Ethics and CSR

Group Assignment

Indian Institute of Management Indore

In-Class Assignment -3

Submitted by: Group 10

Amit Makode 2021PGP038

Anant Gautam 2021PGP041

Anuraag Kharwal 2021PGP056

Hitesh Dhanda 2021PGP149

Mille Sharma 2018IPM064

Sanjana Garg 2021PGP318

Submitted to:

Prof. Akhaya Kumar Nayak

Date: December 18, 2021

Q. Analyze this initiative on the basis of Carol’s Pyramid and decide whether it is a CSR.

Economic Responsibilities: In the case that has been given, the telecom service provider seems
to have grappled at a lucrative opportunity. Phonic is earning profits by charging minimal service
charges. It is important to maximize earnings per share and maintain a strong competitive
position. Phonic is charging minimal fees so it is not committed to being as profitable as
possible. Since, they have competitive advantage so they can maximize profits. Thus, economic
responsibilities are not followed.

Legal responsibilities: assuming being a big telecom service provider they must be performing
in a manner which is consistent with expectations of government and law. As they are able to
operate to such a big extent and work for enough time, they must be meeting the legal
requirements.

Ethical Responsibilities: they seem to be fulfilling this as well. They are providing a service
that is required by the people of the Philippines in the rural areas. Also, they are providing
banking services at a very minimal charge and thus doing what is right and just. Any harm being
caused by them has not been mentioned, thus we are going with the assumption that they are
ethical.

Philanthropic Responsibilities: Although telecom providers do generate a lot of e-waste which

could be harming the environment. In terms of philanthropy, they are providing a quality service
that is socially responsible but that is not being done just for the public good.

It is a company with a profit motive and not purely philanthropic. Phonic’s initiative does not
follow the economic and philanthropic responsibilities. Hence, this can not be termed as CSR
activity.

Q. If not, what modifications can we make to make it a CSR.

The case study elucidates that although the business is providing the service at a cheaper rate
than the other banks, they are still doing this business for profit motive and thus can not be
simply termed as “Corporate Social Responsibility.”

Possible modifications that can be brought about to make it a CSR project are outlined below:
● Training Programs: Dedicate a portion of the profit earned for launching skill
development programs and/ or vocational training programs. They operate for the rural
areas and thus can alleviate poverty that is prevalent in many Philippine villages by
providing opportunities.
● Facility Building: Dedicate some resources for the development of educational or
healthcare facilities in one (or more) village(s) . Philippine rural areas are faced with less
facilities and thus must migrate, but if they are able to build them, this will help alleviate
a lot of distress amongst families.
● Social Issues: Solve an existing social issue (which may even be intertwined with
political and/ or legal issues) that may be present in a selected area and help improve the
life of the people residing there. For example, ensuring electricity/ water supply via
sustainable means if it is a far-flung area (engage/ partner for in “social innovation”).
● Launch volunteering programs which can help address/ tackle some social problem
● Charitable Activity: Engaging in charitable activities and/ or organising charitable
activities
● Disaster Relief: Actively contributing in disaster relief programs.Philippines is prone to
earthquakes and typhoons. Betterment and management in this area will mean giving
back to the community.
● Other NGOs: Investing in other philanthropic organizations and funding their projects
which can help bring about a positive change/ create a positive impact. If not directly,
they can collaborate with many organizations on various other initiatives.
They must also ensure they are not harming the environment or other factors of the society. This
will ensure that they run a completely ethical business leading to a sustainable growth model.