INCLUSIVE GROWTH & SUSTAINABLE DEVELOPEMENT THROUGH CORPORATE SOCIAL ORIENTATION Dr. M Varaprasada Rao1 & M V J Sastry2 1.
Dean -Academics, GIET, Rajahmundry. Andhra Pradesh 533296 India. Contact. 9441106822 2. Chief Manager, Andhra Bank. Head Office Hyderabad. Contact.9440489369 E-mail;
[email protected],
[email protected],
[email protected]
Abstract “Together may we be protected, together may we be nurtured, together may we work with great vigour, may our journey together is dazzling and effective, and may there be no wicked feelings between us. Peace, Peace, and Peace” is stated in the Upanishads and is recognized in India for inclusive growth and sustainable development in all areas, way back million years ago.
Since independence, significant improvement is seen in Indian economic & social development. However, India’s impressive growth also comes with the burden of a rising population Parallel to economic growth, raising unemployment rates and skill shortage for jobs especially for employment in modern industries.
This paper explains why and how the corporate organizations are to be participated in sustained development of the country. How the organizations need to apply sustainability principles to the ways in which they conduct their business. The paper establishes the realities of Inclusive growth and its implications particularly in-terms of equitable allocation of resources with benefits accruing to every section of society. This paper also provides the means and ends for sustainable development which coincides with further economic growth and human development in the economy and society.
Key Words: Growth Rate, Sustainable development, Inclusive growth, Corporate Social Responsibility, Corporate Social Orientation, Social Responsibility continuum
Overture
resilience to external shocks, service sector
Shanti Mantra” from Kato Upanishad .....
growth Significant accumulation of foreign exchange, Information technology (IT) and
Om Sahana Vavatu
stock
market,
improvements
Sahanau Bhunaktu,
telecommunications etc.
in
Saha Viryam Karawavahai, Tejasvinavaditamastu,
Investment and savings rates are quite high
MaVidvishavahai,
and no doubt that India has emerged as a
Om Shanti hi Shanti hi Shanti hi”
global leader in information technology, business
The above mantra interprets as “Together
may
we
be
process
outsourcing,
telecommunications and pharmaceuticals. protected,
Literacy levels have gone up and better
together may we be nurtured, together
health care has improved the quality of
may we work with great vigour, may
life.
our journey together is dazzling and effective, and may there be no wicked
However, India’s impressive growth also
feelings between us, Peace, Peace, and
comes with the burden of a rising
Peace”
population Parallel to economic growth, unemployment rates have risen and there is
Thus India has recognized the importance
skill shortage for jobs and employment in
of inclusive growth for all has been
modern industries.
recognized way back million years ago. Low
productivity
has
compounded farmers’ distress in many
Preamble Since
agricultural
independence,
significant
parts of the country. Also, one of the main
improvement is seen in Indian economic &
challenges before India is to provide
social development. Especially, in the
adequate, affordable fossil and renewable
post-reform (since 1991) period, India has
energy for development of all, at the same
done well in specific areas with explicit
time addressing social inequities and
indicators such as balance of payments,
income disparities in this regard.
SL
PERIOD
AVERAGE
NO
GROWTH RATE PER YEAR %.
1
1st
30
years
after
3.5
independence 2
1980’S
5.6
3
1990’S
5.8
4
2005 to 2010
8.1
5
2011 to 2014
6.3
6
2015
7.5 (Estimated)
Table 1: Average Growth Rate in GDP
Table 1 shows average GDP growth rate
education to the intellectual youth, support
after independence. No doubt that these
to the honest & hard-working people and
figures show that Indian Economy is
improvement in work culture are just a few
growing at a phenomenal rate, combined
of the things the Indian systems and the
with a budding democracy is making
society need to introspect. Free medical
people sit up and focus on the world. Yet,
facilities
the economy is at cross-roads today. It is
irrespective of cast and creed also need to
far from attainment of its true prospective.
be looked into for real inclusive growth.
and
free
education
to
all
The country is shackled up in corruption, red tape, age old social barriers and a
Tackling
corruption
in
high
places,
bamboozling of transparency.
reducing the statistical importance of just making filthy cases by the organizations,
Growth is not uniform across all the
justice to common man, avoiding political
sectors; and large cross-sections of the
interference into the systems that work for
population remain outside its purview.
