This document discusses various ethical theories and their relationship to corporate social responsibility (CSR). It describes virtue ethics, utilitarianism, Kantianism, and contrasts individual versus social ethics. The document then defines CSR and explains how CSR relates to the triple bottom line of economic, social and environmental obligations. It discusses the drivers of CSR both from internal stakeholders like management as well as external stakeholders. The document also outlines the CSR requirements under the Indian Companies Act of 2013.
OBJECTIVES OF CORPORATE GOVERNANCE
● To enhance long term Shareholders value
● To Protect shareholders interest
● To conduct the affairs of the company in a manner that ensure
fairness to customers, employees, investors, vendor. government
etc.
● To Maximize shareholders value
● To build up confidence and increasing the thrust of stakeholders
● To enhance efficiency and effectiveness through fair and transparent means
● To shape the growth and the future capital market
● To Minimize securities scam
OBJECTIVES OF CORPORATE GOVERNANCE
● To enhance long term Shareholders value
● To Protect shareholders interest
● To conduct the affairs of the company in a manner that ensure
fairness to customers, employees, investors, vendor. government
etc.
● To Maximize shareholders value
● To build up confidence and increasing the thrust of stakeholders
● To enhance efficiency and effectiveness through fair and transparent means
● To shape the growth and the future capital market
● To Minimize securities scam
Legality is only a first step
Questions to ask: When faced with a potentially unethical action.
Management’s role
Compliance/Integrity based codes
Corporate social responsibility
A definition and stakeholders
Meaning of CSR
Social Responsibility theories
Pyramid of CSR
Contemporary CSR
Corporate Sustainability
Reputation Management
Environmental aspect of CSR
Companies Practices : Environmental aspect of CSR
CSR models
Triple bottom Line
Drivers of CSR
CSR and business ethics
Cases on CSR
CSR and corporate governance
Social responsibility of business towards different sections of society .Reasons for the development of social responsibility concept,Arguments against social responsibility,
Social activities undertaken by some companies
Legality is only a first step
Questions to ask: When faced with a potentially unethical action.
Management’s role
Compliance/Integrity based codes
Corporate social responsibility
A definition and stakeholders
Meaning of CSR
Social Responsibility theories
Pyramid of CSR
Contemporary CSR
Corporate Sustainability
Reputation Management
Environmental aspect of CSR
Companies Practices : Environmental aspect of CSR
CSR models
Triple bottom Line
Drivers of CSR
CSR and business ethics
Cases on CSR
CSR and corporate governance
Social responsibility of business towards different sections of society .Reasons for the development of social responsibility concept,Arguments against social responsibility,
Social activities undertaken by some companies
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1. ETHICAL THEORIES & CSR.
Prepared by
Mr. B.M.Naik, Teaching Asst.
Dept. of Studies in Commerce
Rani Channamma University, Belagavi
PG Centre, Jamkhandi.
4. Virtue ethics:
• Concept of virtue ethics: it speaks about traits
or character of organisation or individual that
directly or indirectly impact on behaviour of
organisation of individuals.
• Virtue ethics is a broad term for theories that
emphasize the role of character and virtue
in moral philosophy rather than either doing
one’s duty or acting in order to bring
about good consequences.
5. Contents of virtue ethics:
• Positive attitudes
• Courage and forgiveness
• Friendliness
• Loyal, self control
• Creativity
• Tolerance
• Broad minded
• Straight forward
6.
7. Socialism v/s Individual Ethics:
• Socialism :a political and economic theory of social
organization which advocates that the means of
production, distribution, and exchange should be
owned or regulated by the community as a whole.
• The term socialism refers to any system in which the
production and distribution of goods and services is a
shared responsibility of a group of people. Socialism
is based upon economic and political theories that
advocate for collectivism. In a state of socialism,
there is no privately owned property.
8. It states that,
• Proper utilisation of society resources
• Creation of job opportunities
• Not encourage to pollute the environment
• Contribution towards infrastructure
• Act within the rules and regulations
• Preservation of scarce resources
• Fair practices relating to manpower management
9. Individual Ethics:
• Personal ethics is a category of philosophy
that determines what an individual believes
about morality and right and wrong. ... These
branches of ethics come from outside
organizations or governments, not
the individual's conscience.
•
10. • Every individual or employees should have the
following characteristics or individual ethics as
follows:
Dedication, Integrity, Accountability, Collaboration,
Personal values, Transparent, love and kindness.
the organization should adopt all these ethical
values in our business activities and in our duties
with helps to get publicity earned maximum profit
or it helps to develop the org., and helps to
overcome the all the threats and problems.
11. CSR
• Corporate social responsibility (CSR) is a self-
regulating business model that helps a
company be socially accountable—to itself, its
stakeholders, and the public. By practicing
corporate social responsibility, also
called corporate citizenship, companies can be
conscious of the kind of impact they are
having on all aspects of society, including
economic, social, and environmental.
17. CSR and BE
• It comprises,
• Fair practices to all business areas
• Takes care about protect the environment
• It attain the manpower management
• It avoid the harmful business
• It ensures what to do within provisions of
business organisation.
18.
19. CSR & CG
• Corporate Governance deals with set of rules,
norms, procedures, policies, guidelines etc
that an ensuring to protect organisational
interest and stakeholders interest.
20.
21. It states that,
• It ensures fairness, accountability,
transparency, fair practices etc
• It faciliates to control unpfair trade practices
• It attains the organisational aspirations
• It specifies the obligations and authorities of
different levels of management.
31. Drivers of CSR:
• Internal Stakeholders: Chairman or CEO, Board
of Directors, management, Employees.
• External Stakeholders: Customers, Creditors,
Govt.,Suppliers, Debtors etc.
32.
33. The Global Reporting Initiative (known
as GRI) is an international independent
standards organization that helps
businesses, governments and other
organizations understand and
communicate their impacts on issues
such as climate change, human rights
and corruption.
34. • Its applicable to : MNCs, Public Undertaking,
Small and medium enterprises
• It facilitates to improve business standards
• To encourage to third party to assess to
environmental aspects of business
organisation.
35. CSR and Companies Act 2013
• The Ministry of Corporate Affairs has notified
Section 135 and Schedule VII of
the Companies Act 2013 as well as the
provisions of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 to come into
effect from April 1, 2014.
36. • With effect from April 1, 2014, every company,
private limited or public limited, which either
has a net worth of Rs 500 crore or a turnover
of Rs 1,000 crore or net profit of Rs 5 crore,
needs to spend at least 2% of its average net
profit for the immediately preceding three
financial years on corporate social
responsibility activities.
37. • The CSR activities should not be undertaken in
the normal course of business and must be
with respect to any of the activities mentioned
in Schedule VII of the 2013 Act. Contribution
to any political party is not considered to be a
CSR activity and only activities in India would
be considered for computing CSR expenditure.
38. • in determining CSR activities to be undertaken,
preference would need to be given to local areas
and the areas around where the company
operates.
• To formulate and monitor the CSR policy of a
company, a CSR Committee of the Board needs to
be constituted. Section 135 of the 2013 Act
requires the CSR Committee to consist of at least
three directors, including an independent
director.
39. • Companies can also collaborate with each
other for jointly undertaking CSR activities,
provided that each of the companies are able
individually report on such projects.