* CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR) focuses in idea that a business has social obligations above and beyond making a profit. Business is fully accountable to stakeholders.
CSR is a way of integrating the economic, social, and environmental imperatives of business activities. The term corporate citizenship denotes the extent to which business enterprises meet the (a) legal (b) ethical (c) economic and (d) voluntary responsibilities, placed on them by their stakeholders.
CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large.
CSR is achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment.
Socially conscious takes social action like adoption of villages, contribution to rural developments, health, education, housing and sanitation etc. apart from running business efficiently and profitability.
* NEED FOR SOCIAL RESPONSIBILITY OF A BUSINESS
Following are the need for social responsibility of business:
Iron Law of Responsibility
Society gives business its character to exist and that character can be amended or revoked at any time if it fails to live up to society’s expectations. Therefore, if a business intends to retain its existing social role and social power, it must respond to society’s needs constructively. This is called the iron law of responsibility. Organization which doesn’t act in manner that society consider responsible, will lose its power and objective.
Conversion of Resistances into Resources
If the innovative ability of a business is turned to social problems, many resistances (problems) can be converted into resources and the functional capacity of resources can be increased many times.