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4. Critical Thinking Exercise: Regulating CSR Spending Section 135 of the India Companies Act of 2013...

4. Critical Thinking Exercise: Regulating CSR Spending

Section 135 of the India Companies Act of 2013 requires companies with net worth, revenue, or net profit above certain established thresholds to spend at least 2 percent of their average net profit of the preceding three years on CSR activities. The act has had a major impact in increasing spending on CSR activities in India. Four of the country's top IT service firms—Tata Consultancy Services Ltd., Wipro Ltd, Infosys Ltd., and Tech Mahindra Ltd.—spent about $96 million on CSR activities within India during the first year this rule was in effect. That is 4.7 times the amount they spent on CSR initiatives the previous year, when the rule was not yet in effect. Collectively, these four firms generate over $35 billion in annual revenue. The companies' CSR activities include efforts to eradicate hunger, poverty, and disease; promote education, gender equality, and women's empowerment; reduce child mortality; improve healthcare and sanitation; and provide safe drinking water. Does mandated CSR spending by all organizations within a particular country or market reduce the benefits an individual organization can expect to gain from its CSR programs? Do you think the United States should pass a law similar to Section 135 of the India Companies Act? Why or why not? If so, should the amount required for CSR spending be higher than two percent of the average net profit?

5. Critical Thinking Exercise: An Overwhelmed Employee

You are the customer support manager for a small software manufacturer. The newest addition to your 10-person team is Elliot, a recent college computer science graduate. She is a little overwhelmed by the volume of calls but is learning quickly and doing her best to keep up. Today, over lunch, one of the other members of your team informed you that she overheard a phone conversation in which it sounded like Elliot was talking with a headhunter and expressing unhappiness with her current situation. You're shocked and alarmed. You had no idea she was unhappy, and your team desperately needs her help to handle the onslaught of calls generated by the newest release of the software. If you're going to lose her, you'll need to find a replacement quickly. Should you confront Elliot and demand to know her intentions? Should you avoid any confrontation and simply begin seeking her replacement? Is some other action appropriate? Follow the five-step process for ethical decision making to decide what your next steps should be.

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Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them i tjink mandated CSR helps all the participants in the society . it helps the public in taking benefits of things which governmnet might not have done . it helps companies improving there relation to both tthe employees and the public . and it takes work from the shoulder of the government. because private players manage things more efficiently.. yes the US should also pass same law as it will benefit everyone . and the rate should be more or at least at par with what indian  government has decided .

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