1 INTRODUCTION

I had visited TRANSAMERICA LOGISTICS (INDIA) PRIVATE LIMITED a private ltd.

Co. registered under Indian company act 1956. Details of company are as follows:-

Name: - TRANSAMERICA LOGISTICS (INDIA) PRIVATE LIMITED

Reg No.- U63013DL2005PTC141602

Registered office of Company:- National Capital Territory of Delhi.

Objects for which company is incorporated:- To carry on in India and /or

elsewhere the business of shipping agents, clearing Forwarding agents,
commission agents, luggage and travel agents for any and every mode of travel.
Transport by air, Sea, Surface or land general liaison agents, consultants,
contractors for such business

To carry on business as manufacturers , stockiest, importers and exporters of and

dealers in bolts, nuts, nails-hooks and other hardware items. . And other related
activities.

Issued and Subscribed Share Capital- Rs10,000,000

Organization is involved in business since 1998 and dealing domestically as well as

internationally. The organization have wide array of staff strength and using
contract workers in less important areas. But for key area permanent employees
are employed. With changing enviournment the company working style has also
changed and may organization changes taking place simultaneously.

Objective off Assignment:-

1). Go through the Background of the organization and visit current practices of
the organization. By visiting the current practices try to find out the applicability
of Four-Parts Model of corporate social responsibility (CSR) in organization. Also
try to find out extent of success by use of this model. Also try to find out the
discrepancy while applying the module and possible way outs to improve the
situation.
2). Evaluating the challenges faced by the organization based on ethics and
corporate social responsibility.

2 CORPORATE SOCIAL RESPONSIBILITIES

Theories of four part Model of CSR:-

CSR is a four part model of devised by Carroll : legal responsibility, ethical

responsibility , philanthropic responsibility and economic responsibility. A true
CSR means satisfaction of all four parts consecutively and it delivers the followings
offer.

CSR encompasses the economic, legal, ethical and philanthropic

expectations placed on organizations by society at a given point of time.'

Economic responsibility

Shareholders demand a reasonable return.

Employees want safe and fairly paid jobs.
Customers demand quality at a fair price.

Legal responsibility

The law is a base line for operating within society.

It is an accepted rule book for company operations.

Ethical responsibility

This relates to doing what is right, just and fair.

Actions taken in this area provide a reafcompanyation of social
legitimacy.
This is naturally beyond the previous two levels.

Philanthropic responsibility

Relates to discretionary behavior to improve the lives of others.

Charitable donations and recreational facilities.
Sponsoring the arts and sports events.
 Graphically:-

Evaluation of the application of this model to the organization:-

The company is operating in domestic and international market both,

therefore it is important for it to fulfill its responsibility towards all
stakeholders (shareholder and owners, government and towards the
society).It is dealing in export of services as well as manufacture of
products for these services. Therefore its applicability can be depicted as
below:-

Economic Responsibilities:

To perform consistently in a manner with maximum earnings preshare.

 To maintain an operating efficiency with high level is very important
To maintain the consistency of profits and success
Committed to beings profitable and as possible
Should maintained position as a strong competitor

These above points are applicable to company as company is owned by

shareholders and only by wealth maximization along with suitable profitability the
company can survive.

Legal Components

It is essential that a successful organization should be defined as one that it

fulfills its legal obligation.
It would be better to provide best services to meet the at least legal
requirement.
It is important to conform with different federal, state and local
regulations.
It is important to be a good performer in a consistency manner to meet the
govt. and law expectations.
Become a law abiding corporate citizen is necessary.

Without fulfilling these requirements company cant operate and have to die.
Therefor it is essential as well important from surviving aspect. But now days it
becomes more a responsibility because organization is surviving in a sovereign
country with lot of environment protection from government side. Therefore it is
essential from company side also to fulfill its responsibility towards the
government.

Ethical Responsibilities
 Recognition of corporate honesty and ethical behavior is important which
simply compile with law and regulations.
To achieve corporate goals it is better to prevent the ethical norms being
compromised.
Define a good corporate citizenship to do what is expected morally or
ethically.
Recognized new ethical morals norms and respect the same which is
accepted by society.

The mentioned company are lacking in this aspect. There was no draft ethical
policy. Just it is followed here by tradition. However people here are aware about
need of society and does not involve in work which harms the society. The
companies operation are trading in nature therefor it harms less to the
environment. However there was no pollution control equipment at its end. By
improving on this parameter company can save through carbon Trading.