country’s development, removing the ills
Several social, political and economic
of the electoral system, shunning politics
factors need to be tackled for sustaining
of agitations and keeping national interest
growth, as well as to make this growth
above petty politics are the issues in
inclusive. Elimination of child labour,
question today.
women empowerment, removal of caste barriers, respect to the individual, right
Rapid growth in the rural economy, well
New
planned
Organizations
and
targeted
urban
growth,
Role
of
Corporations
around
the
&
infrastructure development, reforms in
Corporations
world
are
education, ensuring future energy needs, a
belligerent with the new role, which is to
healthy public-private partnership, intent
meet the needs of the present generation
to secure inclusivity, making all sections
without compromising the ability of the
of society equal stakeholders in growth,
next generations to meet their own needs.
and above all good governance will ensure
Organizations are being called upon to
realistic growth that India deserves.
take responsibility for the ways their operations impact societies and the natural
Simply, the economic growth alone will
environment especially to work together
not reduce poverty, improve equality,
for the overall development. They are also
generate jobs and secure livelihoods unless
being
it is inclusive and sustainable. Many
principles to the ways in which they
people are excluded from mainstream
conduct
development because of their gender,
refers to an organization‘s activities,
ethnicity, age, sexual orientation, disability
typically
or poverty, cast or creed. Development can
demonstrate the inclusion of social and
be inclusive - and reduce poverty - only if
environmental
all groups of people contribute to creating
operations
opportunities,
stakeholders. To understand and enhance
share
the
benefits
of
asked
to
their
apply
sustainability
business.
considered
Sustainability
voluntary,
concerns
and
in
efforts,
in
that
business
interactions
development and participate in decision-
current
making. At this juncture, it is necessary to
responsible
look at our Economic System; the mixed
revise their short and long-term agendas,
economy.
to
stay
the
most
with
organizations
ahead
of
socially
continue
rapidly
to
changing
challenges. The quality of relationships In the mixed economy, corporate sectors
that a company has with its employees and
play a vital role. These corporations need
other
to shoulder the responsibility of inclusive
customers, investors, suppliers, public and
all-round development in all the sectors
governmental
with the aim of becoming a fully
communities—is crucial to its success, as
developed country.
is its ability to respond to competitive
key
conditions
stakeholders—such
officials,
and
responsibility (CSR).
activists,
corporate
as
and
social
These
major
transformations
require
Advocating for a new Global
national and global companies to approach
Partnership for Development; and
their business in terms of sustainable
Enhancing productive capacities,
development, and both individual and
sustainable
consumption
organizational leadership plays a major
production patterns.
and
role in this change. Corporate
Social
Responsibility
&
Corporate responsibility or sustainability is
Orientation
therefore a prominent feature of the
Social Orientation means the Business
business and society literature, addressing
philosophy that takes the society's well-
topics of business ethics, corporate social
being into account, in addition to the
performance, global corporate citizenship,
satisfaction of the consumers' wants and
and stakeholder management. What is
shareholder’s needs. In simple words it is
expected from the corporate world to
the
promote inclusive sustainable development
Responsibility in meeting the ends of the
can be summarized as-
customer satisfaction besides the fulfilling
Social
Direction
and
having
the necessities and needs of the society
Assisting formulation
Governments of
in
the
where we live.
development
strategies and plans;
Corporate
world
Providing policy advice and tools to
themselves if they would like to be in the
fight exclusion and marginalization
current business and abide by the word
in areas such as social protection
“Corporate Social Orientation” in letter
strategies, job creation, sustainable
and spirit in meeting the needs of Inclusive
urbanization, and fiscal policies;
growth
Helping Governments to set up
“together may we work with great
comprehensive poverty monitoring
vigour”.
and
need
sustained
to
re-define
development
and assessment systems ;
Advocating for an enhanced public
Corporate Social Orientation (CSO) plays
investment
a major role in developing the economy of
and
economic
governance
Supporting
a country. It can be defined as the way in Governments
with
which
a
company
manages
various
public expenditure and budgeting
business entities to produce an impact on
reviews;
the society. Companies with high CSO
standards are able to demonstrate their
In turn, companies are responding to
responsibilities to the stock holders,
investor demands by re-examining the way
employees, customers, and the general
they do business—from the reduction of
public
emissions and energy conservation to fair trade and labour standards.
