MGT100 – Introduction to Management | Assignment Help
Social responsibility is a manager’s duty to take actions that will benefit society’s interests as well as the company’s interests
Introduction
The concept of social responsibility implies that businesses will behave in a way that help community, society and people with the primary purpose of business i.e. maximizing the shareholder value (Barnett, 2019). Investors and consumers hunt for ventures that are not only lucrative but which still contribute to the benefit of people and the community are utterly essential for social responsibility. Broadly speaking, it is presumed that social responsibility is the commitment of a management to take measures that would support the interests of society as well as the interests of the business, however there are also critics who contend that the fundamental structure of the business enterprise does not regard society as part of their stakeholder. Whereas corporate social responsibility means the duty of a management of enterprise to safeguard the welfares of the society. Due to the fundamental principle of social responsibility, managers are not merely directed at maximizing profits or the worth of shareholders, but rather at representing and maintaining the interests of members of a society including employees, consumers and the environment overall (Foss & Klein, 2018).
Fig. 1. Social Responsibility
Social Responsibility Concepts and the role of CSR in contemporary management and business practice
Conceptual presentation of Social Responsibility
Social responsibility means that individuals and companies continue to act in the interests of their society and environment as a whole in the long run. Social responsibility is classified as corporate social responsibility (CSR), when it refers to organizations and businesses. The purpose of this idea is to incorporate approaches that promote an ethical agreement between the dual interests of benefit attainment and contribution to the entire community and society. These initiatives are of various types such as commission that comprises of philanthropy activities like time and money donation, and omission that includes go green programs and policies. These programs maintain the overall value of the business and further contributes in the profit and worth of the companies. The famous magazine Forbes in 2018 published its edition in which it mentioned the names of top brands and companies that work in the field of corporate social responsibility. Google topped this list of Forbes and the second and third position was occupied by the Walt Disney Company and the Lego when the stated that they shift their manufacturing process to the plant based resources and sources and contribute to the society in this regards
Fig. 2. Impact of Corporate Social Responsibility (CSR)
Consequently, investors when making a contribution, buyers and customers weigh in a company’s contribution to socially responsible activities. As such, adopting corporate responsibility will support the core objective i.e. shareholder value maximization. There’s a social necessity, though. Acts, or lack thereof, may impact generations to come. Clearly stated, corporate responsibility is indeed sound business practice, so inability to do so will have a detrimental impact on the financial statements of the respective companies.
Social responsibility is usually most workable after a corporation willingly proceeds it on, as compared to being forced by the officials and government to do so by policy legislation. Social responsibility can raise the self-esteem of the employees and workforce of an organization, particularly if a business can include workers with its social and humanitarian causes.
Managers’ role for Social Responsibilities
When addressing social responsibility from the viewpoint of the role of manager, it is described as managers’ duty and willingness to take action to preserve and develop the wellbeing of society coupled with maintaining their personal interests. The attitudes and role of managers in the globalized economy seem to become more and more optimistic than it has ever been. Therefore, there is a need to put high emphasis on organizational and managerial behavior in order to assure the real impact of social responsibility. The major issue now is how managers proceed as a socially responsible persons and how to address this profoundly relevant topic in the perspective of businesses and society. There are also laws, values and conventions in the corporate sector, as well as legislation and other legal criteria that help to fulfill the social responsibilities.
Fig. 3. Social Responsibilities of a Manager
In this world of globalization, managers of companies play vital and significant role in the domain of social responsibility and following are few reasons for this:
Capital needed by Organizational: An enterprise, in the context of individuals, manpower, abilities and technical experience, requires a large pool of wealth and capital. If an entity has such instruments under its control, it is best equipped to function towards societal agendas and objectives.
Preventive actions: Whenever an enterprise already persists on coping with societal problems, it will find a way to put out societal problems so that there is little room left to meet the goal of delivering goods and services to the community. Basically, coping with societal problems becomes much easy and save large cost before they become a crisis that occupies a significant portion of the time, resources and cost.
Ethical considerations: Affirmation of the social responsibility of the management and the managers of the organization has been described as a role of moral and social acceptance. It is the organization’s social duty to either address or eradicate the societal issues and ills in addition with value maximization.
Best trained Employees: The process of employee recruitment is simpler with organizations that are socially responsible towards the society. Hence, employees are drawn to belong to organizations with a greater social responsibility. For instance, the Tobacco firms have trouble hiring best-trained and professional employees because these firms’ motive and business have worse effects on society and community.
Healthy and competitive business Environment: Consequently, the company which is more open to improving social living standard should have a healthier environment in which it will be able to conduct its business practices in much better way. Staff recruiting would be faster, so better performing jobs would be. This results in decrease in staff attrition and absent-mindedness. There would be a low crime rate resulting in fewer funds being invested in the form of taxation and property security because of all the social developments and wellbeing. Therefore, a healthier community produces a sustainable economic and business environment.
Social Responsibility in Practice
The International Organization for Standardization (ISO) stresses that the willingness of a company to establish an equilibrium between achieving economic success and adhering to social and environmental problems is a vital factor in successful and productive activity (Heires, 2008). Within sectors and businesses, social responsibility carries on various interpretations. Starbucks for instance, have brought social responsibility into the heart of business activities. Furthermore, another corporation i.e. Big-box chain Target widely renowned for its corporate welfare efforts, has contributed funds to the neighborhoods through educational scholarships.
The main methods that organization supports social responsibility involve philanthropy, fostering engagement, and improving the environment. Companies monitoring their effects on the environment should aim to improve their quality of life and minimize excess waste. Also there is the moral obligation of professional standards for management and workers, referred to as providing a reasonable pay, which occurs where the laws and regulations on workplace safety are minimal and restricted.
Social Responsibility of Business and Social Contract:
It is clearly evident from past literature, businesses and organizations that behave in the way of socially responsible can suggests that business need to make balance between their personal gains and societal gains so that society get benefited in addition to the value maximization of the shareholders (Denis, 2019). In this era of globalization, where businesses are linked with each other and try to contribute to the society, there is a need of that managers and stakeholders with the mindset that consider environment, community and people as important as they value their wealth and business. In this way, these business personnel contributes to the society in best possible way. Hence, businesses dealing as socially responsible are the main contributor and protector of the society and community and form a strong relationship as shown in Fig. 4.
Fig. 4. Social Responsibility of enterprise with respect to various partners
Social contract is a set of rules that defines the agreed interrelationship between several components of a society. The social contract often involves a quid pro quo (i.e. something given in exchange for another). In the social contract, one party to the contract gives something and expects a certain thing or behavior pattern from the other as indicated in Fig. 5.
