Concept of social responsibility Corporate social responsibility (CSR) is the obligation toward society assumed by business organization.

Business have obligation to all the people affected by their action, known as stakeholders includes a companys employee, customers, suppliers and community at large. Social responsibility can be examined at four levels: 1. Economic responsibility: produce goods and services at a reasonable price that society wants. 2. Legal responsibility: Obey the legal rules and regulations. 3. Ethical responsibility: determine what is right to do in the society. 4. Voluntary responsibility: not compelled by law, for example, supporting community projects and making charitable contributions.

Approaches to social responsibility 1. Social obstruction(social opposition): This is an old and traditional concept. In this approach, organization demonstrates little or no commitment toward social needs. Manages who follow this approaches give emphasis only on economic welfare of the company. For examples, false documents of companies regarding tax payment, ignoring safety standards etc. 2. Social obligation: Just meet ethical and social standard but not do more. For example, cigarette company put warning on their cigarette. Law driven obligation towards society. 3. Social response: Organizations response goes beyond the legal and ethical standard. For example, take initiative to reduce pollution, collect fund to support poor people. 4. Social contribution: Managers pro-actively seek opportunity to help society. For example, involve in education sector, health project etc.

Areas of social responsibility 1. Responsibility towards owner or shareholders: Proper accounting, providing relevant information, providing adequate dividend, protecting companies assists. 2. Responsibility towards customers: Quality goods, variety of products, good advertisement etc. 3. Responsibility towards employees:

Fair salary, safe work place, offering training and development opportunity etc. 4.Responsibliity towards community: Employment opportunity to the people of community, financial support to minority group and women, support to community environment etc. 5.Responsibility towards government Obey laws, support government in reducing unemployment and poverty, paying taxes etc. 5. Responsibility towards other stakeholders: Suppliers, financiers and competitors