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1/5

Corporate Social Responsibilities (CSR)

Corporate Social Responsibility is the continuing commitment bybusiness to behave ethically and contribute to economic development whileimproving the quality of life of the workforce and their families as well asof the local community and society at large.

An obligation, beyond that required by the law and economics, for afirm to pursue long term goals that are good for society .

The continuing commitment by business to behave ethically andcontribute to economic development while improving the quality of life of

the workforce and their families as well as that of the local communityand society at large.

About how a company manages its business process to produce anoverall positive impact on society.

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Meaning of CSR

Conducting business in an ethical way and in the interests of the wider

community

Responding positively to emerging societal priorities and expectations

A willingness to act ahead of regulatory confrontation

Balancing shareholder interests against the interests of the wider

community

Being a good citizen in the community

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WHY CG?

If the founder of the company was allowed to design and implement a

corporate charter he likes. He may not clearly address the issues faced by

other shareholders and thus conjure inefficient rules.

An externality may be defined as a good generated as the result of aneconomic activity, whose benefits or costs do not accrue directly to the

parties involved in the activity.

ID alone cannot play an effective role in isolation despite their

commitment to ethical practices. They cannot stop a decision that isdetrimental to the members individually, but if they act collectively, then

they can act prudently before arriving at any such decision.

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4/5

Contd

Concentration of greater financial power and authority in a lesser number

of individuals.

Violations of foreign exchange rules and regulations.

Large scale diversion of funds to associate companies and risky ventures.

Unfocussed business decisions leading to losses.

Preferential allotment of shares to promoters at low prices,

Exploited the weaknesses in the Accounting Standards to inflate profits

and understate liabilities.

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5/5

Contd The increasing number of scams, disordered politics, culture and linguistic

divide and discouraging attitudes of government toward investments

tarnish Indias corporate image at the world stage.

The 2G scam and the Nira Radia tapes have washed the image of India as

it includes every single constituencythe business world, government,

politicians and media.

The Satyam Computer Services financial scandal .This has put a big

question on the role of quality of corporate governance, role of auditors

and the regulatory bodies of India.

loan-for-bribe' scam reveals that real estate giants like Adani Group,

Lavasa & officials of public sector banks like Central Bank of India, Bank of

India Punjab National and a top official of the LIC Housing Finance were

involved in the scam.