4. • Being Socially
Responsible means
that people and
organizations must
behave ethically and
with sensitivity
toward social,
cultural, economic
and environmental
issues.
4
5. • Social responsibility is a duty of every individual has to
perform so as to maintain a balance between the economy
and the ecosystems.
• Striving for social responsibility helps individuals,
organizations and governments have a positive impact on
development, business and society with a positive
contribution to bottom-line results.
• It pertains not only to business organizations but also to
everyone whose any action impacts the environment.
• This responsibility can be passive , by avoiding engaging in
socially harmful acts, or active , by performing activities that
directly advance social goals. 5
7. • Refers to obeying
governmental laws and
regulations
• civil law:
- rights & duties of individuals
& org.
• criminal law:
- prohibits specific actions &
imposes fines / imprisonment
as punishment for breaking
the law
7
8. • Behaviors and activities that
are expected or prohibited by
organizational members, the
community, and society (not
codified into law)
• Standards, norms, or
expectations that reflect the
concern of major stakeholders.
8
9. • How resources for the
production of goods and
services are distributed
within the social system.
• Consumers always favor
socially responsible
companies or they most
enamored with companies
that maximize profits.
9
10. • Business’s contributions to
society
• Strategic philanthropy
- Charitable trusts
- Microsoft companies
10
11. DISCRETIONARY
Responsibilities
Be a good Corporate Citizen.
Contribute resources to the
community; improve quality of life.
ETHICAL
Responsibilities
Be ethical.
Obligation to do what is right,
just and fair; Avoid harm.
LEGAL
Responsibilities
Obey the Law
Law is society’s codification of right and wrong;
Play by the rules
ECONOMIC
Responsibilities
Be Profitable
The foundation upon which all others rest
Carroll’s Model
The Pyramid of Social Responsibility
12. • Student social responsibility, known as SSR, is the
responsibility of every student for his or her actions.
• It is morally binding everyone to act in such a way that the
people around them are not adversely affected.
• SSR is based on an individual's ethics.
• It may be impractical, especially in the modern competitive
world, where everyone works for their self-interest, but will
succeed if we take decisions based on what will benefit a large
number of people and respect everyone’s fundamental rights.
• As individuals we can make our small contributions to society
by donating money to trustworthy, saving our resources by
reducing our consumption, E.g. by switching off lights or
computers when not in use.
12
13. • Corporate social responsibility is nothing but how the business
takes responsibility for social, economic and environmental
impacts it may produce from its operation or products.
• Corporate social responsibility (CSR, also called corporate
responsibility, corporate citizenship, and responsible business)
• Organization’s obligation to make decisions and take actions
that will enhance the welfare and interests of society and
organization.
• Being a good corporate citizen.
• Organizations voluntarily taking further steps to improve the
quality of life for employees and their families as well as for the
local community and society at large.
13
14. • ISR is about an individual becoming responsible in his/her
actions that have affect on communities outside his/her
immediate circle.
• The immediate circle being family and friends.
• There can be an argument about also including family and
friends, but it would be rather pertinent to include them as part
of Individual Personal Responsibility.
• ISR expands on this by promoting a proactive stance towards
positively influencing and affecting the people and
environments outside your immediate circle.
• ISR is at the roots of CSR, because a corporate comprises of
individuals and hence determines the social responsibility
culture it creates. This is the intermingled relationship between
CSR and ISR.
14
16. Businesses response to social responsibility tend to fall within four
categories:
•So cialO ppo sitio n: View taken by business is that they have no
obligation to the society in which they operate.
•So cialo blig atio n: Companies believe that they have an obligation
to obey the law.
•So cialre spo nse : Position taken by companies which believe that
their social responsibilities are as dictated by law and will on
selective basis go beyond the legal requirements. These units may
volunteer to participate in limited socially responsible efforts, but
not until they are convinced that the benefits outweigh the costs.
•So cialco ntributio n: Position taken by Companies which believe
that they have a deep obligation to serve the society.
16
17. • Business enterprises are
creatures of society and
should respond to the
demands of society.
• If the management does
not react to changes in
social demands, the
society will either force
them to do so through laws
or will not permit the
enterprise to survive.
• Therefore the long-term
interests of business are
best served when
management assume
social responsibilities. 17
18. • The image of business
organization are liked with
the quality of its products
and customer service and
the extent to which it fulfills
the expectations of owners,
employees, consumers,
government and the
community at large.
• For long-term success it
matters a great deal if the
firm has a favorable image
in the public mind.
18
19. • Every business enterprise
is a organ of society and its
activities have impact on
the social scene.
• Therefore, it is important for
management to consider
whether their policies and
actions are likely to
promote the public good,
advances the basic values
of society, and constitute to
its stability, strength and
harmony.
19
20. • Increasing concern for the
social responsibility of
management, it is now
recognized that besides
taking care of the financial
interest of owners,
managers of business firms
must also take into account
the interest of various other
g ro ups such as employees,
consumers, the government
and the community as a
whole.
20
21. • The primary
responsibilities of
management is to assure
a fair and reasonable rate
of return on capital and
fair return on investment
can be determined on the
basis of difference in the
risks of business in
different fields of activity.
• With the growth of
business the
shareholders can also
expect appreciation in the
value of their capital.
21
22. • Management
responsibility towards
employees relate to the
fair wages and salaries,
satisfactory work
environment, labor
management relations
and employee welfare.
• Fair wages should be
fixed in the light of labor
productivity, the prevailing
wage rates in the same or
neighboring areas and
relative importance of
jobs.
22
23. • Manager’s salaries and
allowances are expected to
be linked with their
responsibility, initiative and
skill.
• But the spread between
minimum wages and
highest salaries should be
reasonable.
• Employees are expected to
build up and maintain
harmonious relationships
between superior and
subordinates.
23
24. • In a competitive
market, serving
consumers is
supposed to be a
prime concern of
management.
• But in reality perfect
competition does not
prevail in all product
markets. In the event
of shortage of supply
there is no automatic
correction.
24
25. • Consumer interests
are thus protected to
some extent with laws
and pressure of
organized consumer
groups.
• Management should
anticipate these
developments, satisfy
consumer needs and
protect consumer
interests.
25
26. • Goods must be of
appropriate standard
and quality and be
available in adequate
quantities at
reasonable prices.
• Management should
avoid resorting to
hoarding or creating
artificial scarcity as
well as false and
misleading
advertisements.
26
27. • As a part of their social
responsibility,
management must
conduct business affair in
lawful manner, honestly
pay all the taxes and
dues, and should not
corrupt public officials for
selfish ends.
• Business activities must
also confirm to the
economic and social
policies of the
government.
27
Wages and Salari
28. • The socially responsible
role of management in
relation to the community
are expected to be
revealed by its policies
with respect to the
- employment of handicapped
persons & weaker sections
of the community.
- environmental protection
- pollution control
- setting up industries in
backward areas
- providing relief to the victims
of natural calamities etc.
28
Wages and Salari
29. > A
llSo cialre spo nsibility, bo th individualand
co rpo rate , is vo luntary.
> I
t is abo ut g o ing abo ve and be yo nd what is calle d
fo r by the law (le g alre spo nsibility).
> I
t invo lve s an ide a that it is be tte r to be pro active
to ward a pro ble m rathe r than re active to a pro ble m .
> So cialre spo nsibility m e ans e lim inating co rrupt,
irre spo nsible o r une thicalbe havio r that m ig ht bring
harm to the co m m unity, its pe o ple , o r the
e nviro nm e nt be fo re the be havio r happe ns.
29
