slat Resporisibllites and Ethics CORPORATE SOCIAL RESPONSIBILITY PROGRAM , |, Government Programmes firms for ions. But need to take pot Government (Foreign and domestic) are the most significant forces pressuring social actions. Most goverment pressures concem compliance with existing regulat governments are also major sources of potential rules, a fact which businesses of. Governments ask business to volunteer to help them solve their problems. Governments mandating social actions are not new. In the 1300s for example, Londons who violated the city’s smoke pollution ordinances were beheaded. In the US, las that regulated the purity or quality of certain goods date from colonial times and state and federal efforts 10 control water pollution began in the late 1800s. Foreign governments exert pressures on intemational businesses to abide by codes of conduct that they and international organizations have drafted. These codes expect business to respect human rights and social justice, pay fair wages, protect the environment, cnsute safety and health of workers, improve worker living conditions and behave ethically 2. Community Interest and Demands Firms undertake many programmes that benefit society in general, not necessary favoring stakeholders. Programmes can range widely, from helping rebuild disadvantaged sections to providing cxccutive talents to run government undertakings. MNCs from the US undertake a wide range of programmmes in foreign countries, for example, creating scholarships for poor but descrving students from Kotea, Malaysia and Mexico, to pursuc hi 3. Environmental Concerns Programmes of firms mainly result from standards estabhahed by The Government of India, for example, enacted the Environment Environmental government ugencies, Protection Act 1986. ‘The main objective of the Act is to protect and improve the environment and the prevention of hazards to human beings, other living creatures, plant and property | Pollution Control Boards set up under the provisions of the Act, have laid down norms that firms | are expected to comply with. 4, Shareholders/Investors Pressures Large shareholders such as pension funds have long-range interest in the financial success of their investments. Some of them, obviously, exert pressure on firms to respond appropriately to community social interests. For example, shareholders of Pepsi Co of the human rights violation of the military regime in that country. Pepsi Co. did oblige the shareholders.would gain competitive edge. Realizing ty. U.S. corporate spending on social 0. to an estimated $828 million in 2999, d to $589 million in 2001. interdependent factors: Factors “conditions, gy and rivalry. 5. Competitive advantage believe that by undertaking social sums on social $125 million in 1 amounte actions they 1 responsibilit 991 Firms this, corporations spend huge responsibility shot up from ] ‘Additionally, spending on arts sponsorship ises four itive advantage compri ee ea eae a industries and context for strate; demand conditions, related and support Factor Conditions: These include the availability of trained workers, high quality scientific and technological institutions, adequate physical infrastructure, transparent and efficient administrative processes and natural resources. All these are the areas that social responsibility actions can influence. 2. Demand Conditions: Demand conditions in a country or a region include the size of the local market, the appropriateness of product standards and the sophistication of local markets. Sophisticated local customers enhance the regions competitiveness by providing firms with insight into emerging customer needs and applying pressure for innovation. 3. Related and Supporting Industries: Productivity of a firm can be greatly enhanced by having high quality industries and services close by. While outsourcing from distant suppliers is possible, it is not as efficient as using capable local suppliers of services, components and machinery. Proximity enhances responsiveness, exchange of information and innovation, in addition to lowering cost on transportation and inventory. FACTORS RESPONSIBLE FOR THE REALIZATION OF SOCIAL RESPONSI Ts Concern to society: Formerly, a business is considered that the maximization of profit for the business firm for its survival and growth but business ears profit with help of society and if the business has no consideration or concen for society which helps it to eam profit, the very existence of the business will be threatened.ing the ‘ims at protecting a es of the 2 Government Intervéntion: Parliament, which represents people, ot interests of society by various legislative enactments, which regulate the activit business enterprise and prevent them from indulging in antisocial business practices : 3. Co-operative Societies: Cooperative scieties have come into existence forthe PUrPOS? protecting the interests of consumers from the exploitation of unscrupulous businessmen. This factor also has influenced businessman to think in terms of their esponsibility 10 the society, 4 Consumerism: A social movement called consumerism has come into existence with the aim of protecting the interests of consumers against producers and traders. This factor also has made businessman to think in terms of their responsibility to the society. 5. Realization on the part of the Businessman: Realization on the part of the businessman that they can not survive for long if they do not supply quality goods at reasonable rate 1s also another factor which has made business alive to their social obligations. 