Corporate Social Responsibility in India Essay

The raw material principle of the sustainable development and collective sociable Responsibility is the junto of needs important both from the point of view of an institution, as sanitary as a group of entities operating in its environment (employees, shareholders, stakeholders, borrowers, local anaesthetic society) within its business policy. Thus, the goal of a contemporary organisation should be to maximise its shareholders value satisfying, at the same time, expectations of another(prenominal)(a) stakeholders (stakeholders value) by compound economic, social and environmental operations.There are many factors that make us interested in corporeal affable Responsibility 2 saucy problems and expectations of citizens, customers, public authorities and habilitateors in the context of globalisation and significant industrial changes Social criteria assume bigger and bigger influence on investiture decisions made by units and institutions playing both the role of cons umers as hearty as investors Bigger and bigger care for damages caused to natural environment by business activities Transparency of business activities supported by media and IT technologies. unified Social Responsibility principles, as well as the quality of culture in their clear sites and annual reports, the main sources of knowledge to the highest degree the beau monde for potential investors, counterparties and local communities. In the near future, we should also expect that as a result of the globalisation of financial markets, Polish listed companies will tint investors that are more aware of Corporate Social Responsibility and consumers that invest and co-operate better with companies supporting environmental and social development. The digest of awareness rate and progress in implementing the concept of Corporate Social Responsibility in the sector of Polish companies covered all joint stock companies listed in the Warsaw Stock Exchange4, excluding listed banks (c overed in the analysis of the banking sector) and national investment funds.Results of the culture are based on instruction undod and presented in clear sites and annual reports of the analysed companies and they refer to the following aspects reporting on Corporate boldness principles adopted by the follow, including audit rules reporting on the guilds environmental policy, reporting on the companys social policy. The breeding covered possibilities of an access for investors, local communities, potential business partners to the development well-nigh the companys financial standing, and strategies in progress. The principles for reporting on Corporate Governance were stipulated in the resolution of the Stock Exchange Council of October 16, 2002 (58/952/2002) on lift tabu practice in public companies in 2002.Pursuant to this document, companies were obliged to anaesthetise and deliver, by July 1, 2003, their first statement confirming their will to observe the pertly introduced rules. The study carried out by the launch shows that over 90 percentage of companies impress their reports on incorporating (adopting) principles of Corporate Governance in their business strategies. However, we have to point out that the quality and availability of the tuition presented in web sites and in annual reports of companies for potential investors and society is relatively low. 4 The analysis was carried out from August October 2003. 5 The Gdansk Institiute for commercialize EconomicsAmong the listed companies below the study, only(prenominal) 40 percent disclose and publish detailed information rough the structure of their Corporate Governance, and mostly in web sites, where companies present the information about the spell and structure of their management board (74. 4 %) and the composition and structure of their supervisory board (62. 2 %). Chart 1. 1. 1 Do municipal companies publish detailed information about the structure of their superviso ry bodies? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Board structure supervisory board structure Responsibilities of board member Definition of independence 25,6% 37,8% 51,7% 87,2% 99,4% 99,4% 74,4% 62,2% 48,3% 12,8% 0,6% both supervisory board Commities 0,6%Individuals responsible for implementation, oversight and audit of economic, social and environmental policies YES NO Source hold study based on seek carried out by the Gdansk Institute for Market Economics. The Institutes studies on the companies informing about the structure and responsibilities of their main bodies in charge of Corporate Governance also show that national listed companies have not establish persons in charge of implementing and supervising their policy related to Corporate Social Responsibility, yet (only 0. 6%), companies usually do not disclose the information about the existing committees at their supervisory boards.Potential investors and business partners unbidden to establish co-operation with a given entrepreneur want to know extraneous auditors analysing the companys financial statements and know whether they are reliable. 6 The Gdansk Institiute for Market Economics The Institutes study shows that 88 percent of domestic public companies presents information related to their audit policy in their web sites. The companies usually give procedures for selecting external auditors, principles for rotation (changes) of external auditors and point out that external auditors are independent of the company. Nevertheless, in Poland, companies still do not present statements on audit costs and costs of other run performed by auditors.The Institutes analysis also shows that most listed companies under the study (86. %) have undertaken to respect such shareholders rights specified in the beaver Practice like right to express their opinion and make motions to the companys management board right to see minutes and reports from old meetings (usually available to the shareholders at the companys office) publishing information on future General Shareholders Meetings and their agenda. Chart 1. 1. 2 Do domestic companies publish information about audit, shareholders rights, implemented principles of their inscribe of problem Conduct / recruit of Ethics? 100% 90% 80% 70% 60% 12,8% 13,3% 98,9% 50% 40% 30% 20% 10% 87,2% 86,7% 1,1% 0% Does the Company disclose audit related Does the company disclose its policy on information? shareholder rights? Does the company disclose and report on its internal Code of crease Conduct/ Code of Ethics? YES NO Source Own study based on research carried out by the Gdansk Institute for Market Economics.Assessing the awareness and progress in implementing the concept of Corporate Social Responsibility by Polish listed companies, it is worth underlining that still a sharp percentage of companies has developed and adopted the Code of Ethics and the Code of Business Conduct, 7 The Gdansk Institiute for Market Economics where the co mpanies define, for example, principles for social, environmental policy, issues related to the protection of humanity rights, employment policy. The managements have to guarantee that the Code of Business Conduct is in effect implemented, monitored and improved. Therefore, the European Commission promotes companies which adopt and implement the Codes of Business Conduct nimble by international corporations.In the opinion of the European Commission, the Code of Business Conduct should 5 Be based on guidelines of the Convention of the foreign Labour Organisation, defined in the Declaration on Fundamental Principles and Rights at Work from 1998 and OECDs guidelines for international companies related to social partners and their stakeholders Incorporate mechanisms infallible to assess and verify the Code implemented Involve social partners and other groups of stakeholders influencing the companys operations in the dialog about the number of the Code Expand the experience rela ted to best practice in European companies. The concept of Corporate Social Responsibility also assumes that the company should purposefully get involved in environmental protection. The study shows that domestic listed companies do not find it purposeful to present information about actions taken to protect t e natural environment. On the single hand, it h results from the fact that the companies are not aware of potential benefits they could obtain, harmonize to the assumptions of Corporate Social Responsibility, for example if their environmental actions are positively perceived by their stakeholders.The research carried out by the Market and Opinion research International (MORI) under the CSR Europe campaign on the sample of 12 thousand citizens representing 12 countries shows that around 70 percent of consumers buying a product or a service take into account the level which a given producer is involved in social and environmental activity to. At the same time, every fifth con sumer is ready to earnings more for goods produced by a socially responsible company. On the other hand, the lack of information about environmental actions taken by the companies results from relatively low financial expenses borne by these companies for environmental purposes.