Types of corporate social responsibility

CSR can encompass a wide variety of tactics, from giving nonprofit organizations a
portion of a company's proceeds, to giving away a product or service to a worthy recipient for
every sale made. Here are a few of the broad categories of social responsibility that businesses
are practicing:

Environment:

One primary focus of corporate social responsibility is the environment.

Businesses, both large and small, have a large carbon footprint. Any steps they can take to
reduce those footprints are considered both good for the company and society as a whole.

Philanthropy:

Businesses also practice social responsibility by donating to national and

local charities. Whether it involves giving money or time, businesses have a lot of resources that
can benefit charities and local community programs.

Ethical labor practices:

By treating employees fairly and ethically, companies can

also demonstrate their corporate social responsibility. This is especially true of businesses that
operate in international locations with labor laws that differ from those in the United States.
Examples of corporate social responsibility
While many companies now practice some form of social responsibility, some are making it a
core of their operations. Ben and Jerry's, for instance, uses only fair trade ingredients and has
developed a dairy farm sustainability program in its home state of Vermont. Starbucks has
created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources
sustainably grown and processed coffee by evaluating the economic, social and environmental
aspects of coffee production. Tom's Shoes, another notable example of a company with CSR at
its core, donates one pair of shoes to a child in need for every pair a customer purchases.
Undertaking socially responsible initiatives is truly a win-win situation. Not only will your
company appeal to socially conscious consumers and employees, but you'll also make a real
difference in the world. Keep in mind that in CSR, transparency and honesty about what you're
doing are paramount to earning the public's trust.
Understanding the Types of CSR

There are actually two different types of corporate social responsibility to consider. The first one consists of
corporations providing funding and resources for worthwhile social causes, such as donating money or employee
time to charities. For many people, this is the definition used when thinking about corporate responsibility. However,
another type of CSR involves putting together a real plan to produce products or provide services that are in the best
interests of society. These include things like using safe materials in design and manufacture, corporate
environmental initiatives, and other factors such as job creation and economic development.

Showing a True Commitment

The most successful corporate social responsibility programs integrate these two types of CSR together to show a
true commitment to a cause. For example, a company that uses sustainable materials in their products, donates
financial resources to environmental causes, and allows employees to take paid time off for volunteering at
environmental charities would be showing a true commitment to the environment that goes beyond any single CSR
initiative.
Social Media Visibility
One of the reasons that corporations should have visible CSR campaigns is due to the importance and prevalence of
social media. Corporations that want to protect their brand understand that social media is an integral part of public
perception. When a corporation exercises social responsibility in the form of fundraising or setting up employee giving
programs, using social media to promote these actions helps to create a positive branding environment and it is a
great way to engage with your audience on a deeper level that goes beyond your products or services.

Public Relations Benefits

Public relations is a potent tool for shaping consumer perception and building a companys image. Corporations that
actively promote their social responsibility activities often take steps to publicize these efforts through the media.
Getting the word out about corporate donations, employee volunteer programs, or other CSR initiatives is a powerful
branding tool that can build publicity for you in both online and print media.

Government Relations
Corporations that place an emphasis on corporate social responsibility typically have an easier experience when
dealing with politicians and government regulators. In contrast, businesses that present a reckless disregard for
social responsibility tend to find themselves fending off various inquiries and probes, often brought on at the
insistence of public service organizations. The more positive the public perception is that a corporation takes social
responsibility seriously, the less likely it is that activist groups will launch public campaigns and demand government
inquiries against it.

Building a Positive Workplace Environment

Finally, one of the greatest benefits of promoting social responsibility in the workplace is the positive environment you
build for your employees. When employees and management feel they are working for a company that has a true
conscience, they will likely be more enthusiastic and engaged in their jobs. This can build a sense of community and
teamwork which brings everyone together and leads to happier, more productive employees.
Getting an effective CSR program off the ground isnt easy.All too often, a program is received with
enthusiasm at the beginning and then gets pushed off to the side for other priorities. This doesnt have to be the case.

Attract

& Retain Investors

Investors who are pouring money into companies want to know that their funds are
being used properly.
Not only does this mean that corporations must have sound business plans and
budgets, but it also means that they should have a strong sense of corporate social
responsibility.
When companies donate money to nonprofit organizations and encourage their
employees to volunteer their time, they demonstrate to investors that they dont
just care about profits. Instead, they show that they have an interest in the local
and global community.
Investors are more likely to be attracted to and continue to support companies that
demonstrate a commitment not only to employees and customers, but also to
causes and organizations that impact the lives of others.

