Culture,Role of Culture in Business and CSR Activities in Business Environment.

1. Business Culture And
CSR Activities
Presented by-
Jasmeet
Muskan
Harshita
Chauhan
Jasmine
Kesar
Shivam

2. Topics To Be Discussed -
Business Culture
-Meaning of Culture
-Elements of Culture
-Organisation of Culture
-Culture and Globalization
-Ethics in Business
-Culture and Organisational Behavior
Corporate Social Responsibility
-Definition
-Objectives for CSR
-Why should managers follow CSR?
-Benefits
-Limitations
-Arguments for CSR
-Arguments against CSR
-Components of CSR
-General Value statements

3. BUSINESS CULTURE
Meaning Of Culture
“Culture of civilization is that complex
whole which includes knowledge, beliefs,
arts, morals, law, custom and other
capabilities and habits acquired by a man
as a member of society”
-E.B
Tylor

5.  Culture has an impact on the strategic
direction of business and it influences
management, decisions and all business
functions from accounting to production.
 Business culture is related to behavior,
ethics and etiquettes in an organization. A
business culture will encompass as
organization's values, visions, working
style, beliefs and habits.

6. Elements Of Culture
 Knowledge and Beliefs
The knowledge and beliefs refer to
people’s ideas/thoughts of reality.
 Ideals
Ideals refer to the societal norms which
define what is expected, customary,
proper in given situation
 Preferences
Preferences refer to society’s definitions
of those things in life which are attractive
or unattractive as objects of desire.

7. Organisation Of Culture
 The term organisation culture refers to
the social structure and the integration
of traits and patterns that make up the
cultural system.
 The organisation of culture
substantially depends on a multitude
of institutions which set goals, norms
and procedures for group activities.

8. Culture and Globalization
As one moves from one country to
another there comes an element of
‘Cultural shock’ i.e. confusion,
disorientation and emotional upheaval
e.g. an executive transferred from India
to Japan will require lot of adjustment to
make. So to overcome ‘Cultural shock’
there is need for understanding and
appreciating cultural differences across
the countries.

9. Ethics in Business
Ethics refers to the code of conduct that
guides an individual in dealing with others.
IMPORTANCE -
 It corresponds to basic human needs.
 Values create credibility with the public.
 Values give management credibility with
employees.
 Values help better decision making.
 Ethics and profit go together.

10. Culture and Organisational
Behavior
The cultural impact on management is
reflected by several basic beliefs and
behaviors.
Below are the examples where culture of a
society can directly affect management
approaches and organisational behavior.
 Centralized vs. Decentralized Decision
Making
In some societies, all important organizational
decisions are made by top managers. In
others, these decisions are diffused throughout
the enterprise, and the middle and lower level
managers actively participate in and make key
decisions.

11.  Safety vs. Risk:
In some societies, organizational decision
makers are risk-aversive and have great
difficulty with conditions of uncertainty. In
others, risk-taking is encouraged and
decision making under uncertainty is
common.
 Individual vs. Group Reward:
In some countries, personnel who do
outstanding work are given individual
rewards in the form of bonuses and
commissions. In others, cultural norms
require group rewards, and individual
rewards are frowned on.

12.  Informal vs. Formal Procedure:
In some societies, much is accomplished
through informal means. In others, formal
procedures are set forth and followed
rigidly.
 High vs. Low Organisational Loyalty:
In some societies, people identify very
strongly with their organisation or employer.
In others, people identify with their
occupational group, such as engineer or
mechanic.

13.  Cooperation vs. Competition:
Some societies encourage cooperation
between their people. Others encourage
competition between their people.
 Stability vs. Innovation:
The culture of some countries
encourages stability and resistance to
change. The culture of others puts high
value on innovation and change.

14. Corporate Social Responsibility
 CSR is a management concept whereby
companies integrate social and environmental
concerns in their business operations and
interactions with their stakeholders.
Eg.-
 Our Chitkara University has adopted 6 villages
around the campus as its corporate social
responsibility , facilitating villagers with
employment and free education.
 The Delhi Metro Rail Corporation has opened
an Old Age Winter Home for senior citizens at
Govindpuri in South Delhi.

16. Objectives For CSR
 Positive contribution to society,
 Minimising any negative effects on the
natural environment,
 Overall development of locality,
 Prevention of environmental pollution.

17. Why Should Managers Follow
CSR?
Consumers & investors:
 growing expectation for organizations
to behave responsibly
Consumer awareness:
 ‘Green’ and 'Ethical’ consumerism
Legislation:
 Health & Safety , EPA, Sustainability,
 Codes of Practice
Globalization:
 Adoption of ‘Best Practice’,
 Consumer & Legal Acceptance.

18. Benefits
 Differentiate yourself from competitors:
If you want to stand out from your
competition, it pays to do business differently.
 Generate Positive Publicity:
Through CSR, business have great publicity in the
society.
 Improves your business reputation and
standing.
 Address Customer Pain Points:
If you want to win customer over, a great way
to do that is to alleviate their pain.

19. Limitations
 High Cost:
It costs a lot of money if a business pay more
attention towards the social responsibilities.
 Goals Of Business:
If business pay more stress on social
responsibility, it loses focus on achieving
business goals.
 Divert resources:
For improving the business into other social
responsibility projects which could put a
company at a competitive disadvantage.
 Reduced Efficiency:
Efficiency may be reduced by acting in a socially
responsible manner.

20. Arguments for CSR:
 Public Expectations,
 Long Run Profits,
 Ethical Obligation,
 Public Image,
 Better Environment,
 Discouragement of further government
regulation,
 Superiority of prevention than cure

21. Arguments Against CSR?
1. Violation of profit maximisation
2. Costs
3. Too much power
4. Lack of skills
5. Lack of accountability

22. The four components of CSR:
1) Economic
2) Legal
3) Ethical
4) Discretionary

23. General values statement
 Organizations should develop a
general values statement which
reflects their stance towards CSR
 This may form part of a more
comprehensive Mission Statement
 Should define ethical framework that
guides the accomplishment of the
overall mission of an organization
within a society

24. THANK YOU