Objective of Presentation Objective of Business Responsibilities of Business Business of the Business CSR (Responsibility or Gimmick or Rule- Adherence) Illustrated Examples Conclusion
To study the objective and responsibilities of the business and how they are benefitting the society at large and how CSR activities are just an off-shoot of the profit but not an embedded part of the business.
The main objective of the businesses is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while con-forming to the basic rules of the society.
Businesses in capitalist economies, are privately owned and formed with a motive to earn profit to increase the wealth of owners. Business is a legal organization designed to provide goods or services to consumers.
Another responsibility of the business is towards their employee. So Business is the agent of the individuals and its primary responsibility is towards them. The business is anyway a agent, consists of principal (employee and stockholders).
The reason for differentiation between principal and agent is that a business can do good- but at its own expense, which is just impossible. Business would be spending someone elses money for a general social interest.
Actions in accord with "social responsibility" reduce returns to stockholders, it is spending their money. Actions raise the price to customers, it is spending the customers money. Actions lower the wages of some employees, it is spending their money. How much cost is business justi-fied in imposing on its stockholders, customers and employees for this social purpose?
Profit should not be a dirty word; its the lifeblood of a healthy economy and growing businesses. According to Collins and Porras ”Profit is like oxygen, food, water, and blood for the body; they are not the point of life, but without them there is no life.” Peter Drucker said that "Profitability is the sovereign criterion of the enterprise.“
Profit is the motive of business, for without it we face stagnation and prime realization should be to satisfy customer needs and/or wants. Even Adam Smith, Father of Modern Economics, talks only in terms of wealth as: Production of wealth Exchange of wealth Distribution of wealth Consumption of wealth.
Every business exists to provide its owners with a return on their capital. That return, or profit, is the reward for risk. Money is an integral part of operations and is going to be a driving force for businesses Take away the ability to make profit and the desire to work is limited. if a company doesnt make a profit on a sustained basis its very survival is at stake.
Even in the case of sole proprietorships and partnerships they exist for the well being of the proprietor and partners - while at the same time offering quality products and services to customers. Businesses are not charities and should not operate as such. Businesses exist to do profit. To think otherwise is to not understand entrepreneurship or how free market economies operate.
Business provide employment Business generate tax revenue for the government which can be used for the welfare of the people. Companies just by selling their product make everyday life easier or more enjoyable. Investing in R&D and coming out of with innovative product makes life better and raising the standard of living.
Businesses should be held responsible primarily for their products and the way they make them. Business actions should conform with rules and regulations. So business is definitely a profit making enterprise but benefit society getting out of it is also considerable.
The main aim of business is toi. Surviveii. Steady Profitsiii. Growth The social responsibility is an off-shoot of being profitable first. Business exists not to make profits so that it can give back through social causes. Profits should be used to expand.
Business is an enterprise expert in producing a product or selling it or financing it. That is what it should stick to. Rather than trying to provide benefit to the society by adhering to CSR and Ethical Standards, businesses should focus on providing quality products at reasonable price.
CSR approach by a company can improve the stature of the company in the perspective of the investment community, a company‟s stock market valuation, its capacity to access capital from that community and ultimately its goodwill. Example :- Satyam A key potential benefit from CSR initiatives involves establishing the conditions that can contribute to increasing the commitment and motivation of employees to become more innovative and productive.
CSR can effectively improve a company‟s relations with communities and thereby produce some key features that will improve business prospects for its future. CSR has been extensively used as a tool to clean their image by the companies. Example :- Reliance, BP., Etc.,
CSR is often used to „Greenwash‟ the company‟s image, to cover up negative impacts by saturating the media with positive images of the company‟s CSR credentials.” Likewise, companies like Apple tend to use CSR as a reaction to criticism, particularly when dollars are at stake, as opposed to an interwoven corporate strategy. The company has done this on multiple occasions relating to controversy of labor abuse at the Foxconn factory plant in China where products like the iPhone and iPad are assembled.
Similarly, in June 2012, Apple suddenly removed itself from the green technology certification program EPEAT, only to return a few weeks later as governments and corporate accounts threatened to cancel orders as a result of the decision. For many companies, it would seem that corporate social responsibility is more like a corporate social burden. So while CSR will continue to become an integrated part of the way businesses operate, it seems we are a quite a way off before they do so for the right reasons.
Footwear mogul Nike is still dealing with the backlash of a UK-instigated campaign that accused it of employing child labor in developing countries. It responded proactively with a rigorous CSR initiative, including the appointment of a director of sustainable development. In many markets, its reputation has been restored. In a recent survey of most „ethical‟ brands by country, however, Nike did not appear anywhere in the UK ranking
Operates in dump shed, sub-let by calcutta port. 3000+ employees 85% of the employee are unskilled and illiterate Tewari Warehouse makes a profit of 300 million INR The company is operating from past 5 decades in kolkata.
Tata global beverages HUL Global Exports (Aditya Birla Group) ITC Bhansali Girnar
Tea is a very popular and refreshing beverage. Employing downtrodden people of the society. When the company earns the profit, it share with it employees, and pays more tax to the govt. This company fulfills SHE, HACCP ( health related)
The truck they use for their transportation is always in good condition and comply with all the rule requires. They conserve energy. Tewari Warehouse Co. contributes to the GDP of the country. Helps in exporting tea.
Recently kolkata port increased the rent by 250% (in that region) Tewari Tea Warehouse went along with few dump shed tenants to the authorities saying „ we might closed down due to this hike‟ The now the port is charging 120% hike.
"there is one and only one social responsibility of business–to use it resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.“