Social Responsibility of Business

Social Responsibility of
Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Topic : The social responsibility of business is to increase its profits...................................3
a) Concepts of range of businesses social responsibilities ....................................................3
c) Various models that helps the organisation in complying with their social responsibility4
d) Ethics in business with examples ......................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Social responsibility is an ethical framework that helps an organisation to perform in such
a way that they can contribute to the society whose resources they utilise (Leipziger, 2017). This
helps the business to operate effectively as it improves the image of the organisation. Ethics are
the moral principles on the basis of which the individual behaves. Various ethical theories have
been followed by the organisation to make their employees access and identify what is good or
bad. For the report the organisation that is taken into consideration is Rowlinson Knitwear which
provides garments for school and offices and the company is an small and medium enterprise.
This report is prepared to understand the various corporate social responsibility theories which
helps the organisations to implement the concept of business ethics.
Topic : The social responsibility of business is to increase its profits
It is standard theory of business ethics that they have to create wealth for the shareholders
of the company whereas the company uses their resources in the social causes. This reduces the
returns of the shareholders. As Friedman said that, the business has only one responsibility that is
of utilising the resources only in those activities which generates revenue for the company so that
shareholders returns can be increased. But to contribute to the society in which they are operating
is also crucial for the organisation. The concept of social responsibility is not applicable only to
the large organisation but also to the small enterprises as the business efficiency and ethical
behaviours is requirement of all the businesses irrespective of the size and nature of the
organisation (Eriksson and Svensson, 2015).
a) Concepts of range of businesses social responsibilities
Every business that operates have various social responsibilities against the shareholders
and the society. Rowlinson Knitwear also has range of such responsibilities and to identify that
various concepts are used. Social responsibilities are the framework which are ethical ways that
helps the organisation to meet their obligations in regards to society, stakeholders and others.
Stakeholders theory suggest that the sole responsibility of the business is not to
maximise the profits for the organisation but to contribute towards the stakeholders. Under this
theory, the interest of the stake holders need to be considered as they can ceases them to exist. It
addresses various business ethics and moral values which is to be considered while handling the
shareholders who are part of the organisation. This theory seeks that the benefits of the