CORPORATE SOCIAL

RESPONSIBILITY
DILIP KUMAR
 Business and society
Only function of organization is to
perform its economic activity and
produce goods/services to society
and earn fro itself max. profit
and it is better to leave social
function to other institutions
Adam smith
 It is profit driven market
system , profit is the factor that
drives to social responsibility to
obtain private gains
 Every individual endeavors to
employ capital so that its
produce is of greatest value.
 Social responsibility is the green signal to
pure socialism
 Business has one and only one social
responsibility to make profit(legal)
 It is imperative to business to be socially
responsible

Friedman
 Acc. to Bradsha
 overlooked two things
1- business is not alone “man before businessman”
2- business/environment is changing, businessman
is judged by social goals

 SR is obligation Friedman as they primarily exist

to benefit society, corporations exists because we
allow them to exist
Prof. Robert Dahl.
Any additional operational cost and financial investment conflicts with
profit maximization
ST Profitability

 CSR
Continuing commitment by business to behave ethically
and contribute to economic development while
improving quality of life of workforce and their family
as well as local community and society as a whole.

Long term profitability

Happy customers (employees/workforce)-------internal

peace and harmony-----enhanced productivity
 European model
 SR integral part of wealth creation
 Hard time, incentives by SR

Emergence
 Shift from shareholder to stake holder
 New concerns and expectations
 Social criteria and investment decisions
 Concern for damage
 transparency
 Trusteeship model
 Realistic perspective
 public corporations are not criteria of a private
contract and thus not owned by any individual
 OWNERSHIP – exclusive right where owner has rights
of possession, use, dispositions
 Shareholders has a stake in company
 Ownership is not very much important
 Universities. museums, libraries also perform well
without any clear ownership

 Managers promote broader interest of organizations

rather then St shareholders gains
 Social entity theory

3 social thinkers
 Robert Dahl, Paul hirst and Jonathan Boswell

Organization is not a private association united by

individual property rights but public associations
for pursuing collective gains with public
objectives.

 Organization is a society
 Pluralistic model
 Idea of multiple interest of
stakeholders rather then
shareholders to make
corporations more efficient and
legitimate
 Organizations doesn't own society
but society owns organizations so it
is in greater interest of organizations
to serve the society
 Expectations of corporations
 They are because of society so
plough back is required
 Reduced quality gap
 No deceptive marketing practices
 Skill sharing
 Employment creation
 TVS
Honesty, commitment, integrity – hallmark

SST trust
1% of annual profit donated
3cr. Expenditure per year on CSR
Started with bus services to major metros
TVS in collab. With LABS (livellihood advance business
school)
Eye camps in collab with Arvind eye hospital-
120000contract surgeries since 1996
Alcohol treatment and residence camps in collab. With
TTK hospital
9 PHCs in collab with govt.
TVS And SST started Activity Based Learning Schools