6. Take over by the government: the government has armed itself with powers to take over any business enterprise which deliberately neglects its responsibility to the society. This fear of take over by government has also made businessman think in terms of their social obligations. 1. Professional Management: These professional managers exercise independent control over the business enterprises and adopt a new and enlightened management approach for managing their business concem. & Well organized labor unions: The development of well-organized labor unions had increased the bargaining position of employees; because of this there is less scope for employees to exploit the employees. Hence development of trade unions is one of the reasons for increased social consciousness among the businessmen. ARGUMENTS FOR SOCIAL RESPONSIBILITY There are many arguments in support of socially responsive actions. More important of them are explained below: 1. Changed Public Expectations of Business: One of the most potent arguments for social responsibility is that public expectations from business have changed. It is reasoned that the institution of business exists only because it satisfies the valuable needs of society. Society gave business its charter to exist and the charter can be amended or revoked at any time that the business fails to live up to society's expectations. Therefore, if business wishes to remain viable in the Jong run, it must respond to society’s needs and give the society what it wants. 2, Better Environment for Business: Another argument favouring social responsibility is that it creates a better environment for business, This concept rationalizes that a better society produces environmental conditions more favourable for business operations, The firm which is most responsive to the improvement of community quality of life will as a result has a better | | |4 its business. Labour recruiting will be easier and labour wit Tumover and absenteeism will be reduced. argument in favour of social responsibility is that it improves publie hanced public image so that it may gain more firm seeks an em! more responsive money markets and other benefits. A firm should discharge its obligation to society. at is a massive institution with long arms, I -vernment regulation is costly and denies the ernment stretches its long arn community in which to conduc be.of a higher quality. Public image: Another image. Each individual customers, better employees, which seeks better public image Avoidance of government regulation: Governme! seeks to regulate business in the public interest. Go much needed freedom in decision: making. Before the go business should discharge its obligation t0 society. Balance of responsibility with power: Another argument for social responsibility is that business’s responsibility should be more related to its power. It is reasoned that businessmen have vast amounts of social power. omy, minorities and other social They do affect the econ problems. In turn, an equal amount of social responsibility is required to match their social power. If each institution is to perform its social | role in an orderly relationship with other institutions, then responsibility must be accepted whenever there is power. Any other arrangement invites irresponsible behaviour. ment for business social responsibility is a sort of back- failed in handling social problems, so why the failures of other institutions and in Let business try: One interesting argu handed one. It is that many other institutions have not tun to business. Many people are frustrated with their frustration, they are turning to business. Business has the resources: Another argument for social responsibility is that business has a vast pool of resources in terms of men, talents, functional expertise and money. Probably, business is without peers in respect of the resources it possesses with these resources at its command, business is in a better position to work for social goals. Prevention is better than cure: The last point is that prevention is better than cure. If business delays dealing with social, problems now, it may find the constantly occupied with putting out social fires so that is has no time to accomplish its goal of producing goods and services. ay these social problems must be dealt with at some time, it is actually more economical to jeal with them before they develop into seri i k ious social breakd e iciaberent' tine jowns that consume most of tht ie poet lity: Wt is said that the acceptance of corporate social responsibility is the sg i Position. This notion suggests that our modem that our modern industrial ciety faces many serious social problems brought on, to a | large corporations. The corporations therefore have brought on oer ee aie corporations. The corporations therefore have a moral ee to a large extent, oy ameliorate these problems. A corollary to this motion is that hoses ee a He “many of the resources in our ources t0 the overall betterment of society. Cconomy, they should devote some of these Tes is came Teach Comporations are institutional members. of society. If individual they found it- Society have an obligation to improve society-to leave the world beter than y found ‘corporations also have this responsibility. After all, corporations unlike citizens are created by society. C i panes ji poets iti iti civic duties an responsibilities, rporations are citizens and citizens ‘have I. Duty of gratitude: Business units benefit from society. On the basis of the commonly accepted principle that one owes debts of gratitude towards those who benefit us, the corporation has certain debts that it owes to the society. 