Definition of "APPROACH"
The European Commission defines it as “A concept where companies voluntarily decide to contributeto a better society and a cleaner environment.”
The company strongly believes that sustainable community development is essential for harmony between the community and the industry. It endeavors to make a positive contribution to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives. Also, it is committed to integrate its business values and operations to meet the expectations of all its stakeholders.
At Tata Motors, our CSR efforts are focused on improving the quality of life of underprivileged communities neighbouring our business operations. Our interventions focus on health, education, employability and environment, impacting over 5,80,000 lives in India.
Approaches to Social Responsibility
- Total disregard for social responsibility
- Managers engage in and cover up unethical and illegal behavior.
- They prevent this info from reaching other organizational stakeholders and society at large.
- Eg manufacturers of fruit juices who hide evidence about using industrial sugar in themanufacture of pure fruit juice products
- Minimal commitment to social responsibility, ie little active interest.
- Managers are willing to do no more than what the law requires.
- Do their utmost to ensure their employees behave legally and do not harm others.
- When making ethical choices, they put the interests of their shareholders first at the expense of other stakeholders.
- Moderate commitment to social responsibility.
- Strive to balance interests of various stakeholders against one another.
- Want to make choices that are seen to be reasonable in the eyes of society.
- Want to do the right thing when approached to do so.
- Strong commitment to social responsibility.
- Eager to behave in socially responsible ways.
- Take time to learn about the needs of various stakeholder groups.
- Use organizational resources to promote the interests of all organizational stakeholders.
CONTINUUM OF SOCIAL RESPONSIBILITY
Economic social responsibility
- Are the most basic social responsibilities.
- Allows managers to maximize profits whenever possible.
- Firm provides productive jobs to its employees and tax payments to the government.
Legal social responsibility
- Refers to a firm’s obligation to comply with the laws that govern business activities, e.g. labourlaws, consumer safety, etc.
- Firms should obey civil and criminal laws that apply to all individuals and institutions in theircountries of operation.
Ethical social responsibility
- Refers to a firm’s proper business behavior. They are responsibilities that transcend legal requirements.
- Firms are expected, but not required, to behave ethically. Some legal activities may be regardedunethical, e.g production and distribution of alcoholic drinks is legal. However, considering thenegative health implications, most people consider the continued sale of alcoholic beveragesunethical.
Discretionary social responsibility
- Refers to those that are voluntarily assumed by business entities.
- Include PR activities, good citizenship and full CSR.
- Contains a self-serving angle to it.
- Managers try to enhance the image of their firm, products and services by supporting worthycauses, e.g. charities, public service advertising campaigns, concerns in the interest of the public,etc.