corporate social responsibility-prince dudhatra-9724949948

8/7/2019 Corporate Social Responsibility-prince Dudhatra-9724949948

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Meeting the challenge

Making the change

prince dudhatra-9724949948


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CORPORATE SOCIALCORPORATE SOCIALRESPONSIBILITYRESPONSIBILITY



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AgendaAgenda

1. Overview of Corporate Social Responsibility

2. Research findings / Trends

3. Discussion



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Corporate SocialCorporate Social ResponsibilityResponsibilityas a Fig Leafas a Fig Leaf

CSR is the obligation of decision makers toCSR is the obligation of decision makers to

take actions which protect and improve thetake actions which protect and improve thewelfare of society as a whole along with theirwelfare of society as a whole along with theirown interests.own interests.

The social responsibility of businessThe social responsibility of businessencompasses the economic, legal, ethical andencompasses the economic, legal, ethical and

discretionary expectations that a society has ofdiscretionary expectations that a society has oforganizations at a given point in time.organizations at a given point in time.



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Corporate Social ResponsibilityCorporate Social Responsibility

However CSR can also be extended toHowever CSR can also be extended tohow business takes account of itshow business takes account of its

economic, social and environmentaleconomic, social and environmentalimpacts in the way it operatesimpacts in the way it operates



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Need for Social ResponsibilityNeed for Social Responsibility

(1)(1) The Iron Law ofResponsibility:The Iron Law ofResponsibility: The instituteThe instituteof business exists only because it performsof business exists only because it performsinvaluable services for society.invaluable services for society.

(2)(2) (2)To Fulfill Long(2)To Fulfill Long--run Selfrun Self--interest:interest: AAbusiness organization is most sensitive tobusiness organization is most sensitive to

community needs, in its own selfcommunity needs, in its own self--interest, likeinterest, liketo have a better community in which toto have a better community in which toconduct its business.conduct its business.



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Three Pillars ofThree Pillars of

Corporate Social ResponsibilityCorporate Social ResponsibilityENVIRONMENT

-Recycling efforts

-Produce less waste

-Energy efficiency

-Reduce emissions

SOCIAL

- Employment practices

- Diverse workforce

- Health and safety

- Support work/life balance

- Corporate giving

- Employee volunteerism

- Community involvement,

development and

investment

- Customer satisfaction

ECONOMY

- Local employment

- Local suppliers

-Support local training and scholarship programs

-Corporate governance and ethics

-Accountability, transparency and reportingprince dudhatra-9724949948


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Corporate Social ResponsibilityCorporate Social Responsibility

Trade Unions through their connections withTrade Unions through their connections with

employers and employers organisations can beemployers and employers organisations can beagents of social change and can help NGOs inagents of social change and can help NGOs in

their promotion of social inclusion throughtheir promotion of social inclusion throughemploymentemployment

Donations are helpful but measures for socialDonations are helpful but measures for social

integration are more helpful and longintegration are more helpful and long--lasting.lasting.



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So..So.. How do we prioritize stakeholders in a globalHow do we prioritize stakeholders in a global

economy?economy? What are the relationships between business and society?What are the relationships between business and society?

Musts? ObligatoryMusts? Obligatory ought? Discretionary?ought? Discretionary?

And IF the world is flat (the globalizationAnd IF the world is flat (the globalization

thesis),thesis), How should we think or rethink about ideas ofCSRHow should we think or rethink about ideas ofCSR

in a global economy?in a global economy?



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Company

Mass media

Special interest

Groups

Privatesector

Political

parties

International

Organizations

Pressure

groups

NGOs

Customers

Employees

Suppliers

Corporate

management

Shareholders

ASTAKEHOLDER MAPASTAKEHOLDER MAP

Special interest

Groups

Local

communities

Professionals

Governments



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Broad Engagement of StakeholdersBroad Engagement of Stakeholders W

orkplaceW

orkplace EmployeesEmployees UnionsUnions

RetireesRetirees

FamiliesFamilies

MarketplaceMarketplace Customers / consumersCustomers / consumers

SuppliersSuppliers

PartnersPartners

CompetitorsCompetitors

CommunityCommunity NeighborsNeighbors

CharitiesCharities

Social service agenciesSocial service agencies

Local governmentLocal government MediaMedia

EnvironmentEnvironment

Immediate communityImmediate community

Society as a wholeSociety as a whole

FinancialFinancial

InvestorsInvestors

ShareholdersShareholders

RegulatorsRegulators

LendersLenders

InsurersInsurers



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Setting

CommunitiesCommunities

LocalLocal

employeesemployees CorporationCorporation

NGOsNGOs

SocialSocial

Norms &Norms &

CustomsCustoms

CustomerCustomer Local Governments &Local Governments &Political SystemsPolitical Systems

