MODULE 4

SOCIETAL ENVIRONMENT
BUSINESS: AN INTEGRAL PART OF SOCIETY

Traditionally, the term business refers to activities such as buying or

selling of goods and providing services with the objective of making
profit. This implies that business refers to all the commercial
activities that aim at making a profit for its owners or for
organizations specially formed for that purpose.
BUSINESS AND SOCIETY:
INTERRELATIONSHIP
THE STAKEHOLDER MODEL OF BUSINESS

Stakeholders are all the individuals or groups affected by

or capable of affecting decisions, policies and operations of an
organization. The stakeholders’ theory of business firms argues that
a corporate success in the market place can best be assured by
catering to the interests of all its stakeholders, namely, shareholders,
customers, employees, suppliers, management and the local
community.
STAKEHOLDERS OF AN ORGANIZATION
SOCIO-ECONOMIC OBJECTIVES OF BUSINESS

• EARN MAXIMUM PROFIT

• REALIZE TOTAL MAXIMUM SALES REVENUE
• MINIMIZE COST
• ENSURE LONG-RUN SURVIVAL
• ACHIEVE FINANCIAL SOUNDNESS
• ATTAIN ECONOMIC SELF-SUFFICIENCY BY PLOUGHING BACK PROFITS FOR EXPANSION
• TO PROVIDE MAXIMUM WELFARE TO EMPLOYEES
• TO BECOME AN INDUSTRY LEADER
• TO BE OF SERVICE TO SOCIETY BY UNDERTAKING SOCIAL WELFARE PROGRAMMES
BENEFITS OF BUSINESS TO SOCIETY
PROBLEMS CREATED BY BUSINESS
 CONSUMER PROTECTION

Over the years, consumer protection has assumed great

importance to civil society. For effective consumer
protection, it is essential that the three parties—
consumers, businessmen and government—which have
vested interests in ensuring the consumer protection must
be involved.

 Role of consumers
 Role of businessmen
 Role of government
 THE GOVERNMENT’S ROLE

• MAINTAIN POLICIES TO ENSURE EFFICIENT DISTRIBUTION OF GOODS AND

SERVICES TO THE PUBLIC ESPECIALLY TO THE POOR
• ENCOURAGE SETTING UP OF CONSUMER COOPERATIVES
• ESTABLISH LEGAL AND ADMINISTRATIVE MEASURES FOR GRIEVANCE
REDRESSAL
• ENCOURAGE BUSINESSMEN TO RESOLVE ALL CONSUMER DISPUTES IN A FAIR,
FAST AND INFORMAL MANNER
 WHAT IS CONSUMER?

• A PERSON WHO PURCHASED GOODS

CON
SUM AND SERVICES FOR PERSONAL
E RS CONSUMPTION IS CALLED AS
CONSUMER.
• AN INDIVIDUAL
WHO BUYS PRODUCTS OR SERVICES FO
R PERSONAL USE AND NOT FOR
MANUFACTURE OR RESALE.
 DUTIES OF CONSUMERS

• BUYING QUALITY PRODUCTS AT REASONABLE PRICE.

• TO CHECK THE WEIGHTS AND MEASURES BEFORE MAKING PURCHASES.
• READING THE LABEL CAREFULLY.
• TO PROCURE THE BILL, CASH RECEIVED WARRANTY, ETC.
• SHOPPING CAREFULLY AND WISELY ‼ UNDERSTANDING THE TERMS OF THE SALE.
• READING AND FOLLOWING INSTRUCTIONS.
 HOW CONSUMERS ARE EXPLOITED?

• DUE TO THE EXPANSION OF BUSINESS ACTIVITIES IN AN ECONOMY, WE HAVE A VARIETY

OF GOODS AVAILABLE IN THE MARKET.
• THE DEMAND FOR GOODS AND SERVICES IS INFLUENCED BY THE ADVERTISEMENTS IN
TELEVISION, NEWSPAPER AND MAGAZINES.
• WHEN WE, AS CONSUMER, DO NOT HAVE SUFFICIENT INFORMATION ABOUT THE
PRODUCTS.
• WE NORMALLY GET EXPLOITED SOMETIMES EVEN HARASSED BY BUSINESS
COMMUNITY.
 CONTINUE…..

