MGN578

International Environment
and Management

Unit VI – L 19-20-21

Vishwas Gupta

Assistant Professor , Mittal School of Business

 Identify?

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 Invention of 1973!

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 Learning Outcome
Student will be able
to understand the concept of Social Responsibility in light of
globalization and growth of International Trade

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 Asset Protection

 Guarding one's wealth

 A component of financial planning intended
to protect one's assets from creditor claims
like taxation, seizure, or other losses

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 8 Asset Protection Strategies
 Trademark Infringement Lawsuits
 Sexual Harassment Accusations
 Employment Discrimination
 Faulty Products
 Malpractice Claims
 Breach of Contract Claims
 Work-related Vehicle Accidents
 Workers’ Compensation Incidents
 “Slip-and-Fall” Accidents

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 Safeguards
 Use Business Entities
 Sole Proprietorships 
 General Partnerships
 Limited Partnerships
 Corporations.
 Limited Liability Companies
 Own Insurance
 Homeowners Insurance.
 Commercial Liability Insurance.
 Worker’s Compensation Insurance.
 Auto Insurance.
 Umbrella Coverage
 Long-Term Care Insurance

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 IPR
 Patents
 Trademarks
 Copyrights
 Trade Secrets

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 IPR safeguards
 Use more than 1 IP tool to protect your business
 Create a brand and get a great name!
 If working for someone else, keep your employment and idea
separate
 http://ipindia.nic.in/

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Corporate Social Responsibility
(CSR)
 The impact of a company’s actions on society
 Requires a manager to consider his acts in terms of a
whole social system, and holds him responsible for the
effects of his acts anywhere in that system
 https://www.smartrecruiters.com/blog/top-20-corporate-
social-responsibility-initiatives-for-2017/
 What happened with Brand Image of Nestle after
Maggi issue? Whether people considered company as
irresponsible?
CSR - Concepts
 Corporate social
responsibility –
emphasizes obligation
and accountability to
society

 Corporate social
responsiveness –
emphasizes action,
activity

 Corporate social
performance –
emphasizes outcomes,
results
 CSR- India: Few Facts

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 CSR- India: Few Facts

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 CSR- India: Few Facts

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 CSR- India: Few Facts

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 Business Criticism and Social
Responsibility Cycle

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CSR: Viewpoints
 Bauer
 CSR considers the impact of the company’s actions on society
 Davis and Blomstrom
 CSR requires decision makers to take actions that protect and
improve the welfare of society as a whole along with their own
interests
 Carroll’s Four Part Definition
 CSR encompasses the economic, legal, ethical and
discretionary (philanthropic) expectations that society has of
organizations at a given point in time
CSR: Carroll’s Four Part
Definition
Responsibil Societal Examples
ity Expectati
on
Economic Required Be profitable. Maximize
sales, minimize costs,
etc.
Legal Required Obey laws and
regulations.
Ethical Expected Do what is right, fair and
just.
Discretiona Desired/ Be a good corporate
ry Expected citizen. 2-16
Why CSR?
CSR and Free Market
Economics

 Milton Friedman
 The social responsibility of business is simply to
maximize the rate of return to the general
shareholders, consistent with the law.
 This Legal Approach implies Regulation.
 If Regulation were effective and appropriate,
Friedman’s approach is fine.
Limitations to the Regulatory
Approach
 Transnational Regulations are notoriously ineffective
because there is no one to enforce them;
 National Regulations are often not enforced because of
widespread corruption in many developing nations;
 Globally needed regulations are often not even in place
because of short-term behavior of people in power or
because of poverty.
Examples of Regulatory
Failures
 Bhopal disaster and Union Carbide—compensations
by Indian standards may be affordable and “within the
law”, but are we content with having had the disaster?
 Human cost of coal mine accidents in China;
 Politicians and their constituents may not be sensitive
to pollution that drifts across national borders and
causes only small short term problems at home
Sustainable CSR
 Corporations generate sufficient profit to
sustain their operations over the long term
while
 paying their workers and providing a clean
working and safe working environment
 paying their suppliers reasonable prices
 paying due respect to the environment
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