BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT CHAPTER-3 SOCIAL RESPONSIBILITY AND ETHICS

 

BCOC-132 BUSINESS ORGANISATION AND MANAGEMENT CHAPTER-3 SOCIAL RESPONSIBILITY AND ETHICS

SOCIAL RESPONSIBILITY OF BUSINESS

The social responsibility of business involves considering the impact of corporate actions on various stakeholders , including employees, customers, communities, and the environment. It encompasses ethical practices , sustainability , and contributing positively to society beyond profit generation. Companies engage in socially responsible practices often build trust and long term value.

Definition of CRS

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 society at large.

CSR THEORIES:-

1. Corporate social responsibility:-it is decision to improve the welfare of the community

   through discretional practices and contribution to the corporate resources . discretional activities include voluntary decision to choose the activities and contributions on its own way. These activities are performed way to maximize positive influence and minimize negative influence of their business on society

2. Stakeholder theory:-this theory states that the stakeholders of the business partners in the organization and their voices must add to corporate choices.

3. The triple bottomline:-social and environmental concern to the economic concerns. these three together known as “profit, people, planet” or referred as the three pillars, this theory is intended to advance the goal of sustainability in business practices

CSR Agenda

The Corporate Social Responsibility agenda encompasses a company’s commitment and actions related to social and environmental responsibility . key components of CSR includes:-

• Environmental sustainability:- implementing eco-friendly practices to reduce the environmental impact of operation

• Ethical business practices:-adhering to ethical standards in all business dealing

• Community engagement:- supporting local communities through philanthropy ,

  voluntarism or community development projects

• Diversity and inclusion :- promoting diversity within the workforce and ensuring a

  inclusive workplace culture

• Corporate governance

• Employee well being

  ETHICS

  It is the study of moral principles that guide human behavior , distinguish between right and wrong. It serve as frame work for individuals and group to make decisions aligned with values such as honesty, integrity, and responsibility , influencing personal conduct , professional behavior and social interactions. In business ethics plays crucial role in shaping organizational culture and guiding responsible decision making

META ETHICS:-It’s a branch of ethics that explores the nature, language and meaning of ethical concepts and propositions

NORMATIVE ETHICS:- It is branch of moral philosophy that examines the principles and guidelines for determining what is morally right or wrong

APPLIED ETHICS:-it involves utilizing ethical theories and frameworks to address real world problems and guide decision making in various context.

BUSINESS ETHICS:-

Business ethics refers to the principles and standards that guide behavior in the world of business. It involves making decisions that are morally right and adhering to values such as honesty , integrity, and fairness in business practices. Ethical behavior in business extends to areas like customer relations, employee treatment, environmental responsibility and compliance with laws and regulations.

THE RELATIONSHIP BETWEEN BUSINESS ETHICS AND SOCIAL RESPONSIBILITY

The relationship between business ethics and social responsibility lies in the shared goal of promoting ethical behavior and contributing positively to society.

Business ethics focus on moral principles with in the business context, ensuring fair and honest practices

Social responsibility on other hand involves a boarder commitment to acting in ways that benefit society at large, encompassing environmental , social and economic dimension

Ethical business practices contribute to social responsibility by fostering trust, sustainability and corporate citizenship . A social responsible business not only adheres to ethical standards internally but also considers the impact of its decision on the community, the environment, and various stakeholders. The two concepts are interconnected.

CORPORATE RESPONSIBILITY

It is the idea that business have a responsibility to contribute positively to society beyond the maximizing profits. It involves companies commitment to behaving ethically, considering the impact of its activities on the environment, communities and various stakeholders. CRS encompasses a range of practices including ethical business conduct , environmental sustainability , philanthropy and social initiatives, companies engage in CSR aim to balance economic success with social and environmental consideration.

Benefits of CRS

• Enhance reputation

• Customer loyalty

• Employee moral and retention

• Operational cost saving

• Better financial performance

• Organizational growth

  Philosophy of business are

• Nature of business:- which is only exist to earn profit

• Role of business society:-create value for members in society

• Moral obligation towards society :-production through price mechanism in

accordance with their contribution to production

PARADIGM SHIFT OF CORPORATE RESPONSIBILITY

The paradigm shift in corporate responsibility has changed over time due to factors like NGO influence , media reach and corporate scandals. Globalization has shifted the role of governments, leading to changing social expectations. Consumers now demand transparency beyond philanthropy . this shift resulted in two types A change in business philosophy and focus on society

1. First shift: Philosophy of business

In the first shift in business philosophy recognize that , business are more than just profit makers, the social institution with duties to society and the environment. It emphasize that society not just the entrepreneurs , decides if a business should continue based on fulfilling assigned duties.

Business now expected to be accountable not only to society but also to the natural environment. Environment issues have become a significant concern, and business are urged to consider their responsibility in preserving resources. This shift reflects a growing awareness of the interconnection between business , society, and the environment

2. Second shift: Towards society and Natural environment

In business ethics , business need to consider different participants those inside the company like stakeholders and employees and those outside like customer and community. And the natural environment is also crucial part of this

However in reality business often prioritize shareholders and immediate impacts. The challenge is making sure business balance their responsibilities to society and the environment with their financial goal
Corporate responsibility consist of:-

• CSR

• Corporate Governance

• Environmental accountability

  CSR IN INDIA

  In India CSR is guided by companies Act, 2013 ,this encourages companies to use a part of their profits for education, helping marginalized groups, promoting gender quality and addressing poverty and hunger.

  The Ministry of Corporate Affairs introduced guideline in 2009, listing six CSR components , it includes caring for stakeholders , ethical working, respecting workers ‘s rights , environmental responsibility and activities for social development.

  The Security and Exchange Business responsibility of India (SEBI) recommends that the top 100 companies submit Business Responsibility Reports as part of their annual disclosures.

  The National Voluntary Guidelines(NVGs) stress responsible business conduct. These guideline preceded mandatory CSR provision in the companies Act2013. Requiring certain companies to engage in social responsibility activities.