Topic: Corporate Social Responsibility

AHMAD HAMID Roll No : 260

Corporate Social Responsibility

CRS is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Corporate Social Responsibility

Different organisations have framed different definitions - although there is considerable common ground between them. CSR is about how companies manage the business processes to produce an overall positive impact on society.

Companies need to answer to two aspects of their operations.

1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature of, and quantity of their impact on society in the various areas.

 Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce.

 Companies with high CSR standards are able to clearly demonstrate responsibility to investors, legislators, shareholders, employees, customers and the general public, and therefore manage risk and enhance their corporate reputation. Companies with rigorous corporate responsibility standards are also best positioned to attract and retain high quality staff, thereby reducing employee turnover rates and recruitment costs.

Arguments against Corporate Social Responsibility

Restrict the free market goal of profit maximization Business is not equipped to handle social activities

Dilutes the primary aim of business Limits the ability to compete in global market
Creates excessive cost for business

Arguments for Corporate Social Responsibility

Protects business selfinterest

Addresses issues by using business resources and expertise

Addresses issues by being proactive Reputation enhancement

Limits future government interventation

Access to new markets

Business responsibilities in 21st century

Demonstrate a commitment to societies values and contribute to societies social, environmental and economic goals through action. Insulate society from negative impacts of company operations, product and services. Demonstrate that company can make more money by doing the right thing.