GOVERNMENT AND SOCIAL RESPONSIBILITY

Sahib Sharma
Roll No-09
F.Y.B.M.S
 DATA COLLECTION

This project work is done by data collected from secondary and

electronic sources. It is based on data collected from books,
journals and web sources. Books and other references as guided
by library were helpful for completion of this project
 TABLE OF CONTENTS

1.GOVERNMENT AND SOCIAL RESPONSIBILITY

2.DATA COLLECTION
3.DATA PRESENTATION
4.POINT OF VIEW
5.CONCLUSION
6.REFERENCE
 INTRODUCTION
Social responsibility is an ethical framework and suggests that an entity, be it
an organization or individual, has an obligation to act for the benefit of society at
large.Social responsibility is a duty every individual has to perform so as to
maintain a balance between the economy and the ecosystems. A trade-off may
exist between economic development, in the material sense, and the welfare of the
society and environment though this has been challenged by many reports over the
past decade.Social responsibility means sustaining the equilibrium between the
two. It pertains not only to business organizations but also to everyone whose any
action impacts the environment. This responsibility can be passive, by avoiding
engaging in socially harmful acts, or active, by performing activities that directly
advance social goals. Social responsibility must be intergenerational since the
actions of one generation have consequences on those following.
Businesses can use ethical decision making to secure their businesses by making
decisions that allow for government agencies to minimize their involvement with
the corporation. For instance if a company follows the United States
Environmental Protection Agency (EPA) guidelines for emissions on dangerous
pollutants and even goes an extra step to get involved in the community and
address those concerns that the public might have; they would be less likely to
have the EPA investigate them for environmental concerns. "A significant element
of current thinking about privacy, however, stresses "self-regulation" rather than
market or government mechanisms for protecting personal information"According
to some experts, most rules and regulations are formed due to public outcry, which
threatens profit maximization and therefore the well-being of the shareholder, and
that if there is not an outcry there often will be limited regulation.
Some critics argue that corporate social responsibility (CSR) distracts from the
fundamental economic role of businesses; others argue that it is nothing more than
superficial window-dressing, or "greenwashing"; others argue that it is an attempt
to pre-empt the role of governments as a watchdog over powerful corporations
though there is no systematic evidence to support these criticisms. A significant
number of studies have shown no negative influence on shareholder results from
CSR but rather a slightly negative correlation with improved shareholder returns.
Corporate social responsibility or CSR has been defined by Lord
Holme and Richard Watts in the World Business Council for Sustainable
Development's publication "Making Good Business Sense" as "…the continuing
commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families
as well as the local community and society at large." CSR is one of the newest
management strategies where companies try to create a positive impact on society
while doing business. Evidence suggests that CSR taken on voluntarily by
companies will be much more effective than CSR mandated by
governments. There is no clear-cut definition of what CSR comprises. Every
company has different CSR objectives though the main motive is the same. All
companies have a two-point agenda—to improve qualitatively (the management of
people and processes) and quantitatively (the impact on society). The second is as
important as the first and stake holders of every company are increasingly taking
an interest in "the outer circle"-the activities of the company and how these are
impacting the environment and society The other motive behind this is that the
companies should not be focused only on maximization of profits.
While many corporations include social responsibility in their operations, it is still
important for those procuring the goods and services to ensure the products
are socially sustainable. Verification tools are available from a multitude of entities
internationally, Such as the Underwriters Laboratories environmental
standards, BIFMA, BioPreferred, and Green Seal. These resources help
corporations and their consumers identify potential risks associated with a
product's lifecycle and enable end users to confirm the corporation's practices
adhere to social responsibility ideals.
GOVERNMENT’S ROLE IN SOCIAL RESPONSIBILITY

