STRATEGIC

MANAGEMENT

PRESENTING BY
SHAFI MOHAMMED P A
THANZIR NOUSHAD
BASIL
1.Define the term social responsibility. Find an e.g.. Of a company action that
was legal but not social responsible. Defend your e.g. on the basis of your
definition?

Social responsibility means that businesses, in addition to maximizing shareholder value, must act in a
manner that benefits society and also must contribute to the welfare of the environment.

• Social responsibility means that individuals and companies have a duty to act in the best interests of
their environment and society as a whole. Social responsibility, as it applies to business, is known
as corporate social responsibility (CSR).
• 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 promoting volunteering, making changes that
benefit the environment, and engaging in charitable giving.
Volkswagen
The automaker’s diesel emissions cheating scandal made it the prior leader with a year-over-year score
drop in 2015 of 20.5 points. The company recovered somewhat last year, but it still has a ways to go to
recover its previous glow.
2.Name 5 potentially valuable indicators of a firm’s social responsibility and
describe how company performance in each could be measured?

1. Community

2. Health and safety

3. Employment

4. Training & education

5. Charitable donations

To measure companies performance

One way in which companies can check their performance, and set targets for improvement, is by using
the 'SA 8000' standard for social accountability, created in 2000 by the Council on Economic Priorities
Accreditation Agency (CEPAA). A detailed description of SA8000 can be found in the 'Strategies & tools'
section of the site.
3. Do you think a business organization in todays society benefits by defining a
social responsible role for itself ? Why or why not ?

Yes we do think that a business organization in todays society benefits by defining a social responsibility
role for itself.

One of the benefits of pursuing a strategy of social responsibility is that it generates a positive public image
for your company. Further, companies that meaningfully engage in CSR generate increased media
coverage that is earned as opposed to paid, which is free, positive publicity. With consumers increasingly
concerned about the ethics of the goods and services they purchase, positive publicity is evermore
important.

A strong CSR program can also attract more investors and partners to your company by
illustrating that your business is about more than just the bottom line. What’s more, investing in CSR can
show investors that your company is healthy and looking towards the future. For example, going green
may have an up front cost, but it will likely pay off in the long term. Research shows that companies that
pursue green programs perform better than those that don’t, especially in the second year after the
program launch.