Corporate Social Responsibility

Social Responsibility

* Business is not a ‘Charity’

* Business Objective is
“Profit Maximisation”
through
“Consumer Satisfaction”
leading to
“Wealth Creation”
•
• Business is for Society. It is essentially a social institution and
• Process is to subserve the needs of the society.
• Business is For Society and a Part of Society.
• As ‘Subsystem’, it is to ‘Subserve “ the overall needs, aspirations and
• expectations of changing needs of Society, through use of resources of
• Society (Internal & External - The Interest Groups) and deliver goods
• and services.
•
•
• Business is for Society. It is essentially a social
institution and Process is to subserve the needs of
the society.
• Business is For Society and a Part of Society. As
‘Subsystem’, it is to ‘Subserve “ the overall needs,
aspirations and expectations of changing needs of
Society, through use of resources of Society
(Internal & External - The Interest Groups) and
deliver goods and services.
 Corporate Conscience.
• SR is the Perennial Challenge to
the Modern Business World.
• The recognition of Social
Responsibility by Business
is know as the emergence of
Corporate Conscience.
 What is Social Responsibilty?

“ The intelligent and objective concern for

the welfare of the Society that restrains
individual and corporate behaviours from
ultimately destructive activities, no matter
how immediately profitable and leads in the
direction of positive contributions of
Human Betterment.”
Arguments in favour of Social
Responsibility

 Business is for Society

 Self-regulation reduces Government
intervention
 It is in Self-interest of Business
 Respect for traditional values
 SR justifies Organisational Viability
Arguments against Social
Responsibility

 SR contradicts pure Business Principles and

Functions
 No standard guidelines on totally acceptable
SR
 Danger of dominance of Business Values
 Business Efficiency is at stake
 Conflict of Costs & Benefits
 How to make Social
Responsibility workable?

 Commitment on part of Top Management

 In designing of Policies
 Incorporation as a part of Decision
Making Process
 Include in Design of Performance
Evaluation System
•