In the wake of corporate scandals, and the tightening of carbon emissions standards
As a result, companies interested in
over the past decade, investors have begun
capturing these investments are striving to
to seriously evaluate the environmental,
improve their orientation towards the
social and corporate governance risks
society and are striving to get close to the
within their portfolios.
society, by changing their practices and policies in order to be included and remain in the society.
Figure 1: Social Responsibility & Social Orientation
Over the last twenty years an increasingly large number of business houses have
governance;
responded positively to the banner of
ethics;
Corporate Social Orientation, orienting
health and safety;
them towards the society. This has perhaps
environment;
been partly due to their aspiration to make
human
their operations more ethical. It puts an
rights,
labour,
minorities;
ethical pressure on the companies to give
sustainability;
back at least a part to society in return
accountability;
what they have gained from it. It is
customer satisfaction.
therefore,
no
longer
important
culture,
for
companies to just make profit, the way this
An effective approach of social orientation
profit is generated is deeply investigated
of organizations, especially the Corporate
by the activists.
Sector, can enhance brand and company reputation
by
improving
efficiency,
A company must not be seen violating
reducing the risk of business disruptions,
ethics or law in any of the areas like
and open up new opportunities driving
market
policies,
innovation. The ‘triple bottom line’ more
employment relations, sourcing of raw
commonly known as ‘people, plants,
materials, human rights, environmental
profits’ is also known as the three pillars
laws or the activists would put pressure on
of sustainability and is the need of the hour
them through media or the other channels.
to concentrate on these 3P’s for survival of
behaviour,
trade
the business in the concurrent situation in Social Orientation of the business is the
the world.
way that businesses manage the economic, social and environmental impacts of their
Warren Buffet and Bill Gates & Melinda
operations into their values, culture,
Gates, who taught the need for Corporate
strategy and operations to maximize the
Social Orientation, showed the way to the
benefits and minimize the downsides. It is
Corporate Business Firms, in making their
driven by both Corporate & Government,
organization a responsible one towards the
who are looking for businesses to make
society for the overall development of the
positive contributions and the costs &
world as “Vasudhika Kutubmikam” in the
benefits of the business and may involve
lines of inclusive growth. It is not
new approaches in their activities of-
corporate social compulsion, it is charity.
In the recent past what the Corporate
and the corruption would get reduced.
Sector is doing for social orientation of
Black money and ‘Swiss-accounts’ would
their organization for mutual benefits is
come to an end. It is well known fact that
with the basic principle of 'the left hand
one of the root causes of black money is
should not know what the right hand is
the huge cash donations to the political
doing'.
parties by the corporate entities. If this money is spent for social welfare the gain
This kind of social orientation would
to the corporate entities will be in multiple
bring-out realistic organizations on to floor
folds.
Figure 2: Social Responsibility continuum
Bearable, Equitable and Sustainable Social Economic Environemnt Corporate Social Responsibility (CSR) is
legal responsibilities. There are, however,
the
issues of labelling and standardization
latest
‘buzz
word’
to
which
increasingly more and more companies are getting
attentive.
Moreover,
associated with CSR.
the
Governments are keen that companies take
Corporate Social Responsibility must be
to CSR route as social welfare is the
seen by the companies as a responsibility
responsibility of both public and private
and not imposed by outside forces but
sectors. The companies too are realizing
guided by conscience and the sustainable
the hidden costs of failing to meet this
practices of giving back to society, people,
crucial social responsibility that is more
communities, and environment what they
ethically and morally binding than legal
took from them.
necessity. It entails going beyond just the
Figure 3: Business has a responsibility to give back to the community
Social responsibility is a voluntary effort
c. Survival and Growth -Every business
on the part of business to take various
is a part of the society. So for its survival
steps to satisfy the expectation of the
and growth, support from the society is
different interest groups.
very much essential. Business utilizes the available resources like power, water, land,
The interest groups may be owners,
roads, etc. of the society. So it should be
investors,
consumers,
the responsibility of every business to
government and society or community.
spend a part of its profit for the welfare of
Many of the advantages have been seen
the society.
employees,
with the modality of Social Orientation, in the economic world.
d.
