What is social responsibility in a business?
An organization performs different activities to fulfill its profit-earning motive and satisfy the needs of society. While fulfilling the expectations of society, a business has some obligations towards society and has to respect its norms and values. It means as society is permitting an organization to run its business, set up factories, and perform other activities to earn a profit, it also wants the business to not enter into anything undesirable from their point of view or which is harmful to them. Some of the socially desirable practices which are expected from the companies are: supply of quality goods and services, providing goods at a fair price, creating healthy and better working conditions, preventing activities that can create pollution, or installing devices to control pollution, ensuring that the customers’ complaints are taken care of, etc. However, the socially undesirable practices which should be avoided by the companies are the production and sale of bad quality goods and services, polluting the environment, unfair trade practices, fraudulent activities, etc. Show
Meaning of Social ResponsibilityAn organization’s obligation to make decisions and perform them for the benefit of society and its values is known as social responsibility. It is assumed under social responsibilities that the businesses will respect the values and aspirations of society and try their best to fulfill these aspirations and accomplish
their business goals.
Need for Social ResponsibilityAlthough an organization exists with the aim of maximizing profits; however, it should not be its sole motive and should commit to society. An organization needs social responsibility because of the following reasons:
Types of Social Responsibilities1. Economic ResponsibilityAs we know, a business organization is an economic entity; therefore, economic responsibility is its primary social responsibility. In simple terms, economic responsibility means producing goods and services according to the needs and wants of the customers and selling them the same at a profit. It means that the organizations should understand whether the customers are demanding quality or price and then provide them with the same. Earning profit is a responsibility of the business as it ultimately increases the incentives of the employees. Therefore, the economic growth of an organization affects society as a whole. 2. Legal ResponsibilityIt is the duty and responsibility of an organization to legally abide by the rules, laws, and regulations while performing business activities. As the authorities enact these laws for the good of society, an organization following these rules is a socially responsible firm. Besides, an organization performing activities as per the laws gets no interference from the government. Legal responsibilities include paying taxes on time to the government, keeping its books of accounts and financial statements clean and accurate, etc. 3. Ethical ResponsibilityIt is the behaviour expected from the business organizations’ by society; however, it is not codified in the law. Therefore, there is no legal obligation on the companies to perform ethically responsible activities. Ethical responsibility is beyond the laws and includes fair trade practices, respecting the religious sentiments of people, maintaining and protecting the environment, etc. It also means that a business should not get involved in black marketing, adulteration, fraud, etc. 4. Discretionary ResponsibilityIt is a philanthropic responsibility and is completely voluntary. It includes charitable services, providing education facilities to poor people, helping the people affected by floods or other natural calamities, donating to healthcare facilities for those who cannot afford them, etc. The management of an organization is responsible for avoiding speculative activities and safeguarding its capital investment by undertaking healthy business ventures only that can provide them with good ROI(Returns on Investment). What is the meaning social responsibility of business?Social responsibility in business, also known as corporate social responsibility (CSR), pertains to people and organizations behaving and conducting business ethically and with sensitivity towards social, cultural, economic, and environmental issues.
What are social responsibilities examples?Working for the community, such as volunteering, giving blood donations, and working at a food bank or animal shelter. Supporting issues that affect society, such as advocating political or social issues that can help others—for example, advocating for child labor laws, purchasing fair trade products, recycling.
What are the 4 types of social responsibility?Corporate social responsibility is traditionally broken into four categories: environmental, philanthropic, ethical, and economic responsibility.
|