business Ethics

Role and Responsibility of the Local Community in BusinessAs per the definition of CSR, it is Business giving back to the society. Therefore society should take positive/ proactive role in the process of development to be initiated by the corporates. Through their representatives or local NGOs working in the area, they should identify the immediate the future needs of the society and distinguish between the role of Government and the corporates. These roles have to supplementary and not complimentary. The role areas could be in the fields of health, education, environment etc. Having done this there should be a monitoring Community jointly of NGO, representatives of Community and Corporates.

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The business can fulfill the Social Responsibilities through the following measures:-Make the decisions to commit to Ethics.Recognize that Business is role model by definition, by action and by its values.Assume the responsibility to instill ethical behaviour in the entire business structure.Articulate values.Train Staff.Encourage Open Communication.Be Consistent.Abide by the Laws of the Land.Interventions of Business to fulfill Social Responsibility

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Role of NGOs and Internal AgencyThey assist corporates to become humane and prevent dehumanization.They serve as a best means of human communication.They also serve as an effective agency and social control of human behaviour.They exert great influence on the Morale of Employees and other stake holders.They serve as a watchdog. They galvanize workers, concerned citizens and environment activitists to force factories not to resort to environmental pollution through disposal of toxic wastes etc.

Also they can be behind workers to take legal action against any violation by the company.They can resort to protest, rallies, public meetings, etc. to gather mass support.These days they use websites for public awareness.Integrating CSR into BusinessCorporates should first believe that their responsibility is to their customers who use their product and services in fully meeting their needs, desires and expectations.Everything they do must be of high quality.They must try to reduce costs.Customers orders must be serviced promptly and accurately.

Suppliers and distributors must have an opportunity to make a fair profit.Employees must be considered as human beings, and corporates must respect their dignity and recognize their merit.They must practice the ethics of care perspective, which is characterized by a sense of connection to others, a life of affection and caring for others.Corporates should feel that they are responsible to the community they live, and to the world community in general.They must encourage and promote civic improvement, better health and education.

They must believe in Sewabhav.Instead of What I can get, they must believe in What I can give.Stress on duties rather than rights.Corporates must follow Other Oriented approach.CSR and Sustainable DevelopmentIn the Context of Developing Societies CSR is about capacity building for Sustainable Development.Integrating Sustainable Development in Corporate Strategy improves all Corporate performance.It creates positive image and goodwill among the public, earns a special respect among peers, customers, Government agencies, investors and media. All of this go a long way in promoting long-term shareholder value and Sustainable Development.

It also creates a sense of loyalty and trust among employees.It also serve as a soothing diversion from the mundane workplace routine and give workers a feeling of self satisfaction and a meaning to their lives.Infosys, Wipm, Tata Steel, Dr. Reddys Lab, Polaris have integrated philosophy in their corporate culture and earned a big brand name.In Wada, of Thane district, Mumbai, Coca Cola has a bottling plant. It uses rain harvesting techniques to recharge ground water and supply water to people in summer. They have also established water supply system in another village.Some of the corporations, train local people in IT applications and employ them later on.

CSR Measures and indicators Triple Bottom LineThe three basic measures of CSR are:-SustainabilityAccountabilityTransparencySustainability There must be clear linkage between use of resources and their regeneration. It serves he needs of the society both present and future.Accountability It lies in an organization assuming responsibility for the effect of its action that have impacted the external environment adversely. This will call for the organization compensating for the cost of damages caused by the actions of the organization, and creating the benefits that exceed the costs to all affected stake holders.

Transparency - For Transparency, Organizations must report the impact of its action to all stake holders truthfully without misleading them in any manner.The Triple Bottline for CSR performance of a corporation is as follows:-SocialEnvironmentEconomicCaux Round Table(CRT) in 1986 laid the following principles to measure performance for corporates in CSRSocial Impact of Companys operations on the local Community.Respect for rules and ethics.Promote Judicious liberation of Trade.

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Respect for the Environment.Avoidance of illicit Operations, including bribery, money laundering etc.Many organizations like Organization for Economic Co-operation and Development (OECDI), U N Global Compact, Asia Pacific Economic Co-operation (APEC), have specified many Business Code of Conduct and Social accountability to enable a corporate to develop, maintain, enforce policies and procedure in order to manage those issues which it can influence and control. They also cover standards and monitoring program for child labour, forced labour, disciplinary practices, non-discrimination, wages and benefits, working hours, health and safety, freedom of association, collective bargaining and management system.

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Also 275 Religious organizations all over the world, formulated Principles of Global Corporate Responsibilities, to use their investments for social change. The Principles cover a wide range of CSR issues including workplace, community, environment, human rights, ethics, suppliers and consumers.

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