Corporate Social Responsibility(CSR)

CSR
Obligation of the business organizations to take

actions to protect or enhance the welfare of different constituents of the society as a whole along with its own interest. Businesses should consider the social implications of their decisions Business cannot be isolated The establishment and development of the business is dependent on the contributions made by society.

Different approaches towards CSR

The classical view

-The social obligation view The socio-economic view - Social responsiveness -Social Responsibility

Should organizations be socially involved?

Arguments for social responsibility

Arguments against social responsibility

Arguments for social responsibility

Public Expectations

Long-run profits
Ethical obligation Public Image

Better environment
Discouragement of further Govt. regulations Superiority of prevention than cure

Arguments against social responsibility

Violation of the Profit Maximization

Dilution of the purpose

Costs Too much power

Lack of skills
Lack of accountability

Responsibility of the business towards different interest groups

Responsibilities towards owner, Investors/creditors

Responsibilities towards employees

Responsibility towards customers Responsibility towards Suppliers

Responsibility towards competitors

Responsibility towards govt. Responsibility towards Society