SuppliersSuppliers

GlobalGlobal

employeeemployee

ss

ShareholdersShareholdersPartners &Partners &

CompetitorsCompetitors

ReligiousReligious

influencesinfluences



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What We are going to discuss..What We are going to discuss..

Community

Investment

Business

Ethics

Sustainability

Corporate

Citizenship

Environmental

Responsibility



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Emerging TrendsEmerging Trends

andandKey BenefitsKey Benefits



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CSRCSR -- An EmergingAn Emerging

BusinessT

rendBusinessT

rendFuture of CSRFuture of CSR-- Experts Views Over the next 5Experts Views Over the next 5years (Globe Scan 2008)years (Globe Scan 2008)



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Key Benefits of CSRKey Benefits of CSR

Enhance employee recruitment and retentionEnhance employee recruitment and retention

jj 91% of employees would prefer to work for a company91% of employees would prefer to work for a companywith a strong commitment to community.with a strong commitment to community.

jj 92% of employees want to be involved in their92% of employees want to be involved in theircompanys social responsibility in some way.companys social responsibility in some way.

jj 90% of employees of large Canadian companies agreed90% of employees of large Canadian companies agreed

that C

SR

increases my motivation and loyaltythat C

SR

increases my motivation and loyalty(2008 Globe scan)(2008 Globe scan)



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Best Way for Company to Make PositiveBest Way for Company to Make PositiveContribution to SocietyContribution to Society(Globe Scan Survey)(Globe Scan Survey)



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Strategic Partnership TrendsStrategic Partnership Trends

Best Indication That Company

Is Socially Responsible

Works with NGO or Charity, Trends: 20022006



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Donating computers to a schoolDonating computers to a school Building a playgroundBuilding a playground

Developing a website for a charityDeveloping a website for a charity

Enabling your employees to volunteer for a charityEnabling your employees to volunteer for a charity

Providing skills training for unemployed youthsProviding skills training for unemployed youths

Planting trees in a local community parkPlanting trees in a local community park

Exa ples



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Companies that dont keep a firm grip onCompanies that dont keep a firm grip onstaff working conditions,staff working conditions,

the activities of their suppliers,the activities of their suppliers,

or the amount of pollution they cause,or the amount of pollution they cause,

are more likely to be shut down by theare more likely to be shut down by the

authorities or boycotted by the public.authorities or boycotted by the public.

What the edia say



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Procter & GambleProcter & Gamble

Go, Give and GrowGo, Give and Grow

Better StartBetter Start

Golden HouseholdsGolden Households

How do some compa ies do R?



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NokiaNokia

Make a ConnectionMake a Connection

How do some compa ies do R?



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Social Responsibility ModelsSocial Responsibility Models

EconomicsEconomics

LegalLegal

EthicalEthical

DiscretionaryDiscretionary



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EconomicEconomic

EfficientEfficient operationoperation toto satisfysatisfy economiceconomic needsneeds ofof

thethe societysociety andand generationgeneration ofof surplussurplus forforrewardingrewarding thethe investorsinvestors andand furtherfurtherdevelopmentdevelopment..



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LegalLegal

Legal responsibilities are also fundamental in

nature because a company is bound to obey thelaw of the land.



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EthicalEthical

Ethics is principles, value and beliefs that define

what is right and wrong behavior.

For example, a company shall not resort to

bribing or unethical practices, unfair

competition.