How can government better contribute to social responsibility efforts? In order to

answer that question, we need to better understand the government’s role in
promoting and supporting social responsibility initiatives and campaigns. Although
social responsibility is more commonly associated with the corporate business
sector, it is very important to pay attention to key stakeholders like federal, state,
and local governments. In the past few decades, governments have joined other
stakeholders in assuming a relevant role as drivers of social responsibility and
adopting public sector roles in strengthening initiatives.
Now that the modern world has become inherently globalized with its economies
and political challenges, the framework provided by social responsibility initiatives
provides society with a way to learn what successful collaboration looks like
among corporations, governments, and society. An area of social responsibility that
the government focuses heavily on is social marketing, which is a marketing
concept that works to develop and integrate marketing tactics with other
approaches to influence behaviors that benefit individuals and communities for the
greater social good. Through this type of integrated marketing communication,
governments are able to better disseminate important health information to key
publics and target audiences.The United States Centers for Disease Control and
Prevention (CDC) is a key agency within the U.S. federal government that
successfully integrates public health initiatives with communication and social
marketing practices. On their website, they have a dedicated gateway
page providing resources to help partners build health communication or social
marketing campaigns and programs.
According to the Institute for Public Relations, the CDC and many other health-
focused and social change agencies use social media channels as a vital way of
communicating with their key audiences. A 2012 report analyzing the CDC’s
social media practices found that the center’s efforts were timely, important, and
science-and-evidence based and shared pertinent messages of prevention,
individual responsibility, safety, and community collaboration. Conclusively, the
report stated that the governments who actively use of social media have the
potential to influence public health initiatives and beyond on a large scale and
garner support for positive social change efforts among policymakers and
regulators.
Communications and public relations professionals in the DC metro area who are
interested in exploring this kind of work can check out the Washington, District of
Columbia office of Ogilvy Public Relations Worldwide (Ogilvy Washington), who
currently does work on multiple CDC contracts providing specific communications
support in the areas of social marketing, health communication, and public affairs.
In summary, federal, state, and local governments play a large role in helping to
solve society’s most pressing issues. It is important that all sectors play a part in
trying to achieve successful behavior change. Too many companies are waiting for
the business case and too many governments have become co-opted or
overwhelmed by private interests. Increasing cross-sector social responsibility and
establishing more partnerships looks like the answer to increased accountability in
the future, and promoting this kind of engagement is exactly how governments can
better contribute to social responsibility efforts.

Definition of corporate social responsibility

Corporate social responsibility is not a new concept in India. However, what is
new is the shift in focus from making profits to meeting societal challenges.
Giving a universal definition of corporate social responsibility is bit difficult as
there is no common definition as such. However, there are few common threads
that connect all the perspectives of CSR with each other; the dedication to serve
the society being most important of them. Most ideal definition of corporate social
responsibility (CSR) has been given by world business council for Sustained
Development which says,
“Corporate Social Responsibility is the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce and their families as well as of the local community
and society at large”.

Thus, the meaning of CSR is twofold. On one hand, it exhibits the ethical behavior
that an organization exhibits towards its internal and external stakeholders
(customers as well as employees). On the other hand, it denotes the responsibility
of an organization towards the environment and society in which it operates.
(Naukrihub [online], august 2009).
CSR is also referred to as:
• ‘corporate’ or ‘business responsibility’
• ‘corporate’ or ‘business citizenship’
• ‘community relations’
• ‘social responsibility’.
HISTORY OF CORPORATE SOCIAL RESPONSIBILITY

“The phrase Corporate Social Responsibility was coined in 1953 with the
publication of Bowen's Social Responsibility of Businessmen” (Corporate watch
report, 2006). The evolution of CSR is as old as trade and business for any of
corporation. Industrialization and impact of business on the society led to
completely new vision. By 80’s and 90’s academic CSR was taken into
discussion. The first company to implement CSR was Shell in 1998. (Corporate
watch report, 2006)With well informed and educated general people it has become
threat to the corporate and CSR is the solution to it.

Benefits of corporate social responsibility

Corporate social responsibility offers manifold benefits both internally and
externally to the companies involved in various projects.
Externally, it creates a positive image amongst the people for its company and
earns a special respect amongst its peers. It creates short term employment
opportunities by taking various projects like construction of parks, schools, etc.
Working with keeping in view the interests of local community bring a wide range
of business benefits. For example, for many businesses, local customers are an
important source of sales. By improving the reputation, one may find it easier to
recruit employees and retain them. Businesses have a wider impact on the
environment also. Plantation and cultivation activities taken up by Intel India are a
step towards the same. Recycling used products also acts as a step towards
minimizing wastes.
Internally, it cultivates a sense of loyalty and trust amongst the employees in the
organizational ethics. It improves operational efficiency of the company and is
often accompanied by increases in quality and productivity. More importantly, it
serves as a soothing diversion from the routine workplace practices and gives a
feeling of satisfaction and a meaning to their lives. Employees feel more motivated
and thus, are more productive. Apart from this, CSR helps ensure that the
organization comply with regulatory requirements. . (Naukrihub [online], august
2009)

