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   There is no single definition of social responsibility but it can be said as: 3 Jcting with concern and sensitivity. aware of the impact or the disadvantages of the action to the others. .

Customers Employees Suppliers General public .Ôt is generally to be understood to include: 3 The obligations of a business to protect the interests of.

3 Social responsibility goes beyond the firm¶s relationships with their: Customers Environmental protection Consumerism Support for education Compliance with governmental regulations Response to community needs Firm¶s contributions to the community organizations. .

3 J state has to ensure the citizens civil right. For example.Œ £ifferent entities have different responsibility. 3 The business organizations should concern with human rights of their employees. .

Ñeyond social responsibility Social responsibility can be divided into two main parts: The responsibility to human The responsibility to the environment. .

Œ This is concern with the way of the organization in treating their customers with respect and attention. which is not for profit but taking care of the customer¶s wants and needs. Responsibility to Human Œ Responsibility to human means: 3being responsible to people 3for the action of people 3the affect of any action to the people. .

3 Ôt often try to keep away themselves as much as possible from any problem they faced.Œ Ôn order to carry out the social responsibility: 3 Jn organization tries to perform as best as they can. .

Organization has the moral responsibility that empowered them to help people and not to harm them. 3 When the customer feel that the organization have done something wrong. . the company will take the blame and do some steps needed to fix the problem.For example.

each have the responsibility to the society as a whole. corporation. organization. town.3 Social responsibility is a doctrine that state: Whether it is a village. state. government or individual. .

a   . Responsibility to environment Ôt means that: the organization is responsible to the environment and the world than to individual. because: the impact on the environment is larger and broad than the impact to consumer.

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will take every consideration into account when making their decision. many companies are more concern in fulfilling their social responsibility and every choice they made affect the consumers environmental. Nowadays. . This has been proved to become one of the reasons of the company to be profitable in the long run.Jn organization which concern with its social responsibility.

Some companies produce products that are packed in more than required packaging thus all the cost and impact was passing directly to the consumer. Some become more socially responsible mhey design their packaging to be more environmental friendly such as using items that can be recycle rather than using and wasting more resources that can be used for another important task. .

The environment is of two types ± Œ Ônternal environment Œ External environment Where as external environment is very wide and consists of micro level and macro level.Ñusiness and its Environment Modern business get affected by environment in which it exists. .

. Suppliers The major force in the micro environment of a company is the suppliers. those who supply the inputs like raw materials and components to the company.e. i. The smooth flow of supply of sources to the company is very important in order to have a control on inventory and availability of products just in time. ·       å.

. J company may be targeting towards different segmentation of consumers like: Ôndividuals Households Ôndustries Government and other institutions.]. Customers J business survives only because of its customers.

Jlmost in all kinds of product there is competitions for e.g. products like FMCGs to consumer durables. Even the maximum competitions is in service industries.. there is a big competition. Competitors This is very rare these days where the monopoly is existing. .

Ôf these marketing intermediaries do not supply the products in time. the customers will switch over to other brands. Marketing intermediaries are vital links between the company and final customers. .6. Marketing Ôntermediaries The marketing intermediaries include middleman such as: 3 Jgents and merchants who act as a link between the manufacturers and customers.

.M. Publics 3 The public acts as an opportunity for the business companies and get seriously affected. 3 Jnything by word of mouth by public has a greater influence than other medias. 3 Such campaigns or exposures by the media might even influence the government decisions which affect the company.

export-import policy. fiscal policy. . 3 Ôf economic policies are good. customers will spend more and responsibility of business towards different economic factors is different. 3 Economic environment includes ± industries policy. Economic Environment: 3 The economic policies are through political decision. ·      å.

. so keeping in mind about latest political factors and Government factor. Political and Regulatory Environment: The following have impact on business: 3 The policies of the political parties 3 The nature of the constitution 3 Government system Ôf there is stable government shareholder will invest more.].

feels and views oneself and others. knowledge. laws and behaviors shared by individuals and societies that determine how an individual acts.. What is liked by people of one culture may not be liked by those of other culture. morals. standards. Social / Cultural Environment: Culture is defined as: 3 J set of learned core values. . The culture is passed from generation to generation in a society. beliefs.

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3 Maximum disclosure about the progress and achievements of the company is very satisfying to the shareholders. and up-to-date information about the working of the company. adequate and stable long-run rate of return and steady capital appreciation to the shareholders for their investments. . 3 Ôt must also provide to them regular. accurate. Owners of Ñusiness: 3 Management must provide fair.     å.

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ΠManagement as a part of its social responsibilities. full employment. machinery and sharing of excess profits. opportunities for self-development and promotion. is expected to provide for their social security. higher wages. grievances settlement. . ΠEmployees may be allowed to participate in the decision-making process at all levels of management. welfare. ΠJ feeling of fellowship and a sense of belonging to the company as a whole should be allowed to grow. better conditions of work.   ΠEmployees need security of job.

