Corporate Social Responsibility

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)

Importance of CSR :

• 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.