corporate social responsibility assignment

Business and Society BMAN10/FT

“…if companies behave irresponsibly,

in social or environmental terms,

then no amount of good-giving will tilt

their overall contribution to the

society back from the negative to the

positive. A pirate throwing

doubloons to a better may claim to be a

philanthropist, but that hardly makes him a

responsible businessman.”

Lord Holme Rio Tinto

“I firmly believe as do many others, that voluntary business

initiatives in the form of corporate social responsibility can play a key role in contributing to sustainable development, while enhancing a

country’s innovative potential and competitiveness”

European Commission Vice President Gunten Verheugen, November 2006

Literature Review

lthough the subject “Corporate Social Responsibility” in its present form and

content has gained popular attention only in recent years, its origin can be traced

back to the evolution of the concept of a welfare state.AAs the pace of industrialization quickened employers became more and more

concerned with the loss of productivity efficiency due to avoidable sickness or accidents or

stoppage of work due to bad personal relationships. This gave rise to the idea of a welfare

state, which was further strengthened by the growth of democracy and of respect to human

dignity during the last 150 years. The frame work of a welfare state and with it the concept

of social responsibility have thus come to stay in many countries of the world.

The changing image of business in the

recent years has lent further support to the idea of social responsibility. Some public opinion

have left businessman disenchanted. It was revealed that the businessman is viewed as an

individual who does not cares for others, who ignored social problems, who prey upon the

population, who exploits labor, and who is a selfish money grabber.

On the other hand, until these opinions were unveiled, the businessman believed that

others viewed him as he viewed himself, as a practical, down-to-earth, hardworking,

broadminded, progressive, interesting and a competitive free enterpriser. He believed that

the society looked up at him as a self sacrificing community leader, pillar of society,

generous to a fault, great supporter of education, patron of the arts, in short, the salt of the

earth. Indeed, the businessman in the early days thought of himself as a happy mix of Plato,

Gandhi, and Churchill.


‘CSR is not solely about promulgating the values and

principles of your company. It is about your company understanding

and taking account of the values and principles of everyone who has

a stake in its operation’

What is CSR?

SR is a concept that frequently overlaps with similar approaches such as

corporate sustainability, corporate sustainable development, corporate

responsibility, and corporate citizenship. While CSR does not have a

universal definition, many see it as the private sector's way of integrating the

economic, social, and environmental imperatives of their activities. As such, CSR closely

resembles the business pursuit of sustainable development and the triple bottom line. In

addition to integration into corporate structures

and processes, CSR also frequently involves

creating innovative and proactive solutions to

societal and environmental challenges, as well as

collaborating with both internal and external

stakeholders to improve CSR performance.

C

Definition

According to the guidelines on Corporate Social Responsibility (CSR) designed by

the National Empowerment Foundation (NEF), Corporate Social Responsibility (CSR) is

the concept whereby companies act to balance their own economic growth with the

sustainable social and environmental development of their areas of operation. A company

performing highly in CSR is one that goes beyond compliance with the legal framework to

actively pursue positive impacts on local communities and its environmental footprint.

The Government of Mauritius has established a policy with the overall objective of

mandating registered companies to pay 2% of their book profit towards programmes that

contribute to the social and environmental development of the country. Specific objectives

of this fund are to:

Encourage companies to manage their own programmes, impacting the intersection

of economic with social and environmental development

Facilitate the contribution of companies to support existing Approved National

Programmes implemented by Companies, national agencies or NGOs

Promote a functional community on NGOs with complementary workplans that are

relevant to the national development programme


‘Power cannot be separated from responsibility. For markets to

expand in a sustainable way, we must provide those currently

excluded with better and more opportunities to improve their

livelihoods’

The Government of Mauritius has also given the CSR a legal framework, stipulating

that ‘any company making profit is required as per Section 50K and 50L of Income Tax Act

to contribute 2% of their book profit after income tax, in compliance with prevailing

legislation, to set up a CSR Fund to finance CSR activities, excluding companies holding a

Global Business Licence Category 1 under the Financial Services Act, secondly Incomes of

banks derived from transactions with non-residents and corporation holding a Global

Business Licence, IRS Company and non-resident societe, a trust or a trustee of a unit trust

scheme.’

