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CULTURE

Building and maintaining strong company culture is essential for businesses of

all sizes. Companies with a positive culture are more enjoyable workplaces and,
more importantly, tend to have better retention rates.
Culture may be defined as the attitudes, behaviours and values of everyone
working in the company. It shows up interactions of the employees with each
other and with customers as well.
Francis Merill formulates the concept of culture as follows:
 is characteristically the human product of social interaction;
 provides socially acceptable patterns for meeting biological and social
needs;
 is cumulative, for it is handed down from generation to generation in a
given society;
 is meaningful to human beings because of its symbolic quality;
 is learned by each person in the course of his development in a particular
society;
 is, therefore, a basic determinant of personality; and
 depends for its existence upon the continued functioning of society but is
 independent of any individual or group.

ELEMENTS OF CULTURE

Culture, the sum total societal behaviour, includes at least three elements,
namely, knowledge and beliefs, ideals and preferences,
Knowledge and Beliefs:
Knowledge and beliefs refer to a people's prevailing notions of reality. They
include myths and metaphysical beliefs as well as scientific realities.
People in every society have basic convictions that certain modes of conduct or
goals are desirable. These are also known as values. Value system represents a
set of values with priority ordering based on their relative importance. It
prompts individuals and groups to distinguish between what is right and what is
wrong, what ought to be, what ought not to be. Values tl~us provide standards
or benchmarks by which individuals may be guided in their choices, decisions,
conduct, and behaviour.

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Ideals: Ideals refer to the societal norms which define what is expected,
customary, right or proper in a given situation. Norms are enforced by
sanctions, i.e., by rewarding the right behaviour and punishing the wrong
behaviour.
Preference: Preferences refer to society's definitions of those things in life
which are attractive or unattractive as objects of desire.

FIVE WAYS COMPANY CULTURE AFFECTS BUSINESS

PERFORMANCE

1. Better Employee Retention

High employee turnover is costly, time-consuming and a sign of poor company

culture, so remember—your company culture guides who you should hire. A
talented individual might have all the qualifications you’re looking for, but if
they’re a poor cultural fit, they can do more harm than good.
Employees who fit in well with the culture will be more engaged, have greater
job satisfaction and will perform better. Those kinds of employees don’t typically
want to leave.
Company culture is especially important during periods of uncertainty, like when
the company is experiencing significant changes or economic difficulties. A
company with a strong culture can adapt more quickly and weather these types
of problems better, giving their employees more confidence in their future.

2. Greater Innovation

A strong company culture tends to lead to more significant innovation, especially

for cultures that encourage experimentation and risk-taking. To promote this in
your employees, let them know that failure is okay, and there’s always a certain
amount of uncertainty when you’re innovating.
Companies with an innovative culture also encourage their employees to quickly
take action on their ideas. Of course, not every idea will be worth moving forward
on, but you want employees to explore their ideas, not just talk about them.

3. More Efficiency And Productivity

The data consistently shows that positive work cultures are also more productive.
Engaged employees are more efficient because they’re more invested in the job
they’re doing. Positive work cultures also tend to be less competitive, which
improves productivity.
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Businesses with competitive, cutthroat environments are typically less productive
than collaborative work environments because individuals focus on their own
performance at the expense of their team, which ends up hurting the company.

4. Creates A Better Customer Experience

Studies show that companies with engaged workforces also have higher rates of
customer satisfaction. When employees are more enthusiastic about their work,
they tend to go above and beyond what’s expected of them, which translates to
better service for your customers. Treating your employees well can also improve
your company’s image, making it a win-win for you and your employees.

5. Creates A Sense Of Community

Most employees aren’t interested in finding a job that can just pay the bills—they
have too many options to settle for that. If they become bored or disinterested in
their current job, it’s easy to move on and find something better.
When you have a strong company culture, you bring together like-minded
individuals with a shared sense of purpose and, most importantly, create a
community where they feel like they belong.
This attitude creates alignment among team members—they’re on the same page
and are willing to work together. Companies with a strong culture understand
their purpose and what they’re working toward.