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Œ Ôt should develop a liberal and fair attitude towards the consumers.      Œ Management should provide those goods and services that the society needs at a price that the society can afford to pay. . Œ Management is supposed to provide good quality products to the consumers at reasonable prices.

Œ Consumer must guard against: Jdulteration Poor quality lack of service to the consumer Misleading and dishonest advertisement under-weighing. .Œ Ôt is the duty of the management to protect consumers interest at any cost.

ΠTo provide prompt. . courteous and friendly service to customers. ΠTo improve their standard of living in society by producing goods and services which they need.

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ΠTo ensure safety of investments over a period of time.
ΠTo provide the highest long-term rate of return on
investment.
ΠTo provide steady capital appreciation on investment.



    
   

ΠHe will be law-abiding citizen
ΠHe will pay his dues and taxes to the government
honestly.
ΠHe will not corrupt public servants.
ΠHe will not purchase political support by unfair
means.
ΠHe will sell his commodities and services without
adulteration.

Œ Ôt is also defined as ³J commitment to systematic assessment of and reporting of some meaningful definable domain of a company¶s activities that have social impact´. .      Œ The measurement. evaluation and reporting of performance of an organization in the area of social responsibility is called social audit.

ΠThe true picture of corporate accountability can be given to the society. ΠSocial audit may be measured in the areas of: Employment production Consumer effort Consumer funds absorbed Payrolls .ΠOrganizations can inform the public regarding their activities for society.

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Ôts been a business¶s most basic social responsibility. firms are required to maximize their shareholders' earnings. Œ Economically. . Œ This is done by producing goods and services that are in demand in the market. a aaa Œ Economic Responsibility is: making a profit by producing a product or service valued by society.

  aaa Œ Degal Responsibility is the expectation that companies will obey a society¶s laws and regulations as they try to meet their economic responsibilities. .

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a aaa Œ Ethical Responsibility is society¶s expectation that: Organizations will not violate accepted principles of right and wrong when conducting their business. .

legal and ethical responsibilities.£a a  aaa Œ £iscretionary Responsibility relates to the: Social roles that businesses play in society beyond their economic. Œ They may include charity runs or setting up "day- care" centres within the office. .

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ΠSocial responsibility is: Jn ethical or ideological theory that an entity whether it is a government. . organization or individual has a responsibility to society. corporation.

also called corporate responsibility. and responsible business) is a concept whereby: 3 Organizations consider the interests of society by taking responsibility for the impact of their activities on: Y Customers Y Suppliers Y Employees Y Shareholders Y Communities and other stakeholders .ΠCorporate Social Responsibility (CSR. corporate citizenship.

.Social responsibility means: Eliminating corrupt Ôrresponsible or unethical behavior that might bring harm to the community. or the environment before the behavior happens. its people.

. suppliers of resources. ΠThus a business enterprise should be able to strike a balance between these divergent groups. the consumers. the local community and society at large are affected by the way an enterprise functions.ΠThe shareholders.

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This can be done through programs that employees feel directly enhance their benefits given by the corporation. like: better health care better pension program. ΠTo use their ethical decision making to increase productivity. .

They have a vested interest in what the company does and how it is run. The productivity increases: When the company is perceived to feel that their employees are a valuable asset The employees feel they are being treated .Companies must keep in mind that: Employees are stakeholders in the business.

stocks dropped and Johnson & Johnson lost a lot of money. When people realized that some bottles of Tylenol contained cyanide they quit buying Tylenol.Œ Ñy making decisions that affect its health as seen to those stakeholders that are outside of the business environment. Ôn the long run they gained the trust of their customers. Customers and Suppliers are two examples of such stakeholders. Example: Johnson & Johnson and the Tylenol scare of å ]. Ñut they chose to lose even more money and invest in new tamper resistant seals and announce a major recall of their product. .

a  a a  Ôf it can be then what criteria does it need to ensure? The measurements are: Œ Economic function Œ Quality of life Œ Social investment Œ Problem solving .

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For instance. how would it go about doing this? . Ôf the business were to try to better the plant by reducing its carbon footprint. 3 The goal that is trying to be achieved should be measured to see: Ôf it meets with the cost guidelines that the business is willing to contribute. aa Ôn economic function.

.aa Quality of life measures: Whether the organization is improving or degrading the general quality of life in society.

a   Social investment looks at what the business is doing for the community: £oes the business work with the community to fix outstanding issues and social problems? How much of an investment does it make? What issues are they addressing? .

3 Will the business simply contribute money to an organization working on the issue? 3 Will they allow company employees to volunteer on company time to fix the problem? .ë   a Problem solving looks at: 3 To what extent the business will work to fix the problem.

* Kant's categorical imperative: Jct in such a way that the action taken under the circumstances could be a universal law. or rule. * The utilitarian principle: Jct in a way that results in the greatest good for the greatest number. of behavior. .a   a  * "The Golden Rule: Jct in a way you would want others to act toward you.

