BUSINESS PARTICIPATION IN

SOCIAL AND CULTURAL AFFAIRS

By
Avinash Sharma
MBA(Roll No.-12)
 WHAT ?
What is Culture?
Culture is a very critical component of business
environment and has varying definitions. According to a
popular one by E.B.Taylor, “Culture of a civilization is the
complex whole which includes knowledge, belief, art, morals,
law, custom and other capabilities and habits acquired by man
as a member of society”.
What is a Society?
According to Davis and Blomstorm, “our modern
view of society is an ecological one ”. Ecology is concerned
with the mutual relations of human populations or systems with
their environment.
 WHY ?
Why Social Affairs?
A business being a part of the ecological system
or the environment cannot forego it responsibilities towards the
society. Today, the whole society is a business’s environment.
Why Cultural Affairs?
A company setting out to do business in an
unfamiliar cultural environment may encounter several
problems if proper homework is not done. According to many
multinational businessmen cultural differences are the most
significant and troublesome variable encountered by any
multinational company.
 WHY SHOULDN’T ?
 Business is an independent entity and it should stick to its
business or economic duties.
 Social activities should be carried out by government and
social organizations as it’s their duty.
 Cost of social involvement of a business is borne by the end
customers.
 Social involvement of business could lead to the dominance or
influence of business over the society.
 HOW ?
The extent of business participation in social and
cultural affair vary widely and can change over time. So, it has
been summed up into different social responsibility models
which describe the evolution and the extent of social
orientation of a company or a business.
 Ackerman’s Model
 Halal’s Model
 Carroll’s Model
ACKERMAN’S MODEL
In the year 1976, Ackerman and Bauer proposed
a three-phased model which guided the implementation of
CSR(corporate social responsibility) activities.

Phase I : Top managers recognizing a social problem.

Phase II : An intensive study of the problem and hiring
experts to find out its solution.
Phase III : Implementation of the proposed solutions.
HALAL’S MODEL
The Halal’s Model was proposed by William E.
Halal as the “return-on-resources model of corporate
performance”. He mentioned that a firm can only attempt to
unite the diverse interests of various social groups to a certain
economic level. Beyond a certain level of economic activity the
social issues at stake may become conflicting.
CARROLL” S MODEL
CORPORATE SOCIAL RESPONSIBILITY

The term "corporate social

responsibility" came into
common use in the late
1960s and early 1970s
after many multinational
corporations formed the
term stakeholder, meaning
those on whom an
organization's activities
have an impact. It was
used to describe
corporate owners beyond
shareholders.
THE INDIAN SCENARIO
COMPANIES ACT 2013
In the year 2013, India became the first country to
mandate corporate social responsibilities. India introduced the
Companies Act 2013 replacing the 56 year old Companies
Act 1956. It has 29 chapters containing 470 sections and
having 7 schedules. Basically it ensures that companies having
net worth of Rs. 500 Cr. , or turnover of Rs.1000 Cr. or more,
or having a net profit of at least Rs. 5 Cr. must indulge in CSR.
TOP CSR PLAYERS IN INDIA
 Reliance Industries Limited
 ONGC
 Tata Consultancy Services(TCS)
 HDFC Bank
 Infosys
 NTPC
 ITC
 Tata Steel
 Wipro
CULTURAL AFFAIRS

 Preservation of artistic works like wood carvings,

paintings.
 Preservation and maintenance of historic and cultural
sites.
 Conduction of traditional and regional festivals.
 Protection of indigenous tribal faiths, customs, etc.
 Promotion of local art culture and traditional
artworks.
THANK YOU !