INTRODUCTIONCorporate Social responsibility emerged in the 1960’s as a need for the organizations to curb ethical requirements of the consumers (Meehan et al, ). The presence of CSR has caused companies to think up new ideas of innovation and become environment friendly while on the same hand appreciate cost benefits through implementation of CSR. Today the European Commission is promoting effective and ethical policies in the organizations. Marked increase is seen the supply chain organizations. The competition between the companies is leading to an increased effort between the competitors to produce more innovative efforts in the betterment of society.
CSR does not return in value in form of money but those companies who incorporate CSR in their dealings are rewarded with exceptional growth in the longer run. Definition of CSR: CSR can be defined as a culmination of certain ideas through which an organization can help the society with socioeconomic issues. It is also explained as business responsibility towards environment. Today corporate success does not only define the economic issues but also incorporates the non economic issues as well. These are Legal, ethical, and philanthropic.
Areas of Concern for CSR workability are Workplace, Marketplace, Environment, Community, Ethics, and Human Rights. IDENTIFICATION OF METHODOLOGICAL FRAMEWORKThe methodological framework consists of three areas of concern or three stages by which one can assess the CSR activities. These are Analysis, Execution, and EvaluationThis is the examination of the internal and the external environments of the organization. Further two types of analysis are involved in it. These are PEST and the SWOT analysis. Then is the stage of setting specific CSR targets for the company. These are both qualitative and quantitative.
Then a plan is made and with the plan any alternate course of actions that need to be developed. When we want to start with the analysis stage of the organization we must know what is the meaning of strategic CSR. These are all those activities which are profitable for the company as well as good for the society. In light of this we further our analysis stage by delving into the internal environment and reading of the external environment of the organization. ANALYSIS OF CSRIn the first stage the internal and external environments of the organization is assessed.
That is we look upon the effects of certain factors which affect the performance of an organization both directly and indirectly. These factors are PEST (Political, economical, social, and Technological). The culmination of this analysis results in the consequent analysis which is the SWOT (Strengths, Weaknesses, Opportunities and threats) analysis. The company identifies the weaknesses and strengths inside the company in respect to the external environment. It transforms its strengths into opportunities and neutralizes weaknesses, this is done as the strength of Toyota is the cars mechanics, the company identifies these and builds a training institute that teaches individuals the mechanics thereby efficiently converting its strength into opportunity and let’s say the weakness is of fuel emission this the company neutralizes by funding for projects that do research in the process of eliminating harmful emissions etc.
The company after the analysis of the internal and external environments forms specific CSR targets.