social responsibility

Social Responsibilities

Submitted To:

Mr. Hassan D. Aslam

Submitted by:M Gohar Raza 184

BBA 6th M1 (2012-16)

Submission Date: 17th june, 2015.

Department of Management Sciences

The Islamia University of Bahawalpur

What is social responsibility?

2Social Responsibilities

Social responsibility is an ethical framework which suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems.

he idea that companies should embrace its social responsibilities and not be solely focused on maximizing profits. Social responsibility entails developing businesses with a positive relationship to the society which they operate in. According to the International Organization for Standardization (ISO), this relationship to the society and environment in which they operate is "a critical factor in their ability to continue to operate effectively. It is also increasingly being used as a measure of their overall performance."

Many companies, particularly "green" companies have made social responsibility an integral part of their business models. What's more, some investors use a company's social responsibility - or lack thereof - as an investment criterion. For example, one who has a moral (or other) objection to smoking, may not want to invest in a tobacco company.

ISO 26000: Guidance on social responsibility

Social responsibility is a means of achieving sustainability. Adopting key social responsibility principles such as accountability and transparency can help ensure the long-term viability and success of any organization or system.

In 2010, the International Organization for Standardization (ISO) published an international standard to help organizations assess and address their social responsibilities. ISO 26000: Guidance on social responsibility defines social responsibility as:

The responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that:

Contributes to sustainable development, including health and the welfare of society

Takes into account the expectations of stakeholders

Is in compliance with applicable laws and consistent with international norms of behavior

Is integrated throughout the organization and practiced in its relationships

It is through careful attention to impacts on society and the environment that organizations achieve sustainability. Behaving in a transparent and ethical way ensures an approach that helps protect the long-term success of society and the environment.


Another key concept of social responsibility is the triple bottom line, also referred to as people, planet, and profit. This is the concept that achieving profit does not require harm to the planet or the exploitation of people. Organizations can profit while also taking care of the planet and people.

ISO 26000: Guidance on social responsibility identifies seven core social responsibility subjects:

Organizational governance Human rights Labor practices The environment Fair operating practices Consumer issues Community involvement and development

In addition to the core subjects, ISO 26000 also defines seven key principles of socially responsible behavior:

Accountability Transparency Ethical behavior Respect for stakeholder interests Respect for the rule of law Respect for international norms of behavior Respect for human rights

Types of Social Responsibility


Student social responsibilityStudent social responsibility is the responsibility of every student for his/her actions. It is morally binding on everyone to act in such a way that the people immediately around them are not adversely affected. It is a commitment everyone has towards the society – contributing towards social, cultural and ecological causes. SSR is based on an individual's ethics. Instead of giving importance only to those areas where one has material interests the individual supports issues for philanthropic reasons. It forms the base for CSR or Corporate Social Responsibility because if everyone in a business organization does his/her bit the bigger things automatically fall into place. The trends however show that big charitable organizations recorded high growth due to the SR efforts of individuals and not corporations or the government. ISR may be slightly impractical, especially in the modern competitive world, where everyone works for self-interest, but it will succeed if we take decisions based on what will benefit a large number of people and respect everyone's fundamental rights. As individuals we can make our small contributions to society by donating money to trustworthy NGO's, saving our resources by reducing our consumption, e.g. by switching off lights or computers when not in use.

Corporate social responsibility

Corporate social responsibility or CSR has been defined by Lord Holme and Richard Watts in the World Business Council for Sustainable Development’s publication “Making Good Business Sense” as “…the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large.” CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by governments. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives though the main motive is the same. All companies have a two-point agenda—to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stake holders of every company are increasingly taking an interest in "the outer circle"-the activities of the company and how these are impacting the environment and society.

Types of corporate social responsibilityCSR can encompass a wide variety of tactics, from giving nonprofit organizations a portion of a company's proceeds, to giving away a product or service to a worthy recipient for every sale made. Here are a few of the broad categories of social responsibility that businesses are practicing:

1. Environment: One primary focus of corporate social responsibility is the environment. Businesses, both large and small, have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

https://en.wikipedia.org/wiki/World_Business_Council_for_Sustainable_Development

https://en.wikipedia.org/wiki/Richard_Watts

https://en.wikipedia.org/w/index.php?title=Lord_Holme&action=edit&redlink=1


2. Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Whether it involves giving money or time, businesses have a lot of resources that can benefit charities and local community programs.

3. Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

Social Responsibility of Scientists and Engineers

One common view is that scientists and engineers are morally responsible for the negative consequences which result from the various applications of their knowledge and inventions. After all, if scientists and engineers take personal pride in the many positive achievements of science and technology, why should they be allowed to escape responsibility for the negative consequences related to the use or abuse of scientific knowledge and technological innovations? Furthermore, scientists and engineers have a collective responsibility for the choice and conduct of their work. Committees of scientists and engineers are often involved in the planning of governmental and corporate research programs, including those devoted to the development of military technologies and weaponry Many professional societies and national organizations, such as the National Academy of Science and the National Academy of Engineering in the United States, have ethical guidelines (see Engineering ethics and Research ethics for the conduct of scientific research and engineering). Clearly, there is recognition that scientists and engineers, both individually and collectively, have a special and much greater responsibility than average citizens with respect to the generation and use of scientific knowledge.

Unfortunately, it has been pointed out that the situation is not that simple and scientists and engineers should not be blamed for all the evils created by new scientific knowledge and technological innovations. First, there is the common problem of fragmentation and diffusion of responsibility. Because of the intellectual and physical division of labor, the resulting fragmentation of knowledge, the high degree of specialization, and the complex and hierarchical decision-making process within corporations and government research laboratories, it is exceedingly difficult for individual scientists and engineers to control the applications of their innovations. This fragmentation of both work and decision-making results in fragmented moral accountability, often to the point where "everybody involved was responsible but none could be held responsible.”

Individual Social Responsibilityndividual Social Responsibility (ISR) is about an individual becoming responsible in his/her actions that have affect on communities outside his/her immediate circle. The immediate circle

https://en.wikipedia.org/wiki/Research_ethics

https://en.wikipedia.org/wiki/Engineering_ethics

https://en.wikipedia.org/wiki/National_Academy_of_Engineering

https://en.wikipedia.org/wiki/National_Academy_of_Science


being family and friends [1].There can be an argument about also including family and friends, but it would be rather pertinent to include them as part of Individual Personal Responsibility.

Workshop for Civic Initiatives Foundation (WCIF), Bulgaria, describes ISR in its position statement on Social Responsibility as,

"The individual social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest towards what’s happening in the community, as well as in the active participation in the solving of some of the local problems. Under community we understand the village, the small town or the residential complex in the big city, where lives every one of us. Each community lives its own life that undergoes a process of development all the time. And everyone of us could take part in that development in different ways, for example by taking part in cleaning of the street on which he lives, by taking part in organization of an event, connected with the history of the town or the village or by rendering social services to children without parents or elderly people. The individual social responsibility also could be expressed in making donations for significant for the society causes – social, cultural or ecological. There are many ways of donating, as for example donating of goods or donating money through a bank account or online".

National social responsibilityNSR is about treating the stakeholders of a nation in an ethical and socially responsible manner. A State that treats its citizens fairly,looks after their well-being, and is respectful to foreigners – immigrants aswell as their trading partners is behaving in socially responsible way.

The MHCi NSR Index is composed of whether the State treats its citizens:

Fairly Looks after their well-being Without corruption.

Examples of Social Responsibility:

Ben and Jerry's, for instance, uses only fair trade ingredients and has developed a dairy farm sustainability program in its home state of Vermont.

Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production.

Tom's Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

Google Green is a corporate effort to use resources efficiently and support renewable power. But recycling and turning off the lights does more for Google than lower costs. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50


percent. These savings can then be redirected to other areas of the business or to investors.

The printing giant Xerox has multiple programs for donating and supporting programs for social responsibility. Their Community Involvement Program encourages it by directly involving employees. Since 1974, more than half a million Xerox employees have participated in the program. In 2013 alone, Xerox earmarked more than $1.3 million to facilitate 13,000 employees to participate in community-focused causes. The return for Xerox comes not only in community recognition, but also in the commitment employees feel when causes they care for are supported by their employers.

Social Responsibility

1. Definition:


Being Socially Responsible means that people and organisations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organisations and governments have a positive impact on development, business and society with a positive contribution to bottom-line results.

