Modern organisations are evaluated not only by profit but also by their responsibility towards society and ethical conduct. CSR focuses on the responsibilities of a business towards stakeholders and the environment. Business ethics deals with what is right and wrong in business decisions and behaviour. Values in management provide a moral foundation that guides policies, culture and long-term sustainability.
Corporate Social Responsibility means the obligation of business to contribute to social welfare and sustainable development while achieving business objectives. CSR requires a firm to consider the impact of its decisions on society, environment and stakeholders, and to act responsibly.
CSR covers:
Arguments for CSR:
Arguments against CSR:
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Modern organisations are evaluated not only by profit but also by their responsibility towards society and ethical conduct. CSR focuses on the responsibilities of a business towards stakeholders and the environment. Business ethics deals with what is right and wrong in business decisions and behaviour. Values in management provide a moral foundation that guides policies, culture and long-term sustainability.
Corporate Social Responsibility means the obligation of business to contribute to social welfare and sustainable development while achieving business objectives. CSR requires a firm to consider the impact of its decisions on society, environment and stakeholders, and to act responsibly.
CSR covers:
Arguments for CSR:
Arguments against CSR:
Business ethics refers to moral principles and standards that guide behaviour and decision-making in business. The objective is to ensure fairness, honesty, responsibility and respect for stakeholders.
Main objectives:
Values are fundamental beliefs and standards that guide behaviour and decisions. In organisations, values shape culture and influence how employees act.
Types of values:
Value-based management is an approach in which decisions and actions are guided by core values and long-term value creation for stakeholders. It promotes ethical decision-making, transparent governance and sustainable performance.
Stakeholder approach suggests that business should consider the needs of all stakeholders—employees, customers, suppliers, community, government and shareholders. CSR becomes meaningful when it balances stakeholder interests and is integrated into strategy and operations rather than treated as a one-time charity activity.
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CSR is needed because business uses society’s resources and must contribute to social welfare and sustainable development. It improves corporate reputation, trust and brand image and strengthens relations with government, community and customers. CSR also reduces risk by encouraging compliance, safety and environmental care and supports long-term sustainability and social acceptance of business.
Carroll’s CSR pyramid explains four responsibilities of business. Economic responsibility is to be profitable and efficient for survival. Legal responsibility is to obey laws and regulations. Ethical responsibility is to do what is right and fair even beyond legal requirements. Philanthropic responsibility is voluntary contribution to society through community development, education, health and other welfare activities.
Corporate Social Responsibility (CSR) means the responsibility of a business towards society and stakeholders to contribute to social welfare and sustainable development while pursuing its business objectives. CSR expects a firm to consider the impact of its decisions on employees, customers, community and environment and to act responsibly.
Importance of CSR: CSR is important because business operates using society’s resources and therefore has an obligation to give back. It improves corporate reputation and trust, which strengthens brand image and customer loyalty. CSR builds better relationships with government and community and reduces the risk of conflicts, boycotts and legal issues by encouraging compliance, safety and environmental care. It also improves employee morale and retention as employees feel proud to work for a responsible organisation. Finally, CSR supports long-term sustainability and social licence to operate.
Arguments in favour of CSR: (i) Business is a part of society; it should contribute to social welfare. (ii) CSR creates goodwill and long-term profitability by building trust. (iii) Self-regulation through CSR reduces chances of government intervention and strict controls. (iv) CSR provides competitive advantage by improving reputation and promoting sustainable practices.
Arguments against CSR: (i) The primary objective of business is profit; CSR may increase costs and reduce competitiveness if poorly planned. (ii) Managers may lack expertise to solve social problems effectively. (iii) CSR may distract management from core business efficiency if treated as an unrelated activity. In practice, CSR is most effective when it is strategic, transparent and linked with organisational goals.