Role of Social Responsibility in Business

MODULE: Social
Responsibility of Business
Supervised by

Table of Contents
INTRODUCTION...........................................................................................................................3
a) Concept and complex range of businesses (SME) social responsibility.................................3
c) Application of philosophical and practical models of social responsibilities to specific
situations.....................................................................................................................................4
d) Audit skills for evaluation of the ethical and sustainable standing of a range of
organisations...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Social responsibility in business basically deals with various duties which company has
to fulfil towards society. Every company has aim to earn maximum profits apart from that it is
important to contribute towards welfare of society and towards external environment (Ehie,
2016). This report based on various dilemmas which business faced while adopting such
responsibilities, application of practical & philosophical models is done and then several audit
skills are applied for evaluating sustainability and ethical standing of various organisations. In
this report, BMW, Google, Microsoft and Lego are taken into consideration and how these
companies adopt social responsibility in their operations is analysed.
a) Concept and complex range of businesses (SME) social responsibility
Social responsibility can effectively be considered as the businesses, that helps in
maximizing different range of shareholder values that helps in maintaining the reputation within
the market in a manner that benefits not only to the company but to society as well. In other
words, it can be said that social responsibility has become increasingly important to investors
and consumers who seek investments that are not just profitable but also contributing towards
welfare of the society and environment as well. If it is talked about the concept of social
responsibility then it is said to be something, which is carrying the ethical framework and
focuses on a particular entity, which could be anything from an organization or individual.
Basically, it has an obligation and a duty for every individual, as it has to be performed in order
to maintain a balance between the economy, values and ecosystem.
On this concept, many critics have given their arguments that nature of business has not
basically considered society as stakeholders. But, over the years it can be said that many
individuals have stated that social responsibilities has specifically been a part of large
multinational business organisations. But, in fact it is related to small and medium-sized
enterprises (SME), has effectively been a much more considerable forefront in regards to (Social
Responsibility). This has helped in natural engagement among local communities. On the other
hand, with SMEs turning over £1.9 trillion and responsible for 60 of UK private sector
employment¹ in 2017, their role in voluntarily promoting positive environmental and social
change is significant (Mihaljević and Tokić, 2015). Basically, there are ample number of theories
like friedman vs freeman, stakeholder, triple bottom line theory and so on, that can effectively be
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