12. Globalization: The recent globalization of large corporations has led to firms increasingly operating in countries with very different and generally much lower standard of living than found in their respective home countries. More extensive media reach coupled with advances in information technology (e.g. NGO use of websites) remote parts of the globe, as both Shell (oil spills in Nigeria exposed on television documentaries) and Nike (exposure of sweetshop labour coriditions in its subcontractor operation in developing countries) have learnt to their cost. Such revelations compel global firms undertake social actions. ARGUMENTS AGAINST SOCIAL RESPONSIBILITY Arguments against social responsive actions are equally strong. Some arguments are as follows: 1. Profit maximization: The first and the most forceful argument disfavoring social responsibility is that business has profit maximization as its main objective. Infact, the business is most socially responsible when it attends to its interests and leaves other activities to other institutions. Since business operates in a world of poverty and hunger, the economic efficiency of business is a matter of top priority and should be the sole mission of business. Business’s function is economic, not social and economic values should be the only criteria used to measure success. 2. . Society has to pay the cost: Another argument is that the costs of social responsibility will be passed on to the society and it is the society which must bear them. 3. Lack of social skills: Business managers are best at managing matters relating to business. They are not equally good at solving social problems. Their outlook is primarily economic and that their skills are the same. They really do not feel at home in social matters. If society is going to depend on someone to work with social problems, why choose a group which is so poorly qualified? Does society really want economic and technical people meddling in social affairs? Will they broader their outlook and will their skills transfer? Can business really do the job? Js it better equipped than the government and other institutions?The following are offences and crimes under chapter XI of the Act Section 65: Tampering with computer source documents- ‘Whoever knowingly or intentionally conceals, destroys or alters or intentionally or knowingly causes another to conceal, destroy, or alter any computer source code used for a computer, computer Programme, computer system or computer net-work when the computer source code is required to be kept or maintained by law for the time being in force, shall be. punishable with “imprisonment up (0 three years, or with fine which may extend up to two lakh rupees, or with both. Section 66: Hacking with computer system- (1) Whoever with the intent to cause or knowing that he is likely to cause wrongful loss or damage to the public or any person destroys or deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means, commits hacking, (2) Whoever commits hacking shall be punished with imprisonment up to three years, or with fine which may extend up to two lakh rupees or with both, Section 67: Publishing of information which is obscene in electronic form- Whoever publishes or transmis or causes to be published in the electronic form, any material which is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely, having regard to all relevant circumstances, to read, see or hear the matter contained or embodied in it, shall be punished on first conviction with imprisonment of either description for a term which may extend to five years and with fine which may extend to one lakh rupees and in the event of a second or subsequent conviction with imprisonment of either description for a term which may extend to ten years and also with fine which may extend to two lakh rupees. Section 68: Power of controller to give directions- (1)_ The controller may, by order, direct a Certifying Authority or any employee of such Author- ity to take such measures or cease carrying on such activities as specified in the order if those are necessary to ensure compliance with the provisions of this Act, rules or any regulations made there under. (2) Any pérson who fails to comply with any order under sub-section (1) shall be guilty of an offence and shall be liable on conviction to imprisonment for a term not exceeding three years or to a fine not exceeding two lakh rupees or to both..d facilities tdfacerypt information. Section 69: Directions of Controller iat ic to do in the interest of (1) Ifthe Controller is satisfied that itis = ia oe eal sain ih jth sovereignty or integrity of India, the secur pai der, direst any a recorded in writhing, by order, gency States or public order or for reasons to be aa ugh any computer re- to subscriber to extent tion transmitted thro of the Government to intercept any informal nae hall, whe led il i the computer resources 8 , when called upon (2) The subscriber or any person in change of the 7 Se peli ot by any agency which has been directed under sub-section (), technical assistance to decrypt the information. ferred to in sub-section (2) n who fails to assist the agency ref (3) The subscriber or any perso he are eed wre Yn shall be punished with an imprisonment for 2 te * Section 70: Protected system- cation in the Official Gazette, declare that any (1) The appropriate Government may, by notifi computer, computer system or computer network to be a protected system. er in writing, authorise the persons who are fied under sub section (1). to secure access to a protected system in n shall be punished with imprisonment of \d shall also be liable to fine. (2) The appropriate