CORPORATE SOCIAL RESPONSIBILITY AND LABOUR WELFARE

Abstract

In many business studies it has been found that CSR is mainly a comprehensive business strategy, arising mainly from performance considerations and stakeholder pressure. Though, this phenomenon is not new at all to argue that firms should behave ethically or on a responsible manner. The companies have long been subject to regulation by welfare states regarding many aspects of social responsibility. In this context, the classical regime of labour law is probably the most important, since it regulates and enforces the main social responsibilities of enterprises (employers) towards employees (in terms of CSR and business ethics, employees are core and primary “stakeholders”). However, globalization and the constantly rising (multinational) corporate power are creating challenges to existing rules and regulations for compliance of carrying out new, non-governmental and self-regulating forms of CSR regulation. Labour welfare occupies a place of significance in the industrial development and economy. It is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way which even a good wage cannot. “People” constitute the company’s stakeholders: its employees, investors, customers, business partners, suppliers and vendors, the government, and the community. Gradually more and more stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. Council for Sustainable Development defined CSR as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” Each employer depending on his priorities gives varying degrees of importance to labour welfare. Business organizations have to work under different environments and had to adopt themselves to it.