Social Resp. Ppt

8/4/2019 Social Resp. Ppt

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It is the mangers responsiveness to public consensus. dolph Berle. It means there cannot be a set of SR

applicable to all countries in all times. It will depend on thecustoms, religion, tradition, level of industrialization and

so on.According to Keith Davis, SR refers to two types ofbusiness obligations.

Socio economic obligation means actions of the organization

should not affect the public welfare.Socio human obligation means nurture and development of

human values.


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DIFFERENT VIEWS ON SR

y Communist view:

They are suggesting imposition of socialresponsibilities on business through laws of thestates as organization will not satisfy the society if

not levied on them by force.y Capitalist view:

Businessmen should go with the business ofproducing quality goods & services efficiently and

leave the solution of social problems to thegovernment.


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y Pragmatic view:

First earn money and then the organization shouldfocus on SR. because a loss making organization isactually social problem of the society. So developmentof the organization comes first rather than the SR.

y Trusteeship view:

It says that earn lots of money but do remember thatyour wealth is not yours; it belongs to the people. Theview was influenced by GITA teaching of

APARIGRAHA (non-possession) and SAMBHAWA(equalism).


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SR OF BUSINESS TOWARDS DIFFERENT GROUPS

y Towards the consumers and the community:

y With the help of creativity, innovation, technology provide cheap

and quality product & services to their customers. Decidingpriorities of production in the countrys interest & conservingnatural resources.

y Misleading ads, misbranding of articles with respect to theirmaterial, quality, origin etc., selling second hand goods, cartels ofthe companies, false claims should be stopped.

y Preventing the creation of monopolies.

y Providing after sales service & Eco-friendly production.

y Achieving better PR & supporting education, slum clearance etc.


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y Towards Employees and Workers:

y A fair wage to workers as per the standard norms of theindustry and the government.

y Smooth selection process without any kind ofdiscrimination on grounds of sex, race, religion &physical appearance.

y Security of job and good quality work life.y Participative management.y Freedom, self respect, self realizations.y Providing the opportunities for creative talent and

incentives.


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y Towards Shareholders and otherBusinesses:y Should have the internal accountability and transparency.

y Fairness in relations with competitors i.e. competition on some

ethics and fair play.

y Towards the state:y To bring the harmony between limited enterprise and wider

social interest of the country.

y Avoid active participation in and identification with politicalparty.

y To provide the safeguard against the misbehaving businesspractices.

y To implement rural uplift and secure balanced development ofthe country.

y Maintaining equality of resource allocation and enforcedistributive justice.


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SOCIAL PERFORMANCE OF BUSINESS IN INDIA

y ITC afforesting privatedegraded land to increase thesupply ofraw material for its paper factory.

y ITC is giving some revenue part to the welfare of childeducation when the customerpurchase a note book ofITC.

y Nestle providing financial and technical assistance forconstructing deep-bore well to the milk suppliers atMoga, Punjab.

y CadburyIndia, Glaxo, Richardson Hindustan are

helping the farmers to grow crops which serve as a rawmaterial for them.


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BUSINESS ETHICS AND CORPORATE

GOVERNANCE

y BUSINESS ETHICS:y It is the application of moral principles to business

problems.y Four factors which decides whether the work is ethical

or unethical;

y Government Legislation.

y

Business code. For e.g. competition, qualityetc.

y Pressure groups.

y Personal values of a manager.


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y CORPORATE GOVERNANCE:y It is the extent to which companies run in an open and

honest manner in the best interest of their stake holders.y After the corporate scandal in the early 1990s in Britain,

under the chairmanship of Sir Adrian Cadbury, thecommittee has recommended a code for best corporategovernance;y Non-executive directors for independent judgment on strategy,

performance, resources etc.

y Non-executive committee for remuneration part of directors.

y Non-executive committee for financial management.

y Audit partners should be rotated.


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y BENEFITS OF CORPORATE GOVERNANCE:

y Creates overall market confidence.

y Leads to increase companys market share.

y Limits the liability of top management.

y Improves strategic thinking.y Trust on financial report of the company.


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CORPORATE GOVERNANCE IN INDIA

yOnly 16% of all the listed companies are paying

dividends to their shareholders.y Still 90% of the companies are not considering the

shareholder values.

y Focus is more on earning profit rather social

development.y Still company profit used for personal purpose

more. For e.g. Satyam.

y T

op Companies of India known for its CorporateGovernance: Infosys, Tata Group, Wipro, HDFC,Reliance, ITC, Ranbaxy, HUL, Hero Honda, L&T,SBI, Bajaj, ONGC.

Social Resp. Ppt

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