Corporate Social Responsibility (CSR)

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 society.

Evolution of CSR

Phase 1: Charity (Pre-1850s)

• Wealthy merchants giving alms to the poor.
• Purely religious or personal motivation.

Phase 2: Philanthropy (1850s - 1950s)

• Industrialists (Tata, Birla, Carnegie, Rockefeller) building universities, hospitals, and temples.
• "Trusteeship Model" (Gandhi): Wealthy hold wealth in trust for the people.

Phase 3: Defensive CSR (1960s - 1980s)

• Companies doing CSR to avoid regulation or calm down protestors (e.g., Union Carbide).

Phase 4: Strategic CSR (1990s - Present)

• CSR integrated into business strategy.
• Creating Shared Value (Porter): Doing good is good for business. (e.g., HUL teaching hygiene to sell soap).

Triple Bottom Line (TBL)

John Elkington introduced the 3 Ps:

1. People: (Social)
2. Planet: (Environmental)
3. Profit: (Economic)

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