Corporate Social Responsibility, (CSR), is basically business ethics. A socially responsible corporation provides goods and services in line with society's values and is concerned about how consumers are protected. It respects the laws that protect the rights of consumers and employees, as well as the environment, from unethical business practices.
From the consumers point of view, socially responsible corporations should be concerned about customer rights and protection, which include: The Right to be Safe - The Right to be informed -The Right to choose -The Right to be heard -Employee protection - Equal employment opportunities for all - Safety and Quality of life issues - Ethical investing - And that the companies' products do not cause illness, disease or death nor destroy or damage the environment.
Unfortunately, at present the general perception of a corporate organisation is that it is out just to make money, without giving due consideration to the consumers. It is not how much money a corporation gives to charity or communities for its social development programs. Therefore this perception has to be changed and a relationship between corporate citizenship and the consumers has to be established.
Governments often enact laws that force businesses to function ethically, but consumers can also force businesses to act ethically regarding the products they produce and market.
In the absence of Consumer Protection Laws and the lack of enforcement of existing food and drug laws, our markets are flooded with substandard, adulterated and counterfeit products and consumers are being poisoned and cheated by misleading and unethical advertisements.
To protect consumers from such unscrupulous manufacturers, we are promoting good manufacturing practice and encouraging socially responsible corporations to step forward and be the leaders and set an example.
We are requesting corporations to voluntarily observe the Principles of Business Ethics by providing a quality product at a fair price to the consumers.
Consumers expect manufacturers to supply reliable, quality and safe products, whereas stockholders demand that corporate operations be managed efficiently and that their investments are rewarded by dividends or improved market value.
Therefore a balance has to be found to establish a relationship between management's commitment to ethics, its shareholders and the consumers. CSR is a long-term investment, as it differentiates a corporation from the others and creates customer satisfaction and brand loyalty.
A good corporate citizen offers superior value to customers by acknowledging social responsibilities. Customers enjoy the benefits of this commitment directly, because a good Corporation treats them fairly and strives to satisfy their changing needs.
They also enjoy the fruits of corporate citizenship indirectly, as the organisations undertake to respect laws and regulations, adopt conduct considered morally right and help their community.
These Corporations regularly grants large donations to communities in which they are located. These funds are used to support education, environment, and economic development programs. Such actions help forge tight bonds with consumers, employees, suppliers and community leaders.
Effective corporate citizenship is incorporated into the daily interactions between the company and all its stakeholders. It is the result of trusting relationships and long-lasting interactions, but this cannot be achieved without top management support.
Corporate social responsibility is a growing need in today's complex business environment. Prudent corporations have realised their role is not only to make profits for their companies and shareholders, but also to be recognised as socially responsible enterprises.
CSR is basically an obligation, working for the benefit of social good, as well for profits and is beyond the letter of law. It is towards a spirit of trust, respect for the rules of trade, environment, consumer's interest, promote sustainable development programs and to avoid illicit operations like hoarding, misleading advertisements, bribery, tax evasion, etc.
Corporations must have a sense of responsibility towards the society from which they earn their profits. Executives of these corporations must be men of ethics, with strong social commitments, who transform their ideas and vision of corporate ethics into corporate responsibility.
For corporate social responsibility, there can be no specific legal or binding rules. An enlightened corporation sets its own code of ethics and respects and acknowledges its responsibilities, which are practised by its workers, managers and senior executives. It sets the example of being good citizens and promoting good citizenship.
But why should companies accept corporate social responsibility? The answer is, because the public expects corporations to help society and to invest back into their consumers to whom they sell their products and make profits.
A prosperous society means a better environment for doing business. By addressing social problems, a corporation builds bridges and confidence between business and society and creates corporate or brand loyalty, resulting in increased sales. As such, the concept of CSR is assuming new importance and is a growing need in today's complex business environment.
Prudent corporations have realised their role is not only to make profits for their companies and shareholders, but also to be recognised as socially responsible enterprises. Corporate social responsibility is basically an obligation, working for the benefit of social good, as well for profit maximisation. As such, the concept of social corporate responsibility is assuming new dimensions.
Unfortunately in Pakistan, except for a few, there is a general lack of Corporate Citizenship and CSR seems to focus on how much donation an organisation contributes to health, environment and education programs, but overlooks its obligations and commitments to the consumers.
Most of them just believe in "lip service and cosmetic contributions" which project their organisations or their products. If corporations do not serve society, in letter and in spirit, then there will be a gradual breakdown of trust and respect for corporations and we will witness an "anti corporate" movement.
It is the moral obligation of corporations, who believe in Good Manufacturing Practice and are committed in providing quality products at a fair price to the consumers, to observe a code of conduct, both in manufacturing, marketing and advertising.
Socially Responsible Corporations must also support consumer organisations in promoting their awareness campaigns in the electronic and print media to protect consumers from substandard and counterfeit products. If they do not set an example, then we will end up with a "free for all" situation.
(Courtesy Helpline Trust)
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