Social Systems

A social system basically consists of two or more individuals interacting directly or

indirectly in a bounded situation. There may be physical or territorial boundaries, but the
fundamental sociological point of reference is that the individuals are oriented, in a whole
sense, to a common focus or inter-related foci. Thus it is appropriate to regard such
diverse sets of relationships as small groups, political parties and whole societies as social
systems. Social systems are open systems, exchanging information with, frequently
acting with reference to other systems. Modern conceptions of the term can be traced to
the leading social analysts of the nineteenth century, notably Auguste Comte, Karl Marx,
Herbert Spencer and Emile Durkheim; each of whom elaborated in some form or other
conceptions of the major units of social systems (mainly societies) and the relationships
between such units- even though the expression social system was not a key one. Thus, in
Marx's theory, the major units or components of the capitalist societies with which he
was principally concerned were socio-economic classes, and the major relationships
between classes involved economic and political power.

The most influential conceptualization of the term has been that of Talcott Parsons.
Parsons' devotion to this issue has two main aspects. First, what is called the problem of
social order; i.e. the nature of the forces giving rise to relatively stable forms of social
interaction and organization, and promoting orderly change. Parsons took Thomas
Hobbes Leviathan, 1651, as his point of departure in this part of his analysis. Hobbes had
maintained that man's fundamental motivation was the craving for power and that men
were always basically in conflict with each other. Thus order could only exist in strong
government. To counter this Parsons invoked the work of Max Weber and, in particular,
Durkheim, who had placed considerable emphasis on the functions of normative, factors
in social life, such as ideals and values. Factors of this kind came to constitute the
mainspring in Parsons Delineation of a social system. Thus in his major theoretical work,
The Social system, 1951, he defines a social system as consisting in a plurality of
individual actors interacting with each other in a situation which has at least a physical or
environmental aspect, actors, who are motivated in terms of a tendency to the
optimization of gratification and whose relations to their situations, including each other,
is defined and mediated in terms of a system of culturally structured and shared symbols.

The major units of a social system are said to be collectivities and roles (i.e. not
individuals as such); and the major patterns or relationships linking these units are values
(ends or broad guides to action) and norms (rules governing role performance in the
context of system values). Parsons second major interest has been to make sociology
more scientific and systematic, by developing abstract conceptions of the social system;
one of this points being that even though Weber placed much emphasis upon normative
factors as guiding action, there was in Weber's sociology no elaboration of a theoretically
integrated total system of action. Hence the attempt to combine in one framework both a
conception of actors in social situations and an overall, highly abstract, outside view of
the major factors involved in a social system as a going concern. Various points in
Parsons' formulation have been criticized. Notably, objections have been made to the
emphasis upon normative regulation, and it has been alleged that Parsons neglected social
conflict under the pressure of his systematic perspective; i.e. pre-occupation with system
ness and analytical elegance which blinds the sociologist to disconsensus in real life and
spurs him to stress integrative phenomena in his analyses. However, it is widely agreed
that sociologists should operate with some clearly defined conception of what constitutes
a social system. Thus, for many sociologists the term social system is not by any means
restricted to those situations where there is binding normative regulation; but in order to
qualify as social system it must involve a common focus, or set of foci, or orientations
and a shared mode of communication among a majority of actors. Thus, on this basis
there can be a system of conflict.

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Ethics is an important component of the overall approach to corporate responsibility,

sometimes called corporate social responsibility (CSR). CSR is a business model that
began emerging in the late 1960s and early 1970s. Under the CSR model, corporate
responsibility and ethics are considered intertwined.

The philosophy of CSR stresses compliance with the law and high ethical standards
toward consumers and the public. It also envisions positive actions in the areas of the
environment and the public interest. It promotes the active elimination of harmful
corporate practices even when they are outside the realm of government regulation.

Other areas in which corporate responsibility and ethics overlap under the CSR model is
the inclusion of the public interest and environmental concerns in corporate planning and
decision making. Corporate responsibility includes creating voluntary ethical and
environmental standards and developing projects for community growth. Companies that
follow the CSR model adhere to the “triple bottom line” slogan of “People, Planet,
Profit.”

Some commentators believe that corporate responsibility and ethics intersect with
consumer ethics, as more people become aware of their individual impact on the
environment and the world. As more consumers begin to make their choices based on
social and environmental concerns, corporations strengthen their commitment to these
issues. As a company practices social corporate responsibility, the result can become part
of its corporate identity. Some observers point out that operating under a CSR model
increases corporate profits in the long run.

Some critics of the CSR model suggest that corporate social and environmental concerns
are only superficial, and that the government should take the lead in addressing these
concerns through regulation. They note that taxpayers already pay the government to
ensure that businesses conduct themselves in a manner safe and beneficial to the public.
Supporters of CSR respond that consumers and stakeholders bring a natural and healthy
pressure to bear on corporations to act responsibly.

Stakeholders consist of more than just shareholders and investors. They include social
and financial institutions, government regulators, and foreign governments. Professional
institutions, labor organizations, and academic institutions also influence and have a stake
in socially responsible corporate behavior.

Many corporations do appear to be invested in promoting corporate responsibility and

ethics as they are understood in the CSR model. A great number of companies around the
world file annual corporate sustainability reports with the international Global Report
Initiative. Sustainability reports inform the public and stakeholders regarding a
corporation’s efforts in enhancing environmental and social values and promoting the
public interest. The reports usually contain information on how these efforts have
maintained or enhanced profits