Corporate Social Responsibility

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

125

Pages:

2
Author:

JJIssac

CORPORATE SOCIAL RESPONSIBILITY Influences on Social Orientation Key factors shaping companies' social orientation: Promoters and Top Management: Their values and vision strongly influence orientation, as Tata and Birla examples show. Board of Directors: As policy and resource allocation decision-makers, their attitude affects social orientation. Stakeholders and Internal Power: Their diverse interests and relationships require balancing through tradeoffs, as per Halal's model. Societal Factors: Society's development level and expectations influence local involvement. Resourceful firms in poorer areas are expected to contribute more. Associations: Industry/trade associations shape orientation via codes, education and collective decisions. Government and Laws: Laws codify acceptable conduct, varying by nation. Government policies like incentives and persuasion also play a role, besides enforcement. Political Pressures: Interest groups and media exert pressures to control business practices through lobbying, campaigns etc. Competition: One firm's social initiative prods others to follow or try to outperform. Lawsuits and public exposure of misdeeds also have an effect. Resources: Social involvement depends on financial health and firm resources. Even progressive firms like Tata Steel cap such spending. Ethics: Explicit ethical codes and decision frameworks shape conduct. But no consensus exists on appropriate social responsibility. Key Responsibilities Despite differing views, some generally accepted corporate responsibilities are: Shareholders: Safeguarding capital, reasonable dividends, profitability for growth, strong public image - primary obligations as owners. Shareholders must also guide policies constructively. Employees: Fair wages, good working conditions, welfare facilities, training, grievance handling, participation in decisions - to ensure high morale and productivity. But spending limits apply. Consumers: Improving efficiency and quality, smooth distribution, new products, reasonable prices, aftersales service, safety, addressing genuine grievances - key to customer satisfaction and sales. But consumers remain largely dissatisfied due to business apathy, necessitating consumerism. Community: Preventing pollution, assisting locality development, resource conservation, operational efficiency, R&D, small scale industry promotion, education etc. - vital obligations going beyond shareholders to society's welfare.