Corporate Social Responsibility (CSR) Definition.

Social Responsibility is the awareness that business activities have an impact on socity and this consideration of that impact by firms indecision-making. Business organization produce goods and service to generated profit. At the same time ,it does have some impact on the socity as well as the whole community. Social Responsibility is a must for a business organization. If business firms fail to discharge the responsibility than they will fail to create goodwill and last long.

Social Responsibility for customer, Government, Employee, etc

A business organization must have responsibility to the customer, employee, environment and investor.

Responsibility to the Customer:

Business organization survive through selling there products to the customers. And for a business organization Cutomer the main Stokholders. So the business organization must have some responsibility to the customer and these are discussed bellow.

The right to be sure about sefty:

The most basic customer right is to be sure about safty of products possession. The business organization should teste the product and give direction to the customer about the proper use. It should also monitor the products safety that are sold to the customer.

The right to be informed:

Customer has the right to receive available information or all relevant information before purchasing a product. The Business organization should inform the customer about the harmful effects of product like, smoking is injurious for health.

The right to be choose:

Customer have also the right choose varity of products at competitive prices. They also have the right to buy a product of right quality at fair price.

Brand differentiation:
In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Co-operative Group, The Body Shop and American Apparel are built on ethical values. Business service organizations

can benefit too from building a reputation for integrity and best practice.

Responsibility to the Environment:

The business activities have an impactof the invironment. Our invironment is always polluted by the wastes of business organization. So, the the business organization has some responsibility to the invironment and these are discuss bellow:

Preventing Air pollution:

An air pollutant is known as a substance in the air that can cause harm to humans and the environment. Pollutants can be in the form of solid particles, liquid droplets, or gases. In addition, they may be natural or man-made. Pollutants can be classified as either primary or secondary. Usually, primary pollutants are substances directly emitted from a process, such as ash from a volcanic eruption, the carbon monoxide gas from a motor vehicle exhaust or sulfur dioxide released from factories. Secondary pollutants are not emitted directly. Rather, they form in the air when primary pollutants react or interact. An important example of a secondary pollutant is ground level ozone one of the many secondary pollutants that make up photochemical smog.

Preventing water pollution:

Water pollution is a major problem in the global context. It has been suggested that it is the leading worldwide cause of deaths and diseases, and that it accounts for the deaths of more than 14,000 people daily. An estimated 700 million Indians have no access to a proper toilet, and 1,000 Indian children die of diarrheal sickness

every day. Some 90% of China's cities suffer from some degree of water pollution, and nearly 500 million people lack access to safe drinking water. In addition to the acute problems of water pollution in developing countries, industrialized countries continue to struggle with pollution problems as well. In the most recent national report on water quality in the United States, 45 percent of assessed stream miles, 47 percent of assessed lake acres, and 32 percent of assessed bay and estuarine square miles were classified as polluted. Water is typically referred to as polluted when it is impaired by anthropogenic contaminants and either does not support a human use, like serving as drinking water, and/or undergoes a marked shift in its ability to support its constituent biotic communities, such as fish. Natural phenomena such as volcanoes, algae blooms, storms, and earthquakes also cause major changes in water quality and the ecological status of water.

Preventing water pollution:

Carbon footprint is a measure of the amount of carbon dioxide or CO2 emitted through the combustion of fossil fuels; in the case of an organization, business or enterprise, as part of their everyday operations; in the case of an individual or household, as part of their daily lives; or a product or commodity in reaching market. In materials, is essentially a measure of embodied energy, the result of life cycle analysis. A carbon footprint is often expressed as tons of carbon dioxide or tons of carbon emitted, usually on a yearly basis. This is directly related to the amount of natural resources consumed, increasingly used or referred to as a measure of environmental impact. Carbon dioxide is recognized as a greenhouse gas, of which increasing

levels in the atmosphere are linked to global warming and climate change.

Responsibility to the investor:

Business organization also have some responsibility to the people who invest money. Because the business is run with the investors money. The reswponsibilityes of investors are given below:

Proper management of funds:

Firms have a responsibility to manage funds properly. Management has the responsibility to safequard the interests of the investors. They have to be conscious about the faith of the investors.

Access to information:
Firms have the responsibility to make stock. Information available to all potential investors and have to stop insider trading for reserving of the faith of the investors.

