Social Responsibility

Prepared by: Makwana Purva E. Enroll. no.107360592012

What is Social Responsibilities???????

• Social responsibility of business refers to all such duties and obligations of business directed towards the welfare of society.

• an organization’s obligation to maximize its positive impact on stakeholders and to minimize its negative impact on it.

Dimensions of SR:

• Social responsibilities includes four dimension :

1. Legal,

2. Ethical,

3. Economic,

4. Philanthropic (discretionary) dimensions

Legal Dimension...• refers to obeying governmental

laws and regulations

civil law:

rights & duties of individuals and organizations

criminal law:

prohibits specific actions and imposes fines and/or imprisonment as punishment for breaking the law

Ethical Dimension...

• behaviors and activities that are expected or prohibited by organizational members, the community, and society (not codified into law)

• standards, norms, or expectations that reflect the concern of major stakeholders.

Economic Responsibilities...

• how resources for the production of goods and services are distributed within the social system

• consumers always favor socially responsible companies or are they most enamored with companies that maximize profits.

Philanthropic Dimension...

• business’s contributions to society

• strategic philanthropy

– Home Depot– Microsoft, Hewlett

Packard, IBM– Avon

Definitions:

• According to Koontz & O'Donnell, “ It is the personal obligation of every one as he acts for his own interests to assure that the

rights and legitimate interests of all others are not

impinged”

• According to K.R. Andrews, “ Conceptually SR may be taken to mean

intelligent and objective concern for the welfare of the society”

Contd..

• According to Howard R. Brown,

“ SR of B’ness refers to the obligation of B’ness to pursue those policies to make those decisions or to follow those lines of action which are desirable in terms of the objectives

and values of the society”

Forces for increasing concern about SR

• Consumerism : concern customers abt their rights. Businessman have

been forced to care for the interests of consumers.• Public opinion : public opinion and the threat of govt. control has made

businessman to be responsible.• Trade unionism : growing power of TU and labor laws have led b’ness to

be concerned with labour welfare.• Trusteeship : This principle suggests tht b’ness mgr should be

caretakers of their property holding it in trust for the society as a whole.