Ans. Social Responsibility to
Business
There has been increasing debate among the academics, local
activist, and managers about the ideal relationship between the organization
and society. Two issues have predominantly emerged: an organizations
responsibility for its activities that affect society, both positively and
negatively and about the extent of responsibility that should be borne by an
organization to solve social problems.
Social Responsibility can be examined at four levels: Economic,
Legal, Ethical and Discretionary. First, for all for-profit business, an
organization has economic responsibility to produce products and services
needed, by people and sell them at profit. Peter Druker advises organizations
not to undertake social actions that are economically unviable or act as distraction
in achieving a minimally acceptable profit level. Economist Milton Freedman,
who advocates that business's only social responsibility is to maximize
profits, holds an extreme view. The non-economic activity, not only robs
shareholders of their due but also distracts managers from their profit-making
goals. It has been also argued that business managers are not experienced in
solving social problem and their involvement in such activities may conflict
with their ordinary business activities.
Areas of Social
Responsibility
The socially responsible organizations are all the time looking
for creative and new ways of servicing their stake-holders, Such efforts can be
grouped under the following categories : local community welfare including
health care, education, human rights, the natural ' environment, consumer
rights and support for cultural events.
Socially responsible business can make substantial differences to
the welfare of local and regional community by providing leadership and
assistance in solving its pressing needs. By devising well considered
programmes, many banks have shown that it is possible to be both socially
responsible and financially sound. Socially responsible organizations have also
realized that investing in community health care is not only desirable but also
valuable and necessary for everyone including the company, the employees and
the community at large. Many organizations earmark large sums of money for
community's development and welfare. The resources for the purpose need not have
to be large. Encouraging and providing time off for managers and employees to
do volunteer work for hospitals, health care centers and engage in other
welfare and developmental activities can also support such activities.
Organizations have also shown interest in their social
responsibility in education. It is not just to be charitable or generate
positive publicity, but to survive. They have contributed in efforts to improve
preschool, primary, secondary and vocational education.
Many organizations direct their social responsibility efforts
towards upholding the cause for human rights. Reebok International, the
athletic shoe manufacturer, has promoted the activities of Amnesty
International. The right to freedom of expression is a part of its corporate
philosophy. It has also instituted annual awards for young men and women who
raise awareness of human rights and freedom of expression.
Some organizations have focused on natural environment as their
area of social responsibility. The important issues of this area include
ecology, conservation of natural resources, protection of endangered species
and responsible waste disposal. In many cases buyer's purchase decision is
based on a company's environmental reputation. This has forced organizations to
support recycling efforts, to contribute towards waste reduction and to
actively use biodegradable material. Thus Apple computer uses brown cardboard
as a packing material, in place of white cardboard, to avoid the bleaching
agents. Many organizations are capitalizing on consumer concern for the
environment by marketing environmentally friendly products.
Many socially responsible organizations exhibit great concern for
the rights of their consumers. For this they take great pains to ensure high
quality, safety and truthful advertising. The Gillette company has a Vice
President of product integrity to protect consumer interest. In addition to
quality control measures employed during production, it maintains a big team of
managers to double-check the company's products. It also has medical evaluation
laboratories where scientists focus on ill effects of new Gillette products and
check for any allergic reactions to shampoos and its other products. The firm's
obsession with effectiveness and quality goes beyond meeting the legal minimum
requirement and costs a lot of money. However, it believes that a satisfied
consumer is a loyal consumer and its efforts are worthwhile.
Businesses are also keen to support cultured events as a form of
social responsibility. It promotes the positive image of their company.
Further, support for arts may also help the company to reach out to a generally
upscale audience.
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