2. Types of Social Responsibility:

Following are the five types of Social Responsibility:

1. Student Social Responsibility2. Social Responsibility of Scientists and Engineers3. National Social Responsibility4. Individual Social Responsibility5. Corporate Social Responsibility

Types of CSR Carroll’s Pyramid

2.1 Student Social Responsibility (SSR):


Student social responsibility is the responsibility of every student for his/her actions. It is morally binding on everyone to act in such a way that the people immediately around them are not adversely affected. It is a commitment everyone has towards the society – contributing towards social, cultural and ecological causes. SSR is based on an individual's ethics. Instead of giving importance only to those areas where one has material interests the individual supports issues for philanthropic reasons. It forms the base for CSR or Corporate Social Responsibility because if everyone in a business organization does his/her bit the bigger things automatically fall into place. The trends however show that big charitable organizations recorded high growth due to the SR efforts of individuals and not corporations or the government.

2.2 Social Responsibility of Scientists and Engineers:

One common view is that scientists and engineers are morally responsible for the negative consequences which result from the various applications of their knowledge and inventions. After all, if scientists and engineers take personal pride in the many positive achievements of science and technology, why should they be allowed to escape responsibility for the negative consequences related to the use or abuse of scientific knowledge and technological innovations? Furthermore, scientists and engineers have a collective responsibility for the choice and conduct of their work. Committees of scientists and engineers are often involved in the planning of governmental and corporate research programs, including those devoted to the development of military technologies and weaponry. Many professional societies and national organizations, such as the National Academy of Science and the National Academy of Engineering in the United States, have ethical guidelines. Clearly, there is recognition that scientists and engineers, both individually and collectively, have a special and much greater responsibility than average citizens with respect to the generation and use of scientific knowledge.

2.3 National Social Responsibility (NSR):

Much has been written about Corporate Social Responsibility (CSR) but little of that discussion and lessons learned has been applied to the social responsibility of Nation States.This Monthly Feature explores the concept of National Social Responsibility (NSR).The obvious difference between CSR and NSR is that CSR is about treating the stakeholders of a corporation in an ethical and socially responsible manner while NSR is about treating the stakeholders of a nation in an ethical and socially responsible manner.

2.4 Individual Social Responsibility (ISR):

ISP may appear to be a new concept in relation to CSP, but it is a concept as old as The Golden Rule — Do unto others as you would have them do unto you. ISR expands on this by promoting a proactive stance towards positively influencing and affecting the people and environments outside your immediate circle. ISR is at the roots of CSR, because a corporate comprises of individuals and hence determines the social responsibility culture it creates. This is the intermingled relationship between CSR and ISR. Individuals are becoming more


socially responsible and, in response to this Corporations and Companies need to become more socially responsible to meet consumer demand.

The International Organisation for Standardisation (ISO) states: “In the wake of increasing globalisation, we have become increasingly conscious not only of what we buy, but also how the goods and services we buy have been produced. Environmentally harmful production, child labor, dangerous working environments and other inhumane conditions are examples of issues being brought into the open. All companies and organisations aiming at long-term profitability and credibility are starting to realise that they must act in accordance with norms of right and wrong.”

2.5 Corporate Social Responsibility (CSR):

A company that practices corporate social responsibility (CSR) embraces responsibility for its actions and, through its activities, positively affects the environment, society, consumers, employees, communities, and other stakeholders. Corporate social responsibility basically refers to business practices that involve participating in initiatives that benefit society.

2.5.1 Types of CSR:

It has four types:

Ethical: Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders' moral rights.

Philanthropic: Philanthropy encompasses those corporate actions that are in response to society’s expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill. Examples of philanthropy include business contributions to financial resources or executive time, such as contributions to the arts, education, or the community. A loaned-executive program that provides leadership for a community’s United Way campaign is one illustration of philanthropy.

Legal: A company's legal responsibilities are the requirements that are placed on it by the law. Next to ensuring that company is profitable, ensuring that it obeys all laws is the most important responsibility, according to the theory of corporate social responsibility. Legal responsibilities can range from securities regulations to labor law, environmental law and even criminal law.

Economic: A company's first responsibility is its economic responsibility -- that is to say, a company needs to be primarily concerned with turning a profit. This is for the simple fact that if a company does not make money, it won't last, employees will lose jobs and the company won't even be able to think about taking care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first needs to make sure that it can be profitable.


