Corporate social responsbility
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Transcript of Corporate social responsbility
CORPORATE SOCIAL RESPONSIBILITY
Disha tiwari(012049)Faraz sajid(012052)Jyoti Singh(012067)
WHY SOCIAL RESPONSIBILITY
The business of business is business 'was the motto of businessperson in early times. Narrowly interpreted, it would mean that corporations have only one responsibility, the single –minded pursuit of profit. To economists like Adam smith and Milton Friedman ,in a capitalist society profit maximization by the continued increase of efficiency is the most socially responsible way of conducting business.
CORPORATE SOCIAL RESPONSIBILITY
Definition- A company‘s sense of responsibility towards the community and environment (both ecological and social) in which it operates.compainies express this citizenship (1).through their waste and pollution reduction process,(2).By contributing educational and social program (3).by earning adequate returns on the employed resources
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Corporate social responsibility –
Emphasizes obligation and accountability to society Corporate social responsiveness-
Emphasize action, activity Corporate social performance –
Emphasizes outcome , result
BUSINESS CRITICISM/ SOCIAL RESPONSE CYCLE
Factors in the Societal Environment
Criticism of Business
Increased concern for the Social Environment
A Changed Social 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
HISTORICAL PERSPECTIVE
From the 1950’s to the present the concept of CSR has gained considerable acceptance and the meaning has been broadened to include additional components
Economic model – the invisible hand of the marketplace protected societal interest
Legal model – laws protected societal interests Modified the economic model Philanthropy Community obligations Paternalism
CARROLL’S FOUR PART DEFINITION
• CSR encompasses the-
economicEthical
Legal
Discretionary (philanthropic)
Expectation
That society has of organization has a given point in time
UNDERSTANDING THE FOUR COMPONENTS
Responsibility
Societal Expectation
Examples
Economic Required Be profitable. Maximize sales, 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.
PYRAMID OF CSR
BUSINESS RESPONSIBILITIES IN THE 21ST CENTURY Demonstrate a commitment to society’s
values and contribute to society’s social, environmental, and economic goals through action.
Insulate society from the negative impacts of company operations, products and services.
Share benefits of company activities with key stakeholders as well as with shareholders.
Demonstrate that the company can make more money by doing the right thing.
ARGUMENTS FOR SOCIAL RESPONSIBILITY
Society and Business are interdependent- Public Image- Shareholder interest- Avoidance of Governmental Regulation:
CORPORATE SOCIAL RESPONSIBILITY (CSR)ARGUMENTS AGAINST
-Profit Maximization-Society has to pay
the Cost-Business has enough
Power
-Social Overhead Costs
-Lack of accountability:
-Friedman’s Views