Arguments Against Social Responsibility

• Violation of “Profit Maximization” concept

~ It argues that business only exists for profit maximization but it can be considered that when a
business increases efficiency and less cost a business is subjected more on it’s social responsibility. In
order to perform your social responsibilities, profit maximizing is not posible becquse you put the
responsibility first before the profit.

• Burden of Consumer

~ Sometimes, consumers tend to be handy in businesses. They tend to demand things or expect your
product to be perfext. If their high expectations aren’t met they twnd to negotiate with the business to
do this and that in order to met their standards which is troublesome for organizations. Burden of
consumers can create frustration and thag can be found when they buy goods or services.

• Lack of Social Skills

~ It is sometimes a hindrance when you want to create cooperation with others. Social ckills come hand
in hand with the social responsibility. It is easier to mingle with others if you are not socially awkward.
Learn to become a social butterfly.

• Lack of Public Support

~ Because of doing of social responsibilities sometimes businesses tend to do anything just to do that
responsibility. They tend to forget to appease the public about their actions that can arise problems.

Responsibilities towards the Government

• Payment of Taxes

~ It is important to pay taxes and it is a social responsibility of busunesses to the government in order to
help them with the money. The taxes are the money of the people that makes a country grow. Without
tax where can the government find funding of projects.

• Avoid Unethical Practices

~ Unethical practices of a business can have legal charges coming from the government. Your business
may suffer losses or worse is permanent closure of it. And you as an owner, may face lawsuits and be
subjected to list of blocked persons aa a business partner.

• Foreign Exchange

~ A business’ profit can lift a country’s foreign exchange. Foreign exchange of a country helps the
economy of a country. And the government’s responsibility is to keep the economy stable. A higher
exchange means a country is profitable and the lower the exchange the lesser the money a country has.

• Advice to Government

~ Business can advice the government especially if they have business partnerships. An advice from a
stable or successful business can help tge government think of ways on how to improve a country’s
economical standing.

• Help in Emergencies

~ During calamities or incidents, businesses can send help to the public, the victims, as their way of
thanking the public in helping their business to prosper. Helping the public is also a marketer’s way of a
business to make their reputation look good to the public.

• Extent Co-operation

~ Cooperation with the government and busjness benefits both parties. Government can receive more
help from the businesses and the businesses can have special opportunities coming from the
government. It can also help both of the parties to expand their social circles.

• Respecting Rules and Regulations

~ ~Businesses should respect rules and regulations from the government to avoid lawsuits of illegal or
immoral charges that may affect your business’ reputation and stock worty.

• Political Stability

~ Businesses can affect the politics of a country in a way that if a business supports a politician, the
politician gains support before and during that politician’s term. Thus, having a stable backer that can
make the politician’s term smooth sailing.

• Implementation of Socio-economic programs

~ Socio-economic is a social science that studies how economic activity affects and is shaped by social
processes. In general it analyzes how modern societies progress, stagnate, or regress because of their
local or regional economy, or the global economy. The social class or businessmen and the government
hosts events or balls with the purpose of expansion of social circles in order to gain something and
achieve their goals.

Responsibilities towards Investors/Shareholders

• Information

~ Investors should know crucial Information about the business they invested upon. Basic information
should be disseminated to let them have knowledge on how the company works and this will also show
them that they are involved in every step taken by the business.

• Proper Disclosure

~ A proper disclosure is needed in disseminating facts about the business. It helps the business earns the
full trust of investors. And this can also help them to avoid conflict upon investors.

• Full and Factual Information

~ Information should remain factual and are also properly disclosed to avoid future problems. Giving
factual Information gains good image.

• Proper conduct of shareholders meetings

~ Shareholder meetings should remain formal and professional. Avoid disclosing something opinionated
to avoid bringing up personal interest that may harm the organization.

• Good public image

~ Businesses should maintain good public image to gain trust of investors and it can also stand as a proof
that you can bw tusted and their choice were right.