ATTRIBUTES OF A STRONG WORK CULTURE

A strong work culture is an environment in which employees feel valued and

supported and can trust their colleagues and supervisors. It is based on mutual
respect and collaboration and encourages creativity and innovation. Attributes of
a strong work culture include:

1. Clear and open communication: Employees should feel comfortable

communicating their ideas and opinions without fear of judgment or
repercussions.
2. Shared goals and values: Everyone in the organization should work
towards the same overall objectives and share similar values.
3. Recognition and rewards: Employees should be recognized and rewarded
for their contributions to the company.
4. Diversity and inclusion: A diverse workforce can bring different
perspectives and ideas to the table and should be respected and valued.
5. Mutual respect: Respect should be given to all employees regardless of
their rank or title. Every employee must feel heard, with empathy and
understanding.

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6. Work-life balance: Employees should be encouraged to maintain a
healthy work-life balance. They should also be supported in their physical,
mental, and emotional well-being.
7. Flexibility: Allowing employees to have flexible hours and work from
home can increase morale and productivity.

SOCIO- CULTURAL ENVIRONMENT OF BUSINESS

The social structure and the culture of society have great influence on the
functioning of business activities. Each society has its own culture which consists
of the customs, values, attitudes, beliefs, habits, languages and other forms of
interaction between the members of the society.
Any business firm which aims at entering any market for its products and services
must develop complete understanding of social, economic and cultural
philosophies of the society.
In the era of globalisation, no business can survive and grow without social
harmony and without understanding the impact of demographic changes in the
country or in a region.
With a population of over 1.3 billion, 3.29 million square kilometres of landmass
to cover and a multitude of languages and customs, the Indian market can be a
daunting place for businessmen.
Business success can depend to a large extent on an understanding of the culture,
the people, the land and the business environment that a foreign company and
investor would be expected to operate within.

THREE ASPECTS MAY BE NOTED IN THE CURRENT SOCIO-

CULTURAL ENVIRONMENT :

1. Changes in our life-styles and social values: For instance, changing role of
women, emphasis on quality of goods instead quantity of goods, greater reliance
on government, greater preference for recreation activities.

2. Major social problems: For example, concern for pollution of environment,

demand for socially responsible marketing policies, head for safety in
occupations and products, etc.

3. Growing consumerism: It is indicating consumer dissatisfaction on a large

scale against unfair trade practices. Consumerism is becoming increasingly
important to marketing decision process. Social environment in many countries
is responsible for emphasizing social responsibility of business and customer
oriented marketing approach.

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CRITICAL ELEMENTS OF SOCIO-CULTURAL ENVIRONMENT
The critical elements of socio-cultural environment of business. may be classified
as follows:
1. Social institutions and systems
Social institutions refer to set-ups like family, school, church, state, etc, which
are essential to maintain the ordel-ly arrangement of social structure. These are
regarded as collective modes of behaviour. They prescribe a way of doing things.
They bind the members of the group together. There are five kinds of social
institutions, namely:

 family,
 economics,
 religion,
 education, and
 state.

2. Social groups
Social group is a collection of human beings. In its elementary sense, a group "is
a number of units of anything in close proximity to one another".
From the definitions of a social group as given above, it can be inferred that a
social group has the following characteristics:
 Reciprocal Relations: The members of a group are inter-related to
each other. A gathering of persons forms a social group only when
they are interrelated. Reciprocal relations form an essential feature
of a group.
 Sense of Unity: The members of a group are united by a sense of
unity and a feeling of sympathy.
 We-feeling: The members of a group help each other and defend
their interests collectively.
 Common Interests: The interests and ideals of a group are common.
It is for the realization of common interests that they meet together.
 Similar. Behaviour: The members of a group behave in a similar way
for the pursuit of common interests.

