You are on page 1of 2

By: Firdous Saeed BBA 5B

ETHICS
As a part of social responsibility a corporation has cater to multiply stakeholder instead of just satisfying the stakeholder. Justify the above contention by your agreement.
Social responsibility is the duty and obligation of a business to other stakeholders. It is the manger's duty to nurture, protect and enhance the welfare of stakeholders. Stakeholder Shareholder Employee Supplier Customer Local community Government Environment Example of responsibility to that stakeholder Good return on investment Fair pay and working conditions Regular business and prompt payment Fair price and safe product Jobs and minimum disruption Employment for local community Less pollution

Social responsibility for one group can conflict with other groups, especially between shareholders and stakeholders. There are many ways managers respond to this duty:

Obstructionist response: managers choose not to be socially responsible.


o o

Managers behave illegally and unethically. They hide and cover-up problems.

Defensive response: managers stay within the law but make no attempt to exercise additional social responsibility.
o o

Put shareholder interest above all other stakeholders. Managers say society should make laws if change is needed.

Accommodative response: managers realize the need for social responsibility.


o

Try to balance the interests of all stakeholders. Go out of their way to learn about and help stakeholders.

Proactive response: managers actively embrace social responsibility.


o

By: Firdous Saeed BBA 5B


JUSTIFICATION

When an organization builds ethical and social elements in its operating philosophy and integrate them in its business model, it is said to have possessed a self-regulating mechanism that guides, monitor and ensure its adherence to law, ethics, and norms in carrying out business activities that ensures the serving the interest of all external and internal stakeholders. In other words, the objective of being socially responsible business is achieved when its activities meet or exceed the expectations of all its stakeholders. Here is a model for evaluating an organizations social performance. The model indicates that total corporate social responsibility can be subdivided into four criteria-economic, legal, ethical responsibilities. Therefore, the business corporations responsibility is to manage them well and perform different task to make them more satisfied and also by rewarding them