• Manipulation of Share prices

~ Share prices should be fair and square. Be professional on calculating share prices and ahould be
based on their investor’s share to the organization.

• Maintain Transparency

~ Transparency to investors gaina trust from them and also shows how responsible the organization is.
When investors knows information they are able to decide if they will continue the cooperation or not.

• Handling Grievance

~ Staying professional is a must. Personal grievances should be discarded and think professionally. Think
of ways to make the business grow even though you are against on an investor you still have to set it
aside in order to let your organization prosper.

• Maintain Solvency and Prestige

~ When facing hindrances a business should prove their credibility on how to solve it. Better have a good
image towarss investors to gain more opportunities for the business. When you maintain solvency and
prestige investors will feel proud for the business and they can also talk to other possible investors how
responsible the organization is.
Responsibilities towards community/society/public

• Protect anti-social activities

~ Businesses should not take sides onto the public’s stands. They should remain neutral to prevent more
problems. But they should refrain both sides in making ruckuses. They should protect both social and
anti-social activities.

• Financial Assistance

~ Businesses should help the public when they are in need. Giving them financial assistance as a form of
charity benefits both the business and the public. They will have more prestige and a good image to the
public. And the public may patronize the business for their goodwill.

• Development of Backward area/Locality

~ Developing of the lpcality brings more opportunities to business. When the locality is developed,
tourists visit it and go to shops or stores that can bring prpfit to them. It also adds value to their
buildings or land when their place is developed, for example roads, which is good.

• Address social problem/Avoid class conflict

~ In a society there are classes in which people belong. They should cater all the classes from the bottom
to the higher classes and prevent them discrimination between them.

• Help during Natural Calamities

~ Businesses should help the public when calamities hit. In this way, they promote their business, help
the public, earns positive likings from both public and government. Thus, the business will prosper.

• Proper use of economic power

~ Never overuse your power. Be mindful with your actions, act upon the business’ well-being and not on
personal well-being.

• Providing Employment Opportunities

~ Prioritize the locals jobs from your business. This a common way of goodwill towards the society or
locality your business is in. The locals know more about the place so employing them is an advantage in
your business.

• Provide Employment & raise standard of living

~ Providing jobs to locals helps them significantly in their daily basis of needs. By having a job they can
earn a living and help their family. An income means more money to spend on expenses and for savings.
Then later on, they cam raise their standard of living.

Responsibilities towards consumer/customer

• Honest Advertisement/ Advertisement ethics

~ Honesty is the best policy. A consumer can patronize your product if what they saw on advertisement
are also what they get when they buy your product. Just like in Japan’s starbucks store, what they daw
on commercials qbout the said product is what they also get when they buy. Thus, earning the trust of
the consuner.

• After sales service

~ Customer service is a must. Before, during and after sales service is a common hospitality to
consumers. Good service will last an impression to consumer and they can recommend your store for
good service.

• Reply to complaints/ customer service call

~ When handling complaints, always be calm and collected. That can help your business have a good
image towqrds the consumers. Never let a consumer feel unwanted when they complain or call for
customer service maybe they need something but can’t find it.
 • Good product quality and services

~ Business should provide goof quality of products or services towards consumers. This action can earn
good customer review and this may result to consumer patronization of product or services.

• Avoid monopolistic competition

~ Competition is normal when having a business but having a monopolistic competition is bad. You do
not own consumers so they have the freedom to choose products depending on their preferences. They
can buy your product and also buy the same product from another company. You can only improve your
business so that consumers will come bqck to buy your product.

• Avoid unethical trade practices

~ When having trade always be illegal. Underhanded methods of trade can tarnish your business name
and consumer trust. Unethical trade practices can lead to larger unethical practices in the future.

• Consumer safety

~ Safety of consumer is a must. Put it as a priority to provide safety of consumer. To ensure consumer
safety, disclosure of information is prohibited. It is a common protocol of businesses to not disclose the
information.

