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CorporateCorporate SocialSocial

ResponsibilityResponsibility

Submitted By:Gurmeet Singh Chahal (11)

Vikas Kumar (45)MBA-I (Retail Management)

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Corporate Social Responsibility

(CSR)Preliminary definitions of CSR

y The impact of a companys actions on society

y Requires a manager to consider his acts in termsof a whole social system, and holds himresponsible for the effects ofhis acts anywhere inthat system

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Corporate Social Responsibility

(CSR)

y Corporate social responsibility emphasizesobligation and accountability to society

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Corporate Social Responsibility (CSR)

BusinessCriticism/

Social Response CycleFactors in the Societal Environment

Criticism of

Business

Increased concern

for the Social Environment A ChangedSocial 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

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Corporate Social Responsibility

(CSR)Historical Perspective

y Economic model the invisible hand of the

marketplace protected societal interest

y Legal model laws protected societal interests

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Corporate Social Responsibility

(CSR)Historical Perspective

y Modified the economic model

y Philanthropy

y Community obligations

y Paternalism

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Corporate Social Responsibility

(CSR)

Historical Perspectivey What was the main motivation?

y To keep government at arms length

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Corporate Social Responsibility

(CSR)Historical Perspective

From the 1950s to the present the concept of CSR has

gained considerable acceptance and the meaning hasbeen broadened to include additional components

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Corporate Social Responsibility

(CSR)Evolving Viewpoints

y CSR considers the impact of the companys actions on

society (Bauer)

y CSR requires decision makers to take actions thatprotect and improve the welfare of society as a wholealong with their own interests (Davis and Blomstrom)

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Corporate Social Responsibility

(CSR)

Evolving Viewpointsy CSR mandates that the corporation has not only

economic and legal obligations, but also certainresponsibilities to society that extend beyond theseobligations (McGuire)

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Corporate Social Responsibility

(CSR)Evolving Viewpoints

y CSR relates primarily to achieving outcomes from

organizational decisions concerning specific issuesor problems, which by some normative standardhave beneficial rather than adverse effects uponpertinent corporate stakeholders. The normative

correctness of the products of corporate actionhave been the main focus of CSR (Epstein)

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Corporate Social Responsibility

(CSR)Carrolls Four Part Definition

y CSR encompasses the economic, legal, ethical and

discretionary (philanthropic) expectations that societyhas of organizations at a given point in time

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Corporate Social Responsibility (CSR)

Carrolls Four Part DefinitionUnderstanding the Four Components

Responsibility Societal

Expectation

Examples

Economic Required Be profitable. Maximizesales, 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.

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Pyramid of CSR

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Corporate Social Responsibility (CSR)

CSR in Equation Form Is the Sum of:Economic Responsibilities (Make a profit)

Legal Responsibilities (Obey the law)

Ethical Responsibilities (Be ethical)

Philanthropic Responsibilities (Good corporate

citizen)CSR

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Corporate Social Responsibility (CSR)

Stakeholder View

Stakeholder Group Addressed and Affected

CSR

Component

Owners Con-

sumers

Employee

s

Community Other

s

Economic 1 4 2 3 5

Legal 3 2 1 4 5Ethical 4 1 2 3 5

Philanthropi

c

3 4 2 1 5

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Corporate Social Responsibility (CSR)

Arguments Against

yRestricts the freemarket goal of profit

maximizationyBusiness is not

equipped to handlesocial activities

yDilutes the primaryaim of business

y Increase businesspower

yLimits the ability tocompete in a globalmarketplace

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Corporate Social Responsibility (CSR)

Arguments For

y Addresses social issuesbusiness caused and

allows business to bepart of the solution

y Protects business self-interest

y Limits future governmentintervention

y Addresses issues by usingbusiness resources andexpertise

y Addresses issues by being

proactive

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Corporate Social Responsibility (CSR)Business Responsibilities in the 21stCenturyy Demonstrate a commitment to societys values and

contribute to societys social, environmental, and

economic goals through action.y Insulate society from the negative impacts of

company operations, products and services.

y Share benefits of company activities with key

stakeholders as well as with shareholders.y Demonstrate that the company can make more

money by doing the right thing.

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Thank

You