Employee
satisfaction
-
Besides
getting good salary and working in a a. Public Image - The activities of
healthy atmosphere, employees also expect
business towards the welfare of the society
other facilities like proper accommodation,
earn goodwill and reputation for the
transportation, education and training. The
business. The earnings of business also
employers should try to fulfill all the
depend upon the public image of its
expectation of the employees because
activities. People prefer to buy products of
employee satisfaction is directly related to
a company that engages itself in various
productivity and it is also required for the
social welfare programmes. Again, good
long-term prosperity of the organization.
public image also attracts honest and competent employees to work with such
e. Consumer Awareness - Now-a-days
employers.
consumers have become very conscious about their rights. They protest against the
b. Government Regulation - To avoid
supply of inferior and harmful products by
government
businessmen
forming different groups. This has made it
should discharge their duties voluntarily.
obligatory for the business to protect the
For example, if any business firm pollutes
interest of the consumers by providing
the environment it will naturally come
quality products at the most competitive
under strict government regulation, which
price.
regulations
may ultimately force the firm to close down its business. Instead, the business
The additional benefits that corporations
firm should engage itself in maintaining a
adopting Corporate social responsibility
pollution free environment.
initiatives are –
Increased employee loyalty and retention;
and business houses to go further than required by law so as to-
Gaining legitimacy and access to
markets;
treat employees fairly and with respect operate with integrity and in an ethical manner in all its business dealings with customer, suppliers, lenders, and others respect human rights sustain the environment for future generations be a responsible neighbour in the community and a good ‘corporate citizen’
Less litigation Increased quality of products and services; Bolstering
public
image
and
reputation and enhanced brand value;
Less volatile stock value; Avoiding state regulation; and Increased customer loyalty;
It is now become common as per the ethical practice, that the companies may
Instead of questioning all the times “What
either include their activities towards the
this country has given to us?” Let the
welfare of society in their annual report
question be with the corporate entities “What we have given to this country?”,
and accounts or may publish their separate corporate responsibility report which is generally
If the corporate entities feels that this is the need of the hour and if they could put their onus on to Society Development, Local community and Location development with improved quality of life and Changed habits and Capacity building, creation of
known
as
‘social
and
environmental report’ or ‘sustainability report’.
These
reports
indicate
the
company’s commitment and orientation toward ethical behaviour of their company and highlight their progress towards achieving their strategic social objectives.
employment are within their reach apart from bringing Balanced ecosystems, best Waste management systems and Clean and Green environment, this country will be a gift to the future generations.
It needs no argument to claim that Corporate
Social
Orientation
of
the
company and their practices adopted pay them off in managing their image apart from development of the specific country.
Social Orientation the Need of the Hour Social Orientation and direction are the need of the hour for the corporate world
Since
the
beginning
of
the
1990s,
companies are changing their business practices
under
ethical
frame
work.
Consider these examples: Nike and the
have adopted policies to address human
other
rights and environmental abuses associated
similar
companies
footwear
are
and
monitoring
apparel working
with
its
investments
in
condition in their supplier factories in
countries;
developing nations; IKEA requires its rug
employees to take one week off with pay
suppliers
the
each year to work with local charities;
employment of children and provide their
PepsiCo along with more than a dozen oil
families with financial assistance to keep
companies
children out of labor market; Starbucks
manufacturers
and the other major coffee distributors and
investments from Burma because of
retailers sell coffee bearing their ‘Fair
human rights concerns; Citibank along
Trade’ label; Home Depot and the other
with other major financial institutions has
major retailers of wood products no longer
developed
sells products harvested from old growth
environmental
or endangered forests; British Petroleum
decisions in developing countries. While
and several other major firms in United
these are few cases of Corporate Social
States and Europe have significantly
Responsibility, there are many more
reduced its green house gas emission;
examples that cannot be included here for
Shell and the other major extractive firms
lack of space.
in
India
to
prohibit
Timberland
developing
and
allows
consumer have
criteria
for
impact
its
goods
withdrawn
assessing of
its
the
lending
Figure 4: Pepsico India’s Statement for Sustained Development
Figure 5: Business Responsibility
Methods to meet the social needs
follow the regulations laid down by
There are many methods to meet the social
government to control pollution. For
needs. “Where there is a will there is a
example, more and more environmental
way”.
concurrently
friendly products can be produced, filters
somewhat clear and specific too. Business
can be used in chimneys; silencers can be
can equally be instrumental in fighting
fitted in generators; instead of dumping
pollution and protecting the environment.
industrial wastes into river and land it can
Business can have three types of role -
be treated properly for further productive
preventive, curative and awareness. Also
use etc.
there
The
are
ways
seven
are
social
orientation
principles as can be summarized-
Businessmen should come forward to play a major role in preventing further damage
i. Preventive Role
done to the environment by human beings.
