CORPORATE SOCIAL RESPONSIBILITY

Disha tiwari(012049)Faraz sajid(012052)Jyoti Singh(012067)

WHY SOCIAL RESPONSIBILITY

The business of business is business 'was the motto of businessperson in early times. Narrowly interpreted, it would mean that corporations have only one responsibility, the single –minded pursuit of profit. To economists like Adam smith and Milton Friedman ,in a capitalist society profit maximization by the continued increase of efficiency is the most socially responsible way of conducting business.

CORPORATE SOCIAL RESPONSIBILITY

Definition- A company‘s sense of responsibility towards the community and environment (both ecological and social) in which it operates.compainies express this citizenship (1).through their waste and pollution reduction process,(2).By contributing educational and social program (3).by earning adequate returns on the employed resources

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate social responsibility –

Emphasizes obligation and accountability to society Corporate social responsiveness-

Emphasize action, activity Corporate social performance –

Emphasizes outcome , result

BUSINESS CRITICISM/ SOCIAL RESPONSE CYCLE

Factors in the Societal Environment

Criticism of Business

Increased concern for the Social Environment

A Changed Social Contract

Business Assumption of Corporate Social Responsibility

Social Responsiveness, Social Performance, Corporate Citizenship

A More Satisfied Society

Fewer Factors Leading

to Business Criticism

Increased Expectations Leading to More Criticism

HISTORICAL PERSPECTIVE

From the 1950’s to the present the concept of CSR has gained considerable acceptance and the meaning has been broadened to include additional components

Economic model – the invisible hand of the marketplace protected societal interest

Legal model – laws protected societal interests Modified the economic model Philanthropy Community obligations Paternalism

CARROLL’S FOUR PART DEFINITION

• CSR encompasses the-

economicEthical

Legal

Discretionary (philanthropic)

Expectation

That society has of organization has a given point in time

UNDERSTANDING THE FOUR COMPONENTS

Responsibility

Societal Expectation

Examples

Economic Required Be profitable. Maximize sales, minimize costs, etc.

Legal Required Obey laws and regulations.

Ethical Expected Do what is right, fair and just.

Discretionary(Philanthropic)

Desired/Expected

Be a good corporate citizen.

PYRAMID OF CSR

BUSINESS RESPONSIBILITIES IN THE 21ST CENTURY Demonstrate a commitment to society’s

values and contribute to society’s social, environmental, and economic goals through action.

Insulate society from the negative impacts of company operations, products and services.

Share benefits of company activities with key stakeholders as well as with shareholders.

Demonstrate that the company can make more money by doing the right thing.

ARGUMENTS FOR SOCIAL RESPONSIBILITY

Society and Business are interdependent- Public Image- Shareholder interest- Avoidance of Governmental Regulation:

CORPORATE SOCIAL RESPONSIBILITY (CSR)ARGUMENTS AGAINST

-Profit Maximization-Society has to pay

the Cost-Business has enough

Power

-Social Overhead Costs

-Lack of accountability:

-Friedman’s Views