Lesson 5

Corporate Social Responsibility

Ethics and Social Responsibility

Enlightened Self Interest

 Corporate
Social
Responsibility
Corporate Social Responsibility

• Is the commitment of a business to contribute to

sustainable economic development, working with
employees, their families, the local community and society
at large to improve their quality of life (World Business
Council for Sustainable Development, 2004).

• It is a company's sense of obligation towards social and

physical environments in which it operates.
CSR is a very broad concept that addresses many and
various topics such as:
 human rights
 corporate governance
 health and safety
 environmental effects
 working conditions
 contribution to economic development.

Whatever the definition is, the purpose of CSR is to drive

change towards sustainability.

Source: FINANCIAL TIMESft.com/lexicon

Example:
Unilever is a multinational corporation, in the food and
beverage sector, with a comprehensive CSR strategy. The
company has been ranked ‘Food Industry leader’ in the Dow
Jones Sustainability World Indexes for the 11 consecutive
years and ranked 7th in the ‘Global 100 Most Sustainable
Corporations in the World’.
One of the major and unique initiatives is the ‘sustainable tea’ program.
 On a partnership-based model with the Rainforest Alliance (an NGO), Unilever
aims to source all of its Lipton and PG Tips tea bags from Rainforest Alliance
Certified™ farms by 2015.  The Rainforest Alliance Certification offers farms a
way to differentiate their products as being socially, economically and
environmentally sustainable.
Four Types of Corporate Social Responsibility
Economic Responsibilities
• A company needs to be primarily concerned with turning a
profit.
• Before a company thinks about being a good corporate
citizen, it first needs to make sure that it can be profitable.

Legal Responsibilities
• These are the requirements that are placed on it by the law
and ensuring that it obeys all laws.
• It can range from securities regulations to labor law,
environmental law and even criminal law.
Ethical Responsibilities
• These are responsibilities that a company puts on itself because its
owners believe it's the right thing to do -- not because they have an
obligation to do so.
• Include being environmentally friendly, paying fair wages or
refusing to do business with oppressive countries, for example.

Philanthropic Responsibilities
• These are responsibilities that go above and beyond what is simply
required or what the company believes is right.
• They involve making an effort to benefit society -- for example, by
donating services to community organizations.

Source: http://smallbusiness.chron.com/impact-corporate-social-responsibility-
organizational-stability-62563.html
Positive side of CSR on companies
• Benefit 1: It enhances relationships with clients
• Benefit 2: It supports public value outcomes
• Benefit 3: It supports being an employer of
choice
• Benefit 4: It encourages both professional and
personal development
• Benefit 5:The ability to have positive impact in
the community
Negative side of CSR on companies

•CSR lead to negative financial outcomes

through producer contagion between
stigmatized populations and products they
produce

•Consumers tend to avoid products produced by

stigmatized populations
Ethics and
Social Responsibility
Business Ethics
Principles and standards that
determine acceptable conduct in
business organization.

Relates to an individual’s or a work

group’s decisions that society
evaluates as right or wrong.
Social Responsibility

A business’s obligation to maximize

its positive impact and minimize its
negative impact on society.

Concerns the impact of the entire

business’s activities on society.
Four Dimensions of Social
Responsibility
 Voluntary Responsibilities- Being a good
corporate citizen contributing to the
community and quality of life.

 Ethical Responsibilities- being ethical; doing

what is right, just and fair; avoiding harm.

 Legal Responsibilities- obeying the law.

 Economic Responsibilities- being profitable.

 Social Responsibility Issues
 Relations with Owners and Shareholders- businesses
must first be responsible to their owners, who are
primarily concerned with earning a profit or a return on
their investment in a company.

 Employee Relations- its responsibilities to employees.

For without employees, a business cannot carry out its
goals.

 Consumer Relations- its responsibilities to customers,

who look to business to provide them with satisfying,
safe products and to respect their rights as consumers.
 Environmental Issues- a business’s
responsibility on their impact to the
environment.