.* The professional ethic: Take actions that would be viewed as proper by a disinterested panel of professional peers. "Would Ô feel comfortable explaining to a national TV audience why Ô took this action?³ * The legal test: Jsk whether the proposed action or decision is legal. * The TV test: Jlways ask. Established laws are generally considered minimum standards for ethics.

* Dack of social skills: 3 Ñusiness managers are goods at solving matters relating to business 3 They not very effective at solving social problems.J   aa aaa * Society has to pay the Cost: 3 Costs of social responsibility will be passed on to the society 3 Ôt is the society which has to bear them. .

* Social Overhead Costs: 3 Cost of social responsibility will not immediately benefit the business. 3 Why spend money on an object. Y The efficiency of the market mechanism will be undermined and resources will be misallocated within the economy. benefits of which will be realized only in future. * Many companies involve themselves in social activities because of the: 3 Tax exemptions on the income spent on social purposes. . * Friedman¶s Views: 3 Friedman asserted that if managers spend corporate funds on projects not intended to maximize profits. then.

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. actions taken in the interest of society help to improve the image of the firm and add to its profitability. This is a misconception.   3 Some People believe that the concept of social responsibilities is against the profit motive. 3 Social responsible actions may reduce immediate profits. installation of an expensive anti- pollution device involves cost which cannot be passed on to consumers. 3 Ñut in the long-run. 3 For instance.

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3 To contribute to the economic development of backward regions and weaker sections of society. 3 To make more and more employment opportunities for engineers. 3 To make the best use of national resources so as to raise the level of national income and standard of living of the people. . 3 To protect the national environment and ecological balance from all types of pollution. technicians and other skilled persons from educational institutions.

3 To recognize and respect social values. . 3 To make the country economically self-reliant through export promotion and import substitution. business ethics and cultural heritage. monopoly etc. concentration of income and wealth. illiteracy. 3 To cooperate with the government in solving problems like communalism. over-population.

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£ecisions are of three types: å.The concept of decision making is defined as: The selection from among alternatives of a course of action. Operational £ecision . Strategic £ecision ]. it is at the core of planning. Tactical £ecision .

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. 3The manager has to understand first the specific objective of taking the decisions before diagnosing a problem.  aa#$ a  3 £ecisions have to be taken to achieve a particular objective / goal of the organization.

if there is high rate of absenteeism in the organization. .  aaa   3 Ôn order to take a decision: The problem has to be diagnosed first. 3 Just like doctor diagnosing a disease before prescribing a medicine. the management has to analyze the rate of absenteeism from different perspectives. For example. similarly a manager has to diagnose the real problem before solving a problem.

3 Convince employees to attend work regularly. for reducing absenteeism: 3 The management has to announce some incentives. etc. 3 Take serious action.     a  Jfter diagnosing. . The management has to search for alternative solutions. For example.

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. a a  The management has to evaluate the impact and implementation of all the alternatives.

a  J a From the available alternatives. the best alternative has to be selected for implementation. .

. 3 Ôt requires organizational support and cooperation at all levels. Ja Jfter choosing the best alternative: 3 Ôt is to be implemented by the managers.

  When the best alternative is implemented. 3 Ôts impact has to be examined. . 3 Managers have to take follow-up action in the light of the feedback received from the results.

shut down plants are the cases in utilitarian terms. . greatest good for the greatest number. as hike in prices.! a    aa  a a  å    : The main aim of utilitarian is to provide. £ecisions are made solely on the basis of their out comes 3 For e.g. laying off large number of employees.

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.   : The individuals take decision on the basis of their rights mentioned in the constitution.       : This needs an individual to impose and enforce rules fairly and impartially so there is equitable distribution of benefits and costs.

 a a   "  aa Œ J man¶s personal code of ethics Œ The company¶s policies and procedures. Œ Government regulations .

Jpart from these managerial values. the values which emerged as most preferred are given below:- Œ Honesty Œ Fair minded Œ Competent Œ Ñroad minded Œ Supportive Œ Optimistic .

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The output helps the manager in the decision-making process. .! J Management Ônformation Systems (MÔS) refers to the system by which the required information is: Collected Processed Presented to the management to take better decisions.

summaries etc.Managers take decisions to have better results in the organization. data is the input which is processed to provide output in the form of information reports. . Ôn MÔS.

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. Jccuracy: The accuracy of the information is very information in taking decisions. Timeliness: The required information is to be provided at the right time. Relevance: The information has to be relevant to take the right decisions.

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. ·  3 The cost of production may be reduced 3The quality of the product may be increased 3The customer satisfaction may be improved 3Employee relations may be improved in several decisions.

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. ]. . Ôndividuals who participate in decisions are more satisfied with the decision and are more likely to support it. Groups have a broader perspective and consider more alternative solutions. Groups can accumulate more knowledge and facts. Jdvantages:- å.

Groups decision making involves considerable compromise which may lead to less than optimal decisions. Groups are often dominated by one individual or a small clique. . Groups often work slowly than individuals.£isadvantages:- å. . ].