Submitted to:

Mam Saba Iqbal

Submitted by:
Mujahid Abbas R#10

Submitted on:

12-04-2016

Submitted at:
Al-falah Institute of
Banking & Finance

Corporate Social Responsibility

The term "corporate social responsibility" became popular in the 1960s and has
remained to cover legal and moral responsibility of a firm.

Definition:
CSR refers to A companys sense of responsibility towards the promotion of welfare
and goodwill of stakeholder, community and environment in which it operates.
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or
responsible business)

1) Stakeholder:
Primary: owner, customer, employees, suppliers
Secondary: any interested group like media, government, society

2) Environment :
External: (outside the organization) social, political, technological, economic, legal, cultural
Internal: (inside the organization) management, culture, departments, H.R

3) Communities
A community is a social unit of any size that shares common values, or that is situated in a given
geographical area (e.g. a village or town).

Ways of C.S.R

Food industry: action against hunger

Support fresh water schemes

Look after employee health

Campaign sponsorship

o Many events and campaigns could not happen without industry support.
For instance, Aramark is one of the sponsors of British Food Fortnight,
one the largest volunteer movements educating children about food.

Set up a charity
o Company charities provide a structured and tax-efficient way to support
local communities and charitable causes.

Recycle office supplies

Cut delivery miles

Work with local producers

Help people with disabilities

Set your staff a challenge

Share your swimming pool

o The Langdale Estate in the Lake District has shown its commitment to the
local school by providing private use of its pool every Thursday during
term-time for swimming lessons.

Protect wildlife

Reward greener guests

Use green service suppliers

o There is a growing trend for hospitality companies to check out the ecofriendliness of their service suppliers.

Use green service suppliers

o There is a growing trend for hospitality companies to check out the ecofriendliness of their service suppliers.

Educate your staff

Plant a tree

Purpose:
Encouraging companies to be more aware of the impact of their business on the rest of
society, including their own stakeholders and the environment
CSR aims to ensure that companies conduct their business in a way that is ethical. This
means taking account of their social, economic and environmental impact, and
consideration of human rights.

Advantages:

Long term profit and value

Reputation
Customer Relations
The company can avoid unnecessary government intervention
It can help companies to overcome potential risky situations like corporate
scandals that might malign their reputation.

Attract quality employees

Disadvantages:
Cost
Short run profit decrease

General knowledge
Proponents argue that corporations increase long-term profits by operating with a CSR
perspective, while critics argue that CSR distracts from businesses' economic role. A
2000 study compared existing econometric studies of the relationship between social
and financial performance, concluding that the contradictory results of previous studies
reporting positive, negative, and neutral financial impact, were due to flawed empirical
analysis and claimed when the study is properly specified, CSR has a neutral impact on
financial outcomes.

Examples;
o B.Z.U established a water filtration plant near agriculture department
o The Langdale Estate in the Lake District has shown its commitment to the
local school by providing private use of its pool every Thursday during
term-time for swimming lessons.
o Procter & Gamble (P&G) a well known firm gave grants and gifts to
communities.
o Aramark is one of the sponsors of British Food Fortnight, one the largest
volunteer movements educating children about food.
o Pakistan campaign to teach child free of cost voluntarily.

Business Ethics
The simple step of a simple courageous man is to not take part in the lie,
not to support deceit. Let the lie come into the world, even dominate the
world, but not through me.
-- Alexander Solzhenitsyn
The term 'business ethics' came into common use in the United States in the early 1970s.
By the mid-1980s at least 500 courses in business ethics reached 40,000 students, using
some twenty textbooks and at least ten casebooks along supported by professional
societies, centers and journals of business ethics.

Definition:
MEANING of Ethics is a set of rules that define right and wrong conduct

Moral guidelines to conduct business activity by having the sense of what is

right and what is wrong.

Right or wrong in the workplace value management.

Written and unwritten codes of principles and values that govern decisions &
actions within a company.

Common Causes of Unethical Behavior

Pressure
Fear
Greed
Convenience

Common Misconduct in Organizations

Misrepresenting hours worked
Employees lying to supervisors
Management lying to employees, customers, vendors or the public
Misuse of organizational assets
Lying on reports/falsifying records
Sexual harassment
Stealing/theft
Accepting or giving bribes or kickbacks
Withholding needed information from employees, customers, vendors or public
Ethical Tips for Organizations
Develop a code of ethics.
Communicate code and bake it into culture top-down.
Treat ethics as a process.
Create open lines of communication.
Set good examples.
Educate employees frame issues through storytelling.
Value forgiveness.
IMPORTANCE OF BUSINESS ETHICS
Public expects business to exhibit high levels of ethical performance and social

responsibility.
Encouraging business firms and their employees to behave ethically is to prevent

harm to society.
Promoting ethical behavior is to protect business from abuse by unethical

employees or unethical competitors.

High ethical performance also protects the individuals who work in business.