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Unit 3: Corporate Social Responsibility

This document discusses corporate social responsibility (CSR) and corporate philanthropy. It provides perspectives on CSR from Dr. Manmohan Singh and Mahatma Gandhi. CSR involves companies voluntarily pursuing social and ethical goals and considering stakeholders like customers, employees and communities. The document also discusses classical and socio-economic models of business. It outlines today's approach to CSR, forms of corporate philanthropy, and the differences between CSR and philanthropy.

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Abhinav Pandey
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28 views

Unit 3: Corporate Social Responsibility

This document discusses corporate social responsibility (CSR) and corporate philanthropy. It provides perspectives on CSR from Dr. Manmohan Singh and Mahatma Gandhi. CSR involves companies voluntarily pursuing social and ethical goals and considering stakeholders like customers, employees and communities. The document also discusses classical and socio-economic models of business. It outlines today's approach to CSR, forms of corporate philanthropy, and the differences between CSR and philanthropy.

Uploaded by

Abhinav Pandey
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Unit 3

Corporate Social Responsibility

Why Social Responsibility of Business?

Different perspectives of CSR


According to Dr. Manmohan Singh, CSR is no philanthropy. It is no charity. It is an investment in our collective future. Mahatma Gandhi said, Wealth created from society has to be ploughed back into society

Thus,
1. It is an attempt made by companies to be voluntarily responsible to ethical & social consideration It is a set of obligations to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives & values of our society

2.

3.

It is the overall relationship of the corporate with all its stakeholders. These include customers, employees, communities, owners, suppliers & competitors
It covers the economic, legal, ethical & environmental expectations society has placed on organizations at a given point of time

4.

The Classical Economic Model


Adam Smith, father of the classical economic model, believed that an invisible hand promoted the public welfare Smith believed that the public interest was best served by individuals pursuing their own self-interests

The Socio economic model


Business is seen as one sub-system Recognizes that companies have stakeholders other than their stockholders Business has an obligation to respond to the needs of all stakeholders while pursuing profit

Todays CSR
Today CSR is to ensure the betterment of the society in which its functions It includes: 1. Configuration of principles of social responsibility 2. 3. Process of social responsiveness Policies, programmes & outcomes as they relate to the firms societal relationships

Models of Corporate Responsibility


Ethical model: In the ethical model, there is a voluntary commitment to public welfare In India, it has its roots in the Gandhian philosophy trusteeship

E.g; Tatas, Birlas, Infosys, Reliance Industries- who have provided cash for the social welfare projects, community investment trusts & schools
Many companies, particularly family-run business, continue to engage in philanthropic activities based on this model

Corporate Philanthropy
It means doing good to others. It refers to charity which promotes general welfare It is thus the love for mankind, expressed in terms of charity for promoting the welfare & progress of society as a whole

Forms of Corporate Philanthropy


Concern for the welfare of the immediate members of the corporate body: the staff & the employees Innovative contribution by visionary business leaders in quest of personal satisfaction The desire to establish a strategic relationship with the State or society led some corporate bodies to invest in the establishment of institutions that fulfill the specific requirements of the community

Features of Corporate Philanthropy


It involves offering companys resources for the general good of the society It is voluntary act involving no legal binding The purpose may be charitable, social, human or selfless service

Reasons for Corporate Philanthropy


Economic Motives Non-Economic Motives

Benefits
It enhances the public image & reputation of the corporation It strengthens the employees commitment It sustains health & welfare of the local community where the companys productive facilities are located

CSR VS. Corporate Philanthropy


CSR It is wider perspective. It focuses on profits, people & planet Philanthropy It has a narrow perspective. It focuses on charitable activities of the company

It deals with business basics & ethics

It deals with humanitarian cause

It focus on long-run sustainability of the company

It focus on short- term viability of the company

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