Corporate Social Responsibility And Related Models

CORPORATE SOCIAL RESPONSIBILITY AND RELATED MODELS Corporate Social Responsibility Corporate social responsibility means voluntary company activities benefiting society beyond statutory requirements, reflecting moral obligations. It implies businesses, like citizens, must uphold social norms as corporate citizens. Operations utilize societal resources and impact stakeholders shareholders, suppliers, consumers, community, and society. So firms must balance opposing stakeholder interests responsibly. Industry is now a joint enterprise of various interests needing a common purpose. If private enterprise is to survive, it must serve the larger public interest. Trusteeship and social responsibility correlate. Classical vs Contemporary Views The classical view holds business has only economic objectives, no other responsibilities. Milton Friedman argued social responsibility harms free markets and is subversive. The contemporary ecological view sees business as an integral societal institution serving social purposes. Business cannot isolate itself from society. A balanced approach meets stakeholder expectations without jeopardizing profitability, recognising long-term social good benefits all, tackles problems where competent, and absorbs reasonable costs. Social Responsibility Models  Carroll's model has four obligations - economic, legal, ethical, discretionary. Economic responsibility is foremost. Legal compliance is fundamental. Ethical norms are expected. Discretionary contribution to social causes is voluntary. The responsibilities form a pyramid in that order.  Halal's model recognises diverse stakeholder interests, needing reasonable tradeoffs. Beyond a level, economic and social aims conflict.  Ackerman's model has stages of social issue recognition, study, and implementation. Social responsibility arises from:  Business being more than profit-making - it has social duties  Following ethics like obeying laws, maximizing quality goods, ensuring supplies, paying taxes and fair wages/dividends etc.   Undertaking investments dispersing economic activity, like ancillarisation and backward area industries Directly playing a welfare role for the community Social Orientation Companies' social involvement vary changing over time: orientation and widely, often  Anti-social: Unfair, unscrupulous; circumvent rules  Indifferent: No orientation beyond legal compliance  Peripheral: orientation  Socially-oriented: High orientation, limited involvement  Committed and active: High orientation and involvement Little, token