Role of Government in Promoting CSR

The government plays a very important role in promoting corporate social
responsibility for various reasons. For one, this sector can encourage the business
sector to advocate an ethical, social, and environmentally-conscious business
transaction with their stakeholders. This is because they primarily enforce
compliance with the legislative and regulatory structure of the business sector. For
example, the government must enforce compliance in matters of sustainable
development for natural resources. Another reason is they maintain the observance
of smooth and peaceful business operations in the community through programs
that demonstrate social responsibility and responsible investment.

With the enactment of these state laws and regulations, the interests of the
consumers are safeguarded and the environment is protected from unethical
practices by certain abusive companies. The laws governing a state or a nation
differ from one state to another. Wherever a corporation establishes business and
operates, the firm adheres to the imposed laws of that particular region. These
regulations can be as broad as human rights protection, clean environmental acts,
and responsible investment.

The best way for corporations to show social responsibility to the government is to
provide strict compliance to the regulations which is, in fact, the primary
expectation of the government from companies. When it comes to laws, nothing
much can be done but to offer cooperation with the law enforcers. Next, the state
or local authorities require companies to manifest improved competitiveness after
adhering to the business regulations.

All business sectors can benefit from the regulations imposed by the government in
one way or another. Business transactions run smoothly where clear rules and laws
are defined. The business environment prospers where companies find it
convenient to operate their business and avoid possible abuses to the consumers
and other stakeholders.

One advantage of these government policies is that business operations will make
it a point to run business that will not harm or risk the society and the environment.
Corporations will keep a good relationship with the community at large and vice
versa. So when a firm violates the laws, they will be sanctioned accordingly to help
them iron out any shortcomings in their dealings with the consumers and the
community.

Another advantage is that companies are recognized for complying with the rules
by providing incentives and grants to those who are compliant enough. For
example, when a company has certain requests in terms of their operations and
business activities, they may have greater chances of being permitted to conduct
them.

Lastly, the government provides protection to the interests of the stakeholders and
the investors. Stakeholders are guarded from unfair business practices while
shareholders are principled by corporate governance.
The government laws and policies are designed to assist both the consumers and
the companies in carrying out their roles with efficiency. So when companies
comply with these policies, the government finds it easier to regulate and uphold
security and protection to everyone involved.

CSR importance and its relevance today

The amount of information available to customer about the company, product,

brand globally through easy accessible and available mode of information; internet,
communication, customer wants to buy product from trusted brand, employee want
to work for the company who respect them, NGO’s want to work with company
who work with the same vision for the benefit of the people. As said by Peter
Duker “The 21st century will be the century of the social sector organization. The
more economy, money, and information become global, the more community will
matter.” (Corporate watch report, 2006).According to strategic corporate social
responsibility by William B. Werther, David Chandler there is three trends which
are going to have importance in future are
Increasing Affluence: Customer from elite level can afford to buy and pay more
for premium brand but the poor customer might not be willing to pay so much for
brand, instead they would prefer to spend their money on business which can take
their business to much better level.
Changing social expectation: Its natural that customer expect more from the
company whose product they buy but with recent controversy and scandal of
company has reduced the trust and confidence in the regulatory body and
organization which manage the corporate.
Globalization and free flow of Information: With growing trend of media and
easy access to information through mobile, TV even the minor mistake of the
company is brought in public in no time, this sometime fuels the activist group and
likeminded people to spread message which can lead to situation like boycott of
the product.
There can be few key steps to implement CSR successfully (Corporate Social
Responsibility, 2003)
Better communication between top management and organization
Appoint for CSR position.
Good relationship with customer, supplier, stakeholder.
Annual CSR audit.
Feedback process