Thus, corporate social responsibility is necessarily an evolving term that does not

have a standard definition or a fully recognized set of specific criteria. With the

understanding that businesses play a key role on job and wealth creation in society, CSR is

generally understood to be the way a company achieves a balance or integration of

economic, environmental, and social imperatives while at the same time addressing

shareholder and stakeholder expectations. CSR is generally accepted as applying to firms

wherever they operate in the domestic and global economy. The way businesses engage or

involve the shareholders, employees, customers, suppliers, governments, non-governmental

organizations, international organizations, and other stakeholders is usually a key feature of

the concept. While business compliance with laws and regulations on social, environmental

and economic objectives set the official level of CSR performance, CSR is often understood

as involving the private sector commitments and activities that extend beyond this

foundation of compliance with laws.

From a progressive business perspective,

CSR usually involves focusing on new

opportunities as a way to respond to interrelated

economic, societal and environmental demands in

the marketplace. Many firms believe that this

focus provides a clear competitive advantage and stimulates corporate innovation.

"More and more companies are accepting corporate citizenship as a new strategic

and managerial purpose requiring their attention. Once seen as a purely charitable activity—

a source of general goodwill, with no bottom-line consequence--citizenship is moving from

the margins of concern to the center at leading companies."


‘CSR is about taking personal responsibility for your actions and

the impacts that you have on society. Companies and employees

must undergo a personal transformation, re-examine their roles, their responsibilities and

increase their level of accountability.’

Today, there are many references to

corporate social responsibility (CSR), sometimes

referred to as corporate citizenship, in our

workplaces, in the media, in the government, in our

communities. While there is no agreed-upon

definition, the World Business Council for

Sustainable Development defines CSR as the

business commitment and contribution to the

quality of life of employees, their families and the local community and society overall to

support sustainable economic development. Simply put, the business case for CSR--

establishing a positive company reputation and brand in the public eye through good work

that yields a competitive edge while at the same time contributing to others--demands that

organizations shift from solely focusing on making a profit to including financial,

environmental and social responsibility in their core business strategies. Despite what the

phrase corporate social responsibility suggests, the concept is not restricted to corporations

but rather is intended for most types of organizations, such as associations, labor unions,

organizations that serve the community for scientific, educational, artistic, public health or

charitable purposes, and governmental agencies.

CSR is generally seen as the business contribution to sustainable development which

has been defined as "development that meets the needs of the present without compromising

the ability of future generations to meet their own needs", and is generally understood as

focusing on how to achieve the integration of economic, environmental, and social

imperatives. CSR also overlaps and often is synonymous with many features of other

related concepts such as corporate sustainability, corporate accountability, corporate

responsibility, corporate citizenship, corporate stewardship, etc.

CSR commitments and activities typically address aspects of a firm's behaviour

(including its policies and practices) with respect to such key elements as; health and safety,

environmental protection, human rights, human resource management practices, corporate

governance, community development, and consumer protection, labour protection, supplier

relations, business ethics, and stakeholder rights.


The Responsibilities of Corporate Social Responsibility

For CSR to be accepted by a conscientious business person, it should be framed in

such a way that the entire range of business responsibilities is embraced. It is suggested here

that four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and

philanthropic. Furthermore, these four categories or components of CSR might be depicted

as a pyramid. To be sure, all of these kinds of responsibilities have always existed to some

extent. But it has only been in recent years that ethical and philanthropic functions have

taken a significant place. Each of these four categories deserves closer consideration.

Economic Responsibilities

Historically, business organizations were created as economic entities designed to

provide goods and services to societal members. The profit motive was established as the

primary incentive for entrepreneurship. Before it was anything else, business organization

was the basic economic unit in our society. As such, its principal role was to produce goods

and services that consumers needed and wanted and to make an acceptable profit in the

process. At some point the idea of the profit motive got transformed into a notion of

maximum profits, and this has been an enduring value ever since. All other business

responsibilities are predicated upon the economic responsibility of the firm, because without

it the others become moot considerations.

