Integrity and Corporate social responsibility

4. (a) One of the tests of integrity is complete refusal to be compromised.
Explain with reference to a real life example.  (150 Words) 10 M
(b) Corporate social responsibility makes companies more profitable and sustainable. Analyse. (150 Words) 10 M

Ans. (a) 

• Integrity means unanimity among thoughts, voice and actions. Integrity allows the person to adopt unflinching attitude towards a certain value, act or process. It does not allow the person to take holidays from morality.
• This can be understood with an old example related to the Father of Indian freedom struggle MK Gandhi. At the time when Non-Cooperation Movement was on its peak and everyone was saying that India would achieve freedom in a few years, if the movement continued. At this time, the incident of Chauri Chaura happened in which violence was used as a weapon. Gandhiji was totally against the use of violence to achieve freedom and he withdrew the movement.
• He was criticised from every corner of India but he was not in favour of compromising at any cost. He faced that criticism but still remained firm on his resolve of non-violence.
• This integrity of Gandhiji is a great lesson for people of this world that how we should adhere to our values in difficult circumstances as well.

Ans. (b)

•  Profitability and sustainability are the two things which any company require to have to satisfy the demands of each and every stakeholder. In this respect, Corporate Social Responsibility (CSR) is a very good weapon which can enhance the profitability and sustainability for a very long term for a company.
• CSR is perceived from a very narrow prism of 2% of the spending of the last three years profit in certain society related work and some companies also take it as a burden on them.
• However, it should be realised that this type of spending is quite helpful in the long term, as it generates goodwill for the company, it builds confidence in the investors and also attracts more consumers and investors to join the company.
• CSR spending for example in the fields of environment, health, education, skill development, etc are quite helpful for the companies as in future, this will increase the demand of their products and make them sustainable.
• CSR should also be understood from the perspective of adopting fair corporate governance, which will improve the work culture as well as prevent the companies from undue corruption, nepotism, crony capitalism etc.
• The ultimate meaning of CSR is such that companies should realise their duties towards the society and if society prospers, companies automatically prosper.