Philanthropic Responsibilities:

To perform consistently in a manner with philanthropic and expecting

charity for society.
Performing and assisting fine arts amongst the employee and outside
shareholders.
To enhance the communitys quality life it is essential to assist for voluntary
projects.

This activity makes the organization socially acceptable. The organization here
uses some best model which is adopted by few Multinational. Like organization
organized health camp in rural areas of Haryana (neighbored state). But
organization participation in other philanthropist activity are not significant and
need much care.

3 BUSINESS ETHICS AND CSR

We need to study business ethics to make better decisions for ourselves, the
businesses we work for and the society we live it.

FOUR ETHICAL THEORIES:

1. RIGHTS THEORY
2. JUSTICE THEORY
3. UTILITARIANISM
4. PROFIT MAXIMIZATION
These are four theories which can be classified in two different ways:

Teleological Ethical Theories = Focus on the Consequences of a decision.

Deontological Ethical Theories (deeds) = Focus on the Decision itself.

RIGHTS THEORY

Focusing on each individual member of society and his/her rights

Everybody should not about the Moral obligation not to harm the
fundamental rights of other.
Incorporates a variety of ethical philosophies holding that certain human
rights are fundamental and must be represented by other humans.

e.g. Theory by Immanuel Kant.

JUSTICE THEORY

Argued it was right for govts to redistribute wealth in order to help the poor
and disadvantaged.
Greatest Liberty Principle: Each person has an equal right to basic rights and
liberties. This is limited by the Difference Principle: Social inequalities are
acceptable only if they cannot be eliminated without making the worst-off
class even worse off.
Focus is on outcomes. Are people getting what they deserve?

UTILITARIANISM
 To judge the actions based on outcomes (teleological)
Needs a responsible person who looks after the maximum utility for society
as whole.
The meaning of Maximum utility to achieve and get the highest level of
satisfactory over dis satisfactory.

In summary Choose the alternative that promises the highest net welfare to
society as a whole.

PROFIT MAXIMIZATION

Business maximization with long run profits and with law limits. Maintains the
total of social welfare which is improved the permission passed to work toward
their own individual goals.

Linkage between business Ethics and CSR and its benefits:-

Society as a Whole Benefits
o Corporate compliance with the law is insufficient alone to ensure ethical
conduct b/c the laws do not encompass all expressions of ethical behavior.
(Corporate Social Responsibility Debate)
STAKEHOLDER THEORY vs. PROFIT MAXIMIZATION THEORY

People Feel Better

o Studying ethical concepts and theories will help individuals define ethical
conduct and learn to use a strategy or framework for making decisions.
o Studying ethical concepts and theories helps us understand ourselves and
others better.

Application of the theories on the challenges facing the organization:-

The investigated organization facing following problems:-

1) Lack of long term prospective.
2) Company are not well known globally and goodwill issues.
 3) Failure on certain legal side and facing legal suit in one case for
which case is pending with judiciary.
4) Despite good profit less welfare measure for its employees.
5) No clear cut ethical policy.
6) Lacking on CSR front and no separate reporting on CSR in its annual
Financial Statement.
7) Capacity constraints at the time of big emergency order / demand
for services.
8) More focus on profit rather than social responsibility.
9) No special concern for society which gives it space for earning
business.

When we gone through in details about why company are facing

these problems there are many policy as well as execution
problems which needs special care. Like:-
Some of unethical behavior causing heavy damage to its goodwill
Corporations are in positions of power that allow them to do greater
damage to others when they act unethically or socially irresponsibly.
Increased exposure to liability and the passage of onerous legislation
controlling/monitoring business activity.
Negative impact of public criticism on reputation and corps ability to
earn profits.
Negative impact within the firm (Unethical environment may
encourage even more unethical conduct on part of employees).

e.g.- Borrowing money even though you know you will never repay it. Using the
categorical imperative, you would state the following rule/maxim: When I want
money, I will borrow money and promise to repay it, even though I know I wont
repay it.therefore NOT to promise falsely that you will repay a loan.
 Use of different theories to organization:-

Modern Rights Theories:-

Abide by a moral rule unless a more important rule conflicts with it. (In
other words, dont compromise a persons right unless a greater right
takes priority over it.) For example, members of society have a right NOT
to be lied to. However, if you could save someones life by telling a
falsehood, such as NOT telling a criminal the true location of a witness
who will testify against him, you would be compelled under the modern
theory to save the witness life by NOT telling the truth.)