Legal Responsibilities

Society has not only sanctioned business to operate according to the profit motive; at

the same time business is expected to comply with the laws and regulations promulgated by

governments as the ground rules under which business must operate. As a partial fulfillment

of the "social contract" between business and society firms are expected to pursue their

economic missions within the framework of the law. Legal responsibilities reflect a view of

"codified ethics" in the sense that they embody basic notions of fair operations as

established by our lawmakers. They are depicted as the next layer on the pyramid to portray

their historical development, but they are appropriately seen as coexisting with economic

responsibilities as fundamental precepts of the free enterprise system.

Ethical Responsibilities


Although economic and legal responsibilities embody ethical norms about fairness

and justice, ethical responsibilities embrace those activities and practices that are expected

or prohibited by societal members even though they are not codified into law. Ethical

responsibilities embody those standards, norms, or expectations that reflect a concern for

what consumers, employees, shareholders, and the community regard as fair, just, or in

keeping with the respect or protection of stakeholders' moral rights.

Philanthropic Responsibilities

Philanthropy encompasses those corporate actions that are in response to society’s

expectation that businesses be good corporate citizens. This includes actively engaging in

acts or programs to promote human welfare or goodwill. Examples of philanthropy include

business contributions to financial resources or executive time, such as contributions to the

arts, education, or the community. A loaned-executive program that provides leadership for

a community’s United Way campaign is one illustration of philanthropy.

The pyramid of corporate social responsibility is depicted below. It portrays the four

components of CSR, beginning with the basic building block notion that economic

performance undergirds all else. At the same time, business is expected to obey the law

because the law is society's codification of acceptable and unacceptable behavior. Next is

business's responsibility to be ethical. At its most fundamental level, this is the obligation to

do what is right, just, and fair, and to avoid or minimize harm to stakeholders (employees,

consumers, the environment, and others). Finally, business is expected to be a good

corporate citizen. This is captured in the philanthropic responsibility, wherein business is

expected to contribute financial and human resources to the community and to improve the

quality of life.


In summary, the total corporate social responsibility of business entails the

simultaneous fulfillment of the firm's economic, legal, ethical, and philanthropic

responsibilities. Stated in more pragmatic and managerial terms, the CSR firm should strive

to make a profit, obey the law, be ethical, and be a good corporate citizen.

The pyramid of corporate social responsibility


History of CSR

he CSR concept evolution started with the concerns related to the damage created

by business on environment and society at large by way of activities linked to

their business operation. Businesses are expected to clean up the mess they have

generated to the environment. Until the 1980’s CSR was considered same as corporate

philanthropy. The current CSR concept started formulating in early 80’s. In 1980’s and

1990’s events like Shell spoiling the environment and violating the human rights in Nigeria,

started a new wave of criticism which triggered a completely different thinking on CSR and

hence many CSR definitions emerged during this period. Customer expectations and

demand for “clean and green” companies have led to a number of benchmarks and

guidelines, such as the Sullivan Principles, the UN Global Compact etc. Hence, CSR has

continued to evolve rapidly over the last thirty years and companies now all over the world

are expected to engage in CSR activities to be recognized as a socially responsible company

that not only looks after the interests of itself but also after the interests of the society.

T


The Interest Group (Stakeholders)

Corporations are motivated to involve stakeholders in their decision-making and to

address societal challenges because today's stakeholders are increasingly aware of the

importance and impact of corporate decisions upon society and the environment. The

stakeholders can reward or punish corporations. Thus, Corporate Social Responsibility

requires the identification of various interest groups, which may affect the functioning of a

business organization and may also be affected by its functioning. Normally various groups

associated with a business organization are shareholders, workers, customers, creditors,

suppliers, government and society in general.

Shareholders:

The first responsibility of the management is to protect the interest of

shareholders. The interests of majority of shareholders and large minority of

shareholders are generally well protected through either direct participation in the

management actions or they have real power to intervene, if necessary. They should

be informed about the functioning of the organization adequately and timely.

