ANAND KUMAR JHA

WHAT IS THE BUSINESS OF BUSINESS?

The Great Debate

Two views on Role of Business in Society “The business of business is business.“ -

Milton Friedman This view was established in Anglo-Saxon

economies. The sole legitimate purpose of business is to create

shareholder wealth. Corporate Social Responsibility

Role of Big Companies & Its CEOs Ethics and Strategy An implicit social contract - the relationship between

big business and society

Critics at Loggerheads

The business of business is business Legal / Statutory Issue Social issues are not tangential rather it

are fundamental to business. Made them unconcerned about long term

value creation opportunities. To address questions about their ethics

and legitimacy

Is CSR the answer?

Only CSR, No. CSR approach is limited as an agenda for

corporate action. It is disconnected from corporate strategy

as it fails to capture potential importance of social issues in corporate strategy.

To map long-term options and responses.

To be rooted in the development of strategy.

Common Meeting Ground: A New Approach

Introduce explicit processes - as part of overall strategic planning.

An implicit contract between big business and society – Relationship between Economy & Society. Understand and manage.

Establish higher & appropriate standards of integrity and transparency. more actively involved in external debates.

Thank You