Corporate Social Responsibility (CSR)

Presented By:
Uzma Naseem

What is
CSR?
CSR is the responsibility of corporation to
contribute to better society and cleaner
environment
It is about how companies manage the business
processes to produce an overall positive impact on
society
The most simplest definition is:
HOW ACOMPANY BEHAVES TOWARDS
SOCIETY

Two Contrast Views of Social Responsibility

1.The Classical View
2.The Socioeconomic View

The Classical View:

The classical view holds that management s
only social responsibility is to maximize profit

The Socioeconomic
ItView:
is the view that management's social
responsibility goes beyond making profit to
include protecting and improving societys
welfare

Categories of CSR
1. Economic Responsibility (Profit)
2. Social Responsibility (People)
3. Environment Responsibility (Planet)

Concept of Greening Management

The recognition of the close link
between
an
organizations
decision s and activities and its
impact on natural environment is
referred as Green Management.
It is concern with companies
embracing
environmental
protection as
a part of their
competitive strategies

Global Environmental Issues

Managers are facing following
global environmental
problem;
Pollution (Air , water, soil)
Toxic waste
Global warming
Natural resources
reduction

Reasons behind these Environmental

Issues
1.Global Warming
2.Ozone layer Reduction
3.Cutting forests
4.Air Pollution
5.Water Pollution
6.Soil pollution

Approaches of being
Green
Legal Approach (Light green)
Market Approach
Stakeholder Approach
Activist Approach (dark
green)

Approaches of being Green

Legal Approach (light Green )
Firm simply do what is legally required by
obeying laws, rules and regulations willingly
and without legal challenge.

Market Approach
Firms respond to the preferences of their
customers for environmentally friendly
product

Stakeholder Approach

Contd.
..

Firm work to meet the environmental demands

of multiple stakeholders employee, suppliers
and the community

Activist Approach
Firm look for ways to respect and preserve
environment and actively socially responsible

Benefits of CSR
Increased employee loyalty and
retention
Increased quality of product &
services
Increased customer loyalty
Increased reputation and brand
image
Greater productivity & quality
Produce safely and decreased
liability

Managerial Ethics
The term ethics refers to rules and
principles that define right and wrong
conduct
Or
Knowing

the difference between right and

wrong thing

Is CSR and Business Ethics same?

There are good things for society that are not good for business and
this is where social responsibility comes in.
There are good things in business that are not good for society and
this is where business ethics comes in.

Four Views of Ethics

The Utilitarian view
he Rights view
The theory of justice
view
The integrative social
Contrast theory

Effective Use of a Code of Ethics

Develop a code of ethics as a
guide in handling ethical dilemmas
in decision making
Communicate the code regularly
to all employees
Publically reprimand & consistently
discipline those who break the code

How Manager can Improve Ethical

Behavior in an Organization
Hire individuals with high standards
Establish codes of ethics and
decision rules
Lead by example
Provide ethics training
Conduct social audits
Provide support for individual
facing ethical dilemmas

Organizations who was rated most

Ethical Companies
ALCOA:
General Electric Corporations
Coca-Cola

Thank You