3. Social values and attitudes:

These are assumptions of what is right and important for society.
They provide the ultimate meaning and legitimacy for social arrangements and
social behaviour. They are the abstract sentiments or ideals.
An example of an important social value is ''equality of opportunity".

4. Social responsibilities of Business:

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 Social responsibility means that besides maximizing shareholder value,
businesses should operate in a way that benefits society.
 Socially responsible companies should adopt policies that promote the
well-being of society and the environment while lessening negative
impacts on them.
 Companies can act responsibly in many ways, such as by promoting
volunteering, making changes that benefit the environment, engaging
in ethical labor practices, and engaging in charitable giving.
 Consumers are more actively looking to buy goods and services from
socially responsible companies, hence impacting their profitability.
 Critics assert that practicing social responsibility is the opposite of why
businesses exist.

5. Role and Responsibility of government

 Policy Development and Implementation:
Governments formulate and implement policies that address social and
cultural issues. These policies can cover a wide range of areas,
including education, healthcare, arts and culture, minority rights, and
social welfare.
 Social Justice and Equality:
Governments work to ensure social justice and equality by
implementing laws and policies that protect the rights of all citizens,
regardless of their social or cultural background. This includes efforts
to eliminate discrimination, promote inclusivity, and address disparities
in various sectors.
 Cultural Preservation and Promotion:
Governments often have a responsibility to preserve and promote the
cultural heritage of their nation. This may involve supporting cultural
institutions, museums, and historical sites, as well as implementing
policies to protect indigenous cultures and languages.
 Education and Awareness:
Governments play a role in shaping educational curricula that reflect
societal values and cultural diversity. They also promote awareness and
understanding of different cultures, fostering tolerance and appreciation
for diversity among citizens.

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FEATURES OF INDIA’S CURRENT SOCIOCULTURAL
ENVIRONMENT ARE AS FOLLOWS:

1. Important role of the society:

Social environment comprises of the society, which ultimately comprises of
consumers, investors, employees and local community. They bear larger impact
on the success and failure of the business. A businessman must not take the social
environment for granted.

2. Indian businessman gave least priority to social environment:

In India, social environment was the least considered environment. There were
too much of monopoly power in the handful of businessmen and they always gave
priority to the profit maximization. The position changed considerably in the late
1985 due to consumerism, increase in market competition, etc. Economic reforms
and globalization were two major factors, which contributed to the importance
and growth of social environment.

3. Alertness in consumers:
With improvement in literacy ratio, education level and development of media
industry, the consumers started being alert about what is sold to him. Consumers
are now in a mood to fight as and when they are exploited as regards to price,
quality, etc. Consumer Protection Act has made consumers alert and strong.
4. Employees/ Workers Awareness:
The employees as well as workers in India are now becoming alert and aware
about their rights and welfare. Trade unions demand attractive wages, monetary
incentives and welfare facilities. Employees also get attractive salary, perks,
bonus and other facilities. Thus, growing awareness in employees and worker
class has contributed to a change in social environment in India.

5. Importance to the society:

In the society people have overall become alert. The organizations also take care
of the environment related policy, make sure that the surrounding does not get
disturbed, they prefer to recruit the local people in case with MNCs. The
community has become very sensitive related to the environment, pollution etc.

6. Changed Indian business community:

Indian businessman has started giving preference to the Indian society. Many
business houses have developed their research centers; they conduct regular R &
D, give importance to consumer’s expectations, started consumer’s cell. In short,
they have started treating consumers as kings for their market. Thus, the business
community has started becoming conscious of new trends in the social
environment.

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7. Social impact of globalization:
Globalization and its impact on Indian market. India has emerged as a potential
and a diversified market for the Western firms and other foreign investors. Earlier
establishing a business in India was a challenging assignment, but economic
reforms, brought in by different Indian governments over a period of time, have
smoothen the course of entry for Western multinationals and other business
magnets.

