Jayashree Sadri and Sorab SadriEthics and Corporate SocialResponsibilities.PROFESSOR JAYASHREE SADRIANDDR SORAB SADRI
Jayashree Sadri and Sorab SadriLogic Of Ethical Organizations Ethical Organizations need to be valuecentered. Value centered organizations have a positiveand mutually beneficial link with civil society. This link is primarily fulfilled through CSRinitiatives.
Jayashree Sadri and Sorab SadriWhat Is C S R ? Corporate Social Responsibility is nothingbut what an organization does to influencethe society in which it exists. It could takethe form of community relations, volunteerassistance programmes, specialscholarships, preservation of culturalheritage and beautification of the city.
Jayashree Sadri and Sorab SadriMutual Expectations Any business needs a stable social environmentthat provides a predictable climate for investmentand trade. At the same time, society also hasexpectations from the business. In this manner,businesses and society are interdependent andbusinesses must take full account of societalexpectations.
Jayashree Sadri and Sorab SadriOrganization and Society It is a well accepted fact that an organizationexists within a given society. Its activities influence the social environment justas the social environment influences itsactivities. So CSR is increasingly being viewed, not only asmaking good business sense, but alsocontributing to long term prosperity of thecompanies and ultimately its survival.
Jayashree Sadri and Sorab SadriA Boundary Less Universe The span of this social environment hasexpanded along with the breaking down ofinternational trade barriers, the globalization ofmarkets and the evolution of the concept of aglobal village. The organizations socialresponsibility has similarly expanded to engulfpeoples and regions outside an organizationsimmediate business domain.
Jayashree Sadri and Sorab SadriC S R As A Societal Need As corporate houses grow in strength in a rapidlyglobalising environment, their contribution to thedevelopment of society becomes increasinglypertinent. The emergence of CSR has been critical formillions of people left below the poverty line.Innovative partnerships between businesses,governments and civil societies hold the potentialto touch the lives of millions, leading to enhancedquality of living through better access toessential services.
Jayashree Sadri and Sorab SadriCSR As A Brand Builder The challenge for successful company in the Indian as wellas the Global Economy is to build and maintain efficient,effective and fair relationships with its global and localstake holders. An increased brand value, greater access to finance,stronger risk management and corporate governance,healthier and safer work place, motivated people, customerloyalty and enhanced confidence and trust are the benefitsof excellent CSR.
Jayashree Sadri and Sorab SadriQuid Pro Quo? Along with rights and privilegescome duties and obligations. Thecorporations enjoy certain rights andprivileges by way of governmentpolicy ,legislation, custom andpractice. The corporations fulfilltheir obligations and duties byundertaking their socialresponsibilities.
Jayashree Sadri and Sorab SadriChanging Perceptions In a manner of speaking, this could also be thecorporations way of answering critics of bigbusiness who saw nothing but faults in them. (e.gCommunists) As society evolved, attitudes towards bigbusiness have changed. In India we haveembarked upon a change in attitude towardsbusiness since liberalization, privatization andglobalization as well as during the unfolding ofthe post WTO scenario.
Jayashree Sadri and Sorab SadriConsumer Choice Options With this change came a change in the nature ofmarkets and competition. Market emphasismoved from the consumer sector (ration cardsand queues for everything) to the producer sector(quality, price and value addition). The choicesfor the consumer were hitherto limited but nowthey have been increased since there are moreplayers in the arena of business. After all, economic development brings in itswake an increase in the number of available andaffordable choices.
Jayashree Sadri and Sorab SadriThe Coexistence Need The basic question that arises when we speak ofcorporate social responsibility is “How should welive in relation to one another? Society and corporations must co-exist and eachmust contribute to the well being of the otherwhile seeking that other members of society donot suffer. It should be a win-win situation wherethe quality of life all around improves.
Jayashree Sadri and Sorab SadriQuality of Life The essence of Corporate SocialResponsibility is the continuingcommitment by business to behaveethically and contribute to economicdevelopment while improving the qualityof life of not only its work force but theirfamilies as well as civil society at large.