Better & More Media Coverage

It doesnt matter how much your company is doing to save the environment if
nobody knows about it.
Make sure youre forming relationships with local media outlets so theyll be more
likely to cover the stories you offer them.
How much good a company can do in the local communities, or even beyond that, is
corporate social responsibility. And the better the benefits, the better the media
coverage.
On the other hand, however, if a corporation participates in production or activities
that bring upon negative community impacts, the media will also pick this up, and
unfortunately, bad news spreads quicker than good news.
Media visibility is only so useful in that it sheds a positive light to your organization.

Business Ethics: Meaning,

Sources and Importance

Meaning:
The term Business Ethics refers to the system of moral principles and rules
of the conduct applied to business. Business being a social organ shall not be
conducted in a way detrimental to the interests of the society and the business
sector itself. Every profession or group frames certain dos and do nots for its
members. The members are given a standard in which they are supposed to
operate. These standards are influenced by the prevailing economic and
social situations. The codes of conduct are periodically reviewed to suit the
changing circumstances.
Definitions:
Business Ethics is generally coming to know what is right or wrong in the
work place and doing what is right. This is in regard to effects of
products/services and in relationship with the stake holders. Cater
Mcnamara
Business ethics in short can be defined as the systematic study of ethical
matters pertaining to the business, industry or related activities, institutions
and beliefs. Business ethics is the systematic handling of values in business
and industry. John Donaldson
There is no unanimity of opinion as to what constitutes business ethics. There
are no separate ethics of business but every individual and organ in society
should abide by certain moral orders.
Business ethics should take into consideration the following factors:
1. A business should aim to have fair dealing with everyone dealing with it.
2. Ethics should be fixed for everyone working in the organisation at any level
and their implementation should be linked with reward- punishment system.
3. Any violation of ethics should be detected at the earliest and remedial
measures taken immediately.
4. Business ethics should be based on broad guidelines of what should be
done and what should be avoided.
5. The ethics should be based on the perception of what is right.

Sources of Business Ethic:

In every society there are three sources of business ethics-Religion, Culture
and Law. The HR manager in every organisation, thus, has to be well versed
with the unique system of values developed by these three sources.
These sources are discussed as follows:

1. Religion:
Religion is the oldest source of Religion is the oldest source of ethical
inspiration. There are more than ethical inspirations. 1, 00,000 religions which
exist across the whole world, but all of them are in agreement on the
fundamental principles. Every religion gives an expression of what is wrong
and right in business and other walks of life. The Principle of reciprocity
towards ones fellow beings is found in all the religions. Great religions preach
the necessity for an orderly social system and emphasize upon social
responsibility with an objective to contribute to the general welfare. With these
fundamentals, every religion creates its own code of conduct.

2. Culture:
Culture is the set of important understandings that members of a community
share in common. It consists of a basic set of values, ideas, perceptions,
preferences, concept of morality, code of conduct etc. which creates
distinctiveness among human groups. When we talk about culture we typically
refer to the pattern of development reflected in a societys pattern of
knowledge, ideology, values, laws, social norms and day to day rituals.
Depending upon the pattern and stage of development, culture differs from
society to society. Moreover culture is passed from generation to generation.
Culture facilitates the generation of commitment to something larger than
ones individual self interest.
Culture encourages the members of the organisation to give priority to
organizational goals over and above their personal interests. Culture also
serves as a sense making and control mechanism that guides and shapes the
attitudes and behaviour of people. Managers have to run an industrial
enterprise on the cutting edge of cultural experience. The tension that their
actions create makes the business ethically more complex.

3. Law:
The legal system of any country, guide the human behaviour in the society.
Whatever, ethics the law defines are binding on the society. The society
expects the business to abide by the law. Although it is expected that every
business should be law abiding, seldom do the businesses adhere to the rules
and regulations. Law breaking in business is common eg. Tax evasion,
hoarding, adulteration, poor quality & high priced products, environment
pollution etc.