SOCIAL RESPONSIBILTY
Social responsibility in business is a concept that describes a company's
commitment to operating in an economically, socially, and environmentally
sustainable manner.
It goes beyond the traditional focus on profit maximization and includes
considerations for the impact of business activities on various stakeholders,
including employees, customers, communities, and the environment. Here are
key aspects of social responsibility in business:
1. Ethical Business Practices:
Companies should conduct their business with integrity and adhere to high
ethical standards. This involves avoiding unethical practices such as bribery,
corruption, and fraud.
2. Environmental Sustainability:
Businesses are increasingly expected to minimize their environmental impact.
This includes adopting eco-friendly practices, reducing carbon emissions, and
implementing sustainable supply chain management.
3. Community Engagement:
Socially responsible businesses actively engage with the communities in which
they operate. This can involve supporting local charities, participating in
community development projects, and contributing to social welfare.
4. Fair Labour Practices:
Companies should ensure fair treatment of their employees, providing safe
working conditions, fair wages, and opportunities for professional development.
Avoiding child labour and discrimination is also crucial.
5. Consumer Protection:

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Socially responsible businesses prioritize consumer rights and safety. They
provide accurate information about their products or services, avoid deceptive
advertising, and ensure product safety.
6. Diversity and Inclusion:
Embracing diversity and fostering an inclusive workplace is an important aspect
of social responsibility. Companies are encouraged to promote equal
opportunities, eliminate discrimination, and create an environment that values
diversity.
7. Philanthropy and Corporate Giving:
Many socially responsible businesses engage in philanthropic activities and
corporate giving. This can involve donating to charitable causes, supporting
educational initiatives, and contributing to community development.
8. Transparency and Accountability:
Socially responsible companies are transparent about their business practices,
financial performance, and social and environmental impact. They also hold
themselves accountable for their actions and are open to scrutiny.
9. Stakeholder Engagement:
Businesses should consider the interests of all stakeholders, including
shareholders, employees, customers, suppliers, and the wider community.
Engaging with stakeholders helps companies understand and address their
concerns.
TYPES OF SOCIAL RESPONSIBILITIES
Following Are the Different Types of Social Responsibilities:
(1) Economic Responsibility
 Every business is engaged in economic activities.
 So, the prime social responsibility of every business should be economic
responsibility.
 Hence they should sell products and service which can satisfy the need of
the society.
(2) Legal Responsibility
 The company should comply with the political and legal environment of
the country.
 The company should consider protecting the environment.

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(3) Ethical Responsibility
 This type of responsibility expects a certain type of behaviour or conduct
from the company.
 This behaviour may not be documented by law.
(4) Discretionary Responsibility
 These are voluntary actions taken by the entities in case of natural
calamities, helping poor people etc.
 They help them by providing a charitable contribution, education activities
etc.
 It prevents investments of charitable funds into speculative activities.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The 1950s saw the start of the modern era of CSR when it was more commonly
known as Social Responsibility. In 1953, Howard Bowen published his book,
“Social Responsibilities of the Businessman”, and is largely credited with coining
the phrase ‘corporate social responsibility’ and is perhaps the Father of modern
CSR. Bowen asked: “what responsibilities to society can business people be
reasonably expected to assume?” Bowen also provided a preliminary definition
of CSR: “it 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”.
CSR APPLICABILITY IN INDIA
The provisions of CSR applies to every company fulfiing any of the following
conditions in the preceding financial year:
 Net worth of more than Rs.500 crore
 Turnover of more than Rs.1000 crore
 Net profit of more than Rs.5 crore
The Board of Directors of every company for which the CSR provisions apply
must ensure that the company spends in every financial year at least 2% of its
average net profits made during the immediately preceding three financial years
as per its CSR policy. If the company has not completed three financial years
since its incorporation, it must spend 2% of its average net profits made during
the immediately preceding financial years as per its CSR policy.