 *Animal Rights

 *Pollution

 Consumer Relations- concerns to the general

welfare of the communities and societies in
which they operate.
THINK IN ENLIGHTENED SELF-INTREST

Project Goal :
To study how the people (contributor)“think in Enlightened
self interest”.
ALTRUISM – the attitude of caring about others
and doing act that help them although you do
not get anything by doing those acts.

ENLIGHTENED INTEREST – person who act to

further the interest of other.

SELF-INTEREST – one’s personal interest or

advantage, especially when pursued without
regards for other.
ENLIGHTENED SELF-INTREST
Behavior that is in the public interest and which also serve the interest of
person performing it.
Being a civic minded and fair to others is in everyone best interests.

Boss :
How kind…….to us!!
let we do work
together …

I think work
will go
fabulously

We should work for general good rather then self interest.

Strategy regarding “Enlightened self - intrest” :

NON CONTRIBUTOR : CONTRIBUTOR :

• Worried only about their narrow role in • Focus on the big picture.
the total picture.

• Give respect to only a select few. • Gives respect to all team members.

• Thinks only “win-lose”. • Thinks “win-win”.

• Thinks only into account of own • Takes into account the concerns
interest. of all stakeholders.
Contributor Qualities regarding “think in
Enlightened self -interest” :
• Building a positive attitude.

• Success- winning strategy.

• Motivating your self and other everyday.

• Building positive self-esteem and image.

• Setting and achieving your goals.

• Doing the right thing for right reason.

 1. Building a positive attitude :
A person from Scotland named Andrew Carnegie came to America and
started doing small works. Soon he became the owner of the largest Steel
factory of America. It was the time when 43 crore people worked for him. 50-
60 years before, one million dollars meant a lot. Someone asked him, "How do
you behave with your people?” He replied, "Behaving with people is like
digging a mine. When you dig for gold, you have to first dig tons n tons of
mitti. But when you go for digging, you don’t go for mitti but for the gold”.

Where should be your eyesight?

Be focused like the mine worker. If you try to find mistakes in people, you
will get plenty. There a deep message hidden in this story. There is something good
in every person and in every situation. To find the good, sometimes we have to go
deep inside. Someone has truly said “A closed watch also shows correct time
twice”. Build this positive attitude in mind.
2. Success- winning strategy :
•Do more than exist- Live

•Do more than touch- Feel

•Do more than look- Observe

•Do more than read- Absorb

•Do more than hear_ Listen

•Do more than listen- Understand.

3. Motivating your self and other everyday :
To achieve progress, the leader must continuously motivate his
team by giving them :

• Recognition.
• Respect.
• Make their work interesting.
• Be a good listener.
• Throw a challenge.
• Help but don’t do for others what they should do for
themselves.
 4. Building positive self-esteem and image.
Positive Self Esteem : Negative Self Esteem :
• Self respect. • Self putdown
• Self confidence • Self doubt
• Self worth • Self abuse
• Self acceptance • Self denial
• Self knowledge • Self centeredness
• Self discipline • Self deceit
• Self indulgence
Self respect doesn’t mean having arrogance and pride.
When you & yourself don’t have the quality of self esteem, how can
you expect it from your team members. Self esteem nearly means –
“Way to find your self ”. When we feel good for our self, our
productivity increases.
 5. Setting and achieving your goals.

Once a traveler asked an old man, "where will this road take me?”. The old man
asked him, "Where you wished to go?”. The traveler replied, "I don’t know”. The old
man replied, "then take any of the road, does it really matter you !”

If you are having a football team and excellent players, and suddenly someone
removes the goal post. How can you score? How can you know that you reached
destination? Setting your goals help you to define your direction.

To develop and achieve goal, the team workers have to be determined for their
goal to achieve. They should develop Direction, Dedication, Determination,
Discipline, Deadliness for their work.
 6. Doing the right thing for right reason.

Winning vs Winners

What is the difference between win and winners?

Winning is an event. Being a winner is a spirit, they leave a legacy.

 Great people leave their identity behind. They know
themselves that they did not achieve it alone. They know that
behind their success lot of people are involved without whom
this would not have been possible.

Mohandas karamchand “Anna Hazare” Sardar Vallabhbhai

Gandhi Patel
 Bill Gates

Sir Adolf Hitler

Mark zuckerberg
End of slides