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CH Two Social Responsibility Part Two

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CH Two Social Responsibility Part Two

Uploaded by

mzuody
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Corporate Social Responsibility

Part Two

Dr. Mohammad Alzuod


SOCIAL RESPONSIBILITY

• Social responsibility is an ethical theory in which organizations are accountable for


fulfilling their civic duty, and their actions must benefit the whole of society.

• It includes different actions a firm takes beyond what is legally required to protect or
enhance the well-being of living things.

• For example Ford plans to reduce their greenhouse gas emissions using their EcoBoost
engine to increase fuel efficiency that benefits the well being of society.
CONTINUED…

• Social responsibility of any business must be to make enough profit to


cover the costs of the future because if this is not achieved, no other
social responsibility can be met.

• Strategists should examine social problems in terms of potential costs and


benefits to the firm, and focus on social issues that could benefit the
firm most
IMPORTANCE OF SOCIAL RESPONSIBILITY

• It is in the long-term interest of the business to discharge its social obligations


by serving different interest groups such as employees, consumers,
government and citizens.

• A business devoted towards fulfilling its social responsibilities gathers a good


rapport with employees, suppliers, customers etc.

• Efficient social responsibility practices shows a sign of accountability to


investors.
CONTINUED…

• If a business organization fails to acknowledge and perform its


social duties, it is bound to lose its freedom and flexibility in
the long-run.
SOCIAL POLICY

• For implementing social responsibility practices, firms and businesses develops


a social policy framework that helps them to act upon.

• Social policy embraces managerial philosophy and thinking at the highest level
of the firm.

• Social policy concerns what responsibilities the firm has to employees,


consumers, environmentalists, minorities, communities, shareholders, and
other groups.
SOCIAL POLICY & STRATEGIC MANAGEMENT

• Corporate social policy should be designed and articulated during strategy


formulation, set and administered during strategy implementation, and
reaffirmed or changed during strategy evaluation.

• Some admired companies that adopted an appropriate social policy structure are
Starbucks, Walt-Disney, Marriot International, Edison and fortune brands etc.

• These firms strive to engage in social activities that have economic benefits.
CONTINUED…

• With Social policy, the organizations should ensure that all matters
of Corporate Social Responsibility must be supported in
operations and administrative matters and are consistent with
the company Stakeholders best interests.

• The social policies of firms also includes Engaging, learning from,


respecting and supporting the communities and cultures with
which they work.
SOCIAL POLICIES ON RETIREMENT

• Another aspect of developing social policies that firms consider are


social policies on retirement.

• Some countries around the world are facing severe workforce


shortages associated with their aging populations.

• For example, The percentage of persons age 65 or older exceeds 20 percent in


Japan, Italy, and Germany.
SOCIAL POLICIES ON RETIREMENT

• Worker shortages in countries around the world are leading to changes


in retirement and immigration policies.

• Work to retirement has played an important role in shaping the


experience of aging, serving as the boundary point for entry into
old age.
CSR and STRATEGY

• Workforce and their families as well as of the local community and society at
large (Figure-4).
• The European Commission says that being socially responsible means not
only fulfilling the legal expectations, but also going beyond compliance and
investing more into human capital, the environment and relations with the
stakeholders.
• Therefore, being socially responsible has become unavoidable for the social
problems in terms of potential costs and benefits to the firm and focus on
social issues that could benefit the company in the future.
• Many critics believe that a company should manage the bottom line,
measured in financial terms only, as that is what an investor would be
interested in. But, business leaders who plan on evolving long-term strategies
have understood the importance of CSR.
• They have been quick to understand the new ethos and have identified the
potential for triple bottom line benefits, namely economic bottom line, social
bottom line and environmental bottom line.
• A number of companies have started using this method of accounting which
expands the traditional reporting frameworks and takes into account the social
and environmental performance in addition to financial performance.
• It has become imperative to focus CSR during the process of formulating and
implementing strategies.
• While a company frames strategies to maximize the wealth of its
shareholders, it must take into account that main stakeholders of a company
includes shareholders, employees, the surrounding community, vendors and
customers also.
• It is important that every stakeholder’s interest be addressed and focused
while deciding strategies.
• CSR in relation to production processes can also be carried out to reduce
energy use, limit or alter material usage, reduce water use, save natural
resources, efficiently managing emissions etc.
• CSR activities can be broadly divided into four categories: Community,
Stakeholders, Production Processes, and Employee relations.
THANK YOU

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