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WHY CSR AT ALL?
Here are some more beneficial factors that speak volumes about the
importance of Corporate Social Responsibility for every ORGANISATION:

1) Positive brand image

Being seen as a positive brand will help you widen your consumer base
and attract new customers. When potential customers see your staff giving
back to the community, they realize you’re a brand committed to helping
others for the social good. This makes you a favourable brand and more
customers are likely to associate with you.

2) Cost efficiency
Cost saving and sustainability? Not a bad combo, is it? Many simple
changes result in significant financial savings for your business, such as
using less packaging, purchasing locally, and increasing efficiency through
better processes. Through CSR activities you can educate your workforce
about the importance of reusing and recycling, thus saving money for your
business.

3) Brand awareness & recognition

CSR is a great way to boost your company's reputation and improve your
chances of attracting the right customers. More people will hear about your
business if you're committed to ethical practices. This leads to good word
of mouth among the community and improves your brand awareness,
which eventually translates into more sales.

4) Employee retention & engagement

Employees look for a higher purpose other than their monthly salary.
Employees enjoy working for companies that have a positive public image.
CSR initiatives incorporate volunteering programs that foster values such
as empathy and loyalty leading to better teamwork and camaraderie among
employees. Employees at CSR-oriented companies are happier, less
stressed, and have better relationships with their colleagues. This results
from the fact that they get to create a difference in society. CSR can prove
to be a great aid in increasing employee engagement and retention rates.

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Here are some more beneficial factors that speak volumes about the
importance of Corporate Social Responsibility for every EMPLOYEE:
1. Increased Co-operation and Improved Employee Relationships:
If employees think their employer is “doing the right thing,” it seems they
are more likely to “do the right thing” themselves. When organizations
implement best practices in CSR, employees are more likely to engage in
cooperative behaviors toward their coworkers and the organization, like
going out of their way to help their teammate. Similarly, CSR promotes
higher-quality and closer relationships between employees.

2. Enhanced Job Satisfaction:

When employees feel that their organization is socially responsible, they
experience a greater sense of identity with the business they work for. In
fact, social responsibility can be more important than financial success in
determining how much employees identify with their workplace.
This increased identification will mean employees are happier to be on the
job and will feel a deeper connection to the work they’re doing.

3. Improved Retention and Organizational Commitment:

Feeling positively about their organization’s CSR initiative has been
shown to increase employee’s intentions to stay with their current
employer and their overall commitment to the organization. Commitment
includes a huge range of positive attitudes, including how much employees
like their organization, make personal sacrifices for the organization, and
see their own future and success tied to the organization’s success.

Here are some more beneficial factors that speak volumes about the
importance of Corporate Social Responsibility for SHAREHOLDERS:
1) Earnings Multiple: First, although socially responsible actions may reduce
a company’s profitability, they can simultaneously cause an increase in the
multiple by which the earnings are valued. In particular, they can enhance
a company’s reputation, reduce its perceived risk and broaden the
marketability of its stock to potential investors, who increasingly are
viewing social responsibility as an investment prerequisite or as a separate
asset class.

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2) Time Horizon: Second, in maximizing shareholder value, companies
typically assume a long-term horizon—say, five to 10 years—which may
differ from a shorter horizon favored by many investors. While social
responsibility may reduce the stock price over the short term, the price
eventually may be higher due to the expected rewards in the future or the
avoidance of risks that may threaten a company’s long-term value or even
its viability.
Here are some more beneficial factors that speak volumes about the
importance of Corporate Social Responsibility for every CONSUMERS:
1) Helps Customers Feel Like They Played Their Part
Consumers are more informed in today's digitized environment. They
understand that they have a role to play in improving this world, and as a
result, partnering with socially responsible businesses gives them a sense of
belonging. The more businesses are socially responsible, the more supportive
consumers get.
Participating in or hosting community events and other activities that benefit
society allows businesses to connect with customers and earn their trust. In
turn, customers can feel proud of the impactful changes that are happening
around them. While they might not always participate directly in providing
charity donations, they will feel proud for supporting socially responsible
businesses.

