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Unit 4-Social Responsibility

The document discusses social responsibility and approaches to social responsibility. It outlines four approaches from lowest to highest: social obstruction, social obligation, social response, and social contribution. It also discusses areas of social responsibility towards investors, consumers, employees, government, and community. The document then covers social audit, models/approaches to social auditing, consumerism, consumer rights, and consumer laws in Nepal.

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Prabal Shrestha
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161 views

Unit 4-Social Responsibility

The document discusses social responsibility and approaches to social responsibility. It outlines four approaches from lowest to highest: social obstruction, social obligation, social response, and social contribution. It also discusses areas of social responsibility towards investors, consumers, employees, government, and community. The document then covers social audit, models/approaches to social auditing, consumerism, consumer rights, and consumer laws in Nepal.

Uploaded by

Prabal Shrestha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Social Responsibility

It is the obligation to protect social norms and rules. Keith Davis and Rebert L. Blomtrom, Social responsibility refers to the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interest.

Approaches to Social Responsibility


Social Social Social Social Obstruction Obligation Response Contribution

Lowest 1. Social Obstruction:

Highest

Traditional & Classical view of social responsibility. Motive is to earn profit for shareholders or owners. Do little for society and if possible they avoid.

Contd
2. Social Obligation:
Managers emphasize in earning profit & only consider legal requirements regarding social responsibility.

3. Social Response:
Voluntarily agree to participate and must convinced that programs are worthy enough.

4. Social Contribution:
Seek opportunities to contribute in social program. Believe that civilized society can create favorable environment to the business.

Areas of Social Responsibility


A. Towards Investors (Shareholders):
Ensure safety of capital investment. Provide fair and regular return on investment. Offer participation in planning & policy making.

B. Towards Consumers:
Supply quality goods in time & in reasonable price Provide after sales service & avoid unfair trading.

C. Towards Employees:
Provide job security, fair wages & other benefits. Provide good environment & career growth.

Contd
D. Towards Government:
Follow rules, regulation & pay tax honestly. Support to solve national problems.

E. Towards Community:
Check environmental pollution, maintain ecology. Create employment opportunities. Maintain and develop social cultural values and norms.

Social Audit
Acc to Belkaoui (1984), It is much like a financial audit is an identification & examination of the activities of the firm in order to assess, evaluate, measure & report their impact on immediate social environment.
i. Identification firms activities that impact in terms of social cost/benefits Assessment & Evaluation categorization of firms impact either positive or negative Measurement using quantitative & qualitative tool Reporting disclosure of firms performance

Models & Approaches/Procedure


Social Process Audit
Measures effectiveness of banks towards social programs. Its elements are:
Historical Perspective auditor analyze actual reason & objectives for social program that helps in formulating realistic objective and future possibilities. Cost analysis Includes, direct , allocated & opportunity costs Benefit analysis

Contd
Financial Statements Format Audit
Main idea is preparation of annual statements; balance sheet, income statement. It reflects costs and expenditure made for the welfare of employees & public

Macro Micro social Indicator Audit


Macro social indicator measures social standards set by the society. Micro social indicator measure performance of an individual society.

Contd
Corporate Rating Approach
Known as social audit. They evaluate, rate, rank leading organization in their effort to keep public to make suitable choices.

Consumerism
Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts. Consumerism refers to the consumerists movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards.

Consumer Rights
Right to Information Right to choose Right to safety Right to quality Right to be heard Right to protest

Consumerism in Nepal
Legal Frameworks are;
Black Market and Some Other Social Crime Punishment Act, 1977 Food Act, 1966 Consumer Protection Act, 1998 Nepal standardization Act, 1980

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