Social obligation of business

Corporate Social Responsibility Corporate social responsibility or CSR has been defined by Lord Holme and Richard Watts in the World Business Council for Sustainable Development 's publication "Making Good Business Sense" as "…the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. Evidence suggests that CSR taken on voluntarily by companies will be much more effective than CSR mandated by governments. Every company has different CSR objectives though the main motive is the same.

Social obligation of business

Reddit Social responsibility is an ethical framework that obliges every member of the society to act and behave in a manner that benefits the entirety. Even business organisations have a social responsibility.

Social obligation of business

According to the socioeconomic model of corporate social responsibilitya business has a responsibility to promote and uphold the interest not only of its shareholders but also of its entire stakeholders—including customers, employees, suppliers, and the public.

The social responsibility to these stakeholders is actually an assortment of specific responsibilities that follow a successive fashion, thus highlighting their interdependence.

Below are the four social responsibilities of a business: Economic responsibility of a business The most basic responsibility of a business organisation is to maximise its profitability not only to attend to the interests of its shareholders but also to contribute to the progress of the economy.

A business is thereby an integral actor in economic development and nation building. The more traditional economic model of corporate social responsibility echoes this role. American economist Milton Friedman once mentioned that prime responsibility of a business is to maximise profits and to ensure that it is able to pay all taxes levied by the government.

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It is important to note that if a business is unable to produce profitable products and maintain sustainability, it is impossible to attend to all other succeeding social responsibilities.

In the United States, particularly beforebusinesses were free to act as they pleased without restrains or restrictions.

This resulted in deplorable practices that made labourers and consumers vulnerable to exploitation. Governments have now become regulators of businesses in order to maintain the integrity of business practices and protect the interest of the public.

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Like individual members of the citizenry, a business also has an obligation to follow all written and codified laws that concern its existence. Some of the laws affecting a business include basic business permits and requirements, tax laws, labour rights, intellectual property rights, consumer protection, contracts and obligations, and anti-trust and competition laws, among others.

This fact makes it a moral actor. It also gives a business an obligation to follow ethical standards, norms, and values of the communities wherein it operates.

Business Ethics and Social Responsibility

An ethically responsible business is able to recognise, interpret, and act upon multiple principles and values according to standards prescribed by a particular context or within a given field. It is able to distinguish right from wrong and make decisions and actions that serve the interests of concerned parties.

Several business organisations have adopted a written Code of Conduct to standardise the way managers and employees act or behave within an identified ethical boundary. However, there are businesses that do not have any written code. In this case, managers become the prime moral actors and they base their decisions on their own standards of morality.

This philanthropic responsibility implies that a business has a duty to give back in some ways and contribute to the betterment of the society.

Take note that the first three responsibilities are straightforward. Businesses organisations are obligated to fulfil their economic, legal, and ethical obligations in order to ensure their survival.

However, the fourth responsibility is not a mandatory. There are businesses that do not have any philanthropic programs.

This is especially true for smaller or struggling businesses with limited resources. But over the years, some businesses take pride of their philanthropic works.

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This responsibility gives them a sense of purpose while also promoting their public image. Of course, philanthropy does not necessarily mean giving cash donations.Striving for social responsibility helps individuals, organizations, and governments have a positive impact on development, business, and society.

Note: The standard for social responsibility published by the International Organization for Standardization (ISO) is ISO Oct 09,  · We have a social obligation to behave morally and ethically in all aspects of everyday life and in all business practices. By exhibiting upstanding behavior, those who follow will also act morally and ethically.

In business, balancing ecosystems and economies is a social obligation. There is no shortage of talk about the obligation of public companies to be socially responsible to the people and communities where they do business. Abstract. Companies have believed for years that their only responsibility was a financial one—maximizing value for shareholders.

Corporate Social Responsibility (CSR) is a new idea—where the corporate sector incorporates social and environmental concerns in its strategies and plays a more responsible role in the world.

I am a supplier to the university, or I am a supplier looking for information about doing business with Ohio State. Social media can - and should - play a central role in supply chain management. After all, social networking is not really about socializing, but about facilitating people-to .

The social obligations of business - On Line Opinion - 15/12/