Social Responsibility of Business: Theories, Practices, and Impact

This essay delves into the critical importance of social responsibility within the business context, emphasizing its role in shaping brand image and fostering long-term success. The introduction highlights the necessity for businesses to balance profit maximization with societal obligations. The main body explores various theories, including Corporate Social Responsibility (CSR), which encompasses economic, legal, and ethical responsibilities; the Triple Bottom Line, focusing on economic, social, and environmental sustainability; and Stakeholder Theory, which emphasizes the importance of considering all stakeholders' needs. The essay critically analyzes the statement that the sole responsibility of business is to increase profits, arguing that this perspective neglects the broader societal impact and the significance of ethical conduct. The conclusion reiterates the importance of integrating social responsibility into business strategies for enhanced brand image and sustainable growth, supported by diverse theoretical frameworks. References include books and journals discussing CSR, stakeholder theory, and business ethics.

Module name and ID:
Assignment Title: Social Responsibility of
Business
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Tutor's name: DR Palto Datta

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and Journals ....................................................................................................................7

INTRODUCTION
The social responsibility of business is very important for the managers to be considered
through which they can create valuable brand images in the market (Ramanna, 2020). Every
business has main aim is to maximise the profits by selling out their products as well as services
but with this they should also have to fulfil the responsibility of the society through which they
can maintain effective image and values of the organisation. Implementation of various
responsibilities in regards to society helps the business to grow more and become more
successful. In this essay there will be the discussion of various theories that help to better
understand the social responsibilities of the business. One of the main reason fin order to fulfil
social responsibilities of the business is that it helps organisations to create effective image in
the marketplace (Patiño, M.A., 2018). It will help them to increase their revenues in the market.
Critical discussion on the statement
It is very important for the business organisations to consider the social responsibility that
they should have to perform with earning profits for the business. One of the main aims of the
organisation is to maximise the profits in the market and for that purpose managers of the
company make effective plans and execute effective course of actions in order to increase the
sales. There is a need for social responsibility that should have to be carried out by the managers
of the organisation. It facilitates them to understand the problems and the issues of the society
that are going on and it directly helps them to make a better environment in the business by
performing effective social responsibilities.
Concept of social responsibility can be defined as carrying out the activities of the business
by fulfilling the needs and wants of the society (Ilyas, 2018). ‘The social responsibility of the
business should not only aim to increase their profits in the market, because in order to generate
profits sometimes organisations cannot fulfil the social responsibility. This will directly affect
the image of the business in the market and the goal of the society cannot be achieved.
There are various theories has been given that can be implemented in order to better
understand the statement, “the social responsibility of the business is to increase its profits”.
In relation to the social responsibilities of the business main theory that can be undertaken is
the Corporate Social Responsibility. This theory mainly focuses on two aspects and the first
one is to make money responsibly and the other is to fulfil the need of the community through

which welfare can be maximized. This theory mainly consists of four factors that helps to
effectively understand the aspect of social responsibility of the business in relation to increase
the profits.
The first component of this theory is economic responsibility in order to generate profits. It
means that the organisations should make profit from their operations but they should consider
economic aspects of the society through which they should not decrease the economical values
as well as GDP. Another main component of this theory is the legal responsibilities that can be
referred to as the organisations should follow rules and regulations of the government in order to
make profits in the market (Popescu, 2019). Following all the rules and regulations will help the
organisation in full filling the social goal of the business and this will help them to make
valuable image in the eyes of the customer.
Legal responsibilities of the business facilitate the managers of the organisation to carry out
the operations in a responsible way through which profits can be maximuised and the values of
the organisation can be maintained. Another is one of the most important components of CSR is
the ethical responsibility of the organisation. This component can be referred to as the ways of
carrying out the production of what is right and what is not. This part of the theory helps the
managers of the organisation to carry out the right things and actions in the workplace through
which they can promote the organisational values in society (Abugre and Anlesinya, 2020).
Wrong doing are highly unexpected and all the activities that can be harmful for the society
should be eliminated. This part of the theory facilitates the organisation to create a valuable
brand image in the market because this mainly focuses on eliminating all those activities which
can be so much harmful and hazardous for society. Above statement is not appropriate because
main of the business is not only to increase its profit but they should also have to consider social
responsibilities through which they can maintain their image in the market. For
example,Unilever company follows this theory in order to maintain their valuable brand image in
the market.
Another theory that can be undertaken in order to better understand the statement ‘social
responsibility of business is to increase profit' is The Triple Bottom Line. Triple bottom line
theory mainly consists of three concepts that facilitate the organisation to fulfil social
responsibilities and to carry out the operations in such a way that they can maximize their profits
by not harming the values of the society (Randerson, 2022). Economics sustainability is one of

