Kameshwar Pd.

Sharma
presents:

Social
Responsibilities of
Business
Corporate Social Responsibility
(CSR)

 CSR mandates that the corporation has

not only economic and legal
obligations, but also certain
responsibilities to society that extend
beyond these obligations (McGuire)



CSR contd..

• It refers to what business does over and above

the statury requirment and benefit of the
society.
•

• Which includes :
Ø
Ø Share Holders
Ø Employées
Ø Supplier & Ressources
Ø Customer
Ø Community & Society
Those responsibilities are:

Ø Produce maximum goods of good quality.

Ø Ensure smooth supply & competitive prices.
Ø Pay taxes to government.
Ø Pay fair wages to employees.
ØPay reasonable dividend to
shareholders.
ØDevelop initial facility for society.
ØFollow the environmental norms.

CORPORATE SOCIAL 
RESPONSIBILITY (CSR)
business Criticism/ Social Response Cycle
Factors in the Societal Environment

Criticism of
Business
Increased concern A Changed
for the Social Environment Social Contract

Business Assumption of Corporate Social Responsibility

Social Responsiveness, Social Performance, Corporate

Citizenship
A More Satisfied Society

Fewer Factors Leading Increased Expectations Leading

to Business Criticism to More Criticism
Classical View

 The social responsibility of business

says that to use its resources and
provide maximum gain but it should
work on regulation.
Contemporary View

 Business is an integral part of society to

serve for the society .
 Business is a social institution that is
performing mission and having a broad
influence on the way people live and work
together.
 Corporate Social Responsibility (CSR)

Carroll’s Four Part Definition

Responsibility Societal Examples
Expectation
Economic Required Be profitable. Maximize sales,
minimize costs, etc.
Legal Required Obey laws and regulations.

Ethical Expected Do what is right, fair and just.

Discretionary Desired/ Be a good corporate citizen.

(Philanthropic) Expected
ECONOMIC RESPONSIBILITY

Effic ie nt o pe ratio n to  fulfill mo nito ry ne e d.

Ge ne ratio n o f surplus .

Ke e ping  re se rve  . 

Furthe r expansio n.
Legal Responsibility

 Fundamental in nature.
 Obey law and regulations.
 Insure law & order.
Ethical Responsibility

 Do  what is right, fair and just.
 Make a healthy & competitive environment.
 Don’t use unfair advertisement.
 Produce quality products on fair prices.
Discretionary Responsibility

 Contribute in social development.

 Provide basic facilities to employees.
 Contribute in development of community.
 Take initiative in emergencies.
PYRAMID OF CSR
CSR in short

 Responsibility towards shareholders?

 Responsibilities towards employees?
 Responsibilities towards Customers?
 Responsibilities towards Community/Society?
Conclusion:
Lets have
some fun !!