Lecture Topic 2.1.4_CSR 2

1. Academic Session 2025-26 ODD Semester Jul-Dec 2025 UNIVERSITY INSTITUTE OF BUSINESS MBA-FLAGSHIP First Semester BUSINESSSOCIETY&LAW 25 BAT-601 • Unit No.2 Lecture No.2.1.4 • Topic : Corporate Social Responsibility -2 • Dr Ramneek Ahluwalia (E-11464) Assistant Professor

2. Learning Objectives 1 Learning Objective 1. To understand the responsibilities of CSR in modern business practices towards different sections Learning Objective 2. To evaluate the different benefits and challenges of implementing CSR activity

3. Topics to be Covered 3 Topic 1.Responsibilities towards different sections Topic 2.Advantages of CSR Topic 3.Disadvantages of CSR

4. RESPONSIBILITIES TO DIFFERENT SECTIONS 4 • There is no unanimity of opinion as to what constitutes social responsibility of business. The important generally accepted responsibilities of the business to different sections of the society are described below. • RESPONSIBILITY TO SHAREHOLDERS The responsibility of a company to its shareholders, who are the owners, is indeed a primary one. The fact that the shareholders have taken a great risk in making investment in the business should be adequately recognised. To protect the interests of the shareholders and employees, “the primary business of a business is to stay in business”. To safeguard the capital of the shareholders and to provide a reasonable dividend, the company has to strengthen and consolidate its position. Hence, it should develop and improve its business and build up its financial independence. Figure No-1 & Source of the image:Dr Francis Cherunilam, (Business Environment Text and Cases),HimalayaPublishingHouse,30thEdition, 2023

5. 4 • RESPONSIBILITIES TO DIFFERENT SECTIONS • RESPONSIBILITY TO EMPLOYEES • The success of an organisation depends to a very large extent on the morale of the employees and their wholehearted cooperation. Employee morale depends to a large extent on the discharge of the company’s responsibilities to them and the employer-employee relationship. The responsibility of the organisation to the workers include: • The payment of fair wages; • The provision of the best possible working conditions; • The establishment of fair work standards and norms; • The provision of labour welfare facilities to the extent possible and desirable; • Arrangements for proper training and education of the workers; • Reasonable chances and proper system for accomplishment and promotion etc Figure No-1 & Source of the image:Dr Francis Cherunilam, (Business Environment Text and Cases),HimalayaPublishingHouse,30thEdition, 2023

6. RESPONSIBILITIES TO DIFFERENT SECTIONS 4 • RESPONSIBILITY TO CONSUMERS • According to Peter Drucker, “there is only one valid definition of business purpose; to create a customer.” Drucker observes: “The customer is the foundation of a business and keeps it in existence. He alone gives employment. To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise”. It has been widely recognised that customer satisfaction shall be the key to satisfying the organisational goals. Important responsibilities of the business to the customers are: • To improve the efficiency of the functioning of the business so as to: (a) increase productivity and reduce prices, (b) improve quality, and (c) smoothen the distribution system to make goods easily available. • To do research and development, to improve quality and to introduce better and new products. • To take appropriate steps to remove the imperfections in the distribution system, including blackmarketing or profiteering by middlemen or anti-social elements. • To supply goods at reasonable prices even when there is a seller’s market. • To provide the required after-sales services. Figure No-2 & Source of the image:Dr Francis Cherunilam, (Business Environment Text and Cases),HimalayaPublishingHouse,30thEdition, 2023

7. RESPONSIBILITIES TO DIFFERENT SECTIONS 4 • RESPONSIBILITY TO THE COMMUNITY • A business has a lot of responsibility to the community around its location and to the society at large. These responsibilities include: • Taking appropriate steps to prevent environmental pollution and to preserve the ecological balance. • Rehabilitating the population displaced by the operation of the business, if any. • Assisting in the overall development of the locality. • Taking steps to conserve scarce resources and developing alternatives, wherever possible. • Improving the efficiency of the business operation. • Contributing to research and development. • Development of backward areas. • Promotion of ancillarisation and small-scale industries Figure No-1& Source of the image:Dr Francis Cherunilam, (Business Environment Text and Cases),HimalayaPublishingHouse,30thEdition, 2023

8. 4 Figure No-2 & Source of the image: https://blog.reputationx.com/csr-and-reputation

9. Disadvantages of Corporate Social Responsibility 4 1. Financial Costs One of the primary disadvantages of CSR is the economic burden it imposes on organizations. Implementing sustainability initiatives and philanthropic applications frequently requires considerable investments. In the short term, this may pressure financial assets. 2. Inconsistent Implementation Ensuring constant CSR practices across an organization may be hard. Different departments may interpret CSR in a different way, leading to inconsistencies in execution. This can dilute the effect of CSR efforts and harm a company's reputation. Figure No-3 & Source of the image:https://fastercapital.com/topics/the-challenges-and-limitations-of-corporate-social-responsibility.html

10. Disadvantages of Corporate Social Responsibility 4 3. Greenwashing Some groups engage in "greenwashing," where they exaggerate or falsely promote their CSR initiatives. This can result in accusations of dishonesty and damage to the organization's credibility. 4. Measurement Complexity Measuring the effect of CSR tasks is a complicated undertaking. Quantifying social and environmental blessings may be tough, making it hard to evaluate the actual price of those efforts. This loss of clarity can preclude decision-making. 5. Balancing Stakeholder Expectations Meeting the various expectations of diverse stakeholders may be difficult. Customers, investors, employees, and groups may have one-of-a-kind priorities and perspectives on what constitutes effective CSR. Balancing those expectations can be a sensitive undertaking. Figure No-3 & Source of the image:https://fastercapital.com/topics/the-challenges-and-limitations-of-corporate-social-responsibility.html

11. Applications of the Topic 5 • Application 1 • To build a positive brand image and enhance corporate reputation. • Application 2 • To engage stakeholders and improve community relationships. • Application 3 • To promote sustainable development and ethical business practices.

12. Summary of the Lecture 6 For bringing back and maintaining the general balance in the economic and social arena it is evident to think deeply and act wisely about CSR. Every business house owe some responsibility towards the society, nation and world in general which provide it with all human material and natural resources. Considering the long run growth and sustainable development following the norms of CSR , devising new policies and effective implementation is inevitable to bring and sustain a balance between corporate world and society, present generation and upcoming generation, man and nature.

13. Quiz/ FAQ’s 8 One key advantage of CSR for a business is: A Increased government regulationB. Decreased employee moraleC. Enhanced brand reputation and customer loyaltyD. Higher short-term operational costs Which of the following is NOT a responsibility under the CSR framework? A. Ethical treatment of employeesB. Transparent financial reportingC. Avoidance of legal obligationsD. Environmental sustainability efforts

14. References/ Articles/ Videos 9 • Dr Francis Cherunilam, (Business Environment Text and Cases),HimalayaPublishingHouse,30thEdition, 2023 https://egyankosh.ac.in/bitstream/123456789/6544/3/Unit-20.pdf

15. 10 • Faculty-curated videos, NPTEL, Coursera, LinkedIn, or other relevant learning resources • https://onlinecourses.nptel.ac.in

16. Class-Wise Feedback 11 Respective teacher to add their own QR Code

17. 12 Thank You For queries Email: ramneek.e11464@cumail.in