Role of Different Institutions in CSR and Sustainability Prof C Chakraborti Dept of HSS Autumn 2012
What is a social institution • A sociological concept • Defined often as a complex, integrated set of social norms and systems which are organized to preserve a certain social value • Prime examples: Family, Government, Education system, Economy, Religion. • Ordinary understanding: Hospitals, Banks, Universities, Government structure and offices, Temples, tec. @c chakraborti IITKGP
Their role in CSR and Sustainability • Business may be the primary agent • But CSR and Sustainability as a successful developmental effort requires the support and active engagement from major institutions.
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Looking into the roles of : 1. Government 2.NGOs 3.Educational system 4. Media @c chakraborti IITKGP
Role of Government • Regulating the business-society relationship and promoting responsible behavior by business through regulation of the market and the business aspirations • By enabling business to remain ethical • By creating a level playing field for all the players: fair competition rules • By creating and implementing proper policies and guidance to CSR and Sustainability @c chakraborti IITKGP
Role of Government • Set an agenda that promotes CSR initiatives: Environmental policies, labor laws, disclosure requirements. And bring in a culture of compliance. • Though many CSR initiatives are voluntary, the government can play an important role in promoting them in global market: Address market failures where the law is unclear or absent
World Bank Suggests • The five key government roles in supporting CSR initiatives are: • Mandating: Legal mandate for CSR , Sustainability and reporting. Denmark (1995), Sweden (1999) for environmental part, France (2003) for publicly traded companies. UK (2005). India (2009) for all PSUS, but voluntary for private. • Facilitating : US (2002) Sarbanes-Oxley Act, Tax incentives, production subsidies etc. • Partnering: PPP • Endorsing: By highlighting, or rewarding • Demonstrating : By being a role model. E.g. ‘green’ procurement programs for all government purchases. (IIED, 2002).
• Often, there is a nexus between government and business • Lobbying, bribing • Mutual benefit for corrupt politicians and business owners, but at the cost of public interest
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Role of NGOs • Can act as the extended hands of corporates in CSR and Sustainability : Conscience of the business • Also, can act as the extended hands of Government as CSR and Sustainability policy executors • Also, can act as the extended hands of society as CSR and Sustainability watchdogs @c chakraborti IITKGP
Role of Education Systems • To become the thinktank for ways to do CSR and Sustainability • To influence the students to become the agents of change • Acting as the platform for idea exchange on innovative CSR and Sustainability
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Role of Media • Most powerful agent to expose lapses, to draw public attention, to influence public opinion: Building public awareness • Supporting the CSR and Sustainability • Investigative reporting for scopes of CSR and Sustainability : By responsible newsmedia • Monitoring the CSR and Sustainability efforts by business @c chakraborti IITKGP
UNDP Study (2003) • Mainstream Media does not pick up issues related to CSR and Sustainability, until it is too late.: So, not playing the role of providing neutral, timely information. • Show both sides of the story: Balanced. Evidence-based
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Vissar on the Role of Media • Vissar: 1.Media often does not know how to do a balanced report. E.g. presenting pro-climate, and skeptic comments, creating an irresponsible confusion. • 2. Media gets to gain from status quo. E.g. by not reducing the carbon footprint. So, not report. Sometimes, not brave to report. Some media are intimidated by government and business. • 3. Media role to motivate people: Better, but can be better. Engage people in dialogues.
