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Corporate Social Responsibility
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Social Responsibility...
An organizations obligation to maximize
its positive impact on stakeholders and tominimize its negative impact
Includes legal, ethical, economic, and
philanthropic dimensions
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Legal Dimension...
Refers to obeying governmental laws andregulations
Civil law: rights & duties of individuals andorganizations
Criminal law: prohibits specific actions andimposes fines and/or imprisonment as
punishment for breaking the law
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Ethical Dimension...
Behaviors and activities that are expected or
prohibited by organizational members, the
community, and society (not codified intolaw)
Standards, norms, or expectations that
reflect the concern of major stakeholders
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Economic Responsibilities...
How resources for the production of goods
and services are distributed within the social
system
Consumers favor socially responsible
companies not companies that maximize
profits.
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Philanthropic Dimension...
Businesss contributions to society
Strategic philanthropy
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Other Dimensions...
Social obligation
Social reaction
Social responsiveness
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Foundation principles of
corporate social responsibility
Charity rinciple Stewardshiprinciple
Definition y Business should givevoluntary aid to
societys needy persons
and grou
ps
y Business, acting as a publictrustee, should consider the
interests of all who are
affectedb
ybu
sinessdecisions and policies
Type ofactivity
y Corporate philanthropy
y Voluntary actions topromote the social good
y Acknowledging business
and society interdependence
y Balancing the interests andneeds of many diversegroups in society
xamplesy
Corporate philanthropicfoundations
y Private initiatives tosolve social problems
y Social partnerships withneedy groups
y Enlightened self-interest
yMeeting legal requirements
y Stakeholder approach tocorporate strategic planning
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The pros and cons of corporate
social responsibilityArguments for corporate
social responsibilityArguments against corporate
social responsibility
Balances corporate power
with responsibility.
Discourages government
regulation.
Promotes long-term profits
for business.
Responds to changing
stakeholders demands.
Corrects social problems
caused by business.
Lowers 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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The multiple responsibilities of business
Economic
esponsibility
Legal
esponsibility
ocial
esponsibility
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Two views of corporate social
responsibility
The shareholder view
The only social responsibility of business is to create shareholder
wealth.
Corporate management cannot decide what is in the socialinterest.
The costs of social responsibility which do not increase the value
of stock, will be passed on to consumers.
The multiple stakeholders view
All customers and employees are treated with dignity.
Relationships with suppliers must be based on mutual trust.
Belief in fair economic competition.
Business can contribute to social reform and honor human rights.
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Contrast between corporate social
responsibility, corporate socialresponsiveness, and corporate citizenship
orporate social
responsibility
orporate social
responsiveness
orporate citizenship
Origin 1920s 1960s 1990s
asis
Principles o
charity and
ste ardship
emands made by
numerous social
stakeholder groups
uilding collaborative
partnerships ith
stakeholder groups
Focus
Moral
obligations to
society at large
Practical responses by
businesses to
corporatestakeholders
iscovering business
opportunities through
partnerships
ction
Philanthropy,
trustee o the
publics
interests
ocial programs
Managing corporate
social and inancial
per ormance
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Principles of corporate citizenship
Good corporate citizens strive to conduct all business dealings in an ethical
manner, make a concerned effort to balance the needs of all stakeholders,
while working to protect the environment.
1) Engages in fair and honest business practices in its relationship with stakeholders.
2) Sets high standards of behavior for all employees.
3) Exercises ethical oversight of the executive and board levels.
4) Strives to manage the company for the benefit of all stakeholders.
5) Initiates and engages in genuine dialogue with stakeholders.
6) Values and implements dialogue.7) osters a reciprocal relationship between the corporation and community.
8) Invests in the communities in which corporation operates.
9) Respects the rights of consumers.
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Principles of corporate citizenship
10) Offers quality products and services.
11) Provides information that is truthful and useful.
12) Provides a family-friendly work environment.
13) Engages in responsible human-resource management.
14) Provides an equitable reward and wage system for employees.
15) Engages in open and flexible communication with employees.
16) Invests in employee development.
17) Strives for a competitive return on investment.18) Engages in fair trading practices with suppliers.
19) Demonstrates a commitment to the environment.
20) Demonstrates a commitment to sustainable development.
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Social responsibility ofTISCO (as per
Mission)
1. Shareholders
i. By protecting and safeguarding their investment; and
ii. By ensuring to them fair return
2. Employees
i. By a realistic and general understanding and acceptance oftheir needs and rights and enlightened awareness of the social
responsibilities of industry;
ii. By providing adequate wages, good working conditions, job
security, effective machinery for speedy redressal of
grievances, and suitable opportunities for promotion and self-
development;
iii. By promoting feelings of trust and loyalty through a human
and purposeful awareness of their needs and aspiration; and
iv. By creating a sense of belongingness and team-spirit through
their closer association with management at various levels.
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Social responsibility ofTISCO contd
3. Customersi. By products of proven quality at a fair price;
ii. By fulfilling its commitments impartially and courteously in
accordance with sound and straightforward business principles; and
iii. By bearing their counting confidence in its productive ability and itstechnical competence to keep improving the quality of its products.
4. Community
i. By respecting the dignity of the individual and acting according to the
ideas of social justice;
ii. By encouraging talent and promoting civic sense among members of
the community;
iii. By availing of opportunities to develop the democratic qualities
involved in collective work undertaken in the interest of the
community
iv. By assuming its proper share of social responsibilities in the
community in which the company operates