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Corporate Social

Responsibility

Corporate Social

Responsibility

Corporate Social responsibility is the obligation of organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization.

It is the company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates.

Key Issues in CSR

• Labour rights: – child labour – forced labour – safety and health

• Environmental conditions– water & air emissions– climate change

• Poverty Alleviation– job creation– public revenues– skills and technology

Areas of

Responsibility

Responsibility to

owners:

• Resources available are used for the benefit of the owners/shareholders

• Stability of the enterprise

• Obligation to make profits for shareholders

Responsibility to

employees

• Provide adequate monetary , psychological rewards as well as job security

• Selection of employees should be made fairly

• Providing educational opportunities & training to the employee at company’s expense

• Working conditions should be safe & pleasant like flexibile job schedule

• Ensuring Equal Opportunity on the Job

• Public Health Issues.

• Protecting the Environment.

• Recycling.

• Developing the Quality of the Workforce.

• Should improve quality of life of the people in the community it is established

Responsibilities to

the soceity

Responsibility to

consumers:

• To charge a fair and reasonable prices

• Management should not mislead the customers by false ,misleading and exaggerated advertisements.

• To provide goods of fair quality

• Distribution of goods should be widespread

• Should not create artificial scarcity

Responsibility to

Government

Should pay taxes on time

Should be law -abiding citizen

Should not corrupt public servants

Tools /strategies/approaches of

Social Responsibility

Obstructionist approach

Companies choose not to behave in a socially responsible way and behave unethically and illegality.Under this ,a firm do as little as possible to solve social problems.

Defensive

approach

Companies and managers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility.

They does everything that is required of it legally but nothing more than it.

Accommodative

approach

Companies and managers stay within the law and abide strictly with legal requirements but make no attempt to exercise social responsibility.

They does everything that is required of it legally but nothing more than it.

Proactive approach

Under this , Companies actively embrace socially responsible behavior, organization views itself as a citizen in society and proactively seeks opportunities to contribute to that society.

Spectrum of CSR

Good CSRPoor CSR•No employment

•No concern for indirect effect (land, water, air)

•Destruction of agricultural land

.Dependent on renewable resources

•Taking care of workers

•Low dependence on non renewable resources

•High awareness about CSR initiatives

•Environment responsibility