCOM members and especially our SME members.
The objectives of NF are: | | To facilitate and strengthen the corporate social responsibility (CSR) space | | Create innovative, effective and scalable programs that leverage ICTs for education, health, employability and entrepreneurship for undeserved communities | | Building effective linkages where NASSCOM members and their employees who can participate and contribute to building capacities @ the grassroots | To promote the practice of socially relevant initiatives amongst the member companies, NF can | | Provide support and advisory services:
In order to enable member companies of small size (in terms of turnover) to be a part of the growing number of IT/ITES organizations participating in community initiatives, NASSCOM Foundation is ideally placed to provide handholding support and connect them to partnering organizations. It can also help create awareness of the fact that it is possible to contribute to society without necessarily setting aside a large amount of funds. Companies can demonstrate social consciousness and sensitivity in the regular course of business or by ‘doing business responsibly’. | | Companies can also join in our various programs by being partners. | For information on any of the NF Policies or CSR initiatives, please contact Gouri at
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