The Social Responsibility of Organization

Reporter: Ezel Mae Fechalin

What is Social Responsibility?

 Social Responsibility is a duty of individual has to perform so as to maintain a balance between the economy
and the ecosystems.

 Striving for Social Responsibility helps individuals, organizations and governments have a positive impact on
development, business and society with a positive contribution to bottom-line results.

 Implies that businesses should act more responsibly, beyond the pure profit or economic motive.

 Eliminates corrupt, irresponsible, or unethical behavior which might harm the community, its people, and the
environment.

Dimensions of Social Responsibility

LEGAL DIMENSION
▹ Refers to obeying governmental laws and regulations
▹ Civil Law
▹ Criminal Law

ETHICAL DIMENSION
▹ Behaviors and Activities that are expected or prohibited by organizational members, the community, and the
society
▹ Standards, Norms, or Expectations that reflect the concern of major stakeholders.

ECONOMICAL DIMENSION
▹ How resources for the production of goods and services are distributed within the social system.
▹ Consumers always favor socially responsible companies or they most enamored with companies that
maximize profits.

PHILANTHROPIC DIMENSION
▹ Business Contributions to society
▹ Strategic philanthropy

Social Responsibility Strategies

SOCIAL OPPOSITION SOCIAL OBLIGATION SOCIAL RESPONSE

View taken by business is that
they have no obligation to the
society in which they operate.
SOCIAL CONTRIBUTION
Position taken by Companies
which believe that they have
Companies believe that they
have an obligation to obey the
law.
Position taken by companies
which believe that their social
responsibilities are as dictated
by law and will on selective
basis go beyond the legal
requirements. These unit may
volunteer to participate in
limited socially responsible
efforts, but not until they are
convinced that the benefits
outweigh the costs.
Reason for Social Responsibility

 Business enterprises are creatures of society and should respond to the demands of society
 If the management does not react to changes in social demands, the society will either force them to do so
through laws or will not permit the enterprise to survive
 Therefore, the Long-term interests of business are best served when management assume social
responsibilities.
 Every business enterprise is an organ of society and its activities have impact on social scene.

Responsibility towards owners

 A fair return on investment
 Safety of invested capital
 Regular and complete information about the performance and progress of the company
 Regular payment of dividend

Responsibility towards Employees

 Fair wages and salaries
 Adequate basic facilities like safe drinking water, electricity, hygienic toilets
 Skills development programs
 Good and safe working environment
 Medical facilities/clinic/first aid kit
 Insurance cover
 Retirement benefits and pension schemes
 Avoiding discrimination and observing human rights
 Preventing sexual harassment

Responsibility towards Consumers

 Charge reasonable price for products or services
 Supply of right quality of goods in right quantity
 No use of manipulated or false advertisements
 Avoid unfair selling practices
 Fair guarantee of product
 Observing consumer rights

Responsibility towards Government

 Payment of tax in correct amount with no manipulation of profit figures
 To avoid corrupting public servants by offering bribe
 To encourage fair trade practices
 To avoid monopoly practices
 To improve national income

Benefits of Being Socially Responsible

 Good Public Image
 Employee Satisfaction
 Ethical Leadership
 Consumer Awareness
 Improved Investor Confidence