• UNDERWEIGHT AND UNDER-MEASUREMENTS : THE GOODS BEING SOLD IN THE MARKET

ARE SOMETIMES NOT MEASURED OR WEIGHED CORRECTLY.
• SUB-STANDARD QUALITY : THE GOODS SOLD ARE SOMETIMES OF SUB-STANDARD
QUALITY. SELLING OF MEDICINE BEYOND THEIR EXPIRY DATES IS GENERALLY THE
GRIEVANCES OF CONSUMERS.
• HIGH PRICES : VERY OFTEN THE TRADERS CHARGE A HIGHER PRICE THAN THE
PRESCRIBED RETAIL PRICE.
• DUPLICATE ARTICLES : IN THE NAME OF GENUINE PARTS OR GOODS, FAKE OR DUPLICATE
ITEMS ARE BEING SOLD TO THE CONSUMERS.
CONSUMER RIGHTS
WHAT IS CONSUMERISM?

• AS COMMONLY UNDERSTOOD
CONSUMERISM REFERS TO WIDE RANGE
OF ACTIVITIES OF GOVERNMENT ,
BUSINESS AND INDEPENDENT
ORGANIZATIONS DESIGNED TO PROTECT
RIGHTS OF THE CONSUMERS.
• IT INCLUDES THE SET OF ACTIVITIES OF
GOVERNMENT, BUSINESS, INDEPENDENT
ORGANIZATIONS AND CONCERNED
CONSUMERS THAT ARE DESIGNED TO
PROTECT THE RIGHTS OF CONSUMERS.
 HOW DID CONSUMERISM ORIGINATE?

• IN THE EXISTING MARKETS OF PRODUCTS RUN IN SHORTAGE , ADULTERATION & BLACK

MARKET PRICES.
• THE PROFIT MAKING ATTITUDE OF THE BUSINESS FAILED TO DISCHARGE SOCIAL
RESPONSIBILITIES OF MAINTAINING FAIR PRICE, QUALITY OF GOODS & PROVIDING
SERVICES ETC.
• FOR EXAMPLE:-
-TOOTHPASTE TUBE FILLED WITH AIR
 WHY CONSUMERS BUY MORE:

• 1. ADDICTION
• 2. IDENTITY
• 3. LIFESTYLE
• 4. SAVE MONEY AS PROMISED
BY THE MARKETS
 EXAMPLES OF CONSUMERISM:

• EDUCATION, SINCE AS A CONSUMER YOU BUY EDUCATION AND IN THE

FUTURE YOU’LL GET A BETTER JOB.
• BUYING A CAR FOR EACH ONE OF YOUR KIDS WHEN THEY ALL CAN SHARE
ONE.
• HOSPITALS ARE ALSO AN EXAMPLE SINCE IF YOU HAVE THE MONEY TO GO
TO A PRIVATE HOSPITAL YOU WILL RECEIVE A BETTER HEALTH CARE.
 ADVANTAGES OF CONSUMERISM

• CONSUMERS CHOOSING THEIR LIFE STYLE. THIS MEANS THEY CHOOSE

WHAT GOODS THEY CHOOSE TO HAVE.
• SELF SATISFACTION - THIS INCLUDES THEIR WANTS AND NEEDS.
• MAINTAIN THE ECONOMIC CLASSES, WHETHER THEY CHOOSE MIDDLE,
UPPER OR LOWER CLASS.
• CUSTOMERS HAVE THE OPPORTUNITY TO BE MOTIVATED TO IMPROVE
THEIR SOCIAL STANDING, AS WELL AS THEIR JOB.
 DISADVANTAGES OF CONSUMERISM

• EXCLUDING PEOPLE BETWEEN THEIR SOCIAL STATUS.

• THE UPPER CLASS HAS MUCH MORE ADVANTAGES THAN THE LOWER
CLASS.
• CONSUMERISM IS LITTLE BY LITTLE DESTROY OUR ENVIRONMENT AND
NATURAL RESOURCES.
• THEY REALLY AFFECT OUR GLOBAL WARMING, AND THE OZONE LAYER.
• THE MAJORITY OF THE PEOPLE, PAYS MORE ATTENTION TO THE RICHER
PEOPLE BECAUSE THEY BENEFIT THEIR ECONOMY, WHILE THEY IGNORE
THE POOR.
 CONSUMER DUTIES AND RESPONSIBILITIES

• SUBSTANTIATE THE COMPLAINT

• GIVE A CHANCE TO THE SELLER TO EXPLAIN HIS VIEWPOINT
• COOPERATE WITH THE SELLER IF NEEDED
• AVOID INCONVENIENCE TO OTHERS UNCONNECTED WITH THE ISSUE
• DON’T PERSONALIZE ISSUES
• DON’T ALLOW OTHERS TO USE YOU
• BE WELL INFORMED BEFORE YOU COMPLAIN
• UNDERSTAND HOW TO GET YOUR GRIEVANCE REDRESSED
• AVOID IMPULSIVE BUYING
• BUY GOODS FROM AUTHORIZED AGENTS
 CONSUMER PROTECTION IN INDIA