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EstablishingOfEthicsEstablishingOfEthics

Company policyCompany policy

Formal rules and regulationFormal rules and regulationPerformance appraisal systemPerformance appraisal system

Reward allocationReward allocation



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Appointment ethics committeeAppointment ethics committee

Create a strong cultureCreate a strong culture

MotivationMotivation

Teaching ethicsTeaching ethics

ValuesValuesselfself--confidenceconfidence



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Discretionary

Discretionary responsibilities refer to the

voluntary contribution of the business to the

social cause, like involvement in communitydevelopment or other social programmer for

example adult or poor children education etc.



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Social Responsibility toSocial Responsibility to

GovernmentGovernmentSetting up units as per guidelinesof government.

Payment of fees, duties and taxesregularly as well as honestly.

Not to involve in monopolisticand restrictive trade practices.

Conforming to pollution control

norms set up by government.prince dudhatra-9724949948


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Social Responsibility To PublicSocial Responsibility To Public

To help the weaker and backwardsections of the society.

To preserve and promote socialand cultural values.

To generate employment.

To protect the environment.prince dudhatra-9724949948


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Continue.Continue.

To provide assistance in the field ofdevelopmental research on education, medicalscience, technology etc.

To conserve natural resources and wildlife.

To promote sports and culture

Regular supply of goods and services.

Goods and services at reasonable and affordableprice.



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Current Scenario OfTwoCurrent Scenario OfTwo

CompanyCompanyADITYABIRLA GROUPADITYABIRLA GROUP TATAGROUPTATAGROUP

As early as the 1940s, they

founding father ShriG

.DBirla espoused the

trusteeship conceptof management.

TATA group are givingTATA group are givingcontribution since mid 19thcontribution since mid 19thcentury.century.



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ADITYABIRLA GROUPADITYABIRLA GROUP

Employment

Employment generate,generate, givegivetrainingtraining inin villagevillage37003700 villagevillage

andand 77 millionmillion peoplepeople touchingtouchingannuallyannually..

BalwadisBalwadis (pre(pre--school)school) AdultAdult

educationeducation onon--formalformal educationeducationContinuingContinuing educationeducationScholarshipsScholarships forfor girls,girls, meritmerit andandtechnicaltechnical educationeducation

TATAGROUPTATAGROUP

To provideTo provide

education+traning in ruraleducation+traning in ruralarea.area.

DHANAcademy & ShriDHANAcademy & Shri

Ratan Tata Trust, giveRatan Tata Trust, giveeducation preeducation pre--school toschool to

college. and give JRD TATAcollege. and give JRD TATAScholarship for higherScholarship for highereducation.education.



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ADITYABIRLA GROUPADITYABIRLA GROUP

They provide medical facilityThey provide medical facilityto employee and theyto employee and they

establish a hospital in ruralestablish a hospital in ruralarea.area.

InfrastructureInfrastructure developmentdevelopment

Roads, Dams CommunityRoads, Dams Communitycenters, Houses Culvertscenters, Houses Culverts

Electricity, Water channelsElectricity, Water channelsSchoolsSchools

TATAGROUPTATAGROUP

TATA group arrangeTATA group arrangemedical camp in rural as wellmedical camp in rural as well

as urban area. they provideas urban area. they providespecial medical facility tospecial medical facility to

their employee.their employee.

They build many house andThey build many house andgive lower price to poorgive lower price to poor

people.people.



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Companies Which are involve inCompanies Which are involve in

Social Welfare activitiesSocial Welfare activities

TCSTCS

Adult literacyAdult literacyprogrammeprogramme

through computerthrough computer

based functionalbased functional

literacy method.literacy method.



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ContinuedContinuedInfosysInfosys Focuses on theFocuses on the

underprivileged inunderprivileged inrural areas,rural areas,

healthcare for thehealthcare for thepoorpoor

educationeducation rehabilitation andrehabilitation andpromotion ofIndianpromotion ofIndianart and culture.art and culture.

