This document discusses the social responsibilities of businesses. It defines social responsibility as a moral obligation for businesses to consider the interests and welfare of society beyond just their own economic interests. The document then outlines the specific responsibilities businesses have to various stakeholders like shareholders, customers, employees, creditors, government, and the community. It provides examples of responsibilities to each group such as paying taxes, providing quality products at fair prices, treating employees well, and contributing to community development. Overall, the document presents the concept of corporate social responsibility and details how businesses should balance the needs of different stakeholders in society.

1. Social Responsibilities
of Business
Course: MBA
Subject: Introduction to Management
Unit: IV

2. BUSINES
S
SOCIETY
Manpower
(labor,
employee)
Energy
Money
Skills
Thoughts
Raw
materials
Status
Machinery
Land
profit
gives

3. SOCIETY
includes
•Share holders
•Customers
•Employees
•Creditors
•Govt
•Community

4. •Definition:
•S.R. is a moral obligation toward society that a
business has to fulfill
•S.R. involves the efforts of businessmen to safeguard
long-term interest and welfare of society.
•Decisions and actions beyond the firm’s direct
economic/profit interest
•As business takes so many things from society, it’s a
moral duty of business to give something back to
society.

5. Companies with CSR
12
34

6.  Business must give a fair return on capital
 Providing regular and full info about org.(future
plan, changes, working of org. etc.)
 Dividend on time
•Responsibility towards shareholders

7. •Responsibility towards customers
 Business should provide goods and services at reasonable
prices
 Providing better quality- standardized goods (ex. ISI)
 Solving consumers’ complaint
 Collecting info. About needs, preferences, likes-dislikes
(survey-research)
 Details of weight, price, exp.date, should be on packing
 Honest advertising
 After sales services
 Humble behavior
 Sufficient quantity

8.  Business should pay salary on time
 Security of job
 Improve motivation and efficiency
 Participation in management
 Promotion on right time
 Training and development
 Recognition and dignity
 Solving grievances and complaints
 Other benefits (p.f., gratuity, incentive, music, mobile, car, allowances,
food)
•Responsibility towards employees

9.  Paying interest on time
 Giving all info of working org.
 Developing good relations
 To use Money for productive purposes only
•Responsibility towards the creditors
(Trade creditors, debenture holders, depositors, commercial
banks, and financial institutes)

10. •Responsibility towards the govt.
Pay taxes regularly
Following rules
Avoiding bribe and corruption
Providing proper info. About org.

11. Continuous flow of goods and services
Employment opportunities
Preventive measures against air, water, land pollution
(Conserving ecological balance)
Contributing for schools, libraries, hospitals
Setting example for others. Ex. Hindustan lever ltd (adopting
village)
Uplifting the society by various campaigns (ex.idea’s power
saving hour)
•Responsibility towards the
community/nation

12. Intro to mgt.
Ethics in Management

13. Example
Intro to mgt.
 Ex, code of ethics by vodafone,
http://www.vodafone.com/start/about_vodafone/corporate_governance/c
ode_of_ethics.html
 promote honest and ethical conduct, including the ethical handling of
actual or apparent conflicts of interest;
 promote the full, fair, accurate, timely and understandable disclosure of the
Company's financial results in accordance with applicable disclosure
standards, including, where appropriate, standards of materiality;
 promote compliance with applicable governmental laws, rules and
regulations;
 deter wrong doing; and
 require prompt internal reporting of breaches of, and accountability for
adherence to, the Code.

14. Ethics
Intro to mgt.
 The code of moral principles and values that govern the
behaviors of a person or group with respect to what is
right or wrong.
• Rules and principles that define right and wrong
conduct

15. Example A code of ethics, also called a code of conduct or ethical code, sets out
the company's values, ethics, objective and responsibilities. A well-
written code of ethics should also give guidance to employees on how to
deal with certain ethical situations. Every code of ethics is different and
should reflect the company's ethos, values and business style. Some
codes are short, setting out only general guidelines, and others are large
manuals, encompassing a huge variety of situations.
 Kraft
 The Kraft code of ethics contains just 10 short rules of ethical behavior
that all employees must follow. The introduction to the Kraft code of
ethics suggests that employees should let values guide their actions in
all cases. The code also stresses that if something seems wrong, it
should be addressed directly. The code includes a speaking-up policy
that requires employees to speak up if they are aware of any violations
of the code, even those they have committed themselves. The 10 rules
are: Make food that is safe to eat; market responsibly; treat people
fairly; respect the free market; compete fairy; respect the environment;
deal honesty with the government; keep honest books and records;
never trade on inside information; give Kraft Foods your complete
business loyalty.

16. Verizon
 The Verizon code of ethics is a lengthy document that
contains four short core values, followed by 16 pages of
specific rules and guidelines to follow in certain
situations. The core values are integrity, respect,
performance excellence and accountability. The specific
guidelines cover situations, such as how to deal with
workplace violence, alcohol use and harassment. They
also cover areas of integrity and fairness, such as how to
avoid conflicts of interest and how to safeguard company
information. There is also a section on protecting
Verizon's company assets, including what to do in cases
of sabotage and how to create accurate records.

17. Colgate-Palmolive
 The Colgate-Palmolive code of ethics is a long
document, but is broken down into individual areas
of conduct. The code is intended as a guide to all
daily business interactions and is used in
conjunction with the company's business practice
guidelines. The code covers 10 areas, including: Our
Relationship with Each Other; Our Relationship with
the Company; Our Relationship with Consumers;
Our Relationship with Government and the Law;
Our Relationship with Society and Our Relationship
with the Environment.

18. Ex. Of bus. ethics
Intro to mgt.
 To give fair and equitable treatment to the
employees
 To charge fair price from the customers.
 To use fair weights for measurement of commodities
 To pay taxes to govt., and other bodies honestly
 To earn reasonable profit
 To become a good corporate citizen

19. Theory Z
William Ouchi, a management researcher developed
this new theory of management in the 1980s
Theory Z is a business management theory that
integrates Japanese and American business
practices. The Japanese business emphasis is on
collective decision making, whereas the American
emphasis is on individual responsibility.

20. Japanese Type Organization
1. Lifetime employment
2. Collective decision making
3. Collective responsibility
4. Slow evaluation and promotion
5. Implicit (understood, implied) control
mechanisms
6. Non-specialized career path
7. Holistic concern for employee as a person

21. American Type Organization
1. Short-term employment
2. Individual decision –making
3. Individual responsibility
4. Rapid evaluation and promotion
5. Explicit (clear, precise, unambiguous) control
mechanisms
6. Specialized career path
7. Segmented concern for employee as an
employee.

22. Theory Z Type Organization
1. Long-term employment
2. Consentual, participative decision-making
3. Individual responsibility
4. Slow evaluation and promotion
5. Implicit, informal control with explicit, formalized
measures
6. Moderately specialized career path
7. Holistic concern, including family

23. THANK YOU

24. References:
1.https://c1.staticflickr.com/5/4047/4580879161_457a3eae00.jpg
2.www.Rai university.edu
3.https://lh5.ggpht.com/ErVxE7kJ34vo36pUY5qIrmx3dUoBP9jQKXpRwOFTjW
NRleexDhaiYX13tLdRUV2flHjy5pw=s123
3. https://lh5.ggpht.com/5ZyVY8zT89I1a-
Zlxx_F71Dt9z1oHpfBoqhq41uunnya22HTKovXjCdGtqzG3eJh9oUJ=s85