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Strategic mgmt involves decision making aimed at providing futuristic direction to an enterprise and therefore has a range of social implications as well apart from the economic ramifications. An enterprise survives in and because of the society and thus has a responsibility towards the society as well. Each and every decision that an organization takes has a social side to it and hence must be given due consideration from this perspective. The doctrine of social responsibility is the most important guiding factor for an enterprise while taking its decisions with regards to its social side. It emphasizes the consideration of the social criteria along with the familiar economic criteria in the development of corporate strategy. CONCEPT OF SOCIAL RESPONSIBILITY The great expansion in the scope and domain of enterprises has accentuated the importance of the concept of corporate social responsibility. With growing businesses and growing social awareness because of education the interaction amongst the organizations and the public at large has grown considerably. It is because of these reasons that management now a days wants to behave in a socially responsible manner as any anomaly is very evident and has serious ramifications due to better populace awareness. In a competitive world being loyal to your social responsibility is a matter of survival as public opinion and expression of public opinion through legislation and govt policies hold the ultimate power. Thus the corporate world today pays special attention to the social prong of their strategies as a whole.
The classical economic position – views against social responsibility as an objective of business -: Classical economists have not subscribed to the concept of csr with an argument of a free society. Milton Friedman has rejected the concept while asserting that the only responsibility of a business is to ensure effective utilization of resources that it has and engage activities designed to generate profits. He sanctifies his assertion by stating that in a free enterprise a corporate executive is an employee of the owners of the business and thus has a direct responsibility towards his owners. Hence his pimary responsibility is to act as per their desire and generate the max profit for them while confirming to the basic rules of the society i.e. legal, ethical and custom. He further argued that if the corporate discharges the social responsibilities on priority as compared to organizational profit then he is not a corporate as he is acting like a civil servant and hence doesn’t fit into the garb of a corporate.
• Peter Drucker .THE MODERN VIEW – CASE FOR CSR The case for CSR has been potently put forward by various modern economists including various executives from a range of corporate houses.
ENSURING THE COMPETENCE OF FUTURE MANAGEMENT IN ORDER TO AVOID MISMANAGEMENT OF RESOURCES. • ENSURING COMPLIANCE TO THE SOCIAL BELIEFS AND COHESION. He says that mgmt being a leading group shall assume responsibilities greater than the business domain. Being a social organ the org must look to convert all the demands that the society makes into opportunities rather than perceiving them as threats to the org’s economic profitability. Drucker advocated the fact that any organization that aims at growing in the future must comply to its social responsibilities with complete dedication. • DEVLOPING A CPAITAL EXP POLICY SUCH THATIT CAN COUNTERACT THE EXTREMES OF THE BUSINESS CYCLE.• • • • The very nature of mgmt is putting different responsibilities on the manager from the past’s business. EX PROVIDING OPPURTUNITY TO THE POWER RANKS TO GROW IN AND OUTSIDE THE ORG. • TO DEVELOP POLICIES THAT CAN ERADICATE AND PREVENT THE CAUSES OF LOW OR PROFITABILITY ON THE WHOLE FOR THAT MATTER. Being an organ of the society the business must evaluate each of its decision from a social perspective. Business must be managed such that the public good becomes the organizational good. It is a duty of the management . LIST OF SOCIAL RESPONSIBILITIES OF MANGEMENT AS PER DRUCKER • • TO OPERATE AT A PROFIT AND ENSURE GROWTH OF THE ORG AS A WEALTH CREATING AD WEALTH PRODUCING ORGAN OF THE SOCIETY.
3. To encourage indigenous development of products in order to limit imports. give special consideration to the csr as they not only consider it as their responsibility but as an opportunity to enhance their consumer base and social recognition as a socially responsible company. they had special provisions for employing the native adivasis in of the Jamshedpur area where there manufacturing facility is located. 2. For ex the tatas have been the vanguards for the Indian companies in this field. Improve the condition of sc/st in pursuance of national policies. They have taken various other initiatives for the development of that area like building up requisite infrastructure. To ensure quality products through potent distribution at reasonable prices to the people. To facilitate all round development of villages by providing help to the educated unemployed to earn a living.N. educational and medical facilities as well as stated on their website.C or any other gigantic company for that matter. enriching and fancied organization. O. To prevent pollution of ever sought from their manufacturing facilities by taking effective measures. To develop techno-economically viable products for the people. 6. 5. There have been numerous other examples of other Indian companies that have shown great compliance to their csr. But the fact remains that today the largest growing companies whether it is Microsoft. On the other side the economic effects of csr compliance have been a source of discontentment for the adversaries of the csr. 4.to ensure that all the legitimate demands of the society are given due consideration in correspondence to the economic feasibility of such demands for the org. Lets take the example of Indian Oil Corporation Ltd which has enlisted the following points into its csr -: 1.G. legal constraints and social obligations must not be the impetus behind the org’s compliance to its csr but the management must perceive its csr as an opportunity to grow into a more socially effective. .
towards employees • fair wages and remuneration along with other benefits • productivity. industry capacity shall be the parameters of wage fixation. towards consumers • satisfying consumer needs in the long run • supplying good quality products • reasonable prices .DIMENSIONS of CSR -: The realm of the csr for a company basically extends to the following parties-: 1. prevailing rates. grievance handling etc • Ensuring good atmosphere in the working places. • Ensuring requisite measures for the security of the employees • Provide equal opportunity of development to all . Responsibility towards owners-: o Fair and reasonable rate of return o Fair dividend to the shareholders o Transfer the benefits of capital appreciation in the form of bonus shares etc to the invest 2. 3. • Maintaining harmonious relations with the employees by ensuring unbiased treatment.
5. towards government o compliance to law of the land o payment of taxes and other duties o abstaining from corrupt practices o abstaining from buying political support from money and other undue practices.air etc .• abstain from black marketing 4. towards the community and the society • providing employment to the weaker sections of the society • environmental protection • protection of the social resources including roads. water .
technological and market settings to basically determine the threats and opportunities available to the enterprise. governmental. . supplier.Environmental analysis: dynamic setting of business Environmental analysis is the process by which corporate planners. monitor the economic.
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