Infosys HyderabadInfosys Hyderabad

development centredevelopment centrehas launched ahas launched acomputer literacycomputer literacyprogramme forprogramme forCyderabad policeCyderabad policepersonnelpersonnel prince dudhatra-9724949948


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ContinuedContinued

CanonCanon

HomeHome

Eye care projectEye care project

Humanitarian aid andHumanitarian aid anddisaster reliefdisaster relief

Art, culture and sportsArt, culture and sports

Education and scienceEducation and science

Local communistLocal communist

Social welfareSocial welfare

Conservation ofConservation of

environmentenvironment prince dudhatra-9724949948


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ContinuedContinued

AxaAxa

EmployeesEmployees

Clients andClients anddistributorsdistributors

ShareholdersShareholders

SuppliersSuppliers

EnvironmentEnvironment



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STAKEHOLDERSSTAKEHOLDERS

The stakeholders of an organization are all those whoThe stakeholders of an organization are all those whoparticipate in the activities of the organization. Itparticipate in the activities of the organization. It

may bemay be

1.1. AnyAny groupgroup ofof peoplepeople whowho havehave stakestake inin thethebusinessbusiness..

2.2. ThoseThose whowho areare vitalvital toto thethe survivalsurvival andand successsuccess ofof

thethe organizationorganization..3.3. AnyAny groupgroup thatthat isis affectedaffected byby thethe activitiesactivities ofof thethe

organizationorganization..

StakeholderStakeholder maymay bebe internalinternal oror externalexternal..prince dudhatra-9724949948


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ShareholderShareholder

ShareShare holderholder areare consideredconsidered toto bebe thethe

ownersowners ofof thethe corporationcorporation..

ShareholdersShareholders areare consideredconsidered`members``members` ofof thethe companycompany whowho helphelp

toto achieveachieve thethe companyscompanys goalsgoals byby

investinginvesting inin thethe businessbusiness.. SoSo thatthat itit isis aa

firstfirst responsibilityresponsibility ofof thethe companycompany totoprotectprotect thethe interestinterest ofof thethe shareholdershareholder..



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ContinuedContinued

ShareholdersShareholdersresponsibilities.responsibilities.

Responsibilities of theResponsibilities of the

organization towards theorganization towards theshareholders.shareholders.



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ConsumersConsumers

The customer is theThe customer is thefoundation of a businessfoundation of a businessof a business and keeps itof a business and keeps it

in a existence.in a existence.

Consumers providesConsumers provideslifeblood of the firm inlifeblood of the firm inthe form of revenue.the form of revenue.



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ContinuedContinued

The responsibilities ofThe responsibilities ofbusiness corporationsbusiness corporationstowards their consumerstowards their consumersare summed up by theare summed up by thefive Rsfive Rs-- the right quality,the right quality,right quantity right time,right quantity right time,right place and rightright place and rightprice.price.

A few of theseA few of theseresponsibilities are :responsibilities are :



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Social Responsibility OfSocial Responsibility Of

Managers In BusinessManagers In Business

Social responsibilities refer to the businessmansSocial responsibilities refer to the businessmansdecisions and actions taken to reasons at least partiallydecisions and actions taken to reasons at least partiallybeyond the firms direct economic or technical interest.beyond the firms direct economic or technical interest.

The first break came in the 1930s.The first break came in the 1930s.

Social responsibility contends that management isSocial responsibility contends that management isresponsible to the organization itself and to all theresponsible to the organization itself and to all theinterest groups with which it interacts.interest groups with which it interacts.



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ContinuedContinued

Features of social responsibilityFeatures of social responsibility

Three types of behavior.Three types of behavior.

Social obligation to fulfill.Social obligation to fulfill.Obligations according to social norms andObligations according to social norms and

expectations.expectations.



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SOCIAL AUDITSOCIAL AUDIT



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Definition Of Social AuditDefinition Of Social Audit

AccordingAccording toto AhmedAhmed Belkoui,Belkoui, SocialSocial auditaudit isis

muchmuch likelike thethe financialfinancial auditaudit--isis andand identificationidentificationandand examinationexamination ofof thethe activitiesactivities ofof thethe firmfirm ininorderorder toto assess,assess, evaluate,evaluate, measuremeasure andand reportreport

theirtheir impactimpact onon thethe immediateimmediate socialsocial

environmentenvironment..



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Major Involvement in Social AuditMajor Involvement in Social Audit

Social impact.Social impact.

Costs and Benefit.Costs and Benefit.

FormatFormat



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Objectives and benefits of SocialObjectives and benefits of Social

AuditsAudits

The basic objective of social audit is to evaluateThe basic objective of social audit is to evaluate

the social dimensions of the performance of thethe social dimensions of the performance of thecompany.company.

