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Social Responsibility of Business Assignment

   

Added on  2020-04-15

11 Pages2914 Words84 Views
Social responsibility of Business

Social responsibility 1Social responsibility helps the businessmen to draw a balance between the profit oriented activities and all those activities that are beneficial from the societies point of view (Hartman, Desjardins and MacDonald, 2014). A corporation is an artificial person that has completely different identity for its owners. Being an artificial it cannot see or touch but still it has some responsibilities towards the society. CSR stands for corporate social responsibility. It can also be read as, corporate citizenship or corporate conscience. As, every business acquires resources from its surrounding so, it become their responsibility to take care of the same. CSR policy assures that all the functions are performed by the business manin compliance with ethical standards, national as well as international rules and regulations (Kesselring and Selvage, 2013). CSR helps an organisation to attain its mission by drawing clear lines or the path which clarifies how the organisation will represent to its target group members.As per the section 135, all those companies who had invested more than five core or sum equal to it, are liable to undertake all the social consideration. In order to assure that all the entrepreneurs make the payment and fulfil their responsibilities well with the specified period, special committee are setup.In this essay discussion will be carried on CSR, its nature, chances of increase in profitability of the organisation after adoption of Corporate Social Responsibility.There are three main approaches of social responsibility they are - corporate social responsibility, the triple bottom line, stakeholder theory.Under the Corporate social responsibility companies have to fulfil four basic obligations. This includes- economic, legal, ethical and philanthropic responsibilities (Pedersen, 2015). Every firm is establish to earn profit but there are few non-profit organisation whose main focus is not on the profitability but still they earn reasonable amount

Social responsibility 2so, that they can help other organisations if they are in need. In this way these firms fulfil their economic responsibilities.Figure 1 corporate social responsibility pyramidThere are certain rules and regulations made by the government that every organisation need to keep in its mind while working. Whereas, there are few organisations like W. R. Grace which at the initial stage do not follow rules and regulations but later when the government impose fine on them they started giving importance too all laws.Few responsibilities are needed to be performed without any obligation. These are commonly known as ethical responsibilities (Johnson, 2017) for e.g. in Woburn, Massachusetts deals in Beatrice foods. Company was engaged in disposing all the waste in water which resulted in water pollution and destroyed the image of organisation in the eyes ofits customers so, it’s important to pay attention towards the ethical responsibility. Similar to this is philanthropic responsibility, in this entrepreneur tries to ease conditions for the society.For e.g. Google has developed the programme name “DATA-driven”. It focuses on improving the education for the students. The triple bottom line is another important theory of social responsibility. This theory is based on the sustainability. As per this theory a company can rate its performance on the basis of three major scales, they are- economic, social and environmental sustainability.

Social responsibility 3Economic sustainabilityhas a persistent nature (Wheelen and Hunger, 2017). Few companieslike Ford Pinto, had taken many decision which has helped the organisation to attain tremendous growth within the short span of time, but this might cause long term harm to the society. In such cases there is a need to take strict actions against such organisation. Social and environmental sustainability focuses on few things such as, competition is quite normal in the business world but there should be a healthy competition. This will help the organisation in building goodwill in the market. Apart from this, there are some responsibility of the companies towards the environment in which they are performing different task. Many a time they may also indulge in degrading natural resources such as, air water and soil because of which they might be in charged to pay heavy compensations. For e.g. BOSCH, this company works on the guidelines that “it’s better to lose the money then trust among people” main focus of the firm was on maintaining ecological and social balance in the environment by planting more trees (Schaltegger and Wagner, 2017).Although business provides many things to the society but on the other hand, it also put burden over it. These burdens are mainly because of the manufacturers as, they are actively engaged in production work which causes water, air as well as soil pollution. JVCKENWOOD industry under that they will be able to run their organisation for the longer period of time only after contribution to the society. These contributions can be done in manyways. Some of them are involving in active interaction with the stakeholders, performing all the activities that shows, organisational supports to culture and religion.There are wide ranges of theories that are given by different authors. But stakeholder theory is most important among all. Although the theory is one but all there are different opinions given by different writers/authors, which have resulted in different approaches of earning profit by CSR.

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