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TOPIC – MODELS OF SOCIAL

RESPONSIBILITY

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Models Of Social Responsibility

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there are two primary choices in life:

-- to accept conditions as they exist,

or

-- accept the responsibiltiy for them.

_denis waitley

accept responsibilty for your life.

Know that it is you who will get you

where you want to go, no one else .

_les brown

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Social Responsibility :- Meaning

It refers to the obligation and duties of business towards various parties of the society.

It involves developing businesses with a positive relationship to the society in which they operate.

The aim of business is no longer the profit but also to be socially responsible.

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Social Responsibility :- Definitions

According to International Seminar, New Delhi 1955,

“Social responsibiltiy of business means

responsibilities of business towards customers,

workers, shareholders and the community.”

According to H.R. Bowen,

“ Social Responsibility of Business is to pursue those policies, to make those decisions or to follow those lines of action which are desirable in terms of the objectives and values of our society.”

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Corporate social

responsibility

Corporation should comply with laws and regulations, creating quality products, marketed in an ethical manner, in compliance with laws and regulations with finances represented in an honest transparent way to the shareholders.

It includes three P’s –Profit,People and Planet.

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Models Of Corporate Social

Responsibility

Friedman Model
Ackerman Model
Carroll Model
Environmental Integrity & Community

Model

Corporate Citizenship Model
Stockholders & Stakeholders Model
New Model of CSR.

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Friedman Model (1962-73)

Milton Friedman takes a shareholder approach to social responsibility.

According to him, shareholders are economic engine of organisation.

Goal of the firm is to :-

Maximize Profit
Return a portion of those profits to

shareholder.

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Ackerman Model (1976)

The model has emphasized on the internal policy

goals & their relation to the CSR.

Four stages involved in CSR:

Managers of the company get to know the most

common social problem & then express a willingness to

take a particular project which will solve some social

problems.

Intensive study of the problem by hiring experts &

getting their suggestions to make it operational.

Managers take up the project actively & work hard.
Evaluating of the project by addressing the issues.

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Case : CSR at Bank of

India

At Bank of India, corporate social responsibility is basically the care and concern for the deprived in particular and the community at large. Social responsibility is a function of the banking industry where by the Banks focuses on those below poverty line and the communities that qualify for schematic lending under the various government sponsored programs. The focus is on ensuring that they become self-sufficient and can achieve the desired goals to improve their living standards.

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Carroll Model (1991)

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Discretionary responsibility: Donation, gifts, helping

the poor. It ensure goodwill & social welfare.

Ethical responsibility: Follow moral & ethical values to

deal with all the stakeholders.

Economic responsibility: Maximize the shareholders

value by paying good return.

Legal responsibility: Abiding the laws of the land.

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Environmental Integrity &

Community Health Model

This model developed by Redman.

Many corporate in US adopted this model.

Corporate contribution towards environmental

integrity & human health, there will be greater

expansion opportunities.

Healthy people can work more & earn more.

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EXAMPLE

Vodafone promised to cut down their carbon dioxide emissions in half by 2020 through improving the energy efficiency of its global mobile – phone networks.

Future promises includes pledging to recycle 95% of network equipment waste and plans to reduce work-related accidents that cause lost time by 10%.

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Corporate Citizenship Model

To be a corporate citizen, a corporate firm has to satisfy

four conditions:

A particular firm’s commitment to corporate citizenship

requires the fulfillment of certain social responsibility.

Consistently satisfactory
Sustainable economic performance
Ethical actions
Behaviour

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Stockholders & Stakeholders

Model

1 2

3 4

Productivism Progressivism

Philanthrophy Ethical Idealism

Stockholders

Model

Stakeholders

Model

Self Interest

Moral Duty

ORIENTATION

MOTIVES

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New Model Of CSR

CSR (+) CSR (-)

CSR (-) CSR (-)

Strong Poor

Ethical Rooting

Poor Strong

Financial Capability

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example 1

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EXAMPLE 2

The bank’s head of corporate sustainability, Teresa Au, has said that despite the economic situation, HSBC would continue to support its sustainability campaign. Initiatives include providing small businesses with sustainability insurance options.

The business has also boosted its management of ethical and socially responsible investing funds by 60% over the last two years.

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Conclusion

Business has a responsibility to give

back to the community.

As our business grows, social

responsibility towards society also

grows.

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THANK YOU