Chapter2.pptx

Corporate Social Responsibility
Types and Models

Lecture Outline:
Types and nature of social responsibilities.
CSR principles and strategies.
Models of CSR.
Best practices of CSR.
Need of CSR.
Arguments for and against CSR.

Types of Social Responsibility

Responsibility towards Society
Carrying on business with moral& ethical standards.
Prevention of environmental pollution.
Minimizing ecological imbalance.
Contributing towards the development of social health, education
Making use of appropriate technology.
Overall development of locality.

Unethical companies 2017
1. Amazon Avoid taxes, mistreatment of worker
Nestle
Irresponsible marketing of baby milk to
mothers in the developing world
use of unsustainable palm oil
3. Coke
Workers right violations in bottling plants.

Responsibility towards Government
Obey rules & regulations.
Regular payment of taxes.
Cooperating with the Govt to promote social values.
Not to take advantage of
loopholes in business laws.
Cooperating with the Govt for economic growth & development.

Responsibility towards Shareholders
To ensure a reasonable rate of return over time.
To work for the survival & the growth of the concern.
To build reputation & goodwill of the company.
To remain transparent & accountable.

Responsibility towards Employee
To provide a healthy working environment.
To grant regular & fair wages.
To provide welfare services.
To provide training & promotion facilities.
To provide reasonable working standard & norms.
To provide efficient mechanism to redress worker’s grievances.
Proper recognition of efficiency & hard work.

Responsibility towards consumers
Supplying socially harmless products.
Supplying the quality, standards, as promised.
Adopt fair pricing.
Provide after sales services.
Resisting black-marketing & profiteering.
Maintaining consumer’s
grievances cell.
Fair competition.

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CSR Principles & Strategies.
Respect for human rights.
Respect for the differences of views.
Diversity & non-discrimination should be the guiding principle.
Make some social contribution.
Self-realization & creativity.
Fair dealings & collaboration.
Feedback from the community.
Positive value- added
Long term economic & social development.

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CSR Strategies
Six Strategies in the adoption of CSR.
Rejection strategy:
Organization refuses to have any social responsibility.
Adversary strategy:
In adversary strategy, the organization tries to avoid taking social actions but due to severe pressure takes it.
Resistance strategy:
In resistance strategy, organization starts responding to selected social issues, but very slowly.

Compliance strategy:
In compliance strategy, the organization realizes the importance and decides to comply with government regulations and reasonable demands of some stakeholder group.
Accommodation strategy:
Organization considers what actions are required to satisfy felt needs of stakeholders.
Proactive strategy:
The firm takes actions in advance to face pressure from their key stakeholders.

Models of corporate social responsibility
Friedman model
Ackerman Model
Carroll Model
Environmental Integrity & Community Model.

1. Friedman Model(1962-73)
A businessmen should perform his duty well, he is performing a social as well as a moral duty.
A businessmen has no other social responsibility to perform except to serve his shareholders & stockholders.
Milton Friedman’s point is that spending shareholders money for social interest makes no sense and thus was against the concept.

2. Ackerman Model (1976)
The model has emphasized on the internal policy goals & their relation to the CSR.
Four stages involved in CSR.
Managers of the company get to know the most common social problem & then express a willingness to take a particular project which will solve some social problems.
Intensive study of the problem by hiring experts & getting their suggestions to make it operational.
Managers take up the project actively & work hard.
Evaluating of the project by addressing the issues.

Examples

Carroll Model(1991)

Environmental Integrity & Community Health Model.
This model view environmental integrity and healthy communities as means to achieve CSR goals and greater profits
Environmental and health issues are targeted as they are major social concerns and connected.
A healthy environment is vital for sustaining good health and overall wellbeing.
Healthy people can work more & earn more.

Sprout, a pencil that turns into a plant

Best Practices of CSR
To set a feasible, Viable & measureable goal.
Build a long lasting relationship with the community.
Retain the community core values.
The impact of the CSR needs to be assessed.
Reporting the impact.
Create community awareness.