Social performanceSocial performance

Public image.Public image.



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Method of Social AuditMethod of Social Audit

Social Process AuditSocial Process Audit

Financial Statement Format AuditFinancial Statement Format Audit

MacroMacro--Micro Social Indicator AuditMicro Social Indicator Audit

ConstituencyGroup AuditConstituencyGroup Audit

Partial Social AuditPartial Social Audit

Comprehensive AuditComprehensive Audit

Corporate RatingApproachCorporate RatingApproach



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Obstacles to Social AuditObstacles to Social Audit

New conceptNew concept

Methodology.Methodology.

Agreement.

Agreement.

Cost factor.Cost factor.

Resistance.Resistance.



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Performa of Social AuditPerforma of Social Audit

ParticularParticular Amt.Amt. Amt.Amt.

1.Social Benefits & cost of staff1.Social Benefits & cost of staff

A.A. social benefits to staffsocial benefits to staff ********

11medical & hospital facilitiesmedical & hospital facilities

2 educational facilities2 educational facilities

3 canteen facilities3 canteen facilities

4 recreation, entertainment4 recreation, entertainment5 hosing & township facilities5 hosing & township facilities

6 water supply, concessional6 water supply, concessional

electricity & transportelectricity & transportprince dudhatra-9724949948


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ParticularParticular Amt.Amt. Amt.Amt.

7.Training & career development7.Training & career development

8.P.f, gratuity, bonus & insurance8.P.f, gratuity, bonus & insurance

9.Holiday,leave encashment &9.Holiday,leave encashment &

leave travel benefitleave travel benefit

10.Other benefits.10.Other benefits.

Total benefit to staffTotal benefit to staff



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ParticularParticular

B.Social costs to staffB.Social costs to staff

1.Lay off & involuntary termination1.Lay off & involuntary termination

2.Extra hours put in by officers voluntarily2.Extra hours put in by officers voluntarily

Total cost to staffTotal cost to staff

Social income to staff (ASocial income to staff (A--B)B)



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II. Social benefit & costs to communityII. Social benefit & costs to community

A. Social benefit to communityA. Social benefit to community

1.Local taxes paid to panchayat/1.Local taxes paid to panchayat/

municipalitymunicipality

2.Environmental improvements2.Environmental improvements

3.Generation of job potential3.Generation of job potential4. Generation of business4. Generation of business

Total social Benefits to CommunityTotal social Benefits to Community



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B.Social Costs to CommunityB.Social Costs to Community

1.Increase in cost of living in the1.Increase in cost of living in the

vicinity on account of thevicinity on account of the

cement plantscement plants



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III. Social Benefit & Costs to GeneralIII. Social Benefit & Costs to General

PublicPublic

A.Social benefits to general publicA.Social benefits to general public

1.Tax, duties, etc, paid to State government1.Tax, duties, etc, paid to State government

2.Tax, duties etc. paid to central government2.Tax, duties etc. paid to central government

Total benefit to general publicTotal benefit to general public



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B. Social costs to general publicB. Social costs to general public

1. State services consumed1. State services consumed --electricityelectricity

2.Central services consumed2.Central services consumed

telephone, telegraph,postaltelephone, telegraph,postal

services & banking.services & banking.

Net social benefit to general public III(ANet social benefit to general public III(A--B)B)

Net social Income to Staff, CommunityNet social Income to Staff, Community& General Public (I+II+III)& General Public (I+II+III)



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SOCIAL RESPONSIBILITYTOWARDSSOCIAL RESPONSIBILITYTOWARDS

EMPLOYEESEMPLOYEES

EmployeesEmployees areare ourour greatestgreatest assetasset



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Definition ofE

mployeeDefinition ofE

mployee AnAn employeeemployee isis anyoneanyone whowho hashas agreedagreed toto bebe

employed,employed, underunder aa contractcontract of of service,service, toto workwork forfor

somesome formform of of paymentpayment.. ThisThis cancan includeincludewages,salary,commisionwages,salary,commision andand piecepiece ratesrates



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Employees In OrganizationEmployees In Organization

EmploEmplo h vh v d cd c

nn nn nn o g n ono g n on..