UNETHICAL MEASURES USED:

• EXORBITANT PRICES OF PRODUCTS AND SERVICES
• DECEPTIVE SELLING PRACTICES
• FALSE AND MISLEADING ADVERTISEMENTS
• REDUCTION IN QUALITY FOR THE SAME AND EVEN HIGHER PRICES
• SALE OF HAZARDOUS PRODUCTS TO IGNORANT CONSUMERS
• SUPPRESSION OF MATERIAL INFORMATION ABOUT PRODUCTS
• FALSE PRODUCT DIFFERENTIATION
• SUPPLY OF ADULTERATED AND SUBSTANDARD PRODUCTS
• CHEATING CONSUMERS BY GIVING LESSER QUANTITY FOR THE PRICE
 (CONTINUED)
• UNHONOURED GUARANTEES AND WARRANTIES
• POOR REDRESSAL OF CONSUMER’S GENUINE GRIEVANCES
• CREATING A SCARE OUT OF SCARCITY
• MAKING CONSUMERS BUY GOODS THEY DON’T NEED
• MISLEADING REPRESENTATION ABOUT THE UTILITY OF A PRODUCT
• MANIPULATING CONDITIONS OF DELIVERY
• CUSTOMERS ARE MADE TO PAY FOR NUMEROUS INTERMEDIARIES
• BENEFITS OF DROP IN PRICES ARE NOT PASSED ON TO CUSTOMERS
• CUSTOMERS ARE RUSHED INTO BUYING GOODS THEY CANNOT AFFORD
• HEAVY ADVERTISEMENT COST PASSED ON TO CONSUMER
• HOARDING AND BLACK MARKETING
• TIE-IN SALES
WHO IS A CONSUMER?

• "CONSUMER“ MEANS ANY PERSON WHO,—

• (I) BUYS ANY GOODS FOR A CONSIDERATION
WHICH HAS BEEN PAID OR PROMISED OR
PARTLY PAID AND PARTLY PROMISED, OR UNDER
ANY SYSTEM OF DEFERRED PAYMENT AND
INCLUDES ANY USER OF SUCH GOODS OTHER
THAN THE PERSON WHO BUYS SUCH GOODS FOR
CONSIDERATION PAID OR PROMISED OR PARTLY
PAID OR PARTLY PROMISED, OR UNDER ANY
SYSTEM OF DEFERRED PAYMENT
 WHAT IS A COMPLAINT?

• "COMPLAINT" MEANS ANY ALLEGATION IN WRITING MADE BY A COMPLAINANT

THAT—
(I) AN UNFAIR TRADE PRACTICE OR A RESTRICTIVE TRADE PRACTICE HAS BEEN
ADOPTED BY ANYTRADER;
(II) THE GOODS BOUGHT BY HIM OR AGREED TO BE BOUGHT BY HIM SUFFER FROM
ONE OR MORE DEFECTS;
(III) THE SERVICES HIRED OR AVAILED OF OR AGREED TO BE HIRED OR AVAILED OF
BY HIM SUFFER FROM DEFICIENCYIN ANY RESPECTS.
 RIGHTS OF A CONSUMER

CONSUMER PROTECTION ACT, 1986, 6/9/10

• RIGHT TO SAFETY
• RIGHT TO INFORMATION
• RIGHT TO CHOICE
• RIGHT TO BE HEARD
• RIGHT TO SEEK REDRESSAL
• RIGHT TO CONSUMER EDUCATION
• RIGHT TO BASIC NEEDS
• RIGHT TO HEALTHY ENVIRONMENT
 CONSUMER LAW

• “CONSUMER LAW" REGULATES PRIVATE LAW RELATIONSHIPS BETWEEN

INDIVIDUAL CONSUMERS AND THE BUSINESSES THAT SELL THOSE GOODS AND
SERVICES.
• • EX : IT DEAL WITH CREDIT REPAIR, DEBT REPAIR, PRODUCT SAFETY, SERVICE
AND SALES CONTRACTS, BILL COLLECTOR REGULATION, PRICING, UTILITY
TURNOFFS, CONSOLIDATION, PERSONAL LOANS THAT MAY LEAD TO
BANKRUPTCY AND MUCH MORE.
 CONCEPT OF CONSUMER PROTECTION

• SAFEGUARDING THE INTEREST AND RIGHTS OF CONSUMERS.