It means business should take all steps so
Sulabh
that no further damage is done to the
example of how to provide proper
environment. For this, business must
sanitation facilities to the public.
International
is
the
leading
ii. Curative Role
aware about the causes and consequences
It means business should rectify whatever
of environmental pollution so that they
damage has been done to the environment.
voluntarily try to protect rather than
In addition, if it is not possible to prevent
damage the environment. For example,
pollution
curative
business can undertake public awareness
measures can be taken. For example,
programmes. Now-a-days, we find that
planting
(afforestation
some business houses have taken the
programmes) can substantially reduce air
responsibilities to develop and maintain
pollution near the industrial area.
parks and gardens in cities and towns,
then
of
simultaneous
trees
which shows that they care for the environment.
iii. Awareness Role It
means
making
people
(both
the
employees as well as the general public)
Figure 6: Corporate Social Responsibility (CSR)
Social
Orientation
Principles
for
to maximize its positive impact and
Sustainable Development
minimize its negative impact on society is
Social Orientation is a doctrine that claims
also to be weighted.
that
an
entity whether
it
is
state,
government, corporation, organization or
The concern for the consequences of a
individual has a responsibility to society
person's or institution's acts as they might
and should go along with the society. It
affect the interests of others, including the
can also imply that corporations have an
environment and involuntary customers
implicit obligation to give back to society.
would certainly can cause irreparable loss. The concept that businesses should be
The responsibility to profitably serve
actively concerned with the welfare of
employees and customers in an ethical and
society at large should be given right
lawful manner is general motto of any
orientation by corporate for their survival.
organization. An organization's obligation
Figure 7: The CSR Hierarchy Golden Triangle
Figure 8: The Corporate Business Gamut
Principle 1: Corporate Entities should
Principle 4: Corporate Entities should
acknowledge and actively monitor the
recognize the interdependence of efforts
concerns of all legitimate stakeholders, and
and rewards among stakeholders, and
should take their interests appropriately
should
into account in decision-making and
distribution of the benefits and burdens of
operations.
corporate activity among them, taking into account
Principle 2: Corporate Entities should
attempt
their
to
achieve
respective
a
risks
fair
and
vulnerabilities.
listen to and openly communicate with stakeholders
about
their
respective
Principle
5:
Manages
should
work
concerns and contributions, and about the
cooperatively with other entities, both
risks that they assume because of their
public and private, to insure that risks and
involvement with the corporation.
harms arising from corporate activities are minimized and, where they cannot be
Principle 3: Corporate Entities should
avoided, appropriately compensated.
adopt processes and modes of behavior that are sensitive to the concerns and
Principle 6: Corporate Entities should
capabilities
avoid altogether activities that might
constituency.
of
each
stakeholder
jeopardize inalienable human rights (e.g.,
the right to life) or give rise to risks which, Employment Generation
if clearly understood, would be patently Poverty Reduction
unacceptable to relevant stakeholders.
Principle 7: Corporate Entities acknowledge
the
potential
Agricultural Development
should conflicts
Inclusive Growth
Industrial Development
Social Sector Development
between (a) their own role as corporate stakeholders, and (b) their legal and moral responsibilities
for
the
interests
Reduction in regional disparities
of
Environment Protection
stakeholders, and should address such conflicts through open communication, appropriate
reporting
and
incentive
systems, and, where necessary, third party review.
