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CSR – An Image or Ethos

CSR – An Image or Ethos
CSR – An Image or Ethos A company’s sense of responsibility towards the community and environment in which it functions is known as corporate social responsibility.The object of social responsibilities of business has become the hot topic for discussion. Let’s not forget that really big companies are into the process of service benefiting economically backward population. It is widely accepted that accountability to owners is too narrow a concept for today’s business and that there is no reason why owner’s interests should take precedence over the interest of other claimants-employees, consumer community and the society at large. Responsibilies of Business Concerns: There is no definition of the concept of social responsibility which is valid for all business concerns and for all times. This is because responsibilities of business should be related to the changing societal expectations, which is dependent upon the social, cultural, political and other environmental forces, which are dynamic too. Business responsibility to the society goes beyond simply assuming the profit-making role. It implies that the management has to protect and improve the welfare of the society as a whole along with its own interest. What is the primary objective of a business? One common misunderstanding about the concept of social responsibility has to be clarified here. It does not challenge the primary objectives of business. It does not say that “to make profit is to sin.”Profiteering is different from profit making. Selfish interest is different from self-interest. Social responsibility is against profiteering and selfish business behavior. But profit making and self interest should be the basic elements of corporate responsibilities. Economic concerns and social concerns need not be viewed as opposite ends. They are complementary to each other. They are consistent with one another. Thus the nature and content of business responsibilities depend upon societal expectations placed on organizations which include invariably the economic performances and legal obligations, and go beyond them. How far it goes beyond depends on the economic, social and political environment in which the business and society operates. Arguments against social responsibility: The arguments against social responsibility are based on the belief that the society assigns a strictly economic role to the organizations and the concept dilutes the primary purpose of the business. Business should mind its business and business persons don’t have the right attitude to serve the society. Let it be the responsibility of government and social service organizations. Business has already enough economic and social power and no more concentration of power is necessary to business circles. Service to society is undoubtedly an important objective of business. It can render service to society by providing quality goods and services to the community; it can provide adequate opportunities to the members of the society; provide goods and services at reasonable price. Another important aspect would be to ensure control of pollution towards air, water and soil. Showing concern for the well -being of other constituencies of the society is a good gesture that helps the business to earn goodwill and support of the society as a...
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Social Responsibilities of Business

Social Responsibilities of Business
Social Responsibilities of Business According to Raymond Bauer, “Social responsibility is seriously considering the impact of the company’s actions on the society. It may also refer to the person’s obligation to evaluate in the decision making process, the effects of both his personal and institutional decisions and actions on the whole system, according to Keith Davis and Cobert Blomstorm. A)     SOCIAL OBJECTIVES OF BUSINESS: 1.       The focus should be on quality, safety, service and security which lead to customer satisfaction. Quality– Product superiority and durability Safety– Products should not cause any harm to the consumers Service- After sales service is the link that builds a long standing relationship between the company and customers Security– Sense of satisfaction and belief on the company’s brand  2.       The business has social responsibility of giving adequate opportunities to the members of the society. If everybody aims at white collar job, how does a nation grow economically? Developing economies should promote and encourage entrepreneurs to create more “Job Opportunities.” This especially suits countries like India and China where the pressure of population is very high.  3.       Mass production facilitates in factorizing the economy of scale and at the same time aids in providing with quality goods at reasonable prices to the consumers. We see big chain of retail shops like Cosco and Wal-Mart in the US have made this possible where consumers can avail discount for bulk purchase.  In India, Big Bazaar is a forerunner in this kind of retail marketing which enhances the material well being of a community and raises the average standard of living of the people. 4.        Another main objective of business would be to control the percentage of pollution in air, water and land. Discharge of effluent in a lake or a river by the industrial enterprise may result in water pollution and also affects the plant, animal life and fish and birds to a considerable extent. Stringent laws must be in place to avoid such incidences and protect the society. B)      RESPONSIBILITY TO CONSUMERS There is only one valid definition of business purpose: “to create a customer”, the customer is the foundation of a business and keeps it in existence. The responsibilities of a business towards its customers would be: ·         Increased productivity in order to make goods available for the consumers at the right time at right prices; this solely depends upon the increased efficiency of functioning of the business ·         Constantly strive to improve the quality of goods ·         R & D to improve product quality and to come out with better and new products ·         Proper distribution structure to reach even the remotest of locations ·         Remove hoarding, black marketing, profiteering by middlemen or anti-social elements ·         Provide them with the required after sales service ·         Ensure that the product supplied has no adverse effect ·         Sufficient information about the product has to be given to the consumers regarding the adverse effects and precautions to be taken while using the product ·        No misleading product information through improper advertisements or otherwise ·         To provide an opportunity for being heard and to redress consumer grievances Consumer courts are becoming popular in India for handling consumer grievances swiftly and efficiently. It is but a sad thing that many people do not know that they can address issues relating to quality, quantity or service.The businesses should understand the consumer needs and take necessary measures to satisfy those needs.  C)      REPONSIBILITY TO THE COMMUNITY  ·         To prevent environmental pollution and to preserve the ecobalance ·         Assisting in the overall development of a locality ·         Use alternate energy resources ·         Contributing to research and development ·         Rehabilitate the population displaced by the operation of the business ·         Development of economically backward areas ·         Promotion of small scale industries ·         Contributing to the national effort It...
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