D pendDepend ofof Emplo eesEmplo ees mo lmo l..

M n gemen sM n gemen s responsibilityresponsibility toto protectprotect interestinterest ofofemployeesemployees inin thethe org nisationorganisation..



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Responsibility of the organisation toResponsibility of the organisation to

employeesemployees

TheThe paymentpayment ofof fairfair wageswages..

TheThe installationinstallation ofof anan efficientefficient grievancegrievance handlinghandlingsystemsystem..

ArrangementArrangement forfor properproper trainingtraining andand educationeducation ofofthethe employeesemployees..

ManagementManagement shouldshould developdevelop administrativeadministrative processprocessinin suchsuch wayway thatthat promotespromotes cooperativecooperative endeavourendeavourbetweenbetween employeesemployees && employersemployers..



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TheThe establishmentestablishment ofof fairfair workwork StandardStandard &&NormsNorms..

ReasonableReasonable chanceschances andand properproper systemsystem forforAccomplishmentAccomplishment && PromotionPromotion..

ProperProper recognition,recognition, appreciationappreciation &&encouragementencouragement ofofspecialspecial skillskill && capabilitiescapabilities ofofthethe EmployeesEmployees..



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Various Companys Social ResponsibilityVarious Companys Social Responsibility

Towards EmployeesTowards Employees

RelianceReliance

Infosys

TATA

ONGC Ltd.



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1. Since business utilizes the resources of the

society hence they tend to be accountable to the

society.

2. A resourceful business holds a specialresponsibility towards the society.

3. By involving in social activities businesses candevelop harmonious relationships between the

society and business and this will be mutually

Arguments for social involvement



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4. Businesses being social responsible will be able

to avoid additional government regulation andintervention.

5. It helps to create better public image for the

company, which may help it in attracting

customers, efficient personnel and investors.



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1. Business should be concerned about

commercial activities only; there are governmentA

gencies andNGO

s, which can carry out socialactivities that too in a very good manner.

2. The economic health of any business may be

adversely affected by social involvement.

Arguments Against Undertaking Of Social

Responsibility By Business



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3. The cost of social involvement is mostly passed onto the consumer in the form of increased prices,hence there seems to be no point in pursuing

something which will eventually put the burden onthe society itself.

4. The business managers are usually adept at handling

business activities but may be poorly skilled inmanaging social activities.



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ConclusionConclusion

BusinessBusiness isis partpart ofof societysociety andand businessbusiness isis alsoalsoknownknown asas personperson inin languagelanguage ofof thethe lawlaw..Initially,Initially, itit isis difficultdifficult toto expressexpress socialsocial incurredincurred

byby aa corporatecorporate enterpriseenterprise andand socialsocial benefitsbenefitsgeneratedgenerated inin moneymoney terms,terms, untiluntil suitablesuitablemethodologiesmethodologies areare availableavailable forfor conversionalconversional ofofsocialsocial costscosts benefitsbenefits transactiontransaction inin moneymoney terms,terms,

ItIt needneed toto furtherfurther researchresearch inin thisthis areaarea.. butbutbusinessbusiness shouldshould givegive contributioncontribution toto developdevelop ofofsociety,society, usingusing somesome techniquestechniques..



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BibliographyBibliography Business EnvironmentBusiness Environment

by Dr. Francis Cherunilamby Dr. Francis Cherunilam The Mercantile law. byN.D. Kapoor.The Mercantile law. byN.D. Kapoor. Annul Report ofRELIANCELTD.(07Annul Report ofRELIANCELTD.(07--08)08) Annul Report ofINFOSYS LTD.(07Annul Report ofINFOSYS LTD.(07--08)08) Annual Report ofADITYABIRALAGROUPS.(07Annual Report ofADITYABIRALAGROUPS.(07--08)08) Annual Report ofTATAMOTORS LTD.(07Annual Report ofTATAMOTORS LTD.(07--08)08) Annual Report ofONGCLTD.(07Annual Report ofONGCLTD.(07--08)08) web site:web site: http://www.adityabirla.comhttp://www.adityabirla.com

http://www.bing.comhttp://csr-news.net/mainhttp://google.com



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