Business Ethics &Leadership
Topic: “Corporate Social Responsibility”
“I wear two hats. The one is business and increasing my shareholders' value; the other is social responsibility”
A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates is termed as Corporate Social Responsibility. Companies express this citizenship
(1) Through their waste and pollution reduction processes
(2) By contributing educational and social programs, and
(3)By earning adequate returns on the employed resources.
It also refers to operating a business in a manner that accounts for the social and environmental impact created by the business. CSR means a commitment to developing policies that integrate responsible practices into daily business operations, and to reporting on progress made toward implementing these practices. Early CSR reports often focused on philanthropy as a driver of CSR.
That notion has been supplanted by a broad commitment to protecting and improving the lives of workers and the communities in which companies do business. CSR reports now typically address issues impacting virtually every area of operations: governance and ethics; worker hiring, opportunity and training; responsible purchasing and supply chain policies, and energy and environmental impact.
CSR may have four dimensions, namely
Economic Responsibilities – produce goods and services to earn profit.
Legal responsibilities- attain profits within the confines of the law.
Ethical responsibilities- license to operate.
Discretionary Responsibility: Philanthropy.
Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and...