CORPORATE SOCIAL RESPONSIBILITY

Social responsibility refers to the ‘obligations (of businessmen) to pursue those policies,
to make those decisions or to follow those lines of action which are desirable in terms of
the objectives and values of our society’
- Howard R Bowen
In the words of Kenneth R. Andrews, ‘ by social responsibility we mean the intelligent
and objective concern for the welfare of society that restrains individual and corporate
behaviour from ultimately destructive activities, no matter how immediately profitable,
and leads in the direction of positive contributions to human betterment, variously as the
latter may defined’.

‘Social responsibility of business implies that businessman’s decisions and actions are
taken for reasons at least partially beyond the firm’s direct economic or technical
interests,.
- Keith Davis

CORPORATE SOCIAL RESPONSIBILITYGROWING CONCERN FOR CSR:

No business can thrive only on profit motive. Business must be conscious and alive to its
social responsibility as well.

• •GROWING AWARENESS.
• •NEWSPAPERS AND CONSUMER ORGANISATIONS.
• •FEAR OF GOVERNEMENT’S INTERFERENCE.
• •TRADE UNION MOVEMENT.
• •PUBLIC IMAGE.
• •COMPETITIVE MARKET FORCES.
• •PUBLIC RELATIONS.
• •MANAGERIAL SKILLS.

CORPORATE SOCIAL RESPONSIBILITYWHY CSR: firms like to sustain business and grow

• LONG TERM BUSINESS INTEREST

• INTER-DEPENDENCE
• MORAL JUSTIFICATION.
• PUBLIC IMAGENEED
• TO AVOID GOVERNMENT REGULATIONS.
• CREATING PROPER ENVIRONMENT

.CORPORATE SOCIAL RESPONSIBILITYWHY AT ALL CSR: The CSR is time and

money consuming and does not add to corporate profit.
Violation of rule of profit maximization

• . Economically irrational. •
• Business lacks social skills.
• It is Govt. Role
 • Indifference by Society
• Lack of criteria or yardstick

MILTON FRIEDMAN
Prof. KEITH DAVIS

CORPORATE SOCIAL RESPONSIBILITY

AREAS OF CSR:

• POLLUTION CONTROL
• .
• HEALTH & HYGIENE.
• TRAINING AND SELF HELP
• PHILANTHROPIC ACTIVITIES.

CORPORATE SOCIAL RESPONSIBILITY Different Interest Groups:

• •OWNERS AND SHARE HOLDERS.
• •
• EMPLOYEES.
• •CONSUMERS.
• •CREDITORS AND SUPPLIERS.
• •GENERAL PUBLIC.
• •GOVERNMENT.

CORPORATE SOCIAL RESPONSIBILITY

Q1. ‘EARNING OF PROFITS CANNOT BE THE OBJECTIVE OF A BUSINESS ANY

MORE THAN EATING IS THE OBJECTIVE OF LIVING’. DO YOU AGREE? Give
reasons

Q2. Describe the term Social Responsibility. Find a recent example of a company that
was legal but not a socially responsible.