CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ETHICS

1. CORPORATE SOCIAL
RESPONSIBILITY (CSR) AND
ETHICS
BY :
MEHTA AENIL 130470119075

2. Definition
What is Corporate Social Responsibility?
‘Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving
the quality of life of the workforce and their families as well as of the local
community and society at large’.
– World Business Council For Sustainable Development

3. Definition
What is Corporate Social Responsibility?
The responsibility of business towards the society
Corporate Social Responsibility

4. Mutual Expectations
• Any business needs a stable social environment that
provides a predictable climate for investment and trade. At
the same time, society also has expectations from the
business. In this manner, businesses and society are
interdependent and businesses must take full account of
societal expectations.

5. A Boundary Less Universe
• The span of this social environment has expanded along
with the breaking down of international trade barriers, the
globalization of markets and the evolution of the concept of
a global village. The organization's social responsibility has
similarly expanded to engulf peoples and regions outside an
organization's immediate business domain.

6. A Societal Need
• As corporate houses grow in strength in a rapidly globalizing
environment, their contribution to the development of
society becomes increasingly pertinent.
• The emergence of CSR has been critical for millions of people
left below the poverty line. Innovative partnerships
between businesses, governments and civil societies hold
the potential to touch the lives of millions, leading to
enhanced quality of living through better access to essential
services.

7. A Brand Builder
• The challenge for successful company in the Indian as well as the Global
Economy is to build and maintain efficient, effective and fair
relationships with its global and local stake holders.
• An increased brand value, greater access to finance, stronger risk
management and corporate governance, healthier and safer work place,
motivated people, customer loyalty and enhanced confidence and trust
are the benefits of excellent CSR.

8. Changing Perceptions
• In a manner of speaking, this could also be the corporations
way of answering critics of big business who saw nothing but
faults in them. (e.g. Communists)
• As society evolved, attitudes towards big business have
changed. In India we have embarked upon a change in
attitude towards business since liberalization, privatization
and globalization as well as during the unfolding of the post
WTO scenario.

9. Consumer Choice Options
• With this change came a change in the nature of markets
and competition. Market emphasis moved from the
consumer sector (ration cards and queues for everything) to
the producer sector (quality, price and value addition). The
choices for the consumer were hitherto limited but now they
have been increased since there are more players in the
arena of business.
• After all, economic development brings in its wake an
increase in the number of available and affordable choices.

10. Quality of Life
• The essence of Corporate Social
Responsibility is the continuing commitment
by business to behave ethically and
contribute to economic development while
improving the quality of life of not only its
work force but their families as well as civil
society at large.

11. Other importance of corporate social
responsibility
• Good media coverage
• A favorable environment for workers
• Nonprofits advantages

12. Ethics: What Does It Really Mean?
Definitions
• Ethics involves a discipline that examines good
or bad practices within the context of a moral
duty
• Moral conduct is behavior that is right or
wrong

13. Introduction
Inventory of Ethical Issues in Business
• Employee-Employer Relations
• Employer-Employee Relations
• Company-Customer Relations
• Company-Shareholder Relations
• Company-Community/Public Interest
13

14. 14
Three Domains of Human Action
Amount of
Explicit Control
High Low
Domain of Certified Law
(Legal Standard)
Domain of Ethics
(Social Standard)
Domain of Free Choice
(Personal Standard)

15. Sources of Ethical Norms
15
Fellow Workers
Family
Friends
The Law
Regions of
Country
Profession
Employer
Society at Large
Fellow Workers
Religious
Beliefs
The Individual
Conscience

16. Making Ethical Judgments
16
Behavior or act
that has been
committed
Prevailing norms
of acceptability
Value judgments
and perceptions of
the observer
compared with

17. Satya
Ahinsa
Sarvoday
Aparigrah
17
HINDUISM
JUDAISMCHRISTIANITY
ISLAAM
TAOISM
BUDDHISM
CONFUCIANISM
BAHAISM
UNIVERSAL VALUES : GANDHIAN ETHICS

18. Gandhian Approach
• He believed a business could and should be
conducted with complete honesty.
• Indeed, a business that was run honestly would be
more successful than one which was not.
• In business as well as personal life he subscribed to
the view : "Honesty is the best policy." A business
person had every right to earn a livelihood from their
business, although if vast income was earned from
the business, the business person should give what
he or she did not need to the community.
18

19. Trusteeship
• In his theory of trusteeship, Gandhi perceived
business as a form of service to the
community.
• Gandhian approach to business ethics relate
to today as much as to his lifetime.
• Gandhian thought need to go undergo
interpretation because of development the
business has undergone during last 50 years.
19

20. Gandhi and business ethics
• Business is a way to foster neighborliness, to
bring members of a community together and
a means by which people can love and serve
one another.
• Dr. Stephen Kovey one of world’s leading
management consultants and author of the
best selling book “The Seven habits of Highly
Effective People” says in his book:
20

21. Mahatma Gandhi said :
• That seven things will destroy us:
Wealth without work ,
Pleasure without conscience ,
Knowledge without character ,
Commerce ( business ) without morality ( ethics ) ,
Religion without humanity ,
Politics without principle.
21

22. importance

23. THANK YOU