Meaning
Social responsibility is the idea that businesses
should balance profit-making activities with activities that benefit society.
It involves developing businesses with a positive relationship to the society
in which they operate. The International Organization for
Standardization (ISO)
emphasizes that a business's relationship to its society and environment
is a critical factor in operating efficiently and effectively.
Social responsibility means that
individuals and companies have a duty to act in the best interests of their
environments and society as a whole. Social responsibility, as it applies to
business, is known as corporate social responsibility(CSR).
Many companies, such as those with "green" policies, have made social
responsibility an integral part of their business models.
Additionally, some investors use a company's social
responsibility, or lack thereof, as investment criteria. As such, a
dedication to social responsibility can actually turn into profits, as the idea
inspires investors to invest, and consumers to purchase goods and services from
the company. Put simply, social responsibility helps companies develop good
reputations.
In general, social responsibility is more effective when a company
takes it on voluntarily, as opposed to being required by the government to do
so through regulation. Social responsibility can boost company morale, and this
is especially true when a company can engage employees with its social
cause.
Social
Responsibility in Practice
Social responsibility takes on different meanings within industries
and companies. For example, Starbucks Corp. and Ben & Jerry's Homemade
Holdings Inc. have blended social responsibility into the core of their
operations. Both companies purchase Fair Trade Certified ingredients to
manufacture their products and actively support sustainable farming in the
regions where they source ingredients. Big-box retailer Target Corp., also well
known for its social responsibility programs, has donated money to communities
in which the stores operate, including education grants.
The key ways a company embraces social responsibility includes
philanthropy, promoting volunteering and environmental changes. Companies
managing their environmental impact might look to reduce their carbon
footprint and limit waste. There's also the social responsibility of
ethical practices for employees, which can mean offering a fair wage, which
arises when there are limited employee protection laws.
Social
Responsibility Concerns
Not everyone believes that businesses should have a social
conscience. Economist Milton Friedman stated
that "social responsibilities of business are notable for their analytical
looseness and lack of rigor." Friedman believed only individuals can have a
sense of social responsibility. Businesses, by their very nature, cannot. Some
experts believe that social responsibility defies the very point of being in
business: profit above all else.
Social responsibility is an ethical theory, in which individuals are
accountable for fulfilling their civic duty; the actions of an individual must
benefit the whole of society. In this way, there must be a balance between
economic growth and the welfare of society and the environment. If this
equilibrium is maintained, then social responsibility is accomplished.
The theory of social responsibility is built on a system of
ethics, in which decisions and actions must be ethically validated before
proceeding. If the action or decision causes harm to society or the environment
then it would be considered to be socially irresponsible.
Values in social responsibility
Moral values that are inherent in society create a distinction
between right and wrong. In this way, social fairness is believed (by most) to
be in the “right”, but more frequently than not this “fairness” is absent.
Every individual has a responsibility to act in manner that is beneficial to
society and not solely to the individual.
Social Responsibility can be “negative,” in that
it is a responsibility to refrain from acting (resistance stance) or it can be
“positive,” meaning there is a responsibility to act (proactive stance). Being
socially responsible not only requires participating in socially
responsible activities like recycling, volunteering and mentoring, but to
actually make it a lifestyle. Only through a commitment to embrace and embed
social responsibility into your personal value and belief system can you truly
become socially responsible in all you do.
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