• THE MEASURES ADOPTED FOR THE PROTECTION OF CONSUMERS FROM
UNSCRUPULOUS AND UNETHICAL MALPRACTICES BY THE BUSINESS AND TO
PROVIDE THEM SPEEDY REDRESSAL OF THEIR GRIEVANCES
 WHO IS RESPONSIBLE FOR CONSUMER
PROTECTION?
• GOVERNMENT AGENCIES – MINISTRY OF COMMERCE, INVESTMENT AND
CONSUMER AFFAIRS
• PROFESSIONAL/INDUSTRY ASSOCIATIONS
• CONSUMER ORGANIZATIONS
 HISTORY OF CONSUMER PROTECTION ACT

• PASSED IN LOK SABHA ON 9TH

DECEMBER,1986 AND IT CAME INTO
FORCEFROM1 JULY 1987.
• • RAJYA SABHA PASSED ON 10TH
DECEMBER, 1986 AND ASSENTED BY
THE PRESIDENT OF INDIA ON 24TH
DECEMBER, 1986 AND WAS PUBLISHED
IN THE GAZETTE OFINDIA ON26TH
DECEMBER, 1986.
IMPORTANCE OF CONSUMER PROTECTION ACT

Consumer ignorance

Wide spread
Unorganised exploitation of
consumer consumers
 OBJECTIVES OF CONSUMER PROTECTION ACT

• TO PROTECT THE CONSUMER FROM ABUSE.

• TO PROVIDE A VENUE FOR GRIEVANCE /REDRESS.
• TO ENSURE A BETTER QUALITY OF LIVING BY IMPROVING THE QUALITY OF
CONSUMER PRODUCTS & SERVICES.
 NEEDS OF CONSUMER PROTECTION ACT

• SOCIAL RESPONSIBILITY
SERVE THE INTEREST OF CONSUMERS. DUTY OF PRODUCERS AND TRADERS TO PROVIDE RIGHT QUALITY AND
QUANTITY OF GOODS AT FAIR PRICES TO THE CONSUMERS
• INCREASING AWARENESS
THE CONSUMERS ARE BECOMING MORE MATURE AND CONSCIOUS OF THEIR RIGHTS AGAINST THE MALPRACTICES BY
THE BUSINESS. THERE ARE MANY CONSUMER ORGANISATIONS AND ASSOCIATIONS WHO ARE MAKING EFFORTS TO
BUILD CONSUMER AWARENESS.
• CONSUMER SATISFACTION

FATHER OF THE NATION MAHATMA GANDHI HAD ONCE GIVEN A CALL TO MANUFACTURES AND TRADERS TO “TREAT
YOUR CONSUMERS AS GOD”.
CONSUMERS’ SATISFACTION IS THE KEY TO SUCCESS OF BUSINESS.
LEGAL PROTECTION TO CONSUMERS
A NUMBER OF LAWS HAVE BEEN PASSED TO PROTECT CONSUMERS:
 AGRICULTURAL PRODUCTS (GRADING AND MARKETING) ACT, 1937
 INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951
 PREVENTION OF FOOD ADULTERATION ACT, 1954
 ESSENTIAL COMMODITIES ACT, 1955
 THE STANDARDS OF WEIGHTS AND MEASURES ACT, 1956
 MONOPOLIES AND RESTRICTIVE TRADE PRACTICES ACT, 1969
• PREVENTION OF BLACK MARKETING AND MAINTENANCE OF ESSENTIAL
SUPPLIES ACT, 1980
• BUREAU OF INDIAN STANDARDS ACT, 1986
• CONSUMER PROTECTION ACT, 1986
 CORPORATE GOVERNANCE
ADAM CADBURY: “CORPORATE GOVERNANCE IS DEFINED AS
HOLDING THE BALANCE BETWEEN ECONOMIC AND SOCIAL
GOALS AND BETWEEN INDIVIDUAL AND COMMUNAL GOALS. THE
GOVERNANCE FRAMEWORK IS THERE TO ENCOURAGE THE
EFFICIENT USE OF RESOURCES AND EQUALLY TO REQUIRE
ACCOUNTABILITY FOR THE STEWARDSHIP OF THOSE
RESOURCES.”