Jayashree Sadri and Sorab SadriViews From time to time politicians and self styledmoral policemen of society make statements onCSR. These are emotionally or politicallymotivated more often than not and seldom arisefrom serious study or thought. However, there are also some accepted anddefinite views held by social thinkers on whatsocial responsibility is or means to differentcorporations and people. We shall review themost important among these views and find a linkbetween all of them.
Jayashree Sadri and Sorab SadriATTITUDES TOWARDS BUSINESS ANDGOVERNMENT. Andrew Carnegie and the Gospel of Wealth.Charity Principle: Those in society who were morefortunate should assist those others who were lessfortunate.Stewardship Principle: Business and wealthy individualsshould view themselves as steward or caretakers holdingtheir property in trust for the benefit of society as a whole.
Jayashree Sadri and Sorab SadriMilton Friedman and Honest Profit. According to Milton Friedman the purpose ofbusiness is to make profit and that is all.According to him, the only social responsibility ofbusiness is to use its energies and activitiesdesigned to increase its profits as long as it stayswithin the rules of the game and engages in openand free competition without deception andfraud. Business is the custodian of the investor’sinterests.
Jayashree Sadri and Sorab SadriFriedman’s Concept of SocialIgnorance He says that corporate officials are in no positionto determine the relative urgency of socialproblems or the amount of organizationalresources required to be committed for aproblem. Business should produce goods and servicesefficiently and leave the solution of socialproblems to concerned individuals (NGOs) and tothe Government Agencies whose business is tosafeguard the interests of the (tax paying)citizens .
Jayashree Sadri and Sorab SadriKEITH DAVIS AND ENLIGHTENED SELFINTEREST He propounded the Iron Law of Responsibility. Inthe long run those who do not use their power ina manner that society considers responsible, willtend to lose it. This is often referred to as Enlightened SelfInterest where organizations realize that it is intheir own best interest to act in a way thatcommunity considers socially responsible. InUSA there is a 5% club where a group ofcompanies donate five percent of their profits tocharity.
Jayashree Sadri and Sorab SadriROBERT ACKERMAN AND CORPORATESOCIAL RESPONSIVENESS. The issue is no longer responsibility but one ofcorporate responsiveness. The question arises as to how do organizationsbecome aware of and then respond to socialissues. The theory of Corporate SocialResponsiveness focuses on how companiesrespond to issues rather than trying to determinetheir ultimate social responsibility.
Jayashree Sadri and Sorab SadriARCHIE CARROLL AND SOCIAL PERFORMANCE He combines social responsibility and socialresponsiveness to form a social action approach. This islike the sociologists who examine the causes and effects ofcustoms and practices within social groups.Corporate policies and decision can reflect one of thesefour stances :1. Reactive2. Defensive3. Accommodative4. Proactive
Jayashree Sadri and Sorab SadriSOME SOCIAL WORKUNDERTAKEN BY BPCL Infrastructure Development:Provision for drinking water, tube wells,borewells, construction of schools, community halls,health center, construction of sanitation block topromote hygiene, street lights, etc.
Jayashree Sadri and Sorab SadriBPCL Continued Education Support:Provision of uniforms, notebooks, stationery, teachingmaterial , educational aids, sweater and food supplements,educational scholarships to children from economicallybackward classes for pursuing their studies, vocationalguidance for higher secondary children throughexperienced psychologists.
Jayashree Sadri and Sorab SadriB P C L Cont’d. Health Care: Regular health checkup for villagers by doctors,provision of free medicine for minor ailments,guidance on family welfare and general healthcare, free medical dispensaries, cataract surgery.
Jayashree Sadri and Sorab SadriBPCL Cont’d. Skill enhancementAdult education, modern farming practices,distribution of fruits saplings, cattle camps,training on income generation vocations, helpingwomen promote awareness on social issues,organizing regular lectures for women on familylife and education.(Source : Economic Times)
Jayashree Sadri and Sorab SadriConclusion The basis of social responsibility lies in valuesand beliefs of the organization, that in turn formthe backbone of ethics and so it is not wise toseparate the two. Indeed a corporation’s social role is based onand flows from its Business Ethics. How this assists in promoting the corporatebusiness interest is another aspect of study.
Jayashree Sadri and Sorab SadriWe shall consider motivations for CSRlater on.THANK YOU