2.

REVIEW OF LITERATURE:

Balachandran & Prabakar (2007) i shows that Social responsibility is nothing

but commitment and answerability to the needs of society based on sense of
subjective judgments involving varied relationships based on change in
character and composition of society. Development of a society is dependent on
the business. Development of business is dependent on the level of
development in the marketing systems. Social responsibility seeks to marry
profit and purpose. Some of the socially responsible activities that could help
build trust are: nurture lasting partnerships with customers and business
associates, achieve superior returns for shareholders and stakeholders,
improve competitiveness and quality. Social responsibility helps by providing
the right ambiance to reduce or eliminate problems of acceptance.

According to Decker (2004)ii when CSR is conceptualized pragmatically as a

response by business to society’s concerns it acts as an element of structural
change with implication for the strategies of firms and ultimately for industry
structure. Industry specific aspects of CSR are important and governmental
influences and financial regulations provide an added dimension to the impact
of CSR on the financial services industry. CSR acts as an environmental
discontinuity and forces firms to realign their positions within their operating
environment. A structural change paradigm is developed to examine trends
which are emerging within retail banking as a result of CSR.

Sodani & Jatana (2007) iii maintain that Corporate Social Responsibility is a
bent or inclination on the part of the organizations to uplift the standard of
living, welfare, extend a helping hand to the helpless to project a positive image
in the society. In other word, the companies with the sole objective of profit
earning will wiped out of the market. The success of a company is threefold-
Financial, Environmental, Social commitment. First object is financial, that is
profit, the sole reason of existence of the business. Secondly, Environmental,
i.e. nature friendly. Third and most important is social commitment because
the organization is operating is society and cannot over-look this aspect. The
days of focusing on gaining maximum profits and keeping satisfied are gone.

13
To convince the society, companies have started emerging as socially
responsible corporate houses in this so-called material world.

Anderson (2005)iv discussed the increased pressures brought on US based

multi-national corporations from global competition and regulations,
particularly in the European Union and Japan. Anderson recommended
strategies for developing sustainability risk governance systems and explored
their considerable advantages, which include decreasing risk costs, increasing
competitive advantage, improved community image, enhanced reputation, and
increased profitability and stock performance.

References:

14
i
Balachandran,V., & Prabakar. J. S. (2007) “Social Responsibility for Value Addition” In
Jatana, R. & Crowther, D., (Ed.), Corporate Social Responsibility Theory and Practice with
Case Studies (pp. 366-369). Deep & Deep Publications PTV.LTD.

Decker (2004). Managing Corporate Social Responsibility: A study of Private Banks in India.
ii

In Jatana, R. & Crowther, D., (Ed.), Corporate Social Responsibility Theory and Practice with
Case Studies (pp.147-154). Deep & Deep Publications PTV.LTD.

Sodani, K. & Jatana, R. (2007) “CSR in India Context: The Case Study of Ambuja Cement”
iii

In Jatana, R. & Crowther, D., (Ed.), Corporate Social Responsibility Theory and Practice with
Case Studies (pp.54-59). Deep & Deep Publications PTV.LTD.

Anderson (2005). Corporate Governance and Corporate Social Responsibility in Bangladesh

iv

with special reference to Commercial Banks. Retrieved from: http://www.csr-

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