2) Enhances Customer Loyalty

When a socially responsible company aligns its values with its customers'
values, it opens doors for customer loyalty and retention. Consumers are more
likely to support a business that strives to alleviate an issue that concerns them.
In turn, businesses gain a competitive edge in the industry. Their superior
brand imaging helps them gain consumer trust.

Socially responsible businesses attract customers and have greater engagement

opportunities. Moreover, customers feel confident about making a positive
impact on the planet by supporting these businesses. With all these perks,
companies must leverage this chance to achieve long-term financial success—
and change the world for the better.

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5 DISADVANTAGES OF CORPORATE SOCIAL RESPONSIBILITY

1. CORPORATE SOCIAL RESPONSIBILITY CAN BE A BURDEN ON

BUSINESSES.
CSR can be costly for businesses, as they may not always be able to recoup their
investment. This is because CSR can involve additional expenses such as
marketing and advertising to promote the company’s social responsibility
initiatives. Additionally, some consumers may be unwilling to purchase products
from companies that they perceive as being unethical or uninvolved in their local
community. As a result, businesses may not see a return on their CSR investment,
which can lead to decreased profits.
CSR can take away from a company’s core business activities by diverting
resources away from the company’s primary mission and goals. CSR can also
create confusion about a company’s priorities and objectives, which can lead to a
decline in productivity and effectiveness. Additionally, CSR can cause ethical
conflicts for employees who may feel that they need to choose between their
personal values and those of their employer.
CSR can be time-consuming and distracting for employees because it takes away
from their work responsibilities. Employees may need to spend time researching
and writing reports, attending meetings, and travelling to other locations.
Additionally, they may need to take phone calls or respond to emails related to
CSR initiatives outside of regular work hours. This can interfere with their
productivity and disrupt their work schedule.
2. IT CAN LEAD TO GREENWASHING.
CSR can lead to greenwashing when companies do not engage in genuine,
authentic social or environmental initiatives, but instead, use CSR as a marketing
tool to improve their image. This can be done by making false or misleading
claims about their CSR programs, or by exaggerating the positive effects of their
CSR initiatives. When companies engage in such practices, they are essentially
“greenwashing” their image, which can mislead consumers and investors about
the true environmental and social performance of the company.
Some companies make false or misleading claims about their social and
environmental practices. Or hide or downplay their negative environmental or
social impacts. For example, a company might claim to be “carbon neutral” when
it actually offsets only a small percentage of its emissions. Or a company might

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tout its environmentally friendly packaging while failing to mention the toxic
chemicals used in its products.
Engaging in greenwashing can backfire on companies, as consumers and
investors are becoming increasingly aware of such practices. When companies
are caught greenwashing, they can suffer from damaged reputations, lost sales,
and decreased profits.

3. SOME FIRMS MAY NOT BE GENUINE IN THEIR EFFORTS.

As mentioned above, some businesses may undertake CSR activities purely for
the sake of improving their image. This can result in a lack of sincerity and
authenticity in a company’s CSR efforts, which can ultimately damage its
reputation.
CSR activities that are not genuine can come across as insincere and
manipulative. This can cause customers and other stakeholders to lose trust in the
company, which can be damaging to its reputation.
When a company does not have a sincere commitment to CSR, its activities may
not be well executed, or they may be done half-heartedly. This can lead to
negative perceptions of the company as a whole. The company may also be
accused of using CSR activities as a PR stunt to distract from negative news or
scandals. This kind of publicity can be very harmful to a company’s reputation.
Companies that do CSR activities just to fake a good public image often come
across as being self-serving and only interested in making money. This will likely
alienate customers and other stakeholders. It may come across as hypocritical and
inconsistent in its values. This can make the company seem untrustworthy and
unprofessional, which is bad for its reputation.

