Presented by Group No 1 [one] :

Parul Sharma 01
Akanksha Pande 11
Nishidha 21
Neha Roy 31
Devyani Kute 41
Neha Saxena 61
O

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Ê   is the code of moral principles and values that
governs the behavior of a person or group with respect
to what is right or wrong.
Ê ¦
sets standards as to what is good or bad in conduct
and decision making
Ê  
deals with internal values that are a part of
corporate culture and shapes decisions concerning
social responsibility with respect to external
environment.

6
Ê ]aw often represents an ethical minimum
Ê Ethics often represents a standard that exceeds the
legal minimum

7
ë=tilitarian Approach

ëIndividualism Approach

ëMoral-Rights Approach

ëJustice Approach
orporate social responsibility (SR):
^ An obligation, beyond that required by the law
and economics, for a firm to pursue long term
goals that are good for society .
^ The continuing commitment by business to
behave ethically and contribute to economic
development while improving the quality of life
of the workforce and their families as well as that
of the local community and society at large.
^ About how a company manages its business
process to produce an overall positive impact on
society.
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è onducting business in an ethical way and in the
interests of the wider community
è Responding positively to emerging societal priorities
and expectations
è A willingness to act ahead of regulatory confrontation
è Balancing shareholder interests against the interests of
the wider community
è Being a good citizen in the community

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In broad terms, SR relates to responsibilities

corporations have towards society within which they
are based and operate, not denying the fact that the
purview of SR goes much beyond this. SR is
comprehended differently by different people.

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companies manage the business processes to
produce an overall positive impact on society.[

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SR(corporate social responsibility)  

 

  
     
 
    
   



       

        
 
    
  


    
     
         


  


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è Dor example, after 1945, TATA implemented social
welfare provisions for its employees that have since
become the legislative norm. Drom the perspectives of
customers, RS activities may include commitment to
product quality, fair pricing policies, and so.
è TVS Electronics was involved in SR during the
Tsunami to provide relief measures to the victims.
They have also participated with the government to
improve sanitation in a village called Tiruvidenthai.
Such initiatives will help in improving the conditions
of rural people.
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Ê an organizationǯs obligation to maximize its
positive impact on stakeholders and to minimize its
negative impact
Ê includes legal, ethical, economic, and
philanthropic (discretionary) dimensions
Ê The first criteria of social responsibility is economic
responsibility

Ê The business institution is the basic economic unit of

society. Its responsibility is to produce the goods and
services that society wants and to maximize profits for
its owners and shareholders.
Ê refers to obeying governmental laws and
regulations
Ê civil law: rights & duties of individuals and
organizations
Ê criminal law: prohibits specific actions and imposes
fines and/or imprisonment as punishment for
breaking the law
Ê behaviors and activities that are expected or prohibited
by organizational members, the community, and
society (not codified into law)
Ê standards, norms, or expectations that reflect the
concern of major stakeholders
Ê businessǯs contributions to society

Ê also called discretionary responsibility

Ê purely voluntary and is guided by a companyǯs desire

to make social contribution not mandated by
economics, laws or ethics
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Balances corporate power
with responsibility.
Discourages government
regulation.
Promotes long-term profits
for business.
Responds to changing
stakeholdersǯ demands.
orrects social problems
caused by business.
]owers economic
efficiency and profit.
Imposes unequal costs
among competitors.
Imposes hidden costs passed on
to stakeholders.
Requires social skills business
may lack.
Places responsibility on business
rather than individuals.
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X The only social responsibility of business is to create shareholder
wealth.
X orporate management cannot decide what is in the social interest.
X The costs of social responsibility which do not increase the value of
stock, will be passed on to consumers.

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X All customers and employees are treated with dignity.
X Relationships with suppliers must be based on mutual trust.
X Belief in fair economic competition.
X Business can contribute to social reform and honor human rights.
SR behaviour can benefit the firm in several
Ways:
Ê It aids the attraction and retention of staff
Ê It attracts green and ethical investment
Ê It attracts ethically conscious customers
Ê It can lead to a reduction in costs through re-cycling
Ê It differentiates the firm from its competitor and can
be a source of competitive advantage
Ê It can lead to increased profitability in the long run

xidas 12/30/2010 29
Ê There is clearly an overlap between SR and business
ethics
Ê Both concepts concern values, objectives and decision
based on something than the pursuit of profits
Ê And socially responsible firms must act ethically
Ê The difference is that ethics concern individual
actions which can be assessed as right or wrong by
reference to moral principles.

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