Famous Quotes About Responsibility :
- It takes 20 years to build a reputation and 5 minutes to ruin it. (Warren Buffet)
- Business should not only be responsible morally to the stakeholders but also to the society, environment and towards a sustainable planet at large.
- Stakeholders are all those who are affected by or can affect the activities of the firm. They can be from within or outside of the organization.
- Each Stakeholder has a different criterion of social responsiveness based on their specific interest (or stake) in the organization.
Stakeholders :
- Employees- Work satisfaction
- Investors/ owners- Managerial efficiency and profit
- Customers- Quality and availability
- Government- Law compliance
- Special Interest Stakeholders-
1) Environmental groups,
2) Politic action committees,
3) Groups interested in quality of life in community
Primary and Secondary Stakeholders :
- Primary Stakeholders- Those who have a formal, official, or contractual relationship with the organization.
- Secondary Stakeholders- Other societal groups who are affected by the activities of the firm.
- Many other names are used to refer to CSR such as socially responsible business, responsible business conduct, responsible entrepreneurship, corporate citizenship, corporate accountability etc.
- CSR is the continuing commitment by business to behave ethically & contribute to economic development while improving the quality of life of the workforce & their families, local communities and the society at large – World Business Council.
- CSR requires companies to acknowledge that they should be publicly accountable not only for their financial performance but also for their social and environmental record.
- CSR is about how companies manage the business processes to produce an overall positive impact on the society.
- CSR is the responsibility of corporations to go above and beyond what the law requires them to do.
- CSR is the responsibility of corporations to contribute to a better society and cleaner environment.
The Stakeholder View of the Firm
Responsibility towards society :
- Carrying business with moral & ethical standards.
- Prevention of environmental pollution.
- Minimizing ecological imbalance.
- Contributing towards the development of social health education.
- Making use of appropriate technology.
- Overall development of locality.
Responsibility towards Government :
- Obey rules & regulations.
- Regular payment of taxes.
- Cooperating with the govt to promote social values.
- Not to take advance of loopholes in business laws.
- Cooperating with the govt for economic growth & development.
Responsibility towards shareholders :
- To ensure a reasonable rate of return over time.
- To work for the survival & the growth of the concern.
- To build reputation & goodwill of the company.
- To remain transparent & accountable.
Responsibility towards employee :
- To provide a healthy working environment.
- To grant regular & fair wages.
- To provide welfare services.
- To provide training & promotion facilities.
- To provide reasonable working standard & norms.
- To provide efficient mechanism to redress worker’s grievances.
- Proper recognition of efficiency & hard work.
Responsibility towards consumers :
- Supplying socially harmless products.
- Supplying the quality, standards as promised.
- Adopt fair pricing.
- Provide after sales services.
- Resisting black-marketing & profiteering.
- Maintaining consumer’s grievances cell.
- Fair competition.
The Heart of CSR :
- Eradicate extreme poverty and hunger.
- Achieve universal primary education.
- Promote gender equality and empower women.
- Reduce child mortality.
- Improve maternal health
- Combat HIV/AIDS, malaria & other fatal diseases
- Ensure environmental sustainability
- Develop a global partnership.
- Source (United Nations Millennium Project)
- CSR helps in strengthening the relationship between companies and stake holders.
- It enables continuous improvement and encourages innovations.
- Attract the best industry talent as a socially responsible company.
- Provides additional motivation to employees.
- Mitigates risk as a result of its effective corporate governance framework.
- Enhances ability to manage stakeholder expectations.
