The concept of social responsibility as used in management science is that businesses should maximise their profits subject to their working in a socially responsible manner to promote the interests of the society. Their business activities should not harm other groups such as consumers, workers, and public at large.
In the present world where there are monopolies, oligopolies in product and factor markets and also there are externalities, especially detrimental externalities such as environment pollution by the activities of business enterprises maximisation of private profits does not always lead to the maximisation of social benefit. In fact in such imperfect market conditions, consumers are exploited by raising of prices much above the cost of production, workers are exploited as they are not paid fair wages equal to the value of their marginal product. Besides, there are harmful external effects to which are not given due considerations by private enterprises in making their business decisions. Therefore, there is urgent need to make business enterprises behave in a socially responsible manner and to work for promoting social interests.
It is a business that cares about relevant aspects of the society and its context.
Following article discusses on how events of the 1960s have dramatized the extent to which supposedly private enterprises within the American economy affect the public interest in specific ways ...
Heald, M. (2018). The social responsibilities of business: Company and community, 1900-1960. Routledge.
This article offers proposed guidelines intended to protect the public interest in relationship to the advocated social responsibilities of successful entrepreneurs. The author argues that the most effective approach, then, is not preaching about obligations but, rather, establishing …
Baumol, W. J. (2016). On the appropriate social responsibilities of successful entrepreneurs. Business & Society, 55(1), 14-22.
CSR and Ethics in business and government today are very important subjects. There are various reasons for businesses to operate in an ethical and socially responsible manner. There are government regulations, corporate belief systems, and basic common sense …
Panwar, S. (2019). Corporate Social Responsibilities and Ethics of Business–Issues and Challenges in India. Global Journal of Management And Business Research.
Going beyond business and legal obligations to serve the society.
CSR improves the relationship between the state, business, employees, consumers, shareholders and other stakeholders. The globalization of economic processes and increasing information transparency multiply the positive effects of implementing companies’ CSR activities. Since the CSR is implemented both on the strategic and tactical levels, there is an urgent problem to develop a strategic approach to CSR management. Article CSR as an effective tооl of strategic management
Why do we single out Corporates for being socially responsible? Shouldn’t we expect Government to be socially responsible (GSR)? Educational institutions (EISR)? The charity sector (ChSR)? As well as every individual (ISR)? Surely we ALL have social responsibilities primarily to ourselves, our families, the communities to which we belong, our workplaces and to the wider social community. Either CSR is placing an undue burden on one organ of society, or it is a misnomer.
Social responsibility of business means that businesses should operate in a way that benefits society and the environment.
Companies should adopt policies that promote the well-being of society and the environment while lessening negative impacts on them.
When companies engage in ethical labour practices and in charitable giving, they have customers who are willing to buy their goods and services.