Nature of business:

Milton Friedman and others have argued that a corporation's purpose is to maximize returns to its shareholders, and that since only people can have social responsibilities, corporations are only responsible to their shareholders and not to society as a whole. Although they accept that corporations should obey the laws of the countries within which they work, they assert that corporations have no other obligation to society. Some people perceive CSR as

incongruent with the very nature and purpose of business, and indeed a hindrance to free trade. Those who assert that CSR is contrasting with capitalism and are in favor of neoliberalism argue that improvements in health, longevity and/or infant mortality have been created by economic growth attributed to free enterprise. Critics of this argument perceive neoliberalism as opposed to the well-being of society and a hindrance to human freedom. They claim that the type of capitalism practiced in many developing countries is a form of economic and cultural imperialism, noting that these countries usually have fewer labour protections, and thus their citizens are at a higher risk of exploitation by multinational corporations. A wide variety of individuals and organizations operate in between these poles. For example, the REALeadership Alliance asserts that the business of leadership (be it corporate or otherwise) is to change the world for the better. Many religious and cultural traditions hold that the economy exists to serve human beings, so all economic entities have an obligation to society (see for example Economic Justice for All). Moreover, as discussed above, many CSR proponents point out that CSR can significantly improve long-term corporate profitability because it reduces risks and inefficiencies while offering a host of potential benefits such as enhanced brand reputation and employee engagement. License to operate Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity, or the environment seriously as good corporate citizens with respect to labour standards and impacts on the environment.

Business Ethics:
Ethics are principal pf behavior that distinguish between right and wrong. Ethical conduct confurms to what a group of society as a whole considers right behavior. Busness ethics is the evaluation of business activities and behavior as right and wrong. Ethical standerds in busness are based on commonly accepted principles of behavior established by the expectation of society, the firm, the Industry and individuals personal values. Accroding to Nuner and Kelling Managerial ethis or business ethics are standerd of organizations in carring out their business. The gra aria between what is legal and what is patently illegal is the domain of ethical disput. People working in business frequently face ethical questions. For instance, is it ethical to take home pens and pencils from the office? Is it okay to make a short, personal long distance call on the company mail for a few personal items, or take the company car on a trip to the mall? Is it unethical to pad an expance account? Should a family member be hired even if there was more qualified person available? Should employee withhold information from a local reporter who is investing whether or not the company is dumping hazardous waste into a local river? These are examples of ethical dilemmas that individuals face with have no absolute wright or wrong answers. There are aggred-upon ethical standerds that guide all vehavior in organizations because ethical vehavior depends on what society considers the norm for such behavior on whome in judging the behavior. And since there is such and individuals quality, individual interpretation of what is and is not ethical serve to keep the gray are in constant ebb and flow. Ethics and values are intimately related. Values are learned early in life from parents and family, peers, teachers and significant others and are either reinforced or altered by subsequent experience. Values consists of those enduring beliefs which specify

that a certain mode of conduct or end-state of existence is personally or socially desirable. Now a days, a business organization cannot do whatever it likes to do. It cannot focus on its profits maximization. At the same time, it has to consider the profit as well as the welfare of the society . So, it has to follow some rules and regulations and social customer and obligations. By doing these a business a enterprise can satisfy the different categories of people in the society. Business ethics refers to the moral judgment of business enterprise towards the society. So, we can say, ethics follow form values and concern and individuals beliefs about what is right or wrong, good or bad. There is always a degree of subjective judgment involved.

Laws and regulation:

Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct themselves responsibly. The issues surrounding government regulation pose several problems. Regulation in itself is unable to cover every aspect in detail of a corporation's operations. This leads to burdensome legal processes bogged down in interpretations of the law and debatable grey areas (Sacconi 2004). For example, General Electric failed to clean up the Hudson River after contaminating it with organic pollutants. The company continues to argue via the legal process on assignment of liability, while the cleanup remains stagnant. (Sullivan & Schiafo 2005).

The second issue is the financial burden that regulation can place on a nation's economy. This view shared by Bulkeley, who cites the Australian federal government's actions to avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic loss and national interest. The Australian government took the position that signing the Kyoto Pact would have caused more significant economic losses for Australia than for any other OECD nation (Bulkeley 2001, pg 436). On the change of government following the election in November 2007, Prime Minister Kevin Rudd signed the ratification immediately after assuming office on 3 December 2007, just before the meeting of the UN Framework Convention on Climate Change. Critics of CSR also point out that organisations pay taxes to government to ensure that society and the environment are not adversely affected by business activities. Denmark has a law on CSR. On 16 December 2008, the Danish parliament adopted a bill making it mandatory for the 1100 largest Danish companies, investors and state-owned companies to include information on corporate social responsibility (CSR) in their annual financial reports. The reporting requirements became effective on 1 January 2009.[24] The required information includes:

information on the companies policies for CSR or socially responsible investments (SRI) information on how such policies are implemented in practice, and information on what results have been obtained so far and managements expectations for the future with regard to CSR/SRI.

CSR/SRI is still voluntary in Denmark, but if a company has no policy on this it must state its positioning on CSR in their annual financial report. More on the Danish law can be found at CSRgov.dk

Crises and their consequences:

Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental management is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup. Odwalla also experienced a crisis with sales dropping 90%, and the company's stock price dropping 34% due to several cases of E. Coli spread through Odwalla apple juice. The company ordered a recall of all apple or carrot juice products and introduced a new process called "flash pasteurization" as well as maintaining lines of communication constantly open with customers.