IGNOU| FUNDAMENTALS OF CSR (MEDS - 051)| SOLVED PAPER – (DEC - 2022)| (PGDCSR)
P. G. DIPLOMA IN CORPORATE SOCIAL
RESPONSIBILITY (PGDCSR)
Term-End Examination
December - 2022
MEDS-051
FUNDAMENTALS OF CSR
Time: 3 Hours
Maximum Marks: 100
Note: (i) Answer any five questions.
(ii) All
questions carry equal marks.
1. Define CSR. Discuss the current trends and practices of CSR in India. 5+15
Ans:- Corporate social responsibility (CSR) is a
business approach that aims to have a social impact and focuses beyond profits.
It is a form of international private business self-regulation aimed at
contributing to social goals of a philanthropic, activist or charitable nature.
The main
objectives of CSR are:-
(i) Enhance
the image of the company
(ii) Earn
customer loyalty
(iii)
Generating more sales
(iv) Play an
active and positive social role in the world around you
(v) Be
socially responsible towards your customers, stakeholders and the world at
large
The related
term CSR is also linked to corporate citizenship.
The term CSR
was first coined in 1953 by American economist Howard Bowen in his publication
Social Responsibilities of the Businessman.
Corporate
social responsibility is a business model by which companies make concerted
efforts to act in ways that enhance rather than degrade society and the
environment.
CSR can help
improve various aspects of society as well as promote a positive brand image
for companies.
Corporate
responsibility programs can also boost morale in the workplace.
CSR is
often divided into four categories: environmental impact, ethical
responsibility, philanthropic efforts, and financial responsibilities.
Some examples
of companies striving to be leaders in CSR include Starbucks and Ben &
Jerry's.
Some of the
current trends of Corporate Social Responsibility (CSR) in India are as
follows:
(i) Increase
in transparency
(ii)
Investment in green technologies
(iii) Local
community and employee involvement
(iv) Diversity
and Inclusion Initiative
(v) Virtual
volunteering
(vi)
Sponsoring small businesses
(vii) Clear
communication when it comes to emergency response
Other CSR
trends include:
(i) Digital
inclusion
(ii) CSR
Reporting Solutions
(iii)
Workplace diversity management
(iv) Cloud
computing
(v) Impact
investing
(vi) Reason
for marketing
(vii)
Strategic Philanthropy
(viii)
Disaster response
(ix)
Peer-to-peer fundraising
(x) Non-profit
Board Service
The new
Companies Act, amended in December 2012, mandates that corporates spend 2% of
their average net profits.
In India, CSR
has been a topic of increasing importance in recent years, as the country's
economy has grown and companies have become more aware of their impact on
society. In terms of positive impacts, CSR can lead to better social and
environmental outcomes for the communities in which companies operate.
2. What are the various models of social responsibility
operating in India? Discuss any two. 5+15
Ans:- There are four models of social responsibility in
India:-
(i) Ethical
(Gandhian) Model: The Gandhian model of development is a partnership model
that believes in inclusion and development with dignity. The Gandhian approach
had three pillars: economic development, redistributive justice, moral
upliftment.
(ii)
Statistic (Nehruvian) Model: Even after reforms and economic
liberalisation, the Nehruvian model of development is still relevant.
(iii) Liberal
(Friedman) Model: The liberal model of social responsibility presented by
Milton Friedman states that corporate responsibility should focus primarily on
owner objectives and stakeholder feedback.
(iv)
Stakeholder (Freeman) Model: The Freeman model, or stakeholder model, is a
map that shows an organization at the center of the wheel and stakeholders at
the ends of the spokes. The model states that a company's stakeholders are
groups that are essential to the organization's survival.