the first part of this theory that mainly helps the managers of the organisation to execute effective
plans in relation to the finances through which they can increase their profits but with that they
should also avoid the uncertain losses that can occur in the future. "The social responsibility of
business is to increase its profits" statement can be understood in this concept as economic
sustainability focuses on to provide equal opportunities of the work in the society which helps
the organisation to create valuable brand image. For example, Tesco company not only mainly
focuses on increasing its profit but they also ensure that they should fulfil their responsibility
towards society.
Another main point of this theory is the social sustainability that can be referred to as the
organisation should maintain a healthy relationship with the people who have a direct
relationship with the organisation. The manager of the organisation should not only focus on
increasing their profits but also should fulfil the responsibility of the society by fulfilling their
needs and wants. In order to achieve the goal of the social system abilities organisations must
respect the needs of humans in society.
The last element that comes under this theory is the environmental sustainability. It can be
referred to as the organisations should use the natural resources in an effective way through
which they can maximize their profits but also should not harm the sources that can put the
negative effect on society (Fox, Davis and Baucus, 2020). The manager of the organisation
should not only focus on increasing their profits but also should have to critically analyse the
activities through which they can maintain the quality of air, water, and all the other resources
that should have to be used by society. For example, organisations mainly focus on to follow this
theory through which they can carry out the development in a sustainable way.
After that stakeholder theory can be undertaken into the account in order to support the
above statement. This theory was given by Edward freeman and is a kind of reflection of the
corporate social responsibility. This theory mainly opposes the statement that "The social
responsibility of business is to increase its profits". This theory explains that what is the relation
of each and every stakeholder that is related with the organisation (Al-Jenaibi, 2019). There are
various stakeholders present with the organisation that can be the shareholders, workers,
community, suppliers and customers. It explains that it is very important for the managers of the
organisation to consider each and every stakeholder values and respect them in order to fulfil
their needs and wants. Community is one of the main stakeholders of the organisation because

managers should focus on to fulfil the aspect of the society when they are carrying out the
operations in relation to maximising their profits. Ultimately consumers are the key people who
will use products and services and therefore it is important for the organisation to respect their
values. This will help the organisations to effectively consider each and every role that they
should have to follows in regards to the society. Another theory that can be undertaken is the
social responsibility to the consumers. This theory mainly ensures that the organisations should
not only focus on to increase their profits but also should have to critically consider the aspects
of the society (Manasakis, 2018). This is the only way that the organisation can enhance their
brand image in the market and this statement is not appropriate because with the aim of
increasing profits the goal of the social responsibility and the society cannot be achieved. It is the
obligation of the managers of the business to evaluate each and every aspect of society through
which they should have to carry out operational activities at the workplace. It is very important
for the organisation to fulfil the needs and wants of the customers in the society by which they
can create an effective image of the organisation in the society (Rendtorff, 2019). It can be
explained that the social responsibility of the business is not only to increase their profits because
it directly leads to the decreasing of the brand image of the organisation in the market. It means
that the organisation can achieve more name and customers when they focus on to increase the
fulfilment of the responsibility towards the society.
CONCLUSION
From the above essay it has been analysed that business organisations should increase their
profits in regards to fulfilling these social responsibilities of society. It is very important for the
organisations to consider each and every aspect of the society through which they should not
harm the social values. It has been evaluated that fulfilling social responsibilities with increasing
profits helps the organisation to maintain valuable brand image in the eyes of the customers. In
the above essay, different kinds of theories have been implemented in order to effectively
understand the concept of the social responsibility of the business.

REFERENCES
Books and Journals
Abugre, J.B. and Anlesinya, A., 2020. Corporate social responsibility strategy and economic
business value of multinational companies in emerging economies: The mediating role
of corporate reputation. Business Strategy & Development, 3(1), pp.4-15.
Al-Jenaibi, B., 2019. Analyzing and Developing Corporate Social Responsibility: The Business
Case for Corporate Social Responsibility. International Journal of Smart Education and
Urban Society (IJSEUS),10(2), pp.19-40.
Fox, C., Davis, P. and Baucus, M., 2020. Corporate social responsibility during unprecedented
crises: the role of authentic leadership and business model flexibility.Management
Decision.
Ilyas, M., 2018. Islamic Work Ethics and Corporate Social Responsibility in Business
Organizations: Issues and Challenges.Academy of Accounting and Financial Studies
Journal,22, pp.1-6.
Manasakis, C., 2018. Business ethics and corporate social responsibility. Managerial and
Decision Economics, 39(4), pp.486-497.
Popescu, D.I., 2019. Social responsibility and business ethics: IX. Green management and
sustainable development of the firm.Calitatea,20(168), pp.135-138.
Ramanna, K., 2020. Friedman at 50: Is It Still the Social Responsibility of Business to Increase
Profits?.California Management Review,62(3), pp.28-41.
Randerson, K., 2022. Conceptualizing family business social responsibility Technological
Forecasting and Social Change,174, p.121225.
Rendtorff, J.D., 2019.Philosophy of management and sustainability: Rethinking business ethics
and social responsibility in sustainable development. Emerald Group Publishing.
Patiño, M.A., 2018. The Mediating Effect of Customer Service on the Relationship between
Corporate Social Responsibility and Business Reputation of Electric Cooperatives in
Caraga Region. Tin-aw, 2(1), pp.1-1.