Importance of Business Ethics:

1. Corresponds to Basic Human Needs:
The basic need of every human being is that they want to be a part of the
organisation which they can respect and be proud of, because they perceive it
to be ethical. Everybody likes to be associated with an organisation which the
society respects as a honest and socially responsible organisation. The HR
managers have to fulfill this basic need of the employees as well as their own
basic need that they want to direct an ethical organisation. The basic needs of
the employees as well as the managers compel the organizations to be
ethically oriented.

2. Credibility in the Public:

Ethical values of an organisation create credibility in the public eye. People
will like to buy the product of a company if they believe that the company is
honest and is offering value for money. The public issues of such companies
are bound to be a success. Because of this reason only the cola companies
are spending huge sums of money on the advertisements now-a-days to
convince the public that their products are safe and free from pesticides of any
kind.

3. Credibility with the Employees:

When employees are convinced of the ethical values of the organisation they
are working for, they hold the organisation in high esteem. It creates common

goals, values and language. The HR manager will have credibility with the
employees just because the organisation has creditability in the eyes of the
public. Perceived social uprightness and moral values can win the employees
more than any other incentive plans.

4. Better Decision Making:

Respect for ethics will force a management to take various economic, social
and ethical aspects into consideration while taking the decisions. Decision
making will be better if the decisions are in the interest of the public,
employees and companys own long term good.

5. Profitability:
Being ethical does not mean not making any profits. Every organisation has a
responsibility towards itself also i.e., to earn profits. Ethical companies are
bound to be successful and more profitable in the long run though in the short
run they can lose money.

6. Protection of Society:
Ethics can protect the society in a better way than even the legal system of
the country. Where law fails, ethics always succeed. The government cannot
regulate all the activities that are harmful to the society. A HR manager, who is
ethically sound, can reach out to agitated employees, more effectively than
the police.

Meaning
Acting in an ethical way involves distinguishing between right and wrong and
then making the right choice. It is relatively easy to identify unethical business
practices. For example, companies should not use child labour. They should not
unlawfully use copyrighted materials and processes. They should not engage in
bribery.

What are Business Ethics? Meaning

Ethics is a branch of social science. It deals with moral principles and social values. It helps us to classify, what is
good and what is bad? It tells us to do good things and avoid doing bad things.

Image Credits Malc H.

So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and proper and improper
human action. In short, ethics means a code of conduct. It is like the 10 commandments of holy Bible. It tells a person
how to behave with another person.
So, the businessmen must give a regular supply of good quality goods and services at reasonable prices to their
consumers. They must avoid indulging in unfair trade practices like adulteration, promoting misleading
advertisements, cheating in weights and measures, black marketing, etc. They must give fair wages and provide
good working conditions to their workers. They must not exploit the workers. They must encourage competition in the
market. They must protect the interest of small businessmen. They must avoid unfair competition. They must avoid
monopolies. They must pay all their taxes regularly to the government.
In short, business ethics means to conduct business with a human touch in order to give welfare to the society.

Definition of Business Ethics

According to Andrew Crane,

"Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are
addressed."
According to Raymond C. Baumhart,
"The ethics of business is the ethics of responsibility. The business man must promise that he will not harm
knowingly."

Features of Business Ethics

The characteristics or features of business ethics are:-

Code of conduct : Business ethics is a code of conduct. It tells what to do and what not to do for the welfare of the
society. All businessmen must follow this code of conduct.

Based on moral and social values : Business ethics is based on moral and social values. It contains moral and
social principles (rules) for doing business. This includes self-control, consumer protection and welfare, service to
society, fair treatment to social groups, not to exploit others, etc.
Gives protection to social groups : Business ethics give protection to different social groups such as consumers,
employees, small businessmen, government, shareholders, creditors, etc.
Provides basic framework : Business ethics provide a basic framework for doing business. It gives the social
cultural, economic, legal and other limits of business. Business must be conducted within these limits.
Voluntary : Business ethics must be voluntary. The businessmen must accept business ethics on their own. Business
ethics must be like self-discipline. It must not be enforced by law.
Requires education and guidance : Businessmen must be given proper education and guidance before introducing
business ethics. The businessmen must be motivated to use business ethics. They must be informed about the
advantages of using business ethics. Trade Associations and Chambers of Commerce must also play an active role
in this matter.
Relative Term : Business ethics is a relative term. That is, it changes from one business to another. It also changes
from one country to another. What is considered as good in one country may be taboo in another country.
New concept : Business ethics is a newer concept. It is strictly followed only in developed countries. It is not followed
properly in poor and developing countries.