Therefore, management has a responsibility to provide proper safeguard to

the money invested by shareholders.


Workers:

Workers have direct interest in an organization because by working there,

they satisfy their needs. Thus, it is the management’s responsibility to protect the

interest of workers in the organization. This can be done by the management in the

following ways:

- Management should treat workers as another wheel of the cart

- Management should develop administrative process in such a way

that promotes cooperative endeavor between employers and employees.

- The management should adopt a progressive labor policy based on

recognition of genuine trade union rights – participation of workers in management,

creating a sense of belongingness, improving their living and working conditions.

- Management should pay fair and reasonable wages and other

financial benefits to workers.

Customers:

Management owes a primary obligation to give a fair deal to the customers.

This can be done in the following ways:

- Customers should be charged a fair and reasonable price.

- The supply of goods and services should be of uniform standard and

of reasonable quality.

- Management should not indulge in profiteering, hoarding, or creating

artificial scarcity.

- Management should not mislead the customers by false, misleading

and exaggerated advertisements.

Creditors, Suppliers and Others:

They affect the organization in various ways. Therefore , the management is

responsible to fulfill its obligations towards them. This can be done in the following

ways.

- Management should create healthy and cooperative inter business

relationship between different businesses.


- Management should provide accurate and relevant information to

creditors and suppliers.

- Payments of price of materials, interest on borrowings, other charges

should be prompt.

Government:

It is very closely related with the business system of the country. It provides

various facilities for the development of business. Government, no doubt, exercises

control over business, but these controls are meant for overall development of

business. Management can discharge its obligation to government by:

- Management should be a law-abiding citizen

- Management should pay taxes and other dues fully, timely &

honestly.

- It should not corrupt government workers and public servants and the

democratic process

- It should not buy political favors by any means

Society:

Organizations exist within a social system and get facilities from the system.

Therefore, they owe obligations to the society as a whole. This can be done by:

- Management should maintain fair business policies and practices.

- It should play a proper role in civic affairs.

- It should provide and promote general amenities and help in creating

better living conditions in general.


‘Corporate Social Responsibility if the backbone of sustainability in

the long run.’

‘CSR is not a cosmetic; it must be rooted in our values. It must make

a difference to the way we do business.’

Corporate Social Responsibility of the MCB

The Mauritius Commercial Bank

A bank with a heart

The Mauritius Commercial Bank (MCB) has always had the community’s best

interests at heart. Since its foundation in 1838, a long time before the term ‘Corporate

Social Responsibility’ had even been coined, the MCB has been involved in activities

designed to contribute to the welfare of society at

large. Today, more than ever, our aim is to make a

real difference in people’s lives by working

closely with the community at the local level.


MCB Forward Foundation

Our Vision

“To be instrumental in the creation of sustainable value for the social, environmental and

economic well-being of the community”

Our mission

“To develop and support sustainable initiatives for the benefit of the community in which

we live and work”

MCB Forward Foundation

1st floor, Raymond Lamusse Building,

MCB Ltd.,

Sir William Newton St.,

Port Louis,

Mauritius

Telephone: 202 6060

Email: [email protected]


mailto::%[email protected]

Milestone (Achievements)

2005

Policy decision taken in 2005, the MCB dedicates 1% of the Bank’s pre-tax profit to CSR activities

2006-2007

Revamping of CSR Unit and setting up of CSR Policy Paper National campaign initiated by the MCB against Chikungunya, involving 26 other

Private Sector Companies CSR Activities financed for the sum of Rs 20M

2007/2008

CSR Activities financed for the sum of Rs23.5M Launch of first Appel a Projet – A total of 188 Projects were submitted, of which 37

were financed Signing of United Nations Global Compact Principle

2008/2009

Launch of first MCB Football Academy in the village of St Hillaire Launch of My Words, My World Literacy Campaign for primary school children CSR Activities financed for the total sum of Rs30M

2009/2010

Launch of second Appel a Projet Setting up of MCB Forward Foundation to manage MCB Group CSR Activities

CSR Activities, signed by MCB:

Education:

As a key role player in the country's economy, The MCB Ltd is committed to the

future of our youth. We support many education and life skills programs as we believe that

by contributing to the education of our children we will help to our community

development and thus contribute to the future of our country.


