Role and Responsibility of the Local

Community in Business
As 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

Interventions of Business to fulfill

Social Responsibility
The business can fulfill the Social
Responsibilities through the following
measures:1. Make the decisions to commit to Ethics.
2. Recognize that Business is role model by
definition, by action and by its values.
3. Assume the responsibility to instill ethical
behaviour in the entire business structure.
4. Articulate values.
5. Train Staff.
6. Encourage Open Communication.
7. Be Consistent.
8. Abide by the Laws of the Land.

Role of NGOs and Internal Agency

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

7.

8.
9.

1.

2.
3.
4.

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 Business
Corporates 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.

5.

6.

7.

8.

9.

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.

11. Instead of What I can get, they must
believe in What I can give.
12. Stress on duties rather than rights.
13. Corporates must follow Other Oriented
approach.
CSR and Sustainable Development
In 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.
10.

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 Line

1. The three basic measures of CSR are: Sustainability
Accountability
Transparency
Sustainability 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: Social
Environment
Economic
Caux Round Table(CRT) in 1986 laid the following
principles to measure performance for
corporates in CSR
a) Social Impact of Companys operations on the
local Community.
b) Respect for rules and ethics.
c) Promote Judicious liberation of Trade.

d)
e)
2.

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.

3.

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.