social responsibility

CORPORATE SOCIAL RESPONSIBILITY

The important generally accepted responsibilities of the business to different sections of the society are described below.

1. Responsibility to shareholders

The responsibility of a company to its shareholders, who are owners is a primary one. The fact that the investments in the business should be recognized. To protect the interests of the shareholders and to provide a reasonable dividend, the company has to strengthen and consolidate its position.

2. Responsibility to employees

The success of an organization depends to a very large extent on the morale of the employees and their whole hearted co-operation.

The responsibility of the organization to the workers include –

1. The payment of fair wages

2. The provision of best possible working condition

3. Establishment of fair working standards and norms

4. The provision of labor welfare facilities to the extent possible and desirable

5. Arrangements for proper training and education of the workers

6. Reasonable chances and proper system for accomplishment and promotion

7. Proper recognition, appreciation and encouragement of special skills and capabilities of workers.

8. The installation for efficient grievance handling system

9. An opportunity for participating in managerial decisions to the extent desirable.

3. Responsibility to consumers

The customer is the foundation of business and keeps it in existence. It has been widely recognized that customer satisfaction shall be the key to satisfying the organizational goals. Some important responsibilities of business to customers are –

1. To improve the efficiency of the functioning of business so as to increase productivity and reduce prizes, improve quality, smoothen the distribution system to make goods easily available.

2. To do research and development, to improve quality and introduce better of new products.

3. To take the steps to remove the imperfection in the distribution system including black marketing or anti-social elements.

4. To supply goods at reasonable prizes

5. To ensure that the product supplied has no adverse effect on the customer.

6. To provide sufficient information about the product including adverse effects, risks and care to be taken while using the products.

7. To avoid misleading the customers by improper advertisement.

8. To provide opportunity for being heard and to redress genuine grievances.

9. To understand customer needs and to make necessary measures to satisfy these needs.

4. Responsibility to community

A business has a lot of responsibility to the community around its location and to society. The responsibilities include –

1. Taking appropriate steps to prevent environmental pollution and preserve ecological balance.

2. Rehabilitating the population displaced by operate of the business

3. Assisting in the overall development of locality

4. Taking steps to conserve scares resources and developing alternatives

5. Improving the efficiency of the business operation

6. Contributing to research and development

7. Develop of backward areas

8. Promotion of small scale industries

9. promotion of education and population control

10. Contribution to the national effort to build up a better society

BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY

BUSINESS ETHICS

The term business ethics refers to the system of moral principles and rules of conduct applied to business. This means that the business should be conducted according to certain self-recognized moral standards. Business, being a social organ, shall not conduct itself in a way detrimental to the interests of society and the business sector itself. A profession is bound by certain ethical principles and rules of conduct which reflect its responsibility, authority and dignity. The professionalization of business management, should therefore, be reflected in the increasing acceptance of business ethics.

NOTE: In the 1930’s Rotary International developed the code of ethics that is still used extensions. It uses 4 questions that are called the 4 way of ethical behavior for any business forces –

· Is it truth?

· Is the fair to all concerned?

· Will it build goodwill and friendship?

· Will it be beneficial to all concerned?

LIST OF IMPORTANT ETHICAL PRINCIPLES THAT A BUSINESS SHOULD FOLLOW:

1. Do not deceive or cheat customers by selling substandard or defective products by under measurements or by any other means.

2. Do not resort to hoarding, black marketing or profiteering.

3. Do not destroy or distort competition

4. Ensure sincerity and accuracy in advertising, labeling and packaging.

5. Do not tarnish the image of competitors by unfair practices.

6. Make accurate business records available to all authorized persons.

7. Pay taxes and discharge other obligation promptly

8. Do not farm cartel agreements, even informal, to control production, price etc to the common detriment.

9. Refrain from secret kickbacks on payoffs to customers, suppliers, administrators, politicians etc.

10. Ensure payment of fair wages to and fair treatment of employees.