Education initiatives supported by The MCB Ltd.:

[MCB EDUCATION SCHEME]

Created in 1999, this wide ranging education scheme covers teachers and parents training

programmes, improvement to the physical structure of the teaching environment and the

supply of basic school materials in specially deprived areas.

The main activities are:

a| [Ensemble, Construisons ton Avenir]

A special programme designed for pre-primary school children to support them

during their primary cycle schooling period.

School materials have been provided where necessary, and substantial infrastructure

works have been carried out in pre-primary and primary schools around the country.

Teachers have been trained and their skills upgraded during numerous awareness

programs for parents homing in on pre-primary education in particular. These have been

organised with the help of other specialised organisations such as ICR & MPRB.

b| [Creativity workshops/woodwork]

To help children discover their different talents and abilities and help them adapt to

their school environment. This special activity is presently undertaken at Cite Vallijee Govt.

school.

c| Literacy programmes have also been set up for the parents of the Roches Bois region

hand in hand with specialised Associations such as Caritas.

[MCB FOUNDATION]

Since 1988, the Bank grants each year a full scholarship, to a University of choice in the

United Kingdom for a first degree course not exceeding 4 years to a Mauritian student

ranking next in line to the State of Mauritius scholarships in the field of economics of the

Cambridge Higher School Certificate.


[MCB RODRIGUES SCHOLARSHIP SCHEME]

An annual scholarship awarded to a Rodriguan student and covering all educational and

living expenses, at the University of Mauritius for a period not exceeding 4 years.

This scheme has been set up since August 2000.


Sports

Teamwork and excellence are qualities that embody the ideal of sport and The MCB

Ltd. shares these values as a company. It has been a long-term sponsor of current and future

talented sportsmen of Mauritius through assistance programmes revolving around a range of

initiatives to better address specific needs.

We believe that sporting activities offer the best opportunity for self development and self

confidence and we encourage everyone to enjoy the positive benefits of sporting activities.

The MCB Ltd has been at the forefront of major sporting activities as sponsor since

1978. Through its sponsorship of sport equipment, training programmes, advertising gifts,

medals and cash prizes, the Bank is assisting in the development of sport at grassroots and

elite level.

Major sporting events sponsored by the Bank:

The Bank sponsored the 'Maurice MCB National Team" and the MCB Rush Jersey

for the Tour de L'Ile Cycliste 2005. Yannick Lincoln, winner of the latest edition, was

among the happy few Mauritians to have won the Tour de L'Ile Cycliste.

Co-Main sponsor of the 28th African Junior Tennis Championships - tournament

held in Mauritius in 2005; more than 175 players coming from various African countries

participated in this tournament.

The MCB National Youth Championship in athletics usually takes place in May

with more than 900 athletes participating in the championship

Official sponsor of the Mauritius National Team of Volley Ball for the qualifying

round of the World Women Championships 2006 (Africa Pool) event held in Mauritius.

The MCB was among one of the main sponsors Indian Ocean Games in 1985,

1990, 1993, 1998 and was the privileged Master Partenaire for the J.I.O.I 2003 held in

Mauritius.


Other sporting activities usually sponsored by the Bank:

Athletics - Regional/National Intercolleges Athletic Championship

Badminton - MCB National Junior Championship

Boxing - MCB National Cadet Championship

Judo - MCB National Championship

Swimming - MCB National Championship

Squash - MCB National Squash Championship

Tir a L'arc - MCB National Championship

Horse Racing - MCB Cup


Art and Culture

Art allows the diversity of cultures. The MCB Ltd. is continually striving to promote

new ideas and solutions in a sole aim to bring cultural and artistic events to a wider

audience.

The MCB is proud to be a leader in sponsoring such events nation-wide - thus

enabling, for more than 25 years, the development of art appreciation and education, across

Mauritius.

