Introduction about CSR
Interrelationship between business and the society is brought out by the fact that the former helps in the development and processing of certain economic values in the latter, with the primary purpose of providing goods and services to the customers at a price marked in such a way as to earn a profit for the firm. Social responsibility ( SR ) of managers in business organizations has, of late , been one of the most talked about and widely supported subjects .
According to Howard R. Bowen , " Social responsibility of business refers to the obligation of business to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of the society " .
According to Koontz and O'Donnel , " Social responsibility is the personal obligation of every one as he acts for his own interests to assure that the rights and legitimate interests of all others are not impinged " .
According to George A. Stenier, "In real sense the assumption of social responsibilities implies recognition and understanding of the aspirations of society and determination to contribute to its achievement".
According to K. R. Andrews , " Conceptually social responsibility may be taken to mean intelligent and objective concern for the welfare
Dimensions of Corporate Social Responsibility
The responsibilities of managers towards various groups are discussed below :
1)Responsibility towards Shareholders or Owners : If ownership and management of business are in different hands , then managers ( directors ) have the following responsibility towards owners i.e. Shareholders:
i)Reasonable Dividend: Shareholders are a source of funds for the company. They expect a high rate of dividend on the money invested by them and also the maximization of the value of their investment in the company.
ii) Soundness: It is the duty of management to see that financial position of the company is sound and the company always looks for growth.
iii)Information: It is the responsibility of the management to keep the shareholders well informed about the progress and financial position of the company.
iv)Protection of Assets: The assets of the company are purchased with the funds provided by the shareholders. The management is responsible to safeguard these assets.
2 ) Responsibility towards Workers / Employees : The employees should be treated as human beings and their co - operation must be achieved for the realization of organizational goals . The management of a business should fulfill the following obligations towards its employees :
i)Fair Wages : Every business should pay reasonable wages and salaries to its employees so that they may satisfy their needs and lead a good life .
ii )Good Working Conditions : Since workers spend about eight hours on every working day at their work place , they must be provided with good working conditions . Good working conditions are necessary to maintain the health of the workers ,
iii )Adequate Service Benefits : Workers should be provided service benefits such as housing and medical facilities , insurance cover and retirement benefits . They will make them feel secure.
iv)Co - Operation : It is the responsibility of the management to win the co - operation of the workers by creating the condition in which workers are willing to put forward their best efforts towards the common goals of the business .
v)Recognition of Worker's Rights: The management should recognize the workers' right to fair wages, to participate in decisions affecting their working life, to form trade unions to collective bargaining and to go on strike of their demands are not accepted.
vi)Opportunity for Growth: The workers should be helped by training and other means to improve their skills. Management should give the workers adequate opportunities to develop their capabilities through t training , education and the enjoyment of freedom to the greatest possible extent .
3 ) Responsibility towards Customers : Customers ' satisfaction is the ultimate aim of all economic activities . This involves more the over of products at the lowest possible price . Adulteration of goods , poor quality ; failure to give fair measure, lack of service and courtesy to the customers, misleading of dishonest advertising are some of the examples of violation by business of its obligations towards the customers of it products. Therefore , it is the duty of management to take care of the following point :
i)Need Satisfaction : The Company should produce those goods which meet the needs of the consumers of different classes , tastes and with different purchasing power .
ii)Regular Flow of Goods : The business should make goods of the right quality available to the right people at the right time and place at reasonable price.
iii) Courteous Service : The business should provide a prompt , adequate and courteous service to customers , and handle their grievances carefully .
iv) Right Information: The management should ensure that advertisements and statements issued by the business are true and fair.
v ) Fair Trade Practice : The management should not indulge into unfair and unethical practice such as black marketing , hoarding , adulteration , etc. The goods and services should be distributed properly so that the customers do not face any difficulty in purchasing them .
4)Responsibility towards Suppliers : Management should deal with the suppliers judiciously . Their dealings with the suppliers should be based on integrity and courtesy in the absence of which the suppliers will not supply them the goods on credit . The various responsibility of business towards the suppliers are as follows:
i) Provide Accurate Information: Provide accurate information regarding the financial health of the organization. Informing them about future development plans.
ii)Reasonable price for articles supplied: ensure a reasonable price for articles supplied, and market repayments (involving interest on borrowings); There be fairness in transactions.
iii) Promote Healthy Atmosphere: Promote a Healthy Atmosphere Where Creditors, Suppliers and Other Interests are treated as per cooperative Endeavor
IV) Fair Terms and Conditions: Dealings with suppliers be based on fair term and conditions, It Will Ensure Regular and Timely Support of Raw Materials and Other Items.
5) Responsibility Towards Government: Every Business Enterprise is Government by Various laws.
The Specific Responsibilities Every Business Towards Government May Be Enumerated as follows:
i) To look for the laws of the nation.
ii) to pay taxes honestly .
iii) to avoid corrupting government employee.
v) tocourse The tendencies of concentration of Economic Power and Monopoly.
v) To encourage fair trade practices.
6) Responsibility towards society / community: Peter ducker suggested that the business should be as managed as to be the best good the best of the enterprise. Thus, Every Business Owes an Obligation to the Society At Large.
i)Socio - Economic objectives: Management Must Be guided by The Socio - Economic objectives of the Society. It should not indulge in any practice is not is Fair from Social Point of View. Society Expect That The Business Uses The Factors of Production Effectively and Efficiently for the Satisfaction of the bests of the society.
ii) Important of Local Environment: good management can contribute to local amenities where you enterprise functions. It can be the world to be the best and the most priesting.
iii)Employment Opportunities: It is the responsibility to help increase and direction. Employment in the area is it is functioning.
iv) Efficient use of resources: The Resources at the Command of Business Belong to the Society. Therefore, the first one, the first possibility to do the best, the caps, the raw material, the machines, the technical knowledge and the other resources for the best - being of the society.
v)Welfare Activities: The Business Should contribute Towards The upliftment of the Weaker Sections of the Society It should co - operate in the welfare activities the the community of the community.
vi) Business Ethics: The Business Should not Indulge Into Antisocial and Unfair Trade Practice Such As Adulteration, Hoarding and Black Marketing. It Should not Issue Misleading Advertisements
7) Responsibility Towards Competitors: Competitors Are The Business Made Or Organizations Involved In A Similar Type of Business Existence of competition helps to be the best in it and behind it best friends and better.
i) No high sales commission: Not to offer exceptionally high sales commission to distributors, agents, etc.
ii)No heavy discount: Not to offer to customers heavy discount and or free products in every sale.
iii) Not to defame competitors: Not to defame competitors through false or ambiguous advertisements.
8) Responsibility towards Investors: Investors are those who provide finance by investment in debentures, bonds, deposits, etc. There responsibility are:
i) Ensuring safety of thier investment
ii) Regular payment of interT
