Page 72 - MARKETING & PUBLIC RELATIONS EBOOK IC88

8. The question of rights is still more difficult to analyse. The organisation's demands on its work
force may conflict with some of the workers' fundamental rights as citizens and also with the
customers' rights. Cigarettes are harmful and therefore smoking cigarettes can be looked upon
as `wrong' as selling drugs. To refuse to sell can be seen as violating the customer's right to
choose his way of life. Does it become ethical to have a statutory warning while at the same
time advertising for increasing consumption? A decision to ban or even restrict the sale of
cigarettes will affect the livelihoods of lakhs of people dependent on the manufacture and sale
of cigarettes.

9. Several pressure groups attempt to criticise the ethics of organisations and prominent
individuals associated therewith. They usually assume high moral superiority (which their
actions may not justify). They usually only criticise, in terms of certain standards (or principles)
which they at that time articulate, but would not propose alternate, practical, feasible direction.
They usually have debating advantage over managements as they position themselves as
defenders of the weak, the exploited, the victimised. They accuse the managements of bias,
neglect and corruption. Pressure groups do not always represent social demands. At the same
time they can, if ignored, cause embarrassment to the organisation.

10. Some organisations are proactive. For example, employment of handicapped or weaker sections
may be adopted as a policy by an organisation on its own, not because of any compulsion by law
or otherwise. Such policies are not only avoiding harm but positively contributing to social good.
Simultaneously they are also relevant to the organisation's purpose of economic performance.
In 1992 when Bombay suffered through communal riots and the serial explosions, several
companies got together to fund a campaign called "Salam Bombay" complimenting and
reinforcing the ability of its citizens to restore normalcy.

11. The social responsibility of organisations is sometimes ambiguous. The concept can perhaps
even become dangerous. In the name of social responsibility, the organisation may launch
programmes which may not be beneficial to society. All organisations do not follow the
`righteous path'. Society may not be able to stop those who stray.

(b) Insurance and Social Impact

The business of insurance is one that has significant social impact. It mitigates losses to socially valuable
assets, both human and non-human. Apart from that the funds of insurance companies go towards
socially beneficial ventures like infrastructure, water supply, etc.

F. SUSTAINABILITY

1. The laws prescribe that companies must set aside at least 2% of net profits towards activities of
social responsibility (CSR). Many companies however, understand the role they have to play as
responsible citizens and commit substantial resources to such issues.

2. In recent times, partly because of the focus on climate change and the need to protect the
natural resources, companies have moved further and are taking responsibility for what they
call Sustainability'.

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