Corporate Social

Responsibility
 Corporate Social Responsibility:
CSR is a set of actions of a company that
changes business operations to improve,
maintain, or mitigate a company’s
impact on society and the environment.

CSR refers to a company’s obligations to

act to protect and improve society’s
welfare as well as its own interest.
Why/ Importance of Corporate Social Responsibility:
Public Image:
 The activities of business towards the welfare of the society earn goodwill and
reputation for the business.
 The earnings of business also depend upon the public image of its activities.
 Good public image also attracts honest and competent employees to work with
such employers.

Government Regulation:
 To avoid government regulations businessmen should discharge their duties
voluntarily.

Consumer Awareness:
 Now a day’s consumers have become very conscious about their rights.
 This has made it obligatory for the business to protect the interest of the
consumers by providing quality products at the most competitive price.
Why/ Importance of Corporate Social Responsibility:
Survival and Growth:
 Every business is a part of the society.
 So for its survival and growth, support from the society is very much essential.
 So it should be the responsibility of every business to spend a part of its profit for
the welfare of the society.

Employee Satisfaction:
 Besides getting good salary and working in a healthy atmosphere, employees also
expect other facilities like proper accommodation, transportation, education and
training.
 The employers should try to fulfill all the expectation of the employees because
employee satisfaction is directly related to productivity and it is also required for
the long term prosperity of the organization.
 For example, if business spends money on training of the employees, it will have
more efficient people to work and thus, earn more profit.
Ethics

 Ethics are, at their essence, moral judgements about what

is right and what is wrong.
 It is of 2 types
1. Personal Ethics
2. Business Ethics
 Personal Ethics
 Decisions made on the basis of an individual’s moral character
and held values and the influences thereon.
 Ethical decision-making encompasses moral imagination, moral
deliberation and moral courage.
 It includes the following stages:
 Ethical Awareness (moral imagination): recognition when they
are faced with a choice that has ethical dimensions (ethical can
imply “moral” considerations, e.g. “right vs. wrong” situations
or, more broadly, where there is a conflict of legitimate
interests, or a “right vs. right” situation)
 Decision-making (moral deliberation): applying framework(s)
for working through to a decision as to what is the most ethical
course of action (Ethical Analysis, below).
 Action (moral courage): having the courage and ability to
communicate and carry out the course of action
 Business Ethics
 A form of applied ethics that examines ethical
rules and principles within a commercial context

 In a business sense, ethics are decided upon and

formed by each company and determine the
decisions that anyone in the business makes.
 Importance of Business Ethics
 Ethics influence and contribute to:
 Employee commitment.
 Investor and customer loyalty and confidence.
 Legal problems and penalties.
 Customer satisfaction.
 The ability to build relationships with stakeholders.
 Cost control.
 Performance, revenue, and profits.
 Reputation and image