According to Wikipedia (2007) Social responsibility is an ethical or ideological theory that an entity whether it is a government, corporation, organization or individual has a responsibility to society. This responsibility can be "negative," in that it is a responsibility to refrain from acting (resistance stance) or it can be "positive," meaning there is a responsibility to act(proactive stance). Doing business is not just to comply the required laws and regulation or making huge profits from the market. Managers should have social responsibility, which is the responsibility beyond the stipulated laws and requirement to the social community or the public. Operating in the business environments, business are exposed to various publics whether it is internal or external environment. To be successful nowadays, the organization should have ethical principles that guide them to protect not only their interest but also to various public interest. From the perspective of internal environments, organization can ensure the social responsibility through its interaction with various internal parties such as workers, customers and suppliers. From ethical responsibility point, an organization should treat all its workers with fair judgment, good care to their safety and health, fair pay and promotion opportunities without discrimination to any. For customer and supplier, organization should treat customer and supplier with fair business practice and no cheating of terms that will affect any one of the business relationship.
For summary actually social responsibilities can be from these few criteria as discussed
Economic responsibilities – by some country law the corporation responsibility is to take care of shareholder (owner) interest and making healthy returns to them. Managers are only a representative for shareholder to manage their capital or investment in the corporation and managers are hired to ensure these assets are being managed well. However due to desire for instant success and financial rewards, some managers are acting out of shareholder economic interest by doing cheating and unfair business practices such as Enron and WorldCom cases. Acting solely on economic responsibilities will not ensure the organization gain support from the public. Organization must also think of other factor rather than only maximizing profits as there are trade-off between economic responsibility and social responsibility to the public.
Legal responsibilities – is the responsibility to understand and follow all the regulations and laws that set and required by the government, law enforcement agency and local council in order to keep on operating in the environment. Laws are set to dictate the business relationship in the market to protect all party in the business such as customers, consumer, public, customers, suppliers, employees and the business itself. For example, in term of customers they are protected their rights to get safety and health build in the product they bought, protected by fair pricing and protection mechanism that they can used when they feel cheated by the business practice. Public want their environmental cleanliness are protected by law for every business operating in their sites and employees are treated fairly according to the labor law. Business should follow the entire minimum requirement set by the law and if possible to more to protect the interest of various parties in the market. If the laws are not followed, the business will be fined or suspended from continuing their operation.
Social responsibility is the minimum requirement that the organization or corporate must do to protect the rights of
Discretionary responsibility is voluntary role after it serves the economic, ethical and social role. It is role beyond the requirement and if the organization can do it will build its image in the eyes of the public. For example by providing in the local communities, organization give aid to build a school for the communities. If they do not perform this voluntary act, they are not considered as unethical.
For summary actually social responsibilities can be from these few criteria as discussed
Economic responsibilities – by some country law the corporation responsibility is to take care of shareholder (owner) interest and making healthy returns to them. Managers are only a representative for shareholder to manage their capital or investment in the corporation and managers are hired to ensure these assets are being managed well. However due to desire for instant success and financial rewards, some managers are acting out of shareholder economic interest by doing cheating and unfair business practices such as Enron and WorldCom cases. Acting solely on economic responsibilities will not ensure the organization gain support from the public. Organization must also think of other factor rather than only maximizing profits as there are trade-off between economic responsibility and social responsibility to the public.
Legal responsibilities – is the responsibility to understand and follow all the regulations and laws that set and required by the government, law enforcement agency and local council in order to keep on operating in the environment. Laws are set to dictate the business relationship in the market to protect all party in the business such as customers, consumer, public, customers, suppliers, employees and the business itself. For example, in term of customers they are protected their rights to get safety and health build in the product they bought, protected by fair pricing and protection mechanism that they can used when they feel cheated by the business practice. Public want their environmental cleanliness are protected by law for every business operating in their sites and employees are treated fairly according to the labor law. Business should follow the entire minimum requirement set by the law and if possible to more to protect the interest of various parties in the market. If the laws are not followed, the business will be fined or suspended from continuing their operation.
Social responsibility is the minimum requirement that the organization or corporate must do to protect the rights of
Discretionary responsibility is voluntary role after it serves the economic, ethical and social role. It is role beyond the requirement and if the organization can do it will build its image in the eyes of the public. For example by providing in the local communities, organization give aid to build a school for the communities. If they do not perform this voluntary act, they are not considered as unethical.
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