biren pate,12055,div b

8/14/2019 Biren Pate,12055,Div B

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Embracing Corporate Social

Responsibility

By-Biren Patel

DIV B

ROLLNO-12055


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Summary

Every company now days have to contribute to society not only in terms of profits

to share holders but also in the form of public welfare and social responsible

activities.

But in these also the company needs an immense support from the society in

return. Likewise take an example of the eggs produced in the poultry farm in UK,

account says 35 percent of sales for free range eggs, which is 25 percent more

expensive than eggs laid by the battery hens. Hence many corporate believe in to

make the social responsibility a compulsion for all the companies.

Companies are going to have to be more proactive about environmental

management.

What need by the society is not just a few park benches or a few computers to a

old age home but many more things apart from that. A company should be a

responsible member of the society by contributing to sustainable development to

every employee by a mean of support to the family, individual and many perks.

Now its not just only about the shareholder and stockholder its beyond the

corporate normal thinking. For this purpose companies has decided to provide

facilities to working mothers, a new clinic, health insurance, playground buses

facilities, and many more.

Taking in consideration and a genuine example of pharmaceutical giant,

developed a drug for the treatment of blindness which was called river blindness

according to laymen. These were a disease which was common in poorest region

of world. Despite of having no market of this in the commercial world Merck

invested lots of dollars in the programmed to eliminate the risk of premature

blindness. Bose, the leading producer of high-end audio equipment, has taken

plough back in the business to an extreme. His company pays no dividend and

since inception every dollar of profit has been invested back into research and

product development.

In India we have closed economy many companies got used to producing shoddy,

goods and services at exorbitant prices. Looking to the earlier scenario corporate

were dumping their wastes with impurity in the environment with the growing

awareness and concern about environmental degradation, depletion of natural


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resources like water and fossil fuels and phenomena of global warming therefore

there is a legal pressure on corporate to realize that the earth needs to be

preserved and look after so.

In 1992 World Bank conducted a study and gave it a very apt name the cost ofinaction. Hence it was estimated that the environmental damage cost India Rs

34000 crores every year, which is 4.5% of the national GDP and this is reflected in

many ways notably in:

Rising health costs due to growing air and water pollution Depletion of natural resources like deforestation Loss of revenue due to reduced international tourism.

Not showing concern for the environment and society can be very deter mental

and can actually shake the foundation of a business that has been built overdecades.

It was founded that India is 102nd

in being the poorest countries. Although some

countries were poor as we in 1960 even poor than us. But now they richer than

use Korea- 20 times, Thailand -6, china twice. And it is also estimated that we

will surpass the population of china in 2040. India has also the 4 million people

affected by HIV aids a highest by any country in the world. Likewise there are

many issues and realities which we have to concern upon.

Hence all this above mentioned problems can be compensated by applying a

proper social corporate action. It will also create a good feel factor about the

company. Hence also will increase the expectation of shareholders of their

companies which will lead to maximization of profit and ratings. It will provide an

opportunity to improve relationships with local communities.

We are aware of oil as a scarce resource but are we aware that in India it is

predicted that by 2020 there will be an acute water shortage because of wastage

and also because we have polluted the surface water also. This bring me torather ticklish issues should corporate manufacture anything that can sell and

would generate profits or do corporate have a responsibility to ascertain whether

it fulfills a genuine need in keeping with the value system of the community? For

example, they cannot produce heroin or cocaine, even if there is a huge demand,

but it is illegal.


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Corporate are not islands unto themselves, but exist in the community. The more

educated and prosperous the community, business will eventually benefited. The

house at Tatas, Birlas, godrej are known for their commitment to developing

social infrastructure. The national dairy development board has transformedhuge areas in Indian villages by empowering producers and creating a marketing

outlet for further produce.

Operation white flood is a result of this initiative. Nike case has changed that

attitude at least to that extent. Nike shoes and clothing is manufactured in maore

than 700 factories in 50 countries. Nike learned about the power of internet and

adverse publicity can damage the company in many ways. Nike has been accused

of allowing child labor to be used in labor vendors factories in developing

countries under substandard condition.

Likewise in India if we take an example it can be considered as a old fashion

virtue. Every time each person would be concerned about the issues but is

anyone has think on that seriously by sitting hand folded and mum. Its a shame.

Every person should think on important issues and come forward with their views

to the government. This is the one thing which young India

Wants. Hence collectively we can be in touch with the tremendous power.

Let us now look at each of the stakeholders and what they expect from corporates:

Customers

Employees

Shareholders and Investors

Environment and Community

Suppliers

Government.

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