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Today in the 21 century corporate social responsibility is full of controversy topic in the business where CSR is in one hand advantage and other hand challenge for the companies because Every well known organization actively working with CSR to last few decades. CSR concept promotes an image of corporate accountability to a several stakeholders beyond any shareholders and investors. Every corporation are tried to do more focus on the three bottom line people, planet, and profit. Today it's impossible to decide, Are the companies are engaged in making their profit only or they commit with social responsibility with as well.
According to the world business council:
"CORPORATE SOCIAL RESPONSIBILITY IS THE CONTINUING COMMITMENT BY BUSINESS TO BEHAVE ETHICALLY AND CONTRIBUTE TO ECONOMIC DEVELOPMENT WHILE IMPROVING THE QUALITY OF LIFE OF THE WORKPLACE AND THEIR FAMILIES AS WELL AS OF THE LOCAL COMMUNITY AND SOCIETY AT LARGE" (World Business Council for Sustainable Development January 2000)
Due to the used a same strategies done by all organization, Corporations have the major issues that how they can managed their position due to the changes in competitors awareness, where the issue rising for environmental awareness and other ethical problems, sometime the corporation building those job under the powerful situation where they are not ethically right, but that time they must behave like, they work accordance to the society to toward the businesses, if they want to stay with good position within the marketplace. This is very important way for avoid social harmful things which might be carried by any organization. Therefore all the organization are committed with CSR However the people living of standard are changed, there technology and corporation nature has also changes so the all companies are try to improved their neighbourhood community or society at large to running the social programmes whether it's about education or health.
Corporate Social performance
Over the few years today every corporation has used CSR to making good brand reputation within their sector. The lots of the corporation, for making a profit, they changes their way in social terms. The social performance plays a most important key role in the organization and also realize that how they can avoid bad effect to their activities, in case of environment pollution. They cannot be no longer neglect their bad impacts of pollution whether its oil industry or steal industry etc, Improved the quality of people, community, where source scarce resources are limited like water and energy, improvement in living standard. Today businesses have a lot more responsibilities beyond the making profit. Many of the business accept this true or many not. Corporation theoretical to be rewarded for the extra and more customer satisfaction or every so often they refuse for carelessness. For instance:
Tata has introduced in 2005 little pickup, the vehicle is made by discussing with farmers, small business owner and shopkeepers and used the feedback for build the ACE pickup (it's like a mini truck). Where the India population is 1.1 billion Tata has made so many vehicles which affordable for the Indian middle class family for example Tata introduced a one Lakh car which called Nano its cost only $ 2500 and these also beat the for model T which cost under the $20,000 dollar and Volkswagen cost over $ 11000 when they were introduced.
- American: A Magazine of Ideas, Jan/Feb2008
But "SOME OF THE CRITICS ARE DISAGREE WITH THIS CAR THAT CAR IS INCREASING AIR POLLUTION AND IN THE GERMAN WEEKLY DER SPIEGEL DESCRIBE A NANO AS "ECO DISASTER" AND SOME OF THE WESTERN CRITICS OF THE LAUNCH HAVE BEEN ACCUSED OF HYPOCRISY BY OTHER OBSERVERS WHO POINT OUT THAT IT IS PEOPLE IN THE DEVELOPED COUNTRIES WHO HAVE BEEN RESPONSIBLE FOR MOST CARBON EMISSIONS AND THEREFORE ARE LARGELY RESPONSIBLE FOR THE 'CLIMATE CRISIS'."
There is nothing to unacceptable that many of the organization doing work against the environment and the community but they commit with social work because they know whenever some critics are argue on their trademark they cannot ignore this bad impact so to ignore these bad impacts they doing social activities because they know without doing social activities they cannot be a ethical. In the context of Nano car I should agree with that In this inflation world Nano be seen as beneficial for the common people at the same time in other hand has proven to be harmful to the environment but if the company have a beneficial footprint of their brand, they can easily to create a value for them. Many of the cases are depend on the situation sometimes they give a beneficial for community. However Tata Motors has also commit with the social work that's why they recently plant more than 80,000 trees in their neighbour area and more than 2.4 million is also in Jamshedpur region'.
In this same context Kemm, 1985 said:
"MOST WOULD TAKE THE VIEW THAT A VERY SMALL HARM TO A VERY FEW INDIVIDUAL COULD BE OUTWEIGHED BY A SUFFICIENTLY LARGE BENEFIT TO A SUFFICIENTLY LARGE NUMBER OF INDIVIDUALS".
The most difficulties accept is that for the companies how they contribute positive impact in terms of social, environment and economic and here is often difficulties for the companies how they could measurement of himself that they are ethically or not. To running this CSR programmes it's likely to assumes that there is chance to changes whether in the terms of employee rights or whether stakeholder or environment.
Today most of the people want an ethical product and they put a pressure on the businesses to react as they are concerned with ethically and socially. If the company's ethical performance is transparent, they can improve their work performance through companies benchmarking by any institutes. However transparency is prove to be very beneficial for the benchmarking. Benchmarking is used for compare effectiveness of ethical awareness to other organization. Benchmarking involves choosing best one to their industry or wherever the same process are adopted by any companies and to result of the benchmarking organizations get a right indication to follow the success of the industry. This also gives an opportunity to organizations by giving various indicators for developed their plans and help to perform well to adopt best practice. In the context of benchmarking, Professor B.Anderson defined in philosophically way He said:
"BENCHMARKING IS PRACTICE OF BEING HUMBLE ENOUGH TO ADMIT THAT SOMEONE ELSE IS BETTER AT SOMETHING AND BEING WISE ENOUGH TO LEARN HOW TO MATCH THEM AND EVEN SURPASS THEM AT IT."(Industrial benchmarking for competitive advantage, Andersen.B (1999).
Tata company all corporate social responsibility are take by the CSR team on the all manufacturing units and this structured are provided experience sharing across location and helps to monitor all the CSR activities, provide rating of the activities, and periodic reporting on the Tata Motors CSR. Due to the increasing awareness Tata were awarded by 'CII-ITC Sustainability Award 2006' for considerable success on top of the Journey in the direction of Sustainable Development and these award based on the corporate governance practices and economic, environmental and social performance assessment- in the guidance of GRI triple bottom line concept.
Corporate accountability generally defined as controlling the power of bad affects which is origin during the company operations but to apply this concept, the concept needs key changes in the legal framework which includes social duties and legal duties or environments duties and give a compensation to employee or their communities where they are fail. Now in 21st century we can see that the most of the companies are try to fulfill these concept in such areas human rights and social and environmental duties.
But In Friedman's view corporation should not undertake social policies and programmes because this is task of government: and since corporate mangers are acting on behalf of shareholders rather than being elected by the general public, their accountability is primarily to shareholders not to the publics. It's very important to know that what we mean by accountability:
"CORPORATE ACCOUNTABILITY REFERS TO WHETHER A CORPORATION IS ANSWERABLE IN SOME WAY FOR THE CONSEQUENCES OF ITS ACTIONS."
There is several ways to control companies their code of conduct to protecting human rights and can monitoring their activities. Tata also set up their code of which normally same as general company does but the all conduct working properly or not how they can measure? That's a logical issue for the company because according to the Indian population literate rate is highly and there are several companies where still child labour is working but companies protect for its credibility they give a lack of transparency. The Indian government are making a several restriction law for child labour but some supplier and manufacture save their cost of product they higher a cheap labour. Due to this lack of transparency we cannot argument on any companies.