CSR in India

Long referred to as a company’s soul food, corporate social responsibility is

finally being taken seriously by Indian tech companies as they embark on a gamut
of philanthropic activities. Through Infosys foundation and other initiatives,
Narayan murthy chairman and chief mentor of Infosys has always been on the
forefront of philanthropic activities as a part of CSR. Mr. Narayan murthy
firmly underlines the significance of CSR: “for benefit of globalization and
technology to reach the poor, the private sector, philanthropic institutes and
individuals should cooperate and establish partnership with government
institutions. This would lift millions of our people out of the poverty, provide them
with opportunities and make them participate in the process and progress of
globalization”. While murthy and Infosys are proactive on the CSR front, how do
other tech companies stuck up?
The sad part is that CSR still has not taken off in India according to a recent survey
by Mumbai based online organization karmayog. The second edition of the
research revealed that nearly half of the top companies do nothing in way of CSR.
For the Indian company whatever the CSR activities are happening are centered
around education, rural upliftment and helping the physically challenged. Some of
the CSR initiatives the major IT companies have undertaken are
Education for all
Community development
Children of a lesser GOD No more
 POINT OF VIEW
Social responsibility is very important aspect of our day to day life everyone in our
life should do one or another social activity. Government plays an very important
role in social issues they solve the problem of people in our country as well as
other countries the following social aspects should be solved by government in
their own country. government should encourage the corporate sector to work for
social awareness by paying huge donation and following rules and regulations also
government should keep an eye on business sectors that they are working legally
no illegal works should be done in their respected firm. Government should spread
awareness about rules and laws for the people who are unaware about them. many
social awareness programes should be conducted by government to encourage
people to know about social responsibility. government should keep an eye on tax
payment by corporate as well as people. Also government should take initiative to
develop economic development of country with the help of corporate sectors
 CONCLUSION
Social responsibility is an ethical framework and suggests that an entity, be it an
organization or individual, has an obligation to act for the benefit of society at
large. Social responsibility is a duty every individual has to perform so as to
maintain a balance between the economy and the ecosystems.Corporate social
responsibility (CSR) encourages businesses accountability to a wide range of
stakeholders, shareholders, and investors. The key are of concerns are the
environment protection, and the social wellbeing of people in society, both now
and in the future. CSR has a variety of policies such as giving to organization,
providing products and services to consumers, reducing harmful waste, and
treating their employees with moral ethics. Corporate social responsibility is the
best thing that was implemented into businesses both large and small, in this was
the environment and society can be treated the way it supposed to, with respect.
CSR is something that everyone can benefit from, when businesses adopt its policy.
The CSR norm suggests that instead of focusing on maximizing shareholders'
wealth, corporations should recognize their responsibilities to a larger set of actors
and therefore invest a portion of these rents for their welfare. Yet CSR is not
limited to the voluntary redistribution of corporate rents; it raises fundamental
issues about corporate responsibilities in contemporary societies beyond their usual
legal obligations. Because the limited liability corporation was created to serve a
social purpose, CSR proponents believe it to be fair to expect that corporations will
consider themselves as social actors, embedded in social interactions and
responding to societal expectations and concerns. CSR invariably entails that
corporations devote a portion of their rents to stakeholders other than shareholders.
Hence, CSR is fundamentally a political issue. Following Lasswell (1958), we can
conceive politics as a struggle about who gets what, when, and how. Arguably,
along with costs, CSR also has a payoff for firms and, eventually, therefore for
shareholders: it bestows legitimacy and provides the firm with the "social license
to operate" (Gunningham, Kagan, and Thornton 2004). In the long run, this is
expected to translate into improved access to resources required for firms'
operations and eventual profitability. Yet, the division of rents that CSR entails
remains an important source of concern. It opens a Pandora's box of related issues:
what portion of rents should be earmarked for non share holders? Even among
these stakeholders, whose preferences should take precedence? Should the firms
invest in labor issues, environmental issues, or community issues, given that the
firm cannot satisfy every constituency? CSR has its share of critics, both
conservatives and liberals
 REFERENCE
BOOKS:
Dictionary of corporate social responsibility- Samuel O.IDOWU
Corporate social responsibility- sanjay k Agarwal
Stages of corporate social responsibility- Nicholas capaldi

WEBSITES
www.socialresponsibilities.com
www.shaala.com
www.government.nl.com
www.corporatesocialresponsibility.com