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Social responsibilities says that the corporation has not only economic and legal but
also certain responsibilities to society which external beyond these obligation.
In economic function, the goal that is trying to be achieved should be measured to see if it
meets with the cost guidelines that the business is willing to contribute. For instance if the
business were to try to better the plant by reducing its carbon footprint, how would it go
about doing this?
In the quality of life measurement “should focus on whether the organization is improving
or degrading the general quality of life in society”.
Social Investment looks at what the business is doing for the community. Does the business
work with the community to fix outstanding issues and social problems? How much of an
investment does it make? What issues are they addressing?
Problem solving looks at to what extent the business will work to fix the problem. Will the
business simply contribute money to an organization working on the issue? Will they allow
company employees to volunteer on company time to fix the problem?
‘COMMUNITY RELATIONS’
‘SOCIAL RESPONSIBILITY’
1. Public Image : The activities of business towards the welfare of the society
earn goodwill and reputation for the business. The earnings of business also
depend upon the public image of its activities. People prefer to buy products of a
company that engages itself in various social welfare programmers. Again, good
public image also attracts honest and competent employees to work with such
employers.
3. Survival and Growth : Every business is a part of the society. So for its survival
and growth, support from the society is very much essential. Business utilizes the
available resources like power, water, land, roads, etc. of the society. So it should
be the responsibility of every business to spend a part of its profit for the welfare
of the society.
1. Economic Responsibility:
a) Efficient operation to fulfill monetary need
b) Generation of surplus
c) Keeping reserve
d) Further expansion
2. Legal Responsibility:
a) Fundamental in nature
b) Obey law and regulations
c) Insure law and order
3. Ethical Responsibility:
a) Do what is right, fair and just
b) Make a healthy and competitive environment
c) Don’t use unfair advertisement
d) Produce quality products on fair prices
4. Discretionary Responsibility:
a) Contribute in social development
b) Provide basic facilities to employee
c) Contribute in development of community
d) Take initiative in emergencies
3. Societal Factors: Social orientation could also be affected by the expectation of the
society from the Corporation. Eg: A resourceful firm located in a poor community
may be expected to contribute to the development of education facilities of the
locality etc.
5. Government and Laws: Laws to curb corruption, unfair practices etc. and the
government’s view of social responsibility also acts as an influencing factor.
6. Political Influences
7. Competitors
8. Resources
Corporate Social Responsibility
Ramya Nair - 0821001975
ARGUMENTS FOR SOCIAL RESPONSIBILITIES OF BUSINESS :
2. Business is part of society: Society and business are benefited when there is a
symbiotic relationship between the two. Society gains through economic
development and the provision of employment opportunities and business
benefits through the workforce and consumers provided by society.
2. Society has to pay the Cost: Costs of social responsibility will be passed on to
the society and eventually it is the society which has to bear them.
3. Lack of social skills: Business managers are goods at solving matters relating to
business and not very effective at solving social problems as their outlook is
primarily economic.
4. Business has enough Power: Business already has enough social power and the
society should not take any steps which give it more power as it could mould
social values.
CARROLL’S CSR
MODEL
Firm being an economic activity, the main responsibility is economic along with
complying with the legal responsibilities.
Ethical responsibilities are norms which the society expects the business concern
to observe even though they are not mandated by law. While discretionary
responsibilities refer to the voluntary contribution of the business to the social
cause like involvement in community development etc. Carroll points out that
these four categories are not mutually exclusive and presented them as a pyramid
of CSR.
Halal’s return on resources model of corporate performance points out that a firm
can only attempt to unite the diverse interests of various social groups to form a
workable coalition engaged in creating value for distribution among members of the
coalition. Beyond a certain level of economic activity the social issues at stake
become conflicting.
3. ACKERMAN’S MODEL
1. Social Opposition: View taken by business is that they have no obligation to the
society in which they operate.
2. Social obligation: Companies believe that they have an obligation to obey the
law.
3. Social response: Position taken by companies which believe that their social
responsibilities are as dictated by law and will on selective basis go beyond the
legal requirements. These units may volunteer to participate in limited socially
responsible efforts, but not until they are convinced that the benefits outweigh
the costs.
4.Social contribution: Position taken by Companies which believe that they have a
deep obligation to serve the society.
Social audit is a tool for evaluating how satisfactorily a company has discharged its
social responsibilities. Social audit enables the public as well as the company to
evaluate the social performance of the company.
2. Assessment and evaluation of the social costs and social benefits of such
activities
4. Reporting
2. Take measures to improve the social performance of the company on the basis of
feedback provided by the social audit.
1. It should reflect the opinions of a wide variety of people affected by the Program
(multi-perspective).
4. It should happen each year and not just as a one-off exercise ( regular)
The Social Audit cycle starts with the Statement of Purpose and Planning, this
reviews the results of last year's purpose and plans and establishes this year's
purpose and plans.
The scope of social audit is very wide and not limited to a particular scheme or
activities or area. It can be taken up at village level, GP level or even block or
district level depending on nature of work and program. Similarly it can be
organized on a single activity or collectively taking more than one activities together
applicable in that specific area.
ISO, the International Organization for Standardization, has decided to launch the
development of an International Standard providing guidelines for social
responsibility (SR).
The guidance standard will be published in 2010 as ISO 26000 and be voluntary to
use. It will not include requirements and will thus not be a certification standard.
There is a range of many different opinions as to the right approach ranging from
strict legislation at one end to complete freedom at the other. We are looking for a
golden middle way that promotes respect and responsibility based on known
reference documents without stifling creativity and development.
Our work will aim to encourage voluntary commitment to social responsibility and
will lead to common guidance on concepts, definitions and methods of evaluation.
The need for organizations in both public and private sectors to behave in a socially
responsible way is becoming a generalized requirement of society. It is shared by the
stakeholder groups that are participating in the WG SR to develop ISO 26000:
industry, government, labor, consumers, nongovernmental organizations and others,
in addition to geographical and gender-based balance.