CC
The principle of public responsibility refers to responsibility of business for all the results related to the fields in which it is indulged with society, defines organisational relationship corporation and society. Managerial discretion-The principle of managerial discretion refers to managers being moral obligation actors who exercise such discretion as is available to them to attain social responsible outcomes..IMPOTANCE OF CSR– It is significant because business system is the mechanism selected by society to manufacture and distribute products and services. The basic principles of the system were work ethics and self-interest. Eventually, corporations resulted to growth, healthy economic system that Gave employment and adequate incomes to all, hence, it operated profitably..THEORIES OF SOCIAL RESPONSIBILITY–The Amoral view: this represents traditional view of business and the role of corporation seen as “highly individualised rights bearing economic entity designed for profit making and legitimised by the laws governing incorporated businesses.”
The Personal view: this discusses the behaviour of corporation in determining whether it can be held accountable as moral- agents or full- fledged moral persons.The Social view: this holds the operations of corporation that occur within inter-personal and social context and corporation is considered as social institution in society with social responsibilities.The pyramid of corporate social responsibility is basically depicted into four kinds – economic, legal, ethical, philanthropic responsibilities.
● Economic relates to business provision of valuable products and services to society. ● In legal, society expects business to agree to the ground rules and regulations devised by government for the business operations. ● Ethical reflects the things that the corporation “should do.” ● Philanthropic considers being a good corporate citizen and the active participation in all acts for the promotion of human welfare. Corporate Sustainability: this refers to corporate operation that demonstrates the inclusion of social, economic, and environmental responsibilities in business operations as they affect all the stakeholders.
Compliance- driven CS, profit-driven CS, caring CS, synergistic CS, and holistic CS are the five levels of CS viewed . Corporate citizenship – a corporation takes into account its complete impact on society and the environment as well as economic influence.
Corporate citizenship can provide business benefits in 8 areas as follows: ⦁ Reputation management ⦁ Risk-profile and risk management ⦁ Employee recruitment, motivation and retention ⦁ Investor relations + access to capital ⦁ Learning and innovation ⦁ Competitiveness + market positioning ⦁ Operational efficiency ⦁ License to operate.,Reputation Management: it refers to those efforts that are made to enhance a corporation’s status and good name. These efforts focus on media, public relations, crisis management and also stakeholder relations.
Social Impact Management: its main advocate is Aspen Institute and defines it as “ field of inquiry at the intersection of business needs and wider societal concerns that reflects and respects complex interdependency between two.”
Triple Bottom Line (TBL): The triple-E( economic, ethical, environmental ) bottom line determines corporation performance according to a summary of economic, social and environmental value that the corporation adds or destroys. The VBA Model is an attempt at centralizing and integrating various frameworks within CSR around three main concepts: value, balance, and accountability.
This model is represented by the equation:
Value + Balance + Accountability = Proper Role of Business in Society
This model is helpful in reducing the confusion in various terminologies used in business and society and CSR field.