Professional Documents
Culture Documents
Agenda
1. Overview of Corporate Social Responsibility
2. Research findings / Trends
3. Discussion
(2) (2) To Fulfill Long-run Self-interest: A business organization is most sensitive to community needs, in its own self-interest, like to have a better community in which to conduct its business.
So..
How do we prioritize stakeholders in a global economy?
What are the relationships between business and society? Musts? Obligatory ought? Discretionary?
A STAKEHOLDER MAP
Mass media Pressure groups Shareholders Employees Governments
Political parties
Private sector
Company
Professionals
Customers
Suppliers
International Organizations
Environment Immediate community Society as a whole Financial Investors Shareholders Regulators Lenders Insurers
Marketplace
Customers / consumers Suppliers Partners Competitors
Community
Neighbors Charities Social service agencies Local government Media
Corporation
NGOs
Global employee s
Suppliers
Religious influences
Shareholders
Communities
Best Way for Company to Make Positive Contribution to Society (Globe Scan Survey)
Examples
Donating computers to a school Building a playground Developing a website for a charity Enabling your employees to volunteer for a charity
What the media say Companies that dont keep a firm grip on staff working conditions, the activities of their suppliers, or the amount of pollution they cause, are more likely to be shut down by the authorities or boycotted by the public.
Nokia
Make a Connection
Economic
Efficient operation to satisfy economic needs of the society and generation of surplus for rewarding the investors and further development.
Legal
Legal responsibilities are also fundamental in nature because a company is bound to obey the law of the land.
Ethical
Ethics is principles, value and beliefs that define what is right and wrong behavior. For example, a company shall not resort to bribing or unethical practices, unfair competition.
Establishing Of Ethics
Company policy Formal rules and regulation Performance appraisal system Reward allocation
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Appointment ethics committee Create a strong culture Motivation Teaching ethics Values self-confidence
Discretionary
Discretionary responsibilities refer to the voluntary contribution of the business to the social cause, like involvement in community development or other social programmer for example adult or poor children education etc.
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To provide assistance in the field of developmental research on education, medical science, technology etc. To conserve natural resources and wildlife. To promote sports and culture Regular supply of goods and services. Goods and services at reasonable and affordable price.
As early as the 1940s, they founding father Shri G.D Birla espoused the trusteeship concept of management.
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ADITYA BIRLA GROUP Employment generate, give training in village3700 village and 7 million people touching annually. Balwadis (pre-school) Adult education on-formal education Continuing education Scholarships for girls, merit and technical education TATA GROUP To provide education+traning in rural area. DHAN Academy & Shri Ratan Tata Trust, give education pre-school to college. and give JRD TATA Scholarship for higher education.
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ADITYA BIRLA GROUP They provide medical facility to employee and they establish a hospital in rural area. Infrastructure development Roads, Dams Community centers, Houses Culverts Electricity, Water channels Schools TATA GROUP TATA group arrange medical camp in rural as well as urban area. they provide special medical facility to their employee. They build many house and give lower price to poor people.
Infosys
Focuses on the underprivileged in rural areas, healthcare for the poor education rehabilitation and promotion of Indian art and culture. Infosys Hyderabad development centre has launched a computer literacy programme for Cyderabad police personnel
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Canon Home Eye care project Humanitarian aid and disaster relief Art, culture and sports Education and science Local communist Social welfare Conservation of environment
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Axa
STAKEHOLDERS
The stakeholders of an organization are all those who participate in the activities of the organization. It may be
1.
Any group of people who have stake in the business. 2. Those who are vital to the survival and success of the organization. 3. Any group that is affected by the activities of the organization. Stakeholder may be internal or external.
Shareholder
Share holder are considered to be the owners of the corporation. Shareholders are considered `members` of the company who help to achieve the companys goals by investing in the business. So that it is a first responsibility of the company to protect the interest of the shareholder.
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Shareholders responsibilities. Responsibilities of the organization towards the shareholders.
Consumers
The customer is the foundation of a business of a business and keeps it in a existence. Consumers provides lifeblood of the firm in the form of revenue.
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The responsibilities of business corporations towards their consumers are summed up by the five Rs- the right quality, right quantity right time, right place and right price. A few of these responsibilities are :
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Features of social responsibility Three types of behavior. Social obligation to fulfill. Obligations according to social norms and expectations.
SOCIAL AUDIT
Public image.
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Particular
7.Training & career development
Amt.
Amt.
8.P.f, gratuity, bonus & insurance 9.Holiday,leave encashment & leave travel benefit 10.Other benefits. Total benefit to staff
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Particular B.Social costs to staff
1.Lay off & involuntary termination 2.Extra hours put in by officers voluntarily
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Particular II. Social benefit & costs to community A. Social benefit to community
1.Local taxes paid to panchayat/ municipality 2.Environmental improvements 3.Generation of job potential 4. Generation of business
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Particular B.Social Costs to Community
1.Increase in cost of living in the vicinity on account of the cement plants
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Particular III. Social Benefit & Costs to General Public A.Social benefits to general public
1.Tax, duties, etc, paid to State government 2.Tax, duties etc. paid to central government Total benefit to general public
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Particular B. Social costs to general public
1. State services consumed -electricity 2.Central services consumed telephone, telegraph,postal services & banking. Net social benefit to general public III(A-B)
Definition of Employee
An employee is anyone who has agreed to be employed, under a contract of service, to work for some form of payment. This can include wages,salary,commision and piece rates
Employees In Organization
Employees have direct interest in an organisation.
Management should develop administrative process in such way that promotes cooperative endeavour between employees & employers.
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The establishment of fair work Standard & Norms. Reasonable chances and proper system for Accomplishment & Promotion. Proper recognition, appreciation & encouragement of special skill & capabilities of the Employees.
society hence they tend to be accountable to the society. 2. A resourceful business holds responsibility towards the society. a special
3. By involving in social activities businesses can develop harmonious relationships between the society and business and this will be mutually
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4. Businesses being social responsible will be able to avoid additional government regulation and intervention. 5. It helps to create better public image for the company, which may help it in attracting customers, efficient personnel and investors.
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3. The cost of social involvement is mostly passed on to the consumer in the form of increased prices, hence there seems to be no point in pursuing something which will eventually put the burden on the society itself. 4. The business managers are usually adept at handling business activities but may be poorly skilled in managing social activities.
Conclusion
Business is part of society and business is also known as person in language of the law. Initially, it is difficult to express social incurred by a corporate enterprise and social benefits generated in money terms, until suitable methodologies are available for conversional of social costs benefits transaction in money terms, It need to further research in this area. but business should give contribution to develop of society, using some techniques.
Bibliography
Business Environment by Dr. Francis Cherunilam Management Concept & Contemporary Practice The Mercantile law. by N.K. Kapoor. Annul Report of RELIANCE LTD.(07-08) Annul Report of INFOSYS LTD.(07-08) Annual Report of ADITYA BIRALA GROUPS.(07-08) Annual Report of TATA MOTORS LTD.(07-08) Annual Report of ONGC LTD.(07-08) web site: http://www.adityabirla.com http://www.bing.com http://csr-news.net/main http://google.com