2.5.2 Model of CSR:

Carroll’s Pyramid:

While Corporate Social Responsibility (CSR) has been around since the 1950s, its importance and practice took hold much later. The basis of what we consider to be the modern definition of CSR is rooted in Archie Carroll’s “Pyramid of Corporate Social Responsibility.” Carroll (1991) organized different corporate social responsibilities as a four-layered pyramid model and called it the pyramid of responsibilities. In this Pyramid a corporation has four types of responsibilities. corporate giving pyramidThe first and most obvious is the economic responsibility to be profitable. The second is the legal responsibility to obey the laws set forth by society. The third, which is closely linked to the second, is the ethical responsibility. That is to do what is right even when business is not compelled to do so by law. The fourth is the philanthropic responsibility. Also called the discretionary responsibility, it is best described by the resources contributed by corporations toward social, educational, recreational and/or cultural purposes.

Nearly 20 years later the Pyramid remains highly relevant. It is regularly cited, debated, modified and criticized by academia, corporate leaders, politicians and social commentators. But to understand the Pyramind’s true relevance one must look beyond the debate and focus more on its practical application. The Pyramid’s importance persists given its simplistic yet fundamental framework by which any company can not only comprehend the necessary


principles of social responsibility, but ultimately set forth the practices to achieve each step of the pyramid with the ultimate goal of reaching the top.

3. Examples:

3.1 Google: For many people, their first exposure to a corporation working for “good” was related to Google. The search giant has made aggressive moves on multiple fronts toward good citizenship, but it is clear that, as one of the world’s largest corporations, every single effort is paying off. For example, Google Green is a corporate effort to use resources efficiently and support renewable power. But recycling and turning off the lights does more for Google than lower costs. Investments in these efforts have real-world effects on the bottom line. Google has seen an overall drop in power requirements for their data centers by an average of 50 percent. These savings can then be redirected to other areas of the business or to investors. You don’t have to be a Google-size company to benefit from being green. Installing energy-efficient lights, allowing telecommuting, and recycling will not only improve your world, it will result in quantifiable cost savings that you can see in the bottom line.

3.2 Xerox: The printing giant has multiple programs for donating and supporting programs for social responsibility. Their Community Involvement Program encourages it by directly involving employees. Since 1974, more than half a million Xerox employees have participated in the program. In 2013 alone, Xerox earmarked more than $1.3 million to facilitate 13,000 employees to participate in community-focused causes. The return for Xerox comes not only in community recognition, but also in the commitment employees feel when causes they care for are supported by their employers. Maybe your firm doesn’t have 13,000 employees, but that doesn’t mean you can’t benefit from this method. By incorporating a limited number of billable hours per year for volunteer efforts, you will enjoy the dual effects of helping your community as well as increasing your employee morale and therefore productivity. Perhaps organizing large group activities for charities such as Habitat for Humanity can bring your group together, and you can spread your name with inexpensive event T-shirts.

3.3 Target: Very often the idea of “good corporate citizens” can seem like a concept that is completely removed from our day-to-day realities. Sure, mega-corporations can have volunteer programs or philanthropic arms that focus on big-picture issues, but that seems so highbrow. If that is how you think, then take a look at Target. While many shoppers may think of it as just another big-box retailer, Target is more than just a place to buy tires and milk.

Since 1946, Target has been committing more and more effort and assets toward local and environmental support for the communities in which they have stores. Over the past several years, the company’s efforts—from growing sustainable practices to educational grants—have amounted to 5 percent of its profit going to local communities. That’s $4 million each week! In the area of education alone, Target has donated more than $875 million since 2010. Can your company afford to give $4 million a week to good causes? Most likely the answer is no, but the good news is that you don’t have to. By supporting any good cause in your


community, you provide two important factors that pay dividends. You have employees who are proud to work for you and clients who are proud to be associated with you. The financial return of either can be many orders of magnitude.

Corporate social responsibility

Definition

1. Corporate Social Responsibility is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner. ‘Ethically or responsible' means treating key stakeholders in a manner deemed acceptable according to international norms. Social includes economic and environmental responsibility. Stakeholders exist both within a firm and outside.

