2. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Social responsibility of business refers to what the business does,
over and above the statutory requirement, for the benefit of the
society. The word responsibility connotes that the business has some
moral obligations to the society.
3. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Responsibilities of Business
4. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Social Orientations and Involvement of Business
5. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Factors Affecting Social Orientation
Promoters and Top Management
Board of Directors
Stakeholders and Internal Power Relationship
Societal Factors
Industry and Trade Associations
Government and Laws
Political Influences
Competitors
Resources
Ethical Influences
6. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Claimants of Social Responsibility of Business
7. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Social Audit
According to Ahmed Belkaoui, “social audit much like the financial
audit – is an identification and examination of the activities of the
firm in order to assess, evaluate, measure and report their impact on
the immediate social environment.”
8. Himalaya Publishing House
Business Environment
Francis Cherunilam
Chapter 9
Social Responsibility of Business
Methods of Social Audit
i. Social Process Audit
ii. Financial Statement Format Audit
iii. Macro-Micro Social Indicator Audit
iv. Constituency Group Audit
v. Partial Social Audit
vi. Comprehensive Audit
vii. Corporate Rating Approach