It has also confirmed its role as a privileged partner providing financial support in

the promotion of some major shows in Mauritius, as well as in the promotion of light opera

performances and local plays, thus encouraging creativity and cultural development in the

country.

Lately, the Bank has sustained its belief in the talent of young Mauritians by proudly

sponsoring TIMAMBO, an entertainment TV programme intended to introduce children

aged 4 to12 years old to the world of music and art, thus enriching and developing their

sense and appreciation of arts from an early age while identifying local talents. This

acclaimed programme spanning thirteen weeks was broadcast on the national television

station for the second consecutive year, after the overwhelming sussess achieved in 2004.

The MCB also helped financially in the renovation of the Port-Louis Theatre and in

the setting up of Projet Espace Mo’zar.

'Les Aventuriers de l'An 2000', a show set up and presented by its own staff, was

its latest box office success with the public. Previous productions include:

1] Mille et une fees (1988)

2] Le missionaire de Septembre (1990)

3] La nuit des animaux (1992)


Environment & National Heritage

The Bank has always shown its strong interest for environmental protection

programmes and issues by providing financial support to various associations involved in

this sector.

Mauritian Wildlife Foundation

An International non profit organisation, involved in the conservation of Mauritian

endangered plants and animals. Working in close cooperation with national parks and

conservation service and the Ministry of Environment, its expertise in conservation is

currently being used in Rodrigues and on Round Island to address problems caused by

degradation of habitat.

Friends of the Environment

Renovation of La Tour Martello at La Preneuse, Rivière Noire.

Environmental Management System (EMS)

Adoption of an EMS for projects financed under the African Development Bank line of

credit. The aim is to ensure that these projects address environmental and social issues, with

the view to promote sustainable development.

Also, The MCB Ltd. supports Rodrigues Island in its effort to improve their environment

by providing financial means for the setting up of a nature corner at Port Mathurin. We also

contributed for the installation of three marine lanterns on dangerous reefs around the island

to help and ensure the safety of the fishermen community.

Initiative 175

Green, together

On 1 September 2013, the Bank will have had an uninterrupted existence of 175 years.

Echoing its 150th anniversary, when the Bank offered a gift to its depositors in the form of

an option to convert an interest premium into bank shares, MCB is again offering a gift for

its birthday, this time to the nation as a whole. Launched by a press conference on 6 March

2009, Initiative 175 will endeavour to originate concerted, sustained and multiple actions in


favour of energy saving, renewable energy production and the environment - all to the

benefit of the island and its population. The Bank will thus articulate initiatives for and by

its employees, its customers and, more widely, the general public.

Already, the track record is far from being negligible.

Since 19 June 2009, the Bank has fully financed, at a cost of Rs 4.4 million, a series of 26

mini-documentaries entitled ‘Unisvert‘ which is broadcast weekly on prime time television.

While depicting the ecological challenges facing Mauritius, the programme invites the

population to be more nature-conscious and to adopt a more ecologically responsible

behaviour. ‘UnisVert’ will also, ultimately, find its way to schools in order to maximize its

message and impact. In an attempt to reduce the levels of paper waste and attendant

littering, balance enquiries at ATMs have been priced at 1 rupee each since 7 July 2009.

The result has been both impressive and immediate: 86% of balance enquiries are now

consulted on screen, resulting in the reduction of the wasteful abuse of a free service and

ATM lobbies looking much cleaner. Should those figures be maintained, close to 6 million

balance enquiry chits will no longer be printed every year. Additionally, customers have

been invited since April 2009 to consider suppressing the printing of their statements of

account especially if they opt for Internet Banking. To date, more than 7,000 of them have

responded favourably. This invitation will be renewed over the coming months in order to

further reduce needless paper usage and move customers to alternative ways of managing

their accounts which are more modern, ‘greener’ and more efficient. Such shift will soon

see customers saving on service (ledger) fees.