Government may, by ord authorised to access protected systems notif (3) Any person who secures access or attempts contravention of the provisions of this sectio either description fora term which may extend to ten years an Section 71: Penalty for misrepresentation- Whoever makes any misrepresentation to, or suppresses any material fact from, the Controller or the Certifying: Authority for obtaining any licence or Digital Signature Certificate, as the case may be, shal be punished with fine which may extend to one lakh rupees, or wise both. Section 72: Penalty for breach of confidentiality and privacy- Save as otherwise provided in this Act or any other law for the time being in force, any person who, in pursuance of any of the powers conferred under this Act, rules or regulations made there under, hhas secured access to any electronic record book, register, correspondence, information, doc iment or other material without the consent of the person concemed discloses such electronic record book, register, correspondence, information, document or other material to any other person shall be punished with imprisonment for aterm which may extend to two years or with fine which thay’ extend 16 Oni lakh rupees, or with both. Tol Ios 73: Penalty for publishing Digital Signature Certificate false in certain particulars- shall publish a Digital si : 1 No person igit Signature Certif : : : cae : ae with the knowledge that icate or otherwise make it available to any @ tte Certifying Authority listed in the Certificate has not issued it; or ® the subscriber listed in the certificate has not accepted it; or © the certificate has been revoked or suspended, unless such publication is for the purpose of verifying a digital signature created prior to such .psion OF revocation. (2) Amy person who contravener the provisions of sub-section (1)shall be punished with im- prisonment for a term which may extend to two years, or with fine which may extend to one lakh rupees or with both. secion 74 Publication for fraudulent purpose Whoever knowingly creates publishes or otherwise makes available a Digital Signature Cerificate for any fraudulent or unlawful purpose shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to one lakh rupees or with both. Section 75: Act to apply for offence or contravention committed outside India- (1) Subject to the provisions of sub-section (2) the provisions of this Act shall apply also to any offence or contravention committed out- side India by any person irrespective of his nationality. (3) For the purposes of sib-section (1),this Act shall apply to an offence or contravention committed outside India by any person if the act or conduct constituting the offence or contravention involves a computer, computer system or computer network located in In- dia. Section 76: Confiscation- Any computer,’ computer system, floppier, compact disks, tape drives or any other tecessories related thereto, in respect of which any provision of this Act, rules, orders of ‘tegulations made there under has been or is being contravened, shall be liable to confiscation: Provided that where it is established to the satisfaction of the Court adjudicating the Confiscation that the person in whose possession, power or control of any such computer, Computer system, floppies, compact disks, tape driver or any other accessories relation thereto is found is not responsible for the contravention of the provision of this Act, rules, orders orwee of making an order a confiscation o¢ regulations made there under, the Co compact diskis 22° drives of any, other accessories rela computer, computer system, ae vad by this ‘Act against the pers fenirveing of thereto, make ther order aul der as it ink fit, provisions Uae rules, orders oF regulations pate te i to Secti A i confiscation not . a jon 77: Penalties or under this Act shall prevent the imposition of an , ion made No penalty imposed or confiscation ve fable under any other 1aw for the other punishment to which the person affected thereby 8 time being in force. eg the interfere with other punishments. ffences~ the Code of ‘Superintendent Section 78: Power to investigate 0! Notwithstanding anything contained in police officer not below the rank of Deputy under this Act. Criminal Procedure, 1973 (2 of 1974) , of police shall investigate any offencs i in - Section 79: Network service providers not to be liable in ain cases. For the removal of doubts, if is hereby declared that no person providing any service as network service provider shall be liable under this Act, rules oF regulations made there under for any im if he proves that the offence or contravention third party information or data made available by bit : a was committed without his knowledge or that he had exercised all due diligence to’ prevent the commission of such offence or contravention. , For the purposes of this section,- (a) “network service provider” means an intermediary; n” means any information. (b) “third party informatio: Sections of IT-Act.((Amendment) Act, 2018.) A major amendment was made in 2008. It introduced Section 66A which penalized sending “offensive messages". It also introduced Section 69, which gave authorities the power, of “interception of monitoring or decryption of any information through any computer resource’. ‘Additionally, it introduced provisions addressing ~ pornography, child porn, cyber terrorism and voyeurism. The amendment was passed on 22 December 2008 without any debate in Lok Sabha ‘The next day it, was passed by the Rajya Sabha. It was signed into law by President Pratibha Pati, on 5 February 2009, Amendments Brought in the LT Act | |