India was the
first country to make corporate social responsibility (CSR) mandatory. CSR is a
business strategy that considers a company's impact on society, employees, and
other stakeholders. CSR may include:-
(i) Investing
profits in areas like education, poverty, gender equality and hunger
(ii) To reduce
losses
(iii) Doing fair
business
(iv) To be
responsible in the global supply chain
(v) Donating
money or goods and services to the society
(1) Ethical
(Gandhian) Model:-
Gandhian
philosophy aims to transform the individual and society together according to
principles inspired by various sources such as Bhagavad Gita, Jainism,
Buddhism, Bible, Thoreau, Gopal Krishna Gokhale, Tolstoy, John Ruskin.
Gandhian thought
cannot be separated from morality at all. Their ideas are usually expressed in
moral categories or terminology. Ethical principles provide the basis for
Gandhian thought in any field.
Major
principles of Gandhian ethics:-
(i)
Satyagraha: It is the continuous attainment of truth. It mainly includes
self-sacrifice, peace and non-violence. Only a person with strong will can do
Satyagraha.
(ii)
Trusteeship: Rich people should act as trustees of trusts looking after the
welfare of the people.
(iii) Means
and ends: Gandhiji always laid emphasis on purity of means. Unfair means
cannot be adopted to achieve the right goal. Just like a wrong path cannot take
you to the right destination.
(iv)
Concept of seven sins: Wealth without work, Pleasure without conscience,
Knowledge without character, Commerce without morality, Science without
humanity, Religion without sacrifice, Politics without principle are the seven
sins in a society which need to be rectified. is required. should go.
(v)
Sarvodaya: It means universal upliftment of all. Many evils of the society
can be removed through inclusivity.
(vi)
Dignity of labour: Gandhiji tried to establish equality among all by making
bread and labor mandatory for all.
Role of
Gandhian ethics in conflict resolution:-
(i) Gandhian
technique of conflict resolution is through Satyagraha which is explained as
passive resistance, non-violent resistance etc. According to Gandhi, truth lies
in holding on to the truth.
(ii) A
Satyagrahi enjoys a certain degree of freedom which is not possible for others,
because he becomes a truly fearless person. Once fear is removed from his mind,
he will never agree to become someone else's slave. After attaining this state
of mind, he will never succumb to any arbitrary action.
(iii)
Satyagraha is more than a method of conflict resolution which can be easily
analyzed scientifically. It is actually an ethical system that places heavy
emphasis on the quality of relationships between individuals.
(iv) According
to Gandhian ethics, emphasis should be laid on a feeling of mutual satisfaction
with the outcome of conflict resolution.
(v)
Non-violent action is the most important method in the process of conflict
resolution. Nonviolent action techniques protest, resist, and intervene without
physical violence.
Conclusion:
Conflict in today's world is complex and involves the use of physical and
psychological violent tools. The Gandhian approach addresses conflict at the
individual level. Gandhi's approach is still highly important in modern complex
conflict resolution, and there is a need to revive and revitalize this concept
at the level of conflict resolution institutions.
(2) Liberal (Friedman) Model:-
Milton Friedman's
liberal model of capitalism believes that the government should only be
involved in matters that are absolutely necessary for the survival of its
people and the country. Friedman believed that free-market (laissez-faire)
capitalism was the best and only way to maximize human freedom.
Friedman
concluded Capitalism and Freedom with his "classical liberal" stance
that government should stay out of matters that are not needed and should only
get involved when absolutely necessary for the survival of its people and
country.
Friedman's
other ideas include:
(i) Friedman
Theory: Also called the shareholder theory, this standard theory of
business ethics holds that the social responsibility of business is to increase
its profits.
(ii) Monetary
Theory: This theory claims that money supply is the primary factor in
determining inflation/deflation in an economy.
(iii)
Advocated minimal government intervention: Friedman argued that free trade,
low taxes on income and capital and reduction in the burden of regulation would
increase economic growth and improve social welfare.
Friedman's ideas
now form the basis of mainstream economic policy around the world.
3. Discuss the different areas of social empowerment of
women. Give an example of how CSR has contributed in empowerment of women in
any one of these areas. 15+5
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