Is understood as an obligation to take actions that protect & improve the welfare of society as a whole along with Business

interests

Arguments for CSR

Arguments against CSR

1. Changed Public expectations

2.Better environment for business 3.Balance power with responsibility

1. Profit Maximization
2. Society has to pay the cost 3. Lack of social Skills

4.Business has resources

5.Prevention is better 6.Moral responsibility

4.Business has power

5.Social overhead cost 6.Lack of accountability

7.Globalization
8.Better employees 9. A Way to resolve conflict

7.Experts views
8.Scalability of the concept 9. Lack of broad support

Shareholder/ Investor
Philanthropic requests and initiatives

Govt. Programmes

Community Forces

Corporate Social responsibility programmes

crises

Competitive advantage

Environmental concerns

Factor Conditions

Context for strategy & Rivalry

Demand Conditions

Related & Supporting Industries

I. Policy

II. Learning

III. Organizational Commitment

IV. Social Audit

Time (Years)

Rejection

Adversary

Resistance

Compliance

Accommodation

Proaction

Absence of social responsibility

Social Responsibility

High Social Responsibility

How to tackle the problem and make new policy work. Specialized learning Administrative learning

Institutionalization of the new social policy by the firm. New policies well accepted throughout the firm and are considered to be normal part of doing business.

Last stage Social audit leads to a report on the social actions of the firm. Decisions with high profitability but negative social effects (ex. cigarrette manufacturing) should be avoided.

Cost Efficiency (pressure of local community to keep an outdated model) Relevance (Freidman law) Scope & Complexity Environmental pollution, health problems, racial discrimination etc.

Leadership (Tata, Aziz Premji, Narayn Murthy) Mission Statements (NTPC mission statement Develop and provide reliable power related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribution to the society) Social issues : managers should detect, classify, analyze, track and prioritize issue. Alignment of structure, culture & process Corporate Social reporting (ex. ITC)

Religion Culture (hunting & gathering, agricultural stage, industrial Stage) Legal System

Ethics corresponds to basic human needs Value creates credibility with the public Value gives management credibility with employees Values help better decision making Law cannot protect society, ethics can.

Top Management Codes of ethics Ethics Committees Training Programmes Ethics hotline

Stakeholder Affected

Ethical/ Social responsibility Issue

Customers

Product Safety Fair Price Proper disclosures and information

Fair ROI Fair Wages Safety on working conditions Child labour Discrimination by Sex, race, colour or creed Impact on local economies Following local laws Environmental protection Raw material depletion

Stockholders Employees

Host- Country

Society in General