1. Corporate Social
Responsibility

2. Introduction
Responsibility of a Business
Responsibility of a
Responsibility of a
business in present
business traditionally
scenario
• Providing goods To solve social
and services to problems like
society. poverty,
•Maximizing corruption,
corporate profit pollution,
• Creating job educational
opportunities etc problem etc.

3. Meaning of CSR
• According to European Union, “ CSR is a concept that an enterprise is
accountable for its impact on all relevant stakeholders. It is the continuing
commitment by business to behave fairly and responsibly and contribute to
economic development while improving the quality of life of the work force and
their families as well as the local community and society at large.”
• Social responsibility refers to the obligation of an organisation to seek actions
that protect and improve the welfare of society along with its own interest.

4. Nature of Social Responsibility
• Focus on Business Firms
• It deals with moral issues
• It moves along with the objective of profit
maximization
• It is a pervasive activity
• It is a continuing process

5. Historical Perspectives of Social Responsibility
• Expectations of society from business firms in regard to
corporate social responsibility has gone through 3 phases:

6. Profit Maximization (Traditional Philosophy)
 Historically, business enterprise was mainly looked
for the interest of the owners.
 Social responsibility of the organisation was to
maximize the profit within the legal framework of the
country.

7. Trusteeship Management (Stakeholder Philosophy)
 During later years, the concept of social responsibility
widened from mere satisfaction of owners’ interests to
interest of other stakeholders like employees,
consumers, creditors etc.
 Providing good working conditions, better quality
goods, timely repayment of loans to creditors etc.

8. Quality of life management(Affirmative philosophy)
 A still wider concept of social responsibility developed
in 1960s.
It viewed business enterprises as institutions to remove
social ills and uplift the society.
 Business enterprises are now supposed to uplift the
quality of life in the society.

9. Four-Part model of Corporate Social
Responsibility
Type of Societal Examples
Responsibility Expectation
DESIRED of Corporate contributions.
Philanthropic Programs supporting community/education,
business by health, poverty etc
society
Creating Job Opportunities
EXPECTED of Providing products as per the need of the
Ethical business by society customers etc
Obey all laws;
Environmental laws.
REQUIRED of
Legal Consumer laws.
business by society
Laws affecting all employees.
Be profitable.
REQUIRED by
Economic Maximise sales revenue.
business
Minimize costs (administrative, production, marketing,
distribution).
Make wise strategic decisions.
Be attentive to dividend policy

10. Arguments in favour of social responsibility
 Long-run survival of Business concerns.
 Profitability for business concerns.
 Moral and Social commitment.
 Combination of several interests.
 Improvement in public image.
 Complementary to profit maximization
 Helps in avoiding Government Regulations
 Status of a citizen
 Available Surpluses

11. Arguments against Social Responsibility
 Business is an economic activity.
 Burdensome for business organizations.
 Cost-benefit analysis.
 Lack of skill and competence.
 Transfer of social costs: Increase in prices, reduction in
wages, reduction in profits.

12. Barriers to Social Responsibility
 Managerial perceptions
 Comparison of divisional performance
 Overall Organisational Barriers
 International Barriers

13. Various Stakeholders and Social Responsibility
 Shareholders
 Employees
 Customers
 Creditors/Suppliers
 Organizations
 Government
 Society

14. Queries ?