Corporate Social responsibility

Sundari Divakarla

 Person going from one side of the canyon to the other a lot of clouds like fog. The point is going from one way of doing business to another is very tough. Theres a lot uncertainty. It takes a lot of skill, but we have to lift ourselves beyond that, above the fog, and thats not going to be a simple exercise. CSR is about seeing the forest, the fog, and seeing how we can get on the other side, and how we can be well-equipped for doing that. So probably we need to develop additional skills, knowledge, and understanding.

The message is that whatever we do today will have an impact on future generations. Its not just my kids or your kids or somebody elses. Its future generations. We should not hope that the walls we build to protect ourselves will be tall enough to protect our children. Only with very conscious effort we can make the world for them a better place to liveeven if we address our most selfish needs we have to address the needs of the next generation. Thats what CSR is about.

Does Corporate Social Responsibility rest on a mistake?

Key steps in the argument

Corporate Social Responsibility (CSR) distinguished from Business Ethics (BE) Trend of studies in this area to treat CSR independently of BE BE addresses moral values in relation to individual people (correctly) CSR only gains plausibility when the organisation is seen in metaphorical not literal terms

Definitions
BE - the application of philosophical and socialpsychological concepts to business dilemmas and practices CSR - the study of business strategy in relation to the firms impact on and contribution to society as a whole

Are these two different disciplines?

BE - origins in behavioural and philosophical studies; more individually focussed CSR - origins in strategic management theory; more firm-wide focus BUT . Both fields require an understanding and acceptance of social/moral values, and apply these to business situations

Is CSR necessary?
The social responsibility of business is to increase its profits
Milton Friedman (1970), economist

Not anti-society, but locates responsibility as a governmental and individual area, NOT a corporate one

Characteristic phenomena handled in CSR discussions

Corporate giving/philanthropy Human rights abuses Pollution Poverty

Characteristic phenomena handled in BE discussions

Bribery and corruption Corporate Governance Integrity and trust Honesty Whistleblowing

Ten Commandments of CSR

Take corrective action before it is required. Compliance with self-imposed standards is almost always preferable to compliance with standards that are imposed by outside constituencies. Work with affected constituents to resolve mutual problems. Work to establish industry-wide standards and self-regulation.

 Publicly admit your mistakes. Few things are worse for a companys image than being caught trying to cover up socially irresponsible behaviour. Get involved in appropriate social programs. Help correct environmental problems.

 Monitor the changing social environment. Establish and enforce a corporate code of conduct. Take needed public stands on social issues. Strive to make profits on an ongoing basis. An organization cannot provide jobs and employ workers if it is not in a position to make consistent profits.