Social Responsibility of Business

Business: social function

1. Innovates
2. Invents new molecules to cure human
ailments
3. Develops products and services to
serve humans
4. Provides employment
5. Generates earnings
6. Exports quality goods
7. Pays taxes to government
 Exploitation & human sufferings

• Natural
• Sexual harassment at the work place,
• Political funding for business interests,
• Pollution, global warming, acid rain
• Spreading materialism,
• Abetting terrorism to increase sale of arms and
ammunition,
• Sell smoke and liquor, and many injurious
substances.
 Accountability of Business
to Society because…
1. It uses society’s resources.

2. Borrows money from banks.

3. Uses natural resources

4. Uses human resources

5. Society gives opportunity to earn.

6. Corporate social responsibility is about seriously

considering the impact of the company's decisions
and actions upon the environment and the society.
The dependence of any business on its social and
ecological environment is so comprehensive that the
very existence, survival and growth of any enterprise
.
 GROUPS IN BUSINESS:
Influencing & influenced
• The shareholders
• The employees
• The customers STAKEHOLDERS

• The Government
• The Environment
• The society at large

Business is expected to accept its

responsibilities towards these groups.
Groups Influencing & influenced
by Business

Share holder

Social
Employee
Society at large Responsibility
Of Business

Customer
 CSR IN INDIA – FOCUS AREAS
Traditional
􀂾 Education

􀂾 Health

Contemporary
􀂾 Capacity Building – skill development, training, encouraging
entrepreneurship development

􀂾 Sustainable Development – environmental protection, infrastructural

development

􀂾 Community Development – education, health, poverty alleviation

􀂾 Social Challenges – women empowerment, girl child education

Is business’s role to
make society better
or to make
shareholders
richer ????
 Responsibilities Towards Shareholders

1. Business has to increase shareholders' wealth,

2. Give good returns on investment,

3. Dividends at the proper time,

4. Protect the interests of even small shareholders,

5. Listen to and respect shareholders,

6. Regularly invite shareholders to participate in decision-

making.
 Responsibility Towards Employees
1. Fair wages
2. Fair appraisal system
3. Healthy and safe working environment and Establishment of fair work
standards and norms
4. The provision of labour welfare facilities
5. Fair opportunity for accomplishment and promotion
6. Proper recognition, appreciation and encouragement of special skills and
capabilities of the workers
7. Installation of an efficient grievances handling system
8. An opportunity for participating in managerial decisions to the extent
desirable
9. Proper training and development programmes so that workers can develop
themselves according to a changing environment
10. Family Welfare
 Responsibility Towards Consumer

1. Providing products of proven quality

2. Regular R&D to augment the product and to innovate
3. To ensure that product reaches the customer and to check any sort of
black marketing
4. To supply goods at reasonable prices
5. To provide required after-sale services
6. To fulfill its commitments impartially and courteously
7. To provide sufficient information about the product, its adverse effects,
risks and the care to be taken while using
8. To ensure that the product supplied does not have any adverse effect on
the customer
9. To hear and redress the genuine grievances of customers
10. To avoid attempts to reap monopoly profits
 Responsibility Towards Community/Environment

1. To prevent environmental pollution and to prevent ecological imbalance

2. Improve the efficiency of business operations
3. Contributing to research and development
4. Development of backward areas
5. Promotion of small scale industry
6. Development of region in which they are operating.
7. This includes working on development of schools, social awareness
programmes, adult education, health, medical facilities, helping NGOs and
the government for social causes such as: the Pulse Polio Mission, etc.
8. Awareness about Individual Social Responsibilities
 Major Social Responsibilities of Business

1.Optimum Utilisation of Scarce Resources

2. Responsibility not to Make Losses

3. Improved Quality of Life

4. Responsibility of Employment and Income

5. Offering Quality Products at Fair Prices

6. Environmental Protection

7. Fair Trade Practices

8. Local development
 Fair Trade Practices
1. Avoidance of monopolistic practices.
2. Black marketing and speculation.

3. False statements regarding claims.

4. Not to buy political favours to sway decisions in its favour.

5. Do not indulge in industrial espionage/ unethical means.

6.Do not make the organization sick to avoid obligations or to escape from
responsibilities.

7. Do not to involve in illegal manipulations.

 Fair Trade Practices…
8. Not to bribe public servants or corrupt the democratic structure of the country.

9. Pay taxes, duties and other dues honestly and on time.

10. Provide required information to shareholders and all other stakeholders.

11. Making timely payment of borrowings and interest.

12. While dealing with suppliers, instead of using their bargaining power, corporations
should invest in good relations with them.

13. Not adopting a communication strategy that is not compliant with social norms.

14. Business should abide by the laws of the land.

• CSR is coming out of the purview of ‘doing social
good’ and is fast becoming a ‘business necessity’.

• Corporate Social Responsibility is defined as

operating a business that meets or exceeds the
ethical, legal, commercial and public
expectations that society has of business.

• Enabling environment of equitable partnership

between civil, society and business.