Corporate Social Responsibilities

What is CSR? Social responsibility is the awareness that business activities have an impact on society, and the consideration of that impact by firms decision making. Corporate Social Responsibility is the obligation of decision makers to take actions that protect and improve the welfare of the society as a whole, along with their own interests. Social responsibility is the set of obligations an organization has to protect and enhance the society in which it functions. Example- McDonald

Arguments in Favor of CSR Changed public expectations of business Better environment for business Public image Avoidance of government regulation Sociocultural norms

Arguments in Favor of CSR Balance of responsibility with power System interdependence requires social concern Citizen in our society Business has the resources Make the firm internally more efficient

Arguments Against Social Responsibility Profit maximization Costs to society for social responsibility Business costs of social involvement Lack of social skill Dilution of business primary purpose

Arguments Against Social Responsibility Weaken international balance of payment Business has enough power Lack of accountability Can reduce business’s public image Social issues are the concern of government not of business

Approaches to Social Responsibility Obstructionist Stance: Avoid social responsibility Reflect mainly economic priorities Profit motives put ahead of all objectives Unlikely to survive in the long run

Approaches to Social Responsibility Defensive Stance: Firms intend to avoid or do the minimum CSR functions Do the legally required and nothing more Stick to the principle of doing profit Attitude towards CSR is hostile

Approaches to Social Responsibility Accommodative Stance: Accept social responsibility Try to satisfy economic, legal and ethical criteria Meet legal requirement Comply with CSR laws Voluntarily agree to participate in social program May respond to the request of donations, selected charitable cause

Approaches to Social Responsibility Proactive Stance: Meet all the criteria of social responsibility Integrate social objectives with business goals Actively figure out how to help instead of being reactive Does something of its own without any formal call of request from the society