7/30/2019 BEth 8 CSR 1

1/9

Corporate Social Responsibility

Human Welfare and improving the Quality

of Life in Society

7/30/2019 BEth 8 CSR 1

2/9

Business is dependent on society. Is existence is

due to the people living within a social structure

To survive and thrive Business should earn the

goodwill of people

Companies relate to society through more than just

market place transaction

They serve a wide range of values than the

traditional economic ones (Companies are more

than economic institutions)

7/30/2019 BEth 8 CSR 1

3/9

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4/9

Growth responsibility:

Best way to survive and grow in the long run is to

operate profitably by serving customer responsibly

Long term orientation:Require loyal brand of customers, repeat customers

Goodwill cannot be bought, begged or borrowed

Reputation of company (through care and concern)

Give and take relationship: Business takes much

from society also owes something to society

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5/9

External Society Internal

Government Shareholders

Law Business Employees

Suppliers

Specl interest groups Financial Institutions

Customers

7/30/2019 BEth 8 CSR 1

6/9

FFirm

PoliticalGroups

Owners Financial

community

Activist

Group

Customers

Customer

Advocategroups

Unions

Suppliers

Competitors

Trade

AssoEmployees

Government

7/30/2019 BEth 8 CSR 1

7/9

Optimum use of scarce national resources

Not to waste, misuse, damage or cause to deteriorate

Alternate use, crucial option ( opportunity cost)

Responsibility not to make losses( KF airlines)

Improved Quality of Life

Responsibility of employment and income

Offering quality product and fair price

7/30/2019 BEth 8 CSR 1

8/9

Environmental protection (cement /chemical companies)

Fair Trade practice ( as per MRTP act)

Charging fair and reasonable price

Offering quality products as per claim and promiseMaking goods available to Mkt ( no artificial scarcity)

Not indulging in black marketing

Not making misleading claims in advertisement

Making prompt payment of loans and borrowingPaying corporate tax, duties and dues

Not bribing public servant, or political favours

7/30/2019 BEth 8 CSR 1

9/9

Safeguarding heath and wellbeing of consumersPoor QC, substandard products, date exp. goods,

poor storage, chemical causing skin damage

CSR ( TATA, ITC, ACC, P& G, Infosys, Microsoft)

Business creates wealth for the community hence it

needs to make profits. It is ethical to make profits &

generate revenue for s.holders, employees, creditors