4. THERE CAN BE CONFLICTS BETWEEN BUSINESS INTERESTS

AND SOCIAL RESPONSIBILITY.
Sometimes, a company’s business interests may conflict with its social
responsibility objectives. For example, a company may be trying to reduce its
carbon footprint but at the same time be selling products that have a large carbon
footprint. This can create confusion and mistrust among stakeholders.

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Similarly, a company trying to cut costs to increase its profits may be exploiting
its workers or damaging the environment. This can create tension between the
company and its stakeholders who are concerned about social justice and
environmental protection.
The tensions also crop up when a company is trying to avoid legal and financial
penalties by whitewashing its environmental or social record, and its stakeholders
want it to be honest and transparent about its practices.
When a company does not support a social or environmental cause genuinely or
tries to silence its critics, it creates a series of weak links in the public’s trust. This
can lead to a loss in customer confidence and brand value.

5. SOCIAL RESPONSIBILITY CAN BE USED TO MANIPULATE

PUBLIC OPINION.
Some companies use their social responsibility programs to deliberately
manipulate public opinion. This can be done by funding biased research, using
deceptive marketing practices, or engaging in astroturfing (creating fake grass-
roots support).
Such activities can create a false impression of widespread support for the
company or its products. They can also make it seem like the company is more
altruistic and environmentally friendly than it actually is. This can be very
damaging to the company’s reputation if it is eventually exposed.
Some critics argue that by engaging in CSR activities, businesses are able to
absolve themselves of responsibility for any negative social or environmental
impacts of their operations. This argument suggests that businesses use CSR as a
way to deflect criticism and avoid having to make real changes to their practices.
One way to combat this criticism is for businesses to be transparent about their
CSR activities and report on their progress honestly.
While Corporate Social Responsibility can have many benefits, there are also
some potential drawbacks that companies should be aware of. These include the
risk of appearing insincere, the possibility of conflicts with business interests, the
potential for CSR to be used to manipulate public opinion, and the criticism that
businesses use CSR to absolve themselves of responsibility. By being aware of
these risks and taking steps to avoid them, companies can make the most of their
CSR efforts while minimizing any negative impact.

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FACTORS INFLUENCING CSR

Many factors and influences, including the following, have led to increasing
attention being devoted to CSR:
 Globalization – coupled with focus on cross-border trade, multinational
enterprises and global supply chains– is increasingly raising CSR concerns
related to human resource management practices, environmental
protection, and health and safety, among other things.
 Governments and intergovernmental bodies, such as the United Nations,
the Organisation for Economic Cooperation and Development and the
International Labour Organization have developed compacts, declarations,
guidelines, principles and other instruments that outline social norms for
acceptable conduct.
 Advances in communications technology, such as the Internet, cellular
phones and personal digital assistants, are making it easier to track
corporate activities and disseminate information about them. Non-
governmental organizations now regularly draw attention through their
websites to business practices they view as problematic.
 Consumers and investors are showing increasing interest in supporting
responsible business practices and environmental issues.
 Numerous serious and high-profile breaches of corporate ethics have
contributed to elevated public mistrust of corporations and highlighted the
need for improved corporate governance, transparency, accountability and
ethical standards. However, being ethical and being socially responsible in
making positive measurable contribution to society may not be same.
 Citizens in many countries are making it clear that corporations should
meet standards of social and environmental care, no matter where they
operate.
 There is increasing awareness of the limits of government legislative and
regulatory initiatives to effectively capture all the issues that corporate
social responsibility addresses.
 Businesses are recognizing that adopting an effective approach to CSR can
reduce risk of business disruptions, open up new opportunities, and
enhance brand and company reputation.
 Ethical persons shall be attracted to join the company.
 Effective CSR will depend on the mindset of executives of the corporate
who are taking up CSR initiatives.

CS GOVIND DEWAN EIILM

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BUSINESS ENVIRONMENT MBA:108
UNIT: II
 CSR also depends on the implementing agencies with regard to their
seriousness, integrity, honesty and attitude.

CS GOVIND DEWAN EIILM