1. Role of business in society: Social Responsibility of Business

2. CSR! Is that really for me? So technical, very expensive!!
Definition
Corporate Social Responsibility
Definition
What is Corporate Social Responsibility?
CSR! Is that really for me? So technical, very expensive!!
I’m overwhelmed

3. Definition What is Corporate Social Responsibility?
‘Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’.
– World Business Council For Sustainable Development

4. Definition
Corporate Social Responsibility
Definition
Analysis of the definition by the World Business Council For Sustainable Development
Expectation of stakeholders that companies should behave ethically
Expectation that business should contribute to economic development
Expectation that business should improve the quality of life of its workforce and their families
Expectation that business should play active part in the improvement of the society

5. Definition What is Corporate Social Responsibility?
The responsibility of business towards the society

6. Definition
Corporate Social Responsibility
Definition
Our Definition
A voluntary initiative on the part of a business to contribute to a better society and a greener and cleaner environment.

7. Social Responsibilities of Business
Social responsibility is the company’s mission to be responsive to social needs by earmarking a part of its resources so that they may be allocated for achieving social goals and tackling social problems.
There are many situation where social responsibility of business becomes necessary like to create good corporate image, social commitment, because of legal provision etc.

8. Need for social responsibility
To create good corporate image.
To comply with legal provisions.
Nature calamities etc.
To improve product positioning.

9. Manner in which a business carries out its own business activity
the nature of Social Responsibility of business could be classifies into 2 categories
Manner in which a business carries out its own business activity
The welfare activity that it takes upon itself as an additional function.
Welfare education activities

10. Social responsibility of business
Shareholders
Local Community
Employees
Social responsibility of business
Consumers
Govt.
Global Env.

11. Social responsibility of Business towards different groups
I) Responsibility towards the consumers.
Provide quality product at fair price.
Produce using proper quality materials.
Produce using appropriate technology.
Provide proper service.
Commitment to customer satisfaction.
R & D for better & new products
Steps to remove imperfection in distribution system (check middle man)
Ensure product has no adverse effect.
Provide sufficient information, risks & care to be taken.
Avoid misleading by improper advertisements.
Redress genuine grievances.
A happy customer is a loyal customer

12. II) Social Responsibility to shareholders
Safeguard the capital of shareholders.
Provide a reasonable dividend.
Transparency and access to required information.

13. To solve problem of unemployment To develop infrastructure of country
III) Social Responsibility to community
To solve problem of unemployment
To develop infrastructure of country
To help in natural calamities
Taking appropriate steps to prevent environmental pollution & to preserve the ecological balance
Rehabilitating the population displaced by the operation of the business.
Taking steps to conserve scare resources & developing alternatives where ever possible
Improving efficiency of business operations
Contributing to R &D
Development to backward areas

14. IV) Responsibility to Human Resources
Fair wages to employees
Provide good career prospects
Care for the welfare for employees
Best working conditions
Establishment of fair work standards & norms
Arrangements for proper training & education and development
Proper system of promotion
Recognition, appreciation & encouragement of special skills& capabilities
Efficient grievance handling system
Participation in management decision

15. VI) Responsibility to Government
To pay taxes, duties in time
To cooperate with government in their social policies and programmes
To obey all laws and acts
VII) Social Responsibility to Global Business environment
To adhere to the conditions of such a global environment
To satisfy global customer needs

16. Corporate Social Responsibility (CSR)
Carroll’s Four Part Definition
Understanding the Four Components
Responsibility
Societal Expectation
Examples
Economic
Required
Be profitable. Maximize sales, minimize costs, etc.
Legal
Obey laws and regulations.
Ethical
Expected
Do what is right, fair and just.
Discretionary
(Philanthropic)
Desired/
Be a good corporate citizen.
Business and Society: Ethics and Stakeholder Management, 5E • Carroll & Buchholtz
Copyright ©2003 by South-Western, a division of Thomson Learning.  All rights reserved
2-16

17. Pyramid of CSR
Philanthropic Responsibilities Be a good corporate citizen.
Ethical Responsibilities Be ethical.
Legal Responsibilities Obey the law.
Economic Responsibilities Be profitable.
Source: Archie B. Carroll, “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders,” Business Horizons (July-August 1981). © 1991 by the Foundation for the School of Business at Indiana University. Used with permission.