• Accurate information

~ Accuracy is needed when consumers are asking about your products. This will be like expectations
meets reality and that action will earn trust and patronization of consumers. More consumers that
means more profit.

• Consumer welfare

~ Consumer welfare is caring for the consuner. The business should care for the consumer rather than
gaining more profit without caring the consumer. This is the argument against profit maximization of
businesses.

Responsibilities towards employees/workers

• Division of labor & recognition to trade unions

~ Duties of employees should be based on the sector they belong. Production sector employee should
only do their duties on their sector and not mingle to other sectors duties. Each employee of each sector
has their own forte and they should use it to help their sector.

• Good working conditions

~ Good working conditions means good performance of workers. Environmental aspect can effect
performance of workers. Good working conditions is part of a business' duty towards employees. This
includes good working equipment, place and also workers. You should avoid toxic workers.

• Protect health & Provide safety measures

~ Employee’s health and accident insurance is part of the employees benefits. When working certain
accident may happen and it is a business organization to shoulder the expenses of their employee. And
it is part of the law protecting laborers that insurances is part of their benefits.

• Fair remuneration and allowances

~ Allowances is needed by the employees. It is part of the privileges but not all of the business gave
allowances. When giving allowances and remuneration, business shpuld maintain fairness to avoid
favoritism and quarrels between workers.

• Proper personal policies, personal, training

~ Personal trainings of workers should happen so that businesses will be able to assess the workers on
their personalities and to gave advices to them. A team building can be one of the example that can
show how a worker respond with others.

• Code of conduct & proper grievance procedures

~ Code of conduct should be provided by the business. A training should be given about this topic. As an
organization, you should tell the workers to be professional at all times. Never ever let personal
emotions outdo your professionalism. When customers are handful, you should teach them how to
entertain that kind of person.

• Workers participation in management

~ Successful business needs unity and cooperation. Employees shpild join on managing the business by
doing their duties and following protocols. And successful business means happy workers and happy
owners. Employees should participate in team buildings or meetings to show support to business.

• Opportunities for development

~ Worker’s minds are also vast and unique. You can have their ideas to improve your business. As well
as you the organization will give opportunities to your workers to further develop their talent and let
them grow.

Responsibilities towards owners

• Expansion and diversification

~ As the business prosper throughout the years, expansion should be planned for the future. Expansion
of business is a step for a more stable pace of business. Diversification of prpducts or services should
also be part of expansion because as time passes trends changes also.

• Careful use of capital

~ As an owner, capital should be used properly. Never invest on something that is not certain if that will
last long or not. Loss on capital can result to shortage of resources and may lead on bankruptcy.

• Optimum use of resources

~ Optimize resources so that you can’t loose any of it. Resources are part of expenses and money to be
used for expeses came from both the capital and the sales of business.

• Fair practice on stock exchange

~ Stock exchange is a market where securities are sold and both. As owners, fairness in practicing on
stock exchange can benefit your party and the other party. Because if known that you are deceiving in
the process of getting exchange this can harm your business.

• Business efficiency

~ Operate business efficiently to produce more sales and earning good costumer revjews. A happy
customer is a prosperous business. This means that the business will have less loss or surplus and having
more sales.

• Periodic information and creating confidence

~ Information are essential to know the growth and stability of business. Creating them periodically and
discussing it will benefit the business. With this the owners and investors can formulate plans for the
future use to maintain the stability of business.

• Effective use of shareholder’s fund

~ Funds coming from investors are like a loan from a bank. When not properly used this may lead to
bankruptcy because it is like a borrowed money. Proper utilization of investors funds will help your
business grow. Plus, you can earn more opportunities and trust coming from the investors.

• Creating Goodwill

~ Goodwill is the state of being friendly or helpful. This a great characteristic an owner can possess.
Being good earns good karma. When you are friendly toward others this can help you in the future when
you are in need and also you can form friendships out of it.