Corporate Social Responsibility LECTURE 12 Corporate Social Responsibility

Corporate Social Responsibility LECTURE 12: Corporate Social Responsibility MGT 610 1

Corporate Social Responsibility Chapter 4 Roles of Various Institutions in CSR 2

Corporate Social Responsibility LEARNING OBJECTIVES • Understand that CSR is integral to the development process • Understand the role of the major institutions of the civil society in CSR • Create and awareness of certain institutional initiatives in progress and the need for further contribution in the field 3

Corporate Social Responsibility Introduction • Brings to the forefront the human aspect of development • Reminds professionals that they are people first and therefore human relations have to be managed effectively • Development cannot be uni-dimensional • Matrix of relationship based on trust needs to be developed • CSR signifies the concept that it is better to have a shared interest in a successful development process than to dominate a failed, dissatisfied, socio-economic structure. Therefore, the role of major institutions in the CSR process needs to be analyzed and understood. • Each institution can act as a check and balance on the other • Analyze the role of • Government • Non government • Educational institutions • Media 4

Corporate Social Responsibility Role of Government • Inspite of growth, globalization no progress in addressing human issues • Instead of ensuring holistic growth there is a division of have and have not's • Pressure that government should intervene to ensure justice • Balancing between autocracy and democracy is the real challenge and CSR can be used to create this balance 5

Corporate Social Responsibility Role of Government (contd) • Government should accept moral responsibility for the well being of their citizens • Historical perspective • Governments through history have • Used force • Use manipulation to make the common believe that his interest are at the top of the list • Actual contributed to the development • What the government has contributed towards CSR through its values, vision and strategies • Concept of public and private partnership has to be debated • Win win situation for economy, society and politics 6

Corporate Social Responsibility • The concept of virtue of the market has faded when we are faced with consequences of progress • Question is WHY HAS THE MARKET FAILED TO DELIVER? • All human are basically good and believe in collectivist living • Question is WHY THE DIVIDE BETWEEN THE RICH AND THE POOOR IS INCREASING • Have our own mechanism failed us by creating unethical negative emotions like greed, hatred and jealousy • The answer may be found when we analyze the different markets in which business operates • The three major markets are • Capital markets • Labor markets • Consumer markets 7

Corporate Social Responsibility • Capital markets • Provides basic necessities for production i. e. land, finances, technology, raw material • While participating in this markets are the firms operating with CSR? • Reason • Search for cheaper, quicker sources rather than ethical sources • Quality of inputs is compromised • CSR Vs productivity • Short term Vs long term • Firms may use CSR to keep government regulations away 8