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Corporate Social Responsibility (CSR)Presented By:

Uzma NaseemWhat is CSR? CSR is the responsibility of corporation to contribute to better society and cleaner environment

It is about how companies manage the business processes to produce an overall positive impact on society

The most simplest definition is:

HOW ACOMPANY BEHAVES TOWARDS SOCIETYTwo Contrast Views of Social Responsibility

The Classical View

The Socioeconomic ViewThe Classical View:The classical view holds that management s only social responsibility is to maximize profitThe Socioeconomic View:It is the view that management's social responsibility goes beyond making profit to include protecting and improving societys welfareCategories of CSREconomic Responsibility (Profit)

Social Responsibility (People)

Environment Responsibility (Planet)

Concept of Greening ManagementThe recognition of the close link between an organizations decision s and activities and its impact on natural environment is referred as Green Management.

It is concern with companies embracing environmental protection as a part of their competitive strategies

Managers are facing following global environmental problem;Pollution (Air , water, soil)Toxic wasteGlobal warmingNatural resources reductionGlobal Environmental Issues

Reasons behind these Environmental IssuesGlobal WarmingOzone layer ReductionCutting forestsAir PollutionWater PollutionSoil pollutionApproaches of being GreenLegal Approach (Light green)

Market Approach

Stakeholder Approach

Activist Approach (dark green)Approaches of being GreenFirm simply do what is legally required by obeying laws, rules and regulations willingly and without legal challenge.Legal Approach (light Green )Market ApproachFirms respond to the preferences of their customers for environmentally friendly productStakeholder ApproachFirm work to meet the environmental demands of multiple stakeholders employee, suppliers and the communityActivist ApproachFirm look for ways to respect and preserve environment and actively socially responsibleContd...Benefits of CSRIncreased employee loyalty and retentionIncreased quality of product & servicesIncreased customer loyaltyIncreased reputation and brand imageGreater productivity & qualityProduce safely and decreased liabilityManagerial EthicsThe term ethics refers to rules and principles that define right and wrong conductOrKnowing the difference between right and wrong thingIs CSR and Business Ethics same?There are good things for society that are not good for business and this is where social responsibility comes in.

There are good things in business that are not good for society and this is where business ethics comes in.

Four Views of EthicsThe Utilitarian view

he Rights view

The theory of justice view

The integrative social Contrast theoryEffective Use of a Code of EthicsDevelop a code of ethics as a guide in handling ethical dilemmas in decision making

Communicate the code regularly to all employees

Publically reprimand & consistently discipline those who break the codeHow Manager can Improve Ethical Behavior in an OrganizationHire individuals with high standardsEstablish codes of ethics and decision rulesLead by exampleProvide ethics trainingConduct social auditsProvide support for individual facing ethical dilemmas

Organizations who was rated most Ethical CompaniesALCOA:General Electric CorporationsCoca-ColaThank You