2. The wider aim of social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporation or the integrity of the institution, for peoples both within and outside these entities.

3. CSR is a process to achieve sustainable development in societies.4. Social good initiatives are one of the ways that you can show a job candidate what it is like to work

at your company. Candidates want to know they work for a company whose values are aligned with

their own.

Types

Economic ResponsibilitiesA company's first responsibility is its economic responsibility -- that is to say, a company needs to be primarily concerned with turning a profit. This is for the simple fact that if a company does not make money, it won't last, employees will lose jobs and the company won't even be able to think about taking care of its social responsibilities. Before a company thinks about being a good corporate citizen, it first needs to make sure that it can be profitable.

Legal ResponsibilitiesA company's legal responsibilities are the requirements that are placed on it by the law. Next to ensuring that company is profitable, ensuring that it obeys all laws is the most important responsibility, according to the theory of corporate social responsibility. Legal responsibilities can range from securities regulations to labor law, environmental law and even criminal law.


Ethical ResponsibilitiesEconomic and legal responsibilities are the two big obligations of a company. After a company has met these basic requirements, a company can concern itself with ethical responsibilities. Ethical responsibilities are responsibilities that a company puts on itself because its owners believe it's the right thing to do -- not because they have an obligation to do so. Ethical responsibilities could include being environmentally friendly, paying fair wages or refusing to do business with oppressive countries, for example.

Philanthropic ResponsibilitiesIf a company is able to meet all of its other responsibilities, it can begin meeting philanthropic responsibilities. Philanthropic responsibilities are responsibilities that go above and beyond what is simply required or what the company believes is right. They involve making an effort to benefit society -- for example, by donating services to community organizations, engaging in projects to aid the environment or donating money to charitable causes

Examples

1.Kelly Reddington founded his eco-friendly candle company Altered Seasons in 2003 at age 14 with the help of his mother. When he assumed ownership of the company, he shifted it to a one-for-one model to do more for the community. For every candle sold, Altered Seasons provides a meal to an American in need through Feeding America.

2.Charitable Agents – Anyone who's sold or purchased a home knows how cutthroat real estate agencies can be about their commissions and fees. But what if you knew that part of that commission was going to support your favorite charity? With Charitable Agents, a network committed to helping homeowners and Realtors make a positive impact in their community, you can do just that. The company matches buyers and sellers with a top-performing local Realtor, and when the transaction closes, 10 percent of the agent's commission goes to charity.

3 IBM believes in Corporate Citizenship. Their social good projects extend across societal issues. Employees volunteer in environmental efforts, community economic development, education, health, literacy, language and culture. Their year long volunteer initiative, “Celebration of Service,” logged over 3,00,000 hours of service. IBM has also established,

https://twitter.com/citizenIBM


“On Demand Community,” enabling employees and retirees to find volunteer opportunities, through trainings and placement.

Model of CSR:-

Tooba Ahmad

Roll # 39

BBA 6th (M1)

HRM Report:


Social responsibility:


Examples :

Tom's Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production.

Ben and Jerry's, for instance, uses only fair trade ingredients and has developed a dairy farm sustainability program in its home state of Vermont.

Types of corporate social responsibility:

CSR can encompass a wide variety of tactics, from giving nonprofit organizations a portion of a company's proceeds, to giving away a product or service to a worthy recipient for every sale made. Here are a few of the broad categories of social responsibility that businesses are practicing:

Environment: One primary focus of corporate social responsibility is the environment. Businesses, both large and small, have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Whether it involves giving money or time, businesses have a lot of resources that can benefit charities and local community programs.

Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

Principles of CSR:

Respect for human rights. Respect for the differences of views. Diversity & non-discrimination should be the guiding principle. Make some social contribution. Enter into e dialogue Self-realization & creativity.


Fair dealings & collaboration. Feedback from the community. Positive value- added. Long term economic & social development.

Carroll model of social responsibility:

Why there is a need for CSR:

1. To reduce the social cost.

2. To enhance the performance of employees.

3. It a type of investment.

4. It leads to industrial peace.

5. It improves the public image.

6. Can generate more profit.

7. To provide moral justification.


8. It satisfies the stakeholders.

9. Helps to avoid government regulations & control.

10. Enhance the health by non polluting measures.

social responsibility

Self Improvement