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Lecture- 5 (BECG)
Contents
I. Introduction to Corporate Social Responsibility (CSR) II. Historical Perspective III. The Changing Face of CSR: Responsibility Towards Employees Responsibility Towards Customers Responsibility Towards Intermediaries Responsibility Towards Shareholders Responsibility Towards Society Responsibility Towards Government
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Def. of CSR: CSR refers to the business mans decisions and actions taken for reasons at least partially beyond the firms direct economic or technical interest Kieth Davis. CSR of business is understood from two different angles of business obligations, i.e. Socio-economic obligation, and Sociohuman obligation.
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CSR (Contd..)
CSR is the sense of obligation on the part of the companies to build certain social criteria and manage the business activities by taking strategic decisions. Socially responsible companies should consider various issues, from the organization of the firm to build relationship with the community. The issue of CSR has come into focus through industrial revolution.
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Dark Satanic Mills: The shift from agrarian economy to industrial economy had many ill effects. The working conditions deteriorated and pollution increased. Between 1760 and 1815, 7 million acres of land was captured by Parliamentary Enclose Awards. Locals were deprived of the enclosed common lands share, which was known as enclosure. This led to growth of big cities like Birmingham, Bradford, Cardiff and Manchester. In these cities, labor mobility, shifts in ownership patterns, and population pressure reduced the sense of responsibility for others and the rapport between individual and community was broken. This resulted in the concentration of power in a few hands. British Monarchs introduced legislations against traditional enclosures. In 18th and 19th centuries the focus of government changed and governments committed to improvements.
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Victorian Philanthropy (Robert Owen): During the late 18th century, the British Governments Salvation Army tried to solve the problems of the dispossessed. Industrialists formed philosophical societies like Manchester Literary. The issues were relating to parliamentary reforms, education, health, and scientific development. The societies expressed a sense of responsibility towards the community. English civic universities were also started in Manchester, Liverpool, New Castle and Birmingham.
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Progressives in North America: During the early part of 19th century, CSR in North America varied from that of Europe. The perspective of individual, entrepreneurial and corporate responsibility in North America was centered on education. It was an important means to personal advancement. There was close relationship between the early entrepreneurs and educational institutions (Harvard, Yale, Cornell, Princeton, Duke, Columbia) have immensely benefited from these emerging entrepreneurs. At the same time, these entrepreneurs continued their investments in social welfare activities (housing, health).
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Roosevelt government in US intervened to solve social and economic problems. Following this, the Scottish Council for development and industry took up the changed responsibilities, which aimed at:- Streamlining existing resources that support indl. development and job creation in Scotland - Supporting government and other remedial action - Encouraging firms to locate in Scotland - Creating a climate for growth and prosperity - Removing myths and misinformation about Scotland and its economic prospects. Similar initiatives were implemented in Britain. In Europe and North America, employees depended on philanthropic employers.
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Post-War Statism: The end of World War II necessitated re-examination of relationship between industry, the state and community. In Britain, Europe and Japan, many CSR programs were taken up for waging wars against poverty, unemployment and social injustice. As a result of such programs, the US economy experienced strong economic growth in the post war period registering tremendous growth in GDP and so on.
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Better Product Quality Better Service Quality Creation of Awareness Charging Fair Price
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Assured Returns Sharing the Risk Support and Facilitation Supply Chain Management
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Better Financial Disclosures Adequate Information Protection of Interests Ensuring Return on Investment (ROI)
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Clean Environment Employment Opportunities Mobilizing Society towards Socially Relevant Causes. Promoting Entrepreneurship
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Zero Tax Evasion Legal Compliance Higher Exports Creation and Maintenance of infrastructure
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Dr. Reddys Labs (Livelihood Advancement Business School for under-privileged youngsters) TVS HLL Wipro Agro-tech Foods Ltd (Sun-drops contribution to heart patient children) Infosys Technologies
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The End
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