Business Social Responsibility

Running head: BUSINESS SOCIAL RESPONSIBILITY
BUSINESS SOCIAL RESPONSIBILITY
Name of the Student
Name of the University
Author note

BUSINESS SOCIAL RESPONSIBILITY1
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Module A:..............................................................................................................................3
What is SME?....................................................................................................................3
SME towards Social Responsibility:..................................................................................4
The concept and importance of social responsibility:........................................................5
Module C:...............................................................................................................................6
Carroll’ Model of CSR.......................................................................................................7
Traditional Conflict model:................................................................................................8
The added value model:.....................................................................................................8
Multiple Goals model:........................................................................................................8
Module D:..............................................................................................................................9
Ethics and audit skills in SME:..........................................................................................9
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11
Appendix:.................................................................................................................................13

BUSINESS SOCIAL RESPONSIBILITY2
Introduction:
The essay is going to be discussed on the impact of the business ethics theory states
that the main priority of an organisation is its shareholders. As they are the source through
which an organisation can raise its funds; therefore, the business firm should be socially
responsible to their shareholders. When an organisation is focusing on the interest of their
shareholders, their main aim is to increase the shareholder’s return to satisfy them and
maintain their interest in the company (Cheng, Ioannou and Serafeim 2014). Shareholder’s
recovery can be increased only if the company earns more profits. The theory argues that
shareholders can voluntarily decide their initiative for taking part in social activities. This
essay focuses on the social responsibility of businesses by relating to the concept of SME. It
is structured in a single section divided into three subheads, firstly the idea of social
responsibility of the company is illustrated along with suitable examples and diagrams.
Secondly, the models of social responsibility are shown with examples of SME. Lastly, the
ethics of business are described.
Social responsibility can be the process in which a business organisation
engages in to increase the value of its shareholders in a way which will benefit society.
Nowadays, social responsibility has become very crucial for organisations and investors. The
primary purpose of the essay is to provide an analysis on social responsibility, which will be
focused on business organisation and it will be further discussed under three significant
sections so that the readers can stimulate their ideas and could apply these methods
appropriately.

BUSINESS SOCIAL RESPONSIBILITY3
Discussion:
Module A:
Social responsibility is defined as the combined forces of individuals along with
organisations, in which they work together and have specific duties to perform in order to
provide the best interests towards their individual environment and society altogether (Cheng,
Ioannou and Serafeim 2014). Social responsibility should be applied to every business
venture, which is also known as corporate social responsibility (CSR). It serves as the main
idea, in which different kinds of businesses need to maintain balance the activities related to
profit-making aspects along with other events that will tend to benefit the communities
(Crane, Matten and Spence 2019). There are some critical examples of corporate social
responsibility such as reducing carbon emissions, improving the policies of labour,
participation in trade policies, distributing charitable aspects, volunteering in societies,
corporate strategies that will profit the environment, along with with conscious investments
based on the environment and society (Grayson and Hodges 2017).
Social responsibility is highly essential for the organisation that can bolster an
organisation’s image, and it will construct its brand image. The workers always get
influenced by the resources in this corporate life so that they can remove unwanted activities
from the corporate sectors. There are some programs of social responsibility that will help to
boost up the employee’s morale and will contribute them to provide higher productivity at
their workforce. (Follow figure 2).
What is SME?
The small and medium enterprise is the business, which helps in maintaining assets,
revenues, along with the number of employees that exists below a particular level for