Guys I am a b.com student. As far for the syllabus we have a subject called company administration , which’s exam did postponed to this month. Now after all the enjoyment of cheristmas, i have to study with some seriousness.
In the subject we study about the internal things of a company like board of direcors , company secretary. I came to see an interesting topic while i was studying named Corporate social responsibility. It says about the obligation and duties of a company to society. for the better running of a business it has to follow some CSR activities. The arguments for CSR are
- Public expectation – in this a business exist due to society. Society gave charter to a business. this charter is amended or cancelled when the business fails to satisfy the needs of the society. The products of business is bought by consumers who are the part of the society. So business has some responsibilities to the society.
- Better environment – CSR provides a better environment for the business. The business functions in a society. So when the society has an healthy environment, good health and education, it will result in good customers and employees. It will help in reducing the turnover and absentism of employees. It will decrease the crime rate in the society.
- Public image – social involvement of business in society attracts new customers, good employees , capital market etc.
- Moral responsibility – Large organisations are coming in a great way. So the organisations have some responsibility to society. business has vast resources and it must be used for the benfit of society in some quantity
- Government regulations – Government do some regulation in business only to protect the interest of customers. If the company itself have some CSR there is no need for such controls by government which are usually costly
- Business has the resource – only business has the largets resource of qualified men and machines. So the business must use some of its resources for the betterment of business
- Let the business try – usually government fails in solving some problems. So its preferred that business must give a chance to solve some [problems in society.
- Duty of gratitude – Usually one owes to another some gratitude. The business is raised by the society so there is some kind of gratitude is there for business towards society.
- Citizenship argument – Business are the institutional members of the society. like a member in society has some duty towards it, business too has some duties towards the society.