EXPERTS AT THE ORGANIZATION OF ECONOMIC COOPERATION

AND DEVELOPMENT (OECD) HAVE DEFINED CORPORATE
GOVERNANCE “AS THE SYSTEM BY WHICH BUSINESS
CORPORATIONS ARE DIRECTED AND CONTROLLED.”
DESIRABLE CONDITIONS FOR CORPORATE
GOVERNANCE
• RIGHTS OF SHAREHOLDERS
• EQUITABLE TREATMENT OF SHAREHOLDERS
• ROLE OF SHAREHOLDERS IN CORPORATE GOVERNANCE
• DISCLOSURE AND TRANSPARENCY
• RESPONSIBILITIES OF THE BOARD
 GOOD CORPORATE GOVERNANCE
MAJOR DONORS, INSTITUTIONAL INVESTORS, AND INTERNATIONAL
FINANCIAL INSTITUTIONS PROVIDE THEIR AID AND LOANS ON THE
CONDITION THAT REFORMS THAT ENSURE “GOOD GOVERNANCE” ARE PUT IN
PLACE BY THE RECIPIENT NATIONS.

 OBLIGATION TO SOCIETY
 OBLIGATION TO INVESTORS
 OBLIGATION TO EMPLOYEES
 OBLIGATION TO CUSTOMERS
 MANAGERIAL OBLIGATION
 OBLIGATION TO SOCIETY

• NATIONAL INTEREST
• POLITICAL NON-ALIGNMENT
• LEGAL COMPLIANCES
• RULE OF LAW
• HONEST AND ETHICAL CONDUCT
• CORPORATE CITIZENSHIP
• ETHICAL BEHAVIOUR
• SOCIAL CONCERNS
• CORPORATE SOCIAL RESPONSIBILITY
• ENVIRONMENT FRIENDLINESS
 (CONTINUED)
• HEALTH, SAFETY AND WORKING ENVIRONMENT
• COMPETITION
• TRUSTEESHIP
• ACCOUNTABILITY
• EFFECTIVENESS AND EFFICIENCY
• TIMELY RESPONSIVENESS
• CORPORATIONS SHOULD UPLOAD THE FAIR NAME OF THE COUNTRY
 OBLIGATION TO INVESTORS

• TOWARDS SHAREHOLDERS
• INFORMED SHAREHOLDER PARTICIPATION
• TRANSPARENCY
• FINANCIAL REPORTING AND RECORDS
 OBLIGATION TO EMPLOYEES

• FAIR EMPLOYMENT PRACTICES

• EQUAL OPPORTUNITIES FOR EMPLOYEES
• ENCOURAGING WHISTLE-BLOWING
• HUMANE TREATMENT
• PARTICIPATION
• EMPOWERMENT
• EQUITY AND INCLUSIVENESS
• PARTICIPATIVE AND COLLABORATIVE ENVIRONMENT
 OBLIGATION TO CUSTOMERS

• QUALITY OF PRODUCTS AND SERVICES

• PRODUCTS AT AFFORDABLE PRICES
• COMMITMENT TO CUSTOMER SATISFACTION
 MANAGERIAL OBLIGATION

• PROTECTING COMPANY ASSETS

• BEHAVIOUR TOWARDS GOVERNMENT AGENCIES
• CONTROL
• CONSENSUS ORIENTED
• GIFTS AND DONATIONS
• ROLES AND RESPONSIBILITIES OF CORPORATE BOARD AND
DIRECTORS
• DISTINCTION BETWEEN DIRECTION AND MANAGEMENT
• MANAGING AND WHOLE-TIME DIRECTORS
 ISSUES IN CORPORATE GOVERNANCE

• DISTINGUISHING THE ROLES OF BOARD AND MANAGEMENT

• COMPOSITION OF THE BOARD AND RELATED ISSUES
• SEPARATION OF THE ROLES OF THE CEO AND CHAIRPERSON
• APPOINTMENT TO THE BOARD AND DIRECTOR’S RE-ELECTION
• DIRECTORS’ AND EXECUTIVES REMUNERATION
• DISCLOSURE AND AUDIT
• PROTECTION OF SHAREHOLDER RIGHTS AND THEIR EXPECTATIONS
• DIALOGUE WITH INSTITUTIONAL SHAREHOLDERS
BENEFITS OF CORPORATE GOVERNANCE

• CREATION AND ENHANCEMENT OF A CORPORATION’S

COMPETITIVE ADVANTAGE
• PREVENTION OF FRAUD AND MALPRACTICES
• PROVIDING PROTECTION TO SHAREHOLDERS INTERESTS
• ENHANCING THE VALUATION OF AN ENTERPRISE
• ENSURING COMPLIANCE OF LAWS AND REGULATIONS
 PERSPECTIVES