18. Easy, no?
What could be some barriers to CSR?

19. Barriers to social responsibility
Urge for profiteering
Desire for excessive accumulation of wealth
Low profitability
Frequently changing government mechanism
Need for tackling other important internal issues .
Recession and depression

20. Infrastructure Development
EXAMPLE OF CSR Possible social service activities undertaken by a petroleum company
Infrastructure Development
Provision of Tube Wells etc for drinking water and irrigation
Construction of multipurpose community centres
Support for primary education
Health Care
Sanitation
Provision for alternate sources of Energy e.g. solar energy

21. Education Support Health Care
Provision for uniforms and teaching material.
Food supplements
Educational Scholarships to economically backward children.
Health Care
Regular health checkup for villagers
Provision of free medicines for minor ailments
Guidance on family welfare and general health care
Free dispensaries.

22. Skill Enhancement Modern farming practices
Distribution of fruit saplings
Veterinary camps
Distribution of smokeless chulhas.
Organizing regular lectures for women on family life and education

23. Maintaining a happy workforce influence in the industry
Benefits of CSR
Corporate Social Responsibility
Legislative Framework
Winning new
businesses
Benefits
Increase in
customer retention
Enhanced
Relationship with
stakeholders
Saving money
on energy and
operating cost
Benefits
of CSR
Attracting,
Retaining and
Maintaining a happy workforce
Differentiating
yourself from the
competitor
Media interest
and good
reputation
Enhancing your
influence in the industry
Benefits
Access to funding
opportunities

24. Practical Application of CSR
Corporate Social Responsibility
Guidelines
You need to evaluate various aspects of your business and operations
You need to evaluate the impact your business is having on your stakeholders.
Then set realistic targets on how to improve your business operations and processes.
Draw up a result- driven CSR Policy.
Embed your CSR into your business strategy.

25. Practical Application of CSR
Corporate Social Responsibility
Guidelines
Appoint a driver for your CSR initiative
Communicate your CSR efforts to all your stakeholders clearly and boldly.
Make your CSR initiative part of your business culture
Set up CSR measuring indicators to monitor progress and possible deviations.
Be enthusiastic about your CSR initiative; be committed to it.
Report on your initiatives and measure progress/ impact made.

26. Business And Society: Risk And Opportunities
Opportunity
Base of the Pyramid,
Micro-Finance,
Eco-Effectiveness
CSR Partnerships
Cheap Labor/Sourcing,
Obesity/Consumerism,
Environmental Damage,
Bribery
Nationalization
Access to Medicine
Access to Credit
Piracy
Climate Change
Digital Divide,
Youth Unemployment,
Corruption
BUSINESSS
Risk
Opportunity
Source: Beyond Good Company

28. 28

29. Related to, but NOT THE SAME AS….

30. Business Ethics

31. What is meant by ethics?
An ethic is a moral principle or set of moral values held by an individual or a group.
Ethical behaviour is behaviour which is considered to be right and moral.
Business ethics are the values and principles which operate in the world of business. They form the moral framework of the organisation.

32. Business ethics help firms decide what actions are right or wrong in certain circumstances.
E.g. Should a firm relocate to a country paying lower level of wages?
Should a firm release a life-saving drug after limited testing?
Should advertising aimed at children be restrained?

33. What ethical issues are faced by business?
Should firms use child labour?
Is animal testing needed in products and ingredients?
What wages should firms pay to poor countries?
To what extent should firms seek to be environmentally friendly?
Should firms get involved in certain activities?
e.g making weapons

34. Why be ethical? Create good image and good press To act within the law
Because the owners want to be
It is one of their unique selling points
To attract customers/employees/investors
To be socially responsible

35. Two sides to every story
Companies often find it difficult to please all of its stakeholders, as they have different interests.
Being ethical depends on an individual view of what is right and wrong. What might be considered
good behaviour to one individual, may
seem bad to another.
Ultimately companies aim to make a profit and
sometimes this can conflict with acting in a responsible way.
Larger, global companies can often find it difficult to regulate their activities in other countries.