National Heritage

Museum - A Commitment

The Mauritius Commercial Bank has always shown a keen interest in the protection

of the national heritage, and has built up a rich collection of historical documents and works

of art throughout the decades.

It may seem paradoxical that a banking institution, cold and austere by definition,

should carry on its financial activities and, at the same time, be concerned with the

traditions of a country and constantly support its historical and artistic heritage. This is

explained by the fact that the MCB's managing team have always maintained and promoted

intrinsic values. Still, one must acknowledge that although the bank has attained a grand old

age, it is only during the last thirty years that the idea of starting museum collections, at

national level, really took off.

As early as 1936, the bank showed a deep interest in history by subscribing to

Auguste Toussaint's famous work : 'Port-Louis, deux siècles d’histoires ( 1735-1935)', [Port

Louis, two centuries of history]. But, it was not before 1953 that it acquired original plans,

mapping the capture of the island by the English in 1810, drawn by Lieutenant-Colonel

Lionel Smith, who later on, became the Governor of the colony.

From then on, collections became larger, but occasional purchases did not follow

any particular pattern. Indeed, a library and numismatic and philatelic collections were

taking shape but no buying policy was defined until the eighties, when a systematic action

plan and a necessary structure were established. These were aimed at setting up, preserving

and highlighting collections in various areas, all essentially linked with Mauritian culture.

After holding several exhibitions, locally and overseas, the MCB started, in 2001, its

own museum, the Blue Penny Museum, at the Caudan Waterfront. The latter houses the

main collection pieces and is a true showcase of treasures purchased over the years rather

than a comprehensive recollection of the island's rich history. The public can thus become

absorbed in a heritage, which was not previously accessible, and rediscover myriad facets of

the history of Mauritius and the region.


Blue Penny Museum

Le Caudan Waterfront,

Port-Louis,

Mauritius

E-mail: [email protected]

Ile de la Passe

Following its policy for the protection of the environment and the promotion of national

heritage, The MCB Ltd. has brought its contribution towards the expenses to be incurred for

the architectural and archaeological survey of fortifications at Ile de Passe, a project

undertaken for the National Heritage Fund and supported by the Earthwatch Institute.


mailto:[email protected]

Humanitarian and Social Aid

The Bank’s contribution to humanitarian aid reflects the values of its stakeholders

and is therefore, directed towards supporting those in deprived situations through

programmes undertaken by some well established agencies.

Some of them are listed as followed:

National campaign initiated by the MCB against Chikungunya, involving 26 other Private

Sector Companies.

Organising blood donation campaign in collaboration with the Blood Donors Association

at the head quarters of the bank and the bank has taken a pledge to renew the activity every

year.

APEIM - Projects concerning handicapped children

Red Cross - Projects that cater for the needs of the underprivileged in our society and

natural disasters.

Following the tsunami that struck regions of the far east in late December 2004, the Bank

initiated a fund-raising which proceeds contributed by its staff and ‘well-wishers’, were

sent to the Mauritius Red Cross office for onward distribution.

SOS Children's Villages Mauritius - Non-governmental charitable organisation caring for

destitute and abandoned children.

Action Familiale - Non-governmental organisation providing support for family planning

and matrimonial Counselling.

Terre De Paix - Support to the ‘’Atelier du savoir’’ programme

Centre de Solidarité / Chrysalide supporting programs for prevention against drug

addiction and prostitution.


The MCB was also among the sponsors for the setting up of a show called 'Les Enfants

d'un Rêve'. Funds raised went to the "Centre de Solidarité", for the rehabilitation of drug

addicts.

PILS - Prevention and counselling programs on HIV.

Victoria Hospital - In light of its social responsibilities, the Bank has also financed the

refurbishment of the maternity ward at the Victoria Hospital.


Arguments for Social Responsibilities of Business

Change in public expectations

The needs of today’s consumers have changed, resulting in a change in their expectations of

businesses. Since businesses owe their profits to society, they have to therefore respond to

the needs of society.

Business is a part of society

Society and business are benefited when there is a symbiotic relationship between the two.

Society gains through economic development and the provision of employment

opportunities; and business benefits through the workforce and consumers provided by

society.