• THE ISSUE OF SOCIAL RESPONSIBILITY OF BUSINESS EVOKES

VARYING—AND OFTEN EXTREME—RESPONSES FROM BOTH THE
INTELLIGENTSIA AND BUSINESSMEN.
• ECONOMISTS LIKE ADAM SMITH AND MILTON FRIEDMAN WERE
OF THE OPINION THAT THE ONLY RESPONSIBILITY OF BUSINESS
WAS TO PERFORM ITS ECONOMIC FUNCTIONS EFFICIENTLY AND
PROVIDE GOODS AND SERVICES TO SOCIETY AND EARN FOR
THEMSELVES MAXIMUM PROFIT AND IT WAS BETTER TO LEAVE
SOCIAL FUNCTIONS TO OTHER INSTITUTIONS OF THE SOCIETY
LIKE THE GOVERNMENT.
• OPPONENTS OF THE ABOVE VIEW ASSERT THAT IT IS IMPERATIVE
FOR BUSINESS TO BE SOCIALLY RESPONSIBLE
CORPORATE SOCIAL RESPONSIBILITY
THE WORLD BUSINESS COUNCIL FOR SUSTAINABLE
DEVELOPMENT: “CORPORATE SOCIAL RESPONSIBILITY 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”.

MAHATMA GANDHI: WEALTH CREATED FROM SOCIETY HAS

TO BE PLOUGHED BACK INTO SOCIETY.
EXPECTATIONS FROM THE PRIVATE SECTOR
• PRIVATE SECTOR IS GENERALLY SEEN AS NOT FAVOURING
THE SOCIETY. THE TREND IS ACCUMULATION OF WEALTH
FOR ITS OWN CAUSE AT THE EXPENSE OF THE PUBLIC.
• CORPORATIONS SHOULD PARTICIPATE IN SOCIAL WELFARE
PROJECTS WHICH WILL IMPROVE PUBLIC ESTEEM.
• CORPORATIONS SHOULD UNDERSTAND THAT ECONOMIC
AND SOCIAL RESPONSIBILITY GOALS CAN BE ACHIEVED
SIMULTANEOUSLY.
• CORPORATIONS SHOULD CREATE EMPLOYMENT
OPPORTUNITIES FOR THE DISADVANTAGED.
CSR: ADVANTAGES TO COMPANIES
• IMPROVED FINANCIAL PERFORMANCE
• ENHANCED BRAND IMAGE AND REPUTATION
• INCREASED SALES AND CUSTOMER LOYALTY
• INCREASED ABILITY TO ATTRACT AND RETAIN EMPLOYEES
• REDUCED REGULATORY OVERSIGHT
• INNOVATION LEARNING
• RISK MANAGEMENT
• EASIER ACCESS TO CAPITAL
• REDUCED OPERATING COSTS
 ICC’S PRACTICAL STEPS TO CSR

THE INTERNATIONAL CHAMBER OF COMMERCE (ICC) RECOMMENDS THE FOLLOWING NINE

STEPS TO ATTAIN CORPORATE SOCIAL RESPONSIBILITY:
• CONFIRM CEO/BOARD COMMITMENT THAT PRIORITY TO RESPONSIBLE BUSINESS CONDUCT
COMES FIRST
• STATE COMPANY RESOLVE AND AGREE ON COMPANY VALUES
• IDENTIFY KEY STAKEHOLDERS
• DEFINE BUSINESS PRINCIPLES AND POLICIES
• ESTABLISH IMPLEMENTATION PROCEDURES AND MANAGEMENT SYSTEMS
• BENCHMARK AGAINST SELECTED EXTERNAL CODES AND STANDARDS
• SET UP INTERNAL MONITORING
• USE LANGUAGE THAT EVERYONE CAN UNDERSTAND
• SET PRAGMATIC AND REALISTIC OBJECTIVES
 CSR IN INDIA

MOST OF THE ORGANIZATIONS IN INDIA HAVE NOT INSTITUTED

STRUCTURED
SYSTEMS FOR APPROACHING OR DEPLOYING CSR. THE
ORGANIZATIONS NEED TO STRUCTURE THE CSR INITIATIVES THROUGH
ARTICULATION OF POLICIES AND GUIDELINES FOR CSR, ALLOCATION
OF RESOURCES, CSR PERFORMANCE EVALUATION AND REPORTING
FOLLOWED BY THE INSTITUTION OF MANAGEMENT SYSTEMS.