CORPORATE SOCIAL

RESPONSIBILITY (CSR) AND

ETHICS

BY :

MEHTA AENIL 130470119075

Definition

What is Corporate Social Responsibility?

‘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’.

– World Business Council For Sustainable Development

Definition

What is Corporate Social Responsibility?

The responsibility of business towards the society

Corporate Social Responsibility

Mutual Expectations

• Any business needs a stable social environment that provides a predictable climate for investment and trade. At the same time, society also has expectations from the business. In this manner, businesses and society are interdependent and businesses must take full account of societal expectations.

A Boundary Less Universe

• The span of this social environment has expanded along with the breaking down of international trade barriers, the globalization of markets and the evolution of the concept of a global village. The organization's social responsibility has similarly expanded to engulf peoples and regions outside an organization's immediate business domain.

A Societal Need

• As corporate houses grow in strength in a rapidly globalizing environment, their contribution to the development of society becomes increasingly pertinent.

• The emergence of CSR has been critical for millions of people left below the poverty line. Innovative partnerships between businesses, governments and civil societies hold the potential to touch the lives of millions, leading to enhanced quality of living through better access to essential services.

A Brand Builder

• The challenge for successful company in the Indian as well as the Global Economy is to build and maintain efficient, effective and fair relationships with its global and local stake holders.

• An increased brand value, greater access to finance, stronger risk management and corporate governance, healthier and safer work place, motivated people, customer loyalty and enhanced confidence and trust are the benefits of excellent CSR.

Changing Perceptions

• In a manner of speaking, this could also be the corporations way of answering critics of big business who saw nothing but faults in them. (e.g. Communists)

• As society evolved, attitudes towards big business have changed. In India we have embarked upon a change in attitude towards business since liberalization, privatization and globalization as well as during the unfolding of the post WTO scenario.

Consumer Choice Options

• With this change came a change in the nature of markets and competition. Market emphasis moved from the consumer sector (ration cards and queues for everything) to the producer sector (quality, price and value addition). The choices for the consumer were hitherto limited but now they have been increased since there are more players in the arena of business.

• After all, economic development brings in its wake an increase in the number of available and affordable choices.

Quality of Life

• The essence of Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of not only its work force but their families as well as civil society at large.

Other importance of corporate social responsibility

• Good media coverage

• A favorable environment for workers

• Nonprofits advantages

Ethics: What Does It Really Mean?

Definitions

• Ethics involves a discipline that examines good or bad practices within the context of a moral duty

• Moral conduct is behavior that is right or wrong

Introduction

Inventory of Ethical Issues in Business

• Employee-Employer Relations

• Employer-Employee Relations

• Company-Customer Relations

• Company-Shareholder Relations

• Company-Community/Public Interest

13

14

Three Domains of Human Action

Amount of

Explicit Control

High Low

Domain of Certified Law

(Legal Standard)

Domain of Ethics

(Social Standard)

Domain of Free Choice

(Personal Standard)

Sources of Ethical Norms

15

Fellow Workers

Family

Friends

The Law

Regions of

Country

Profession

Employer

Society at Large

Fellow Workers

Religious

Beliefs

The Individual

Conscience

Making Ethical Judgments

16

Behavior or act

that has been

committed

Prevailing norms

of acceptability

Value judgments

and perceptions of

the observer

compared with

SatyaAhinsa

SarvodayAparigrah

17

HINDUISM

JUDAISMCHRISTIANITY

ISLAAM

TAOISM

BUDDHISM

CONFUCIANISMBAHAISM

UNIVERSAL VALUES : GANDHIAN ETHICS

Gandhian Approach• He believed a business could and should be

conducted with complete honesty.

• Indeed, a business that was run honestly would be more successful than one which was not.

• In business as well as personal life he subscribed to the view : "Honesty is the best policy." A business person had every right to earn a livelihood from their business, although if vast income was earned from the business, the business person should give what he or she did not need to the community.

18

Trusteeship

• In his theory of trusteeship, Gandhi perceived business as a form of service to the community.

• Gandhian approach to business ethics relate to today as much as to his lifetime.

• Gandhian thought need to go undergo interpretation because of development the business has undergone during last 50 years.

19

Gandhi and business ethics

• Business is a way to foster neighborliness, to bring members of a community together and a means by which people can love and serve one another.

• Dr. Stephen Kovey one of world’s leading management consultants and author of the best selling book “The Seven habits of Highly Effective People” says in his book:

20

Mahatma Gandhi said :

• That seven things will destroy us:

Wealth without work ,

Pleasure without conscience ,

Knowledge without character ,

Commerce ( business ) without morality ( ethics ) ,

Religion without humanity ,

Politics without principle.

21

importance

THANK YOU