Businessmay be defined as the collection of private, commercially oriented

(profit-oriented) organizations, ranging in size from one-person proprietorships

(such as Sons of Italy Pizzeria, Gibson’s Men’s Wear, and Zim’s Bagels) to
corporate giants (such as Johnson & Johnson, GE, Coca-Cola, Dell Inc., and UPS).
Between these extremes, of course, are many medium-sized proprietorships,
partnerships, and corporations.
When we discuss business in this collective sense, we include businesses of all
sizes and in all types of industries. But as we embark on our discussion of business
and society, we will doubtless find ourselves speaking more of big business in
selected industries. Big business is highly visible. Its products and advertising are
more widely known. Consequently, big business is more frequently in the critical
public eye. In addition, people in our society often associate size with power, and
the powerful are given closer scrutiny.

When we refer to business in its relationship with society, therefore, we focus

our attention on large businesses in particular industries. But we should not lose
sight of the fact that small- and medium-sized companies also are important. In
fact, over the past decade, problems have arisen for small businesses because they
have been subjected to many of the same regulations and demands as those
imposed by government on large organizations.

SOCIETY: DEFINED
Societymay be defined as a community, a nation, or a broad grouping of people
having common traditions, values, institutions, and collective activities and interests. As such, when we
speak of business and society relationships, we may in
fact be referring to business and the local community (business and Atlanta),
business and the country as a whole, business and the global community, or
business and a specific group of people (consumers, investors, minorities).
When we discuss business and the entire society, we think of society as being
composed of numerous interest groups, more or less formalized organizations,
and a variety of institutions. Each of these groups, organizations, and institutions
is a purposeful aggregation of people who have united because they represent
a common cause or share a set of common beliefs about a particular issue.
Examples of interest groups or purposeful organizations are numerous: Friends
of the Earth, Common Cause, chambers of commerce, National Association
of Manufacturers, People for the Ethical Treatment of Animals (PETA), and
Rainforest Action Network.

1. Many other names are used to refer to CSR such as sociallyresponsible business,
responsible business conduct, responsibleentrepreneurship, corporate citizenship, corporate
accountability orcorporate sustainability.CSR is the continuing commitment by businesses to
 behaveethically & contribute to economic development while improving thequality of life of
the workforce & their families ,local communitiesand the society at large. (World Business
Council) 14 August 2012 3
2. 4.  CSR is the commitment of businesses to contribute to sustainable economic development
working with employees, their families, the local community and society at large to improve
their quality of life in ways that are both for business and good for international development.
World Bank,24 March 2004). 14 August 2012 4 CSR encompasses the extent to which
companies should promote human rights,democracy,community improvement and
sustainable development objectives throughout the world. (Confederation of British
Industry,2001). CSR requires companies to acknowledge that they should be publicly
accountable not only for their financial performance but also for their social and
environmental record.
3. 5. CSR is an extended model of corporate governancebased on the fiduciary duties owed to
all the firm’sshareholders.CSR is about how companies manage the businessprocesses to
produce an overall positive impact on thesociety.CSR is the responsibility of corporations to
go above andbeyond what the law requires them to do.CSR is the responsibility of
corporations to contribute toa better society and cleaner environment. 14 August 2012 5
4. 6. Eradicate extreme poverty and hunger. Achieve universal Primary education. Promote
gender equality and empower women. Reduce child mortality. Improve maternal health.
Combat HIV/ AIDS, Malaria & other fatal diseases. Ensure environmental sustainability.
Develop a global partnership.Source:( United Nations Millennium Project). 14 August 2012 6
5. 7. DISCRETIONARY philanthropy RESPONSIBILITY ETHICAL License to operate
RESPONSIBILITIESAttain profits withinthe confines of the LEGAL RESPONSIBILITIES law.
Produce goods and ECONOMIC RESPONSIBILITIES services to earn profit. 14 August
2012 7
6. 8. Business Ethics, values and principles.Accountability and
transparency(Legalcompliance).Commitments to socio-economic
developments.Environmental concerns.Human rights.Workers rights and welfare.Market
relations.Sustainability.Corporate governance. 14 August 2012 8
7. 9.  The Marxist model under which investment and enterprise is controlled by the state(e.g.
China and Cuba). Religion does influence the economic behavior. For believers the “morally
right "thing to do is generally consistent with the notion of what God might have commanded
and conversely the “morally wrong” choice is what God might have forbidden. 14 August
2012 9 The nationalist model within which the economic activities are subordinated to the
goals of the state(e.g. Imperial Japan). The liberal model of US and the european union
which based on individual equality and liberty.Influence of political systems on CSR.
8. 10. Increased employee loyalty and retention.Increased quality of products and
services .Increased customer loyalty.Increased reputation and brand image.Greater
productivity and quality.Reduced regulatory oversight .Access to capital and market.Product
safety and decreased liability.Less volatile stock value.