Unit 5

VALUE AND ETHICS IN PUBLIC ADMINISTRATION

By Snehal Makawana Assistant Professor of NS PAtel College

Ø CSR CORPORATE SOCIAL RESPONSIBILITY

Definitions

·         Corporate social responsibility (CSR) is the process by which businesses negotiate their role in society

·         In the business world, ethics is the study of morally appropriate behaviors and decisions, examining what "should be done”   

·            “CSR is about how companies manage the business processes to produce an overall positive impact on society.”

Corporate social responsibility (CSR):

·          An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society .

·          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 that of the local community and society at large.

·          About how a company manages its business process to produce an overall positive impact on society.

World Business Council for Sustainable Development:

·          “Corporate Social Responsibility is 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 of the local community and society at large”.

·         2% spend for CSR activities

So,

 In India, CSR has evolved to encompass employees, customers, stakeholders and sustainable development or corporate citizenship.  CSR includes a number of areas as human rights, safety at work, consumer protection, climate protection and caring for the environment, and sustainable management of natural resources.

From the perspective of employees, CSR activities include providing health and safety measures, preserving employee rights and discouraging discrimination at workplace. This helps in healthy environment within the company.

                   

Ø VARIOUS ACTIVITIES OF CSR

·         Pure and safe Water

·         Helping tribal people.

·         Creating rellies in protecting people from dieses.

·         Developing infrastructure

·         Imparting education and Building Schools

·         Building  hospital and providing medical care

·         Supporting people effected by aids/HIV

·         Clean environment

Examples- Of CSR Activities by various companies

 TATA Group

As Chairman of Tata Group, Ratan N. Tata. India's largest and most diversified industrial house, Tata Group operates more than 80 companies ranging from software and automobiles to steel, consumer goods and telecommunications. With 200,000 employees across India, it is the nation's largest private employer.

TATA Group- CSR Activities

· Tata initiated various labour welfare laws, like the establishment of Welfare Department was introduced in 1917 and enforced by law in 1948 or Maternity Benefit was introduced in 1928 and enforced by law in 1946.

· Tata companies have been actively involved in various social work. Like Tata Consultancy Services runs an adult literacy programme

· Tata Tea's education programme and Tata Relief Committee (TRC) which works to provide relief at disaster affected areas.

APTECH Limited

·         APTECH LTD is a leading education player with a global presence

·         It play role in encouraging education throughout the country.

·         Activities

·         Promoting Child Education

·         Environment protection

        Hero Honda motors Limited

· It take has managed to bring up economically, socially and backwards region

· Activities

· Clean water

· Primary school

· Adult literacy

Ø BENEFITS OF CSR ACTIVITIES.

Companies recognize that a strategy for corporate responsibility can play a valuable role not only in meeting the challenges of globalization risk domestically and internationally, but also in providing benefits beyond risk mgt. the benefits of good corporate citizenship include

·       A stable socio-political legal environment for business as well as enhanced competitive advantage through better corporate reputation and brand image, improved employee recruitment, retention and motivation, improved stakeholder relations and a more secure environment in which to operate.

·       There is a growing body of data quatitative and qualitative that demonetration the bottleline benefit of socially responsible corporate performance

o   Improve financial performance. o   Reduce operating costs o   Enhance brand image and reputation. o   Increase sales and customer loyalty o   Increased productivity and quality o   Increase ability to attract and retain employee o   Access to capital

Improve financial performance.

Business and investment communicates have long debated whether there is real connection between socially responsible business  practice and positive financial performance. In the last decade an increasing number of studies have been conclude to examine the that yes there is positive relation between socially responsible business  practice and positive financial performance.

Reduce operating costs

some CSR initiatives can reduce operating cost dramatically . for example many initiatives aimed at improving environment performance such as reducing emissions of gases that contributes to global climate change.

Enhance brand image and reputation.

Customer often are drawn to brands and  companies with good  reputation in CSR related areas. A company considered socially responsible on benefit both from its enhanced reputation with the the public as well as its reputation within the business community, increasing a company’s ability to attract capital and trading partner.

Increase sales and customer loyalty

A no of studies have suggested a large and growing market for the product and service of companies perceive to be socially responsible. While business must first satisfy customer  key buying criteria, such as price, quality available safety and convenience, studies also show a growing desire to buy because of other values-based criteria such as  lower environmental  impact and absence of genetically  modified material or ingredients.