Figure 9 : Elements of Inclusive Growth
The following five problems are the major concerns for to achieve the inclusive growth-
Elements of Inclusive Growth The key components of the inclusive
(1) (2) (3) (4)
growth strategy included a sharp increase in
Equal Income Distribution
investment
in
rural
areas,
rural
(5)
Poverty Employment Agriculture Problems in Social Development & Child Labour. Regional Disparities
infrastructure and agriculture spurt in credit for farmers, increase in rural
There must be equality of opportunity to
employment through a unique social safety
all with freedom and dignity, and without
net and a sharp increase in public spending
social or political obstacles. This must be
on education and health care.
accompanied by an improvement in the opportunities for economic and social
The
eight
interrelated
elements
of
inclusive growth are: Poverty Reduction Employment generation and Increase in quantity & quality of employment. Agriculture Development Industrial Development Social Sector Development Reduction in regional disparities Protecting the environment. Equal distribution of income
advancement. In particular, individuals belonging to disadvantaged groups should be provided special
opportunities
to
develop their skills and participate in the growth process. Government of India has stepped up for inclusive growth by launching many initiatives with features that are innovative, flexible and reform oriented such as-
1. Rural Infrastructure(Bharat Nirman) 2. Employment(Mahatma Gandhi National Rural Employment Guarantee Scheme) 3. Regional Development ( Backward District Development Program) 4. Education (Sarva Shiksha Abhiyan) 5. Rural Health(National Rural Health Mission) 6. Urban Infrastructure (National Urban Renewal Mission)
responsible practices into the business operations.
Common
CSR
policies
include: Adoption of internal controls reform; Commitment to diversity in hiring employees and barring discrimination; Management teams that view employees as
assets
rather
than
costs;
High
performance workplaces that integrate the views of line employees into decision-
Inclusive Growth intends at -
making processes; Adoption of operating 1. Better Performance in agriculture .
policies that exceed compliance with
2. Faster Creation of Jobs, especially in manufacturing.
social and environmental laws; Advanced
3. Stronger Efforts at health, education and skill development
resource productivity, focused on the use
4. Improved effectiveness of programs direct aimed at the poor.
efficient
5. Special programs for socially vulnerable groups.
which goods are produced directly or by
6. Special programs for disadvantaged or backward regions.
of natural resources in a more productive, and profitable fashion;
and
Taking responsibility for conditions under
contract
employees
domestically
or
abroad.
India has been endowed with some of the world’s most essential minerals, beautiful places, diverse cultures and capable and talented people. It is time we stop squandering this advantage and make the most of what most countries can never even dream to have. There is much to be done, but if done and done correctly, then nothing can stop us from reaching the
Corporate Social Responsibility (CSR) strategy, based on sound ethics and core values, offers clear business benefits. Sustainable development rests on three fundamental pillars: economic growth, ecological balance, and social progress. Business is not divorced from the rest of society. It is but one constituent part of society. Growth of the corporate is
pinnacle of the world.
together with the society and thus the corporate are the part of sustained
CSR for Inclusive Growth CSR
means
developing
the policies
perseverance that
to
integrate
development.
The India’s economy is headed in a new
capabilities in order to exploit available
direction - striving to touch double – digit
opportunities.
annual growth rates, and a sustainable,
Suggestions for Inclusive Growth-
equitable and inclusive growth, taking into account the needs of all sections of India’s economic growth has
society.
1. Recognising that Equity is important for economic development. 2. Supporting
Agricultural
passed through for major phases over the
Development, which is necessary for
past 60 Years and is emerging to a new
economic development.
phase with a broad objective of “Inclusive Growth”.
3. Extending helping hand towards economic
reforms
which
are
important. But macro-poor policies The Inclusive growth implies an equitable
(fiscal, trade, financial, monetary
allocation of resources with benefits
etc.) should have pro-poor focus.
accruing to every section of society.
4. Giving importance to the structural
Inclusive growth is broad- based. It is
change
concerned with the Pro-poor growth,
agriculture-industry-services
growth with equity. Inclusive growth is
sequence.
aimed
at
poverty
development,
reduction,
health
and
human
to
5. Corporations
be
to
followed
---
participate
in
provide
Production and Development of
opportunity to work and be creative. The
manufacturing sector apart from
allocation of resources must be focused on
services
the indented short and long terms benefits
Technology to create productive
and economic linkages at large and not just
employment.
equitable mathematically on some regional and population criteria.
and
Information
6. Equality of opportunities (education) should be given and Employee growth through education and self
The inclusiveness involves four attributes.
development to be encouraged.