Major Strength:

It protects fundamental rights unless some greater right takes

precedence.

JUSTICE THEORY

Strength: Basic premise - The protection of those who are least advantaged
in society.
But this theory doesnt examine the costs of producing the equality.
However company have to apply this theory as many of its stakeholder feel
injustice in term of equality. Some employee claims there are more favorism
for relatives of management. Customers are also not treated fairly and some
complaints of cheating recorded in companies complain register. So
company should use this theory for equality, however due care should be
given to costing and profitability.

UTILITARIANISM

o Strength: Easy to articulate the standard of conduct Merely do

what is best for society as a whole butDifficulty in measuring benefit
& harm to all members of society and Unequal distribution of costs &
benefits may lead to detrimental results for a particular class or
group of people.
Therefore it is better to Choose the alternative that promises the highest net
welfare to society as a whole. This provide social acceptance to company and
create goodwill for it in the society. It will also create social awareness among
its employee which will lead more social awareness and more CSR compliance.

PROFIT MAXIMIZATION AS WELL AS WEALTH MAXIMISATION

On the basis of the Laisse Faire Theory of Capitalism first expressed by Adam
Smith in the 18th century.

Strength: Allocation of societys resources to those units that are most

efficient increases overall productivity and maximizes total social
utility.ButDoesnt concern itself with HOW wealth is allocated in society.
(for example, in the India 80% of our wealth is held by 20% of the
population The condition is same in case of employee of company).
Market imperfections and a persons station at birth interfere w/his
ability to compete.
The ability of laws and market forces to control corporate behavior is
limited.

Therefore choose the alternative that produces the most long-run

profits for the company within the limits of the law. There is need to
focus more towards long term wealth maximization rather short term
profit maximization. Any decision in court of law against the company
may cost the company and may cause for its insolvency. Therefor
company should decide for offers first which generate wealth and
should not go for unethical practices which cause heavy damage to its
goodwill. One example for which case is pending in court where
company trace pass the legal provision for short term benefit but not
facing suit in the case.

The above principle application will surely help the organization in

improving its CSR scenario.
4 CONCLUSIONS

In summary it is inferred that in investigated company there is lack of

CSR awareness and CSR policy of company are not upto mark with global
practices. There are need to do following in order to be in line with
current CSR Requirements some of them could be:-
Recognize Unethical Requests and Bosses
Shift from Profit Maximization to Wealth Maximization.
Buy Time
Find a Mentor & Peer Support Group
Find Win-Win Solutions
Work Within the Firm to Stop the Unethical Act
There is also need of group exercise and more focus of management
towards society. It should recognize various stakeholders of Business such
as Shareholder, Employee, Customer, Supplier, Society, government and
Other Institution as well and should work for all while considering
Shareholder interest 1st. IN one line we can say there is need to focus on
ethics because it is one of important component of wealth and ethics
includes CSR without which company cant survive in these days. E.g. If
company not following policy which is conserving the environment then
National green tribunal may ban its activity and had to die.

5 REFERENCES

IMPLEMENTATION OF HARVARD REFERENCING SYSTEM:-

Andrew Crane and Dirk Matten (2010) Business Ethics: Managing

Corporate Citizenship and Sustainability in the Age of Globalization
Archie B Carroll and Ann K Buchholtz (2008) Business and Society:
Ethics and Stakeholder Management
Kyoko Fukukawa (2009) Corporate Social Responsibility in Asia (Routledge
International Business in Asia
Judith Hennigfeld and Manfred Pohl (2006) The ICCA Handbook of
Corporate Social Responsibility
 Archie B Carroll and Ann K Buchholtz (2011) Business & Society: Ethics,
Sustainability, and Stakeholder Management
Get Through Guides (2010) ACCA - P1 Professional Accountant: Study
Text
Philip Kotler and Nancy Lee (2008) Corporate Social Responsibility:
Doing the Most Good for Your Company and Your Cause
Madhumita Chatterji (2011) Corporate Social Responsibility
Andrew Crane and Dirk Matten (2007) Corporate Social Responsibility:
Readings and Cases in a Global Context
Jesse Dillard and Kathryn Haynes (2012) Corporate Social
Responsibility: A Research Handbook