Module IV Social Responsibilities Obligation to meet social needs Social responsibility of business refers to the obligation of business enterprises to.

Module IVSocial Responsibilities

• Obligation to meet social needs

• Social responsibility of business refers to the obligation of business enterprises to adopt policies and plans of action which are desirable in terms of the expectations and interest of the society. It involves consideration of social criteria along with economic criteria in conducting business activities.

The concept of social responsibility of business is based on the recognition that business is an organ of society and an integral part of the social system.

Characteristics of Social ResponsibilityProduce High Quality Products and serviceSelf Management and decentralization of

businessProvide good fair benefits to the employeesConstantly get feedback from the consumer

to know about the productsTake active role in the community service

Encourage all employees to become part of the business

Hold trust in the society

RESPONSIBILITIES TOWARDS VARIOUS GROUPS

OWNERS / SHAREHOLDERSProvide Fair DividendEfficient Business ActivityOptimum Use of available resourcesPlanning for future growthSystematic flow of communication

EMPLOYEESMeaningful work environment / CultureFair wages / compensationJob SatisfactionQuality Work lifeGood rapport with top level officialsSuccessful planning and development Effective training and development

CONSUMERSFair PricesSpecified Quality ProductsSuperior ServiceEffective Product DesignComplete Info about the products

GOVERNMNETOn time payment of tax, Customs dutiesObserves the Govt Polices and RegulationsMaintain Law and order

COMMUNITY AND SOCIETY AT LARGEOffer employment opportunities without any

discriminationProvide job opportunities to physically

challenged and weaker sections of the societyIn terms of their policies with respect to

environmental protection, conservation of natural resources, abatement of pollution

locating industries in the backward areas and assisting the relief and rehabilitation of victims of natural calamities

Business Environment Cost AuditReview of the impact and contribution of a

company to recognized social dimensions. Valuation of social costs and social benefits Measuring the worth of social investments by

estimating the' market worth' of expected benefits to be derived by

socio-economic operating statement.

An environmental audit assesses the nature and extent of harm to the environment caused by the activities, wastes or noise from your business. Use the audit as a tool to help you:

Assess how you can manage or influence the condition of the environment

Priorities what actions you can take to reduce your impact on the environment

Demonstrate accountability to third parties such as government, customers and shareholders.

Technology TransferDefines the concept as ‘‘the movement of

know-how, technical knowledge, or technology from one organizational setting to another’’.

Analyze an astonishingly wide range of organizational and institutional interactions involving some form of technology-related exchange. ‘Sources’ of technology have included private firms, government agencies, government laboratories, universities, nonprofit research organizations,

Dimension Technology TransferTransfer agent -The institution or organization

seeking to transfer the technology. Ex - Government agency, university, private firm

Transfer medium- The vehicle, formal or informal by which the technology is transferred. Ex- License, copyright, person-to-person, formal literature.

Transfer object -The content and form of what is transferred, the transfer entity. Ex- Scientific knowledge, technological device, process, know-how

Transfer recipient-The organization or institution receiving the transfer object. Ex- Firm, agency, organization, consumer, informal group

Demand Environment –Factors pertaining to the need for the transferred object. Ex- Price for technology, substitutability relation to technologies now used, subsidy

Technology transfer effectiveness criteria‘‘Out-the-Door’’- Based on the fact that one

organization has received the technology provided by

Market Impact- Has the transfer resulted in a commercial impact a product, profit or market share change?

Economic Development- Similar to Market Impact but gauges effects on a regional or national economy rather than a single firm or industry

Political Reward- Based on the expectation of political reward e.g., increased funding. flowing from participation in technology transfer.

Scientific and Technical Human Capital Considers the impacts of technology transfer

on the enhanced scientific and technical skills, technically-relevant social capital, and infrastructures e.g., networks, users groups supporting scientific and technical work.

Contingent Effectiveness Model of technology transfer

Flow Chart

ENERGY RECOURSE MANAGEMENTTo provide manufacturing facilities with the

ability and resources to implement an effective Energy Resource Mgt

Based on ISO 14001 that will result in measurable energy use and cost improvements.

ISO 14000 is a series of standards and guidance documents for environmental management

Developed by the International Organization for Standardization

Standards for environmental management, performance evaluation, labeling, life cycle assessment

Management control and maintenance systemsSustainability and high performance green

buildingsAlternative energy systemsBoilers and fired systemsLighting and electrical managementNatural gas purchasingThermal storageCodes and standardsUtility deregulation and energy systems

outsourcingEnergy security risk analysis methodsFinancing energy management projects

INCENTIVES FOR TECHNOLOGY RESEARCH150% tax exemption on R&D (the concession

allows companies incorporated in Australia to deduct 150% on the expenditure incurred on R&D

Grant of high rate of subsidies and grant-in-aid for R&D

Setting up of Technology Development Reserve Fund System for promoting R&D

Tax credit for expenditures on technology and human resource development

Tax exemption for R&D investment by private firms.

High level of technology exports through

attractive

policy of attracting inflow of FDI

Greater use of Internet media to enhance

technology exports

Promotion through Funding and Loans

Towards the construction of S & T

infrastructure and the development of human

resources.

Technology Development Reserve Fund SystemFirms to keep a certain proportion of income for

R&D investmentReserve fund is up to 3 per cent of total sales for

the current year and must be used within three years.

The reserved funds can be invested in all activities related to technology development, including assimilation of imported technology, acquisition of technology information, training of technical personnel, operation of research facilities, and donation to research institution.

Other Tax Incentive Programmes

Tax incentive programmes include tax deductions

and special depreciation, including tax exemption

for R&D investment by private firms.

A variety of tax incentive programmes are available

for such R&D activities as training technicians,

purchasing experimental devices and samples,

employing foreign personnel, and building research

labs

150 per cent tax concession for encouraging R&D (in Australia),

Encouraging export of technology based produces through a liberal FDI policy both within the country and outside and organizing specialized trade fairs (by China)

Setting up of Technology Development Promotion Fund thereby granting grants and tax benefits for

promoting R& D by the private sector (by Republic of Korea)