168x Filetype PPTX File size 0.05 MB Source: bvbelladlawcollege.org
DEFINITION OF CSR • “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 workplace and their families as well as of the local community and society at large”. WHY SOCIAL RESPONSIBILITY OF BUSINESS? • ‘The Business of business is Business’ was the motto of businesspersons in early times. • To economists like Adam Smith and Milton Friedman, in a capitalist society profit maximization by the continued increase of efficiency is the most socially responsible way of conducting business. This implies making quick money, with utter disregard for the responsibility of business towards society. • The ethical and social behavior of corporations is essential for the generation of profit, owing its source to the reputation the corporation would acquire in view of its social behavior. ACCOUNTABILITY TO SOCIETY • In a democratic society, any kind of enterprise exists for the sake of society. • Industries are allowed to exist because they are perceived by the public to be useful in the attainment of the personal, social, and material goals of the people. • So, corporations exist for the sake the public, they are accountable to the public and have a social responsibility. CORPORATION’S DEBT TO SOCIETY • Corporations, whether public or private, draw much from society. • It depends on society for a developed infrastructure such as roads, water supply, electricity and an educated workforce. • It also depends on society for the maintenance of law and order, public health, transport facilities and for reaching out to its customers through the mass media. • Finally, all consumers of its finished products are drawn from society. If a corporation draws so much from society it has to make its own contribution to society. CSR as a business strategy for sustainable development • “CSR is about capacity building for sustainable livelihoods” • Manifold benefits to corporations both internally and externally. Socially Responsible Investing is gaining importance because :- • Socially responsible companies offer long term value • Evaluating a company’s social impact on top of its financial performance provides an additional hedge against the risk • SRI blunts adverse sentiments against the company “CSR is an outcome for business models, which goes just beyond financial viability.”
no reviews yet
Please Login to review.