Social Responsibility of Business

Social Responsibility of
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) Critically discuss this statement using contrasting theories and an extended example that
illustrates Socially Responsible behaviour..................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Social responsibility in business is also called Corporate Social Responsibility (CSR)
where organisations and people behave and conduct business in ethical manner towards cultural,
environment issues, social and economic (Eriksson and Svensson, 2015). Business should
conduct all those activities and operation at marketplace which should not harm their customers
and employees. The main social responsibility of any business is increasing their profits in
effective and efficient manner through providing high quality products and services. This report
highlights about concept of social responsibility along with using various theories and models.
MAIN BODY
1) Critically discuss this statement using contrasting theories and an extended example that
illustrates Socially Responsible behaviour
Social responsibility is also called corporate social responsibility which uses resources
and engaging activities designed to increase profits at free competition without any frauds.
According to the provided statement, questions has raised that business should engage
themselves for social responsible activities. The main aim of corporation is making profits at
market. The different approaches to new responsibilities are:
Stakeholder Theory
This theory was designed by Edward Freeman and others which represent corporate
social responsibility (Fernández and Rajagopal, 2014). Instead of initiating business and looking
towards world they should consider obligations for stakeholder theory. This theory assist in
describing about those group and individuals who are affected by actions of organisation.
According to this theory, who are touched by business hold certain rights and obligations to
participate and direct it. For example, whenever factory produces industrial waste then there is
attachment of CSR responsibility which is directly link to factory owners for disposing it safely.
This theory begins when individual lives in the society and focus on business ethics. They are
regarded as stakeholders of organisation and contributing in corporate decisions.
For example, if organisation produces chemical for industrial use then they have to
includes different stakeholders such as workers, owners, suppliers, creditors, local business,
government entities and so on. It is very important to consider need and demand of society and
accordingly produce products as per their requirements. In today's era, stakeholder are the person