Increased productivity and quality

Efforts to improve working conditions lessen environmental impacts or increase employee involvement in decision making often lead to increased productivity and reduced error rate in a company.

Increase ability to attract and retain employee

Companies perceive to have strong CSR commitments often find it easier to recruit and retain employees, resulting in a reduction in turnover and associated recruitment and training costs.

Access to capital

The growth of socially responsible investing means companies with strong CSR performance have increased access to capital that might not otherwise have been available.  Company can raise capital by issuing share for public but this is possible only when company have good reputation in market.

Company can create good image by Doing CSR activities and it will help for access capital.

CSR behaviour can benefit the firm in several Ways:

·         It aids the attraction and retention of staff

·         It attracts green and ethical investment

·         It attracts customers

·         It differentiates the firm from its competitor and can be a source of competitive advantage

·         It can lead to increased profitability in the long run

o

NEED FOR CSR

          To fulfill long term self-interest

o   To establish better public image

o   To avoid misuse of national resources and economic power.

o    Minimum environment

o    Increase stakeholder activism and engagement of stakeholder.

o    Transparency and reporting

o    Advance in information technology

1. To establish a better public image.

·         Dress up physical facilities. Keep your property neat and the buildings clean

·          Encourage employees to look and act their best. Neat workers who are polite to local residents and avoid profanity or gutter talk can make a positive impact on observers. A simple dress code of factory uniforms or conservative office styles will make a good impression. Remind employees to wear safety equipment as directed. You don't want your company remembered as the site of a horrific industrial accident.

·         Make a donation. Sponsor a community resident for an academic scholarship. Collect funds for a disabled person or a needy family.

·       Example

·         Education- by Reliance company

·         A network of nine schools caters to 13,251 students spread across geographies in India. CSR teams from RIL's manufacturing divisions and E&P operations work ardently to support the educational requirements of the community and schools

·         RIL plays a pivotal role in supporting Government's initiative towards education of girl child. In Gujarat, under the project "Kanya Kelvani", RIL‘  has extended financial assistance towards education of girl child in the state.

·         Reliance at Jamnagar Manufacturing Division constructed a school building for village Kana Chikari of Lalpur taluka in Gujarat.

·          Hoshiarpur Manufacturing Division has adopted village Mangrowal- Nari primary school. Annually free uniforms, books, shoes and school bags are given to students and also free electricity is provided to the school.

·         Drishti  By relaince

·         A unique joint initiative of RIL and National Association of Blind, Project Drishti has undertaken over 9,000 free surgeries for the society.

·         The initiative to  TB, HIV / AIDS is a unique public private partnership program between the Government, NGOs, several agencies and RIL. It extends from creating awareness to providing care, support and treatment including free of cost treatment to those who cannot afford the same.

·         Dhirubhai Ambani Hospitalin  Maharashtra continues to play a significant role in improving the quality of life in surrounding communities. It extends prompt and specialized services to the Mumbai-Pune highway accident victims

·         Showing advertising for creating pubilc image.

·          Pump advertising and public relations. Send out press releases to keep the public informed of major changes in the organization. Post a Web page to let others see what your company is about. Publish an in-house or client newsletter monthly or quarterly and distribute it to community families that may be interested or who are customers.

2. To fulfill long term self-interest

·         Result of this easy labor recruitment -  by doing csr activities Company creat good image in market it will help them for getting good employee easily. 

·         Turnover and absententeesm would be reduce.-  Because company taking care of employee need absentees will decrease because employee love to work in organization. 

3 To avoid misuse of national resources and economic power.

·         Businessmen use national resources. They are obliged to use those for the common good of society.

·         They should not forget that the power to common national resources has been delegate to them by the society to generate more wealth for its battlement.

4. Minimum environment

The effluence of many business damage the surrounding environment by their own socially responsible behavior they can prevent government intervention if they are duty bound repair the damage by recognizing their ecological responsibility towards society.

5.  Increase stakeholder activism and engagement of stakeholder.

Stakeholder trust on company because of its positive image in market. So that company must have to create positive image by CSR Activities. It will develop interest of stakeholder in company they would like to engage with company.

6. Transparency and reporting

Company are facing increased demands for transparency and growing expectation that they measure report and continuously improve their social, environmental and economical performance.

7. Advance in information technology

 The rapid growth of information technology has also served to sharpen the focus on the link between  business and corporate social responsibility. Just as email, mobile phone and internet speed the pace of change and facilitate the growth of business, they also speed the flow of information about company’s csr activities.