Avoiding intervention by government

By being socially responsible, organizations attract less attention from regulatory agencies.

This gives them greater freedom and flexibility in their operations.

Balance of responsibility and power

Businesses have considerable power and authority. The exercise of this power should be

accompanied by a corresponding amount of responsibility.

Impact of internal activities of the organization on the external environment

Most firms are open systems, i.e., they interact with the external environment. The internal

activities of such firms have an impact on the external environment. To avoid a negative

impact on the external environment, firms should be socially responsible.

Protecting shareholder interests

By being socially involved, a company can improve its image and thus protect its

shareholders’ interests.

New avenues to create profits


Social responsibility involves the conservation of natural resources. Conservation can be

beneficial for firms. Items that had been considered waste earlier (for example, empty soft

drink cans) can be recycled and profitably used again.

Favorable public image

Through social involvement, a firm can create a favorable public image for itself and endear

itself to society. By so doing, a firm can attract customers, employees, and investors.

Endeavor to find new solutions

Businesses have a history of coming up with innovative ideas. Therefore, they are likely to

come up with solutions for social problems, which other institutions were unable to tackle.

Best use of resources of a business

Businesses should make optimum use of the skills and talent of its managerial personnel as

well as its capital resources to produce good quality products and services. By so doing, the

business will be able to fulfill their obligations toward society.

Prevention is better than cure

It is in the interests of business organizations to prevent social problems. Instead of

allowing large-scale unemployment to lead to social unrest (which will harm business

interests), businesses can be sources of employment for eligible youth.


Arguments against Social Responsibility of Business

Opposes the principle of profit maximization

The main motive of a business is profit maximization. Social involvement may not be

economically viable for a business.

Excessive costs

When a business incurs excessive costs for social involvement, it passes the cost on to its

customers in the form of higher prices. Society, therefore, has to bear the burden of the

social involvement of business by paying higher prices for its products and services.

Weakened international balance of payments

A weakened international balance of payments situation may be created by the social

involvement of organizations. Since the cost of social initiatives would be added to the price

of the products, the multinational companies selling in international markets would be at a

disadvantage when competing with domestic companies which may not be involved in

social activities.

Increase in the firm’s power and influence

Businesses are inherently equipped with a certain amount of power. Their involvement in

social activities can lead to an increase in their power and influence. Such influence and

power may corrupt them.

Lack of necessary skills among businesspeople

Businesspeople do not possess the necessary skills to handle the problems of society. Their

expertise and knowledge may not be relevant to deal with social problems.

Lack of accountability to society

Until a proper mechanism to establish the accountability of businesses is developed, they

should not get involved in social activities.

Lack of consensus on social involvement


There is no agreement regarding the type of socially responsible actions that a business

should undertake.

Conclusion

Taking into view the recent happenings at Reliance Industries, it can be said that the

focus on topics like Ethics And Corporate Social Responsibility is increasing. Nowadays

the companies have to keep in view the social benefits of all projects undertaken, they have

to keep in mind the well being of the Stakeholders as also issues like the safeguarding of the

Environment. These activities are constantly under the microscope of the society.

When a corporate undertakes a new project it has to keep in mind how does it

portray its image in the market. Any wrongdoings can be potential pitfalls for the

corporates; they have to be right all the time, any mistake or shortcoming can immediately

result in a loss of market share as also reputation. Thus the companies have to continuously

Re Evaluate its goals and Objectives and align them with the Corporate Strategy. They can

take this opportunity to inculcate proper Business Ethics & Corporate Values in their

employees.

Along with the CSR comes the opportunity to convert these social initiatives into

tangible results, namely profits. A company should look what amount of value the project

can give back to the company. A Social Cost Benefit Analysis can give the company a fair

idea about what kind of rewards the initiative can generate for the company. Thus a

company can decide on the initiatives taking into consideration these various factors.


corporate social responsibility assignment

Documents

corporate responsibility

idea of social responsibility

environmental development

csr activities

csr fund

social problems

csr performance

corporate sustainability