They are Opportunity, capability, access
7. Recognising
and security. The Opportunity attribute
women’s
focuses on generating more and more
empowerment.
the
importance
economic
and
of
social
opportunities to the people and focuses on increasing their income. The Capability
Many national and multinational firms are
attribute concentrates on providing the
booming in various developing countries.
means for people to create or enhance their
But at the same time, these countries suffer
social
challenges
corruption,
such
population
as
poverty,
growth,
etc.
around the world show their commitment to corporate social responsibility. What is
Therefore, it is important for all companies
the
importance
of
corporate
social
to strive together and adapt corporate
Orientation? The answer lies in two things:
social responsibility standards to make the
1) organizations understanding their role in
society better than before. An organization
developing a society and 2) awareness
can exhibit a better image in the society if
among business houses, corporate bodies,
it cares for its employees and involve them
and the people. Versatile, profitable, and
in social activities.
dynamic businesses are the driving forces that build the economy of the country. We
The responsibilities of an organization
must remember that the growth of a
may range from providing small donations
country purely depends on the growth of
to executing bigger projects for the welfare
the society and the people in the society.
of the society. Many business houses
Figure 10: The business in the Society
There are infinite ways for a corporate to
environment,
consumers,
act if there is a will to help and uplift the
communities, stockholders and all other
society. It just needs a helping hand with a
members of the public sphere. Corporate
good heart and a bit of time. Your help and
Social orientation is a commitment to
contribution may be little but that would
improve community well-being through
encourage many to do the same and the
discretionary
result will help to build a perfect society.
contributions of corporate resources and
business
employees,
practices
and
now it is the time for all corporate entities to strive for it in more ethical way.
Conclusion Sustainable development is a process for achieving sustainability in any activity that
Undeniably the importance of inclusive
uses resources and where immediate and
growth has been recognized way back. The
intergenerational replication is demanded.
inclusive growth tactic takes a longer
Sustainable development coincides with
viewpoint as the centre is on fruitful
further economic growth and human
employment instead of direct income
development in the economy and society
redistribution, as a way of snowballing
for
continual
incomes for excluded groups. In a nutshell,
economic
income distribution programs
finding
the
development
means of beyond
development.
permits
people, to benefit from economic growth in short run but inclusive growth grants
Corporate social responsibility, corporate
people “to contribute to and benefit from
social
economic growth”.
orientation
or
sustainable
responsible business or corporate social performance, is a form of corporate selfregulation integrated into a business model with ethical thinking. The corporate orientation
by
self
initiation
would
Sarve bhavantu sukhinah ! Sarve santu niramyah !! Sarve bhadraani psyantu !!! Ma kaschit dukhbhagbhavet ! Om shantih shantih shantih !!
function as a built-in, self-regulating mechanism
whereby
business
would
monitor and ensure their adherence to law, ethical standards, and international norms. Business would embrace responsibility for the impact of their activities on the
Let all people be happy Let all live with complete good health Let all know what is good and what is not so good Let no body be subjected to troubles Let peace be spread to all
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About the Authors Dr. M Varaprasada Rao formerly the Chief Manager (Integrated Materials Management) HAL, presently working as Dean- Academics, Godavari Institute of Engineering & Technology, Rajahmundry and also Director of Sathguru Management and Aviation Research Technology, Visakhapatnam. He is a Doctorate from Andhra University in Supply Chain Management also specialized in Mechanical Engineering, Aerospace Engineering, Management, Administration, Education, Materials Management and Knowledge Management with extensive IT (ERP/IFS/SAP) usage with Engineering and Management background. He has got work experience in four (BHPV,NTPC, HZL, HAL) leading public Sector enterprises for twenty five years in the Area of Integrated Materials Management and 18 years full time and part time teaching in Engineering & Management Subjects. M. V. J. Sastry, working as Chief Manager, Chief Information Security Officer’s Cell, Andhra Bank, Head office, Hyderabad. He worked in Andhra Bank in various positions from inception for 30 years and has got vast expertise in Banking Operations & Systems. He did MBA in Finance and Marketing and also a certified associate in Indian Institute of Banking and Finance. He is a certified Information Systems Auditor (CISA) and Certified Information Security Manager (CISM) from ISACA, USA.
