With the change in the business scenario, businesses are more inclined towards serving the society. They understand the role of society in their business, without the society, their business would have landed nowhere. Hence, nowadays we see big business houses perform societal duties. Large amount of their profits is diverted to the needs of society.
Also, there are various kinds of servings that can be done in the interest of the society. Here, we point out the kinds in our discussion with deeper analysis of the social responsibility performed by the business sectors.
Social responsibility in the business is also known as corporate social responsibility abbreviated as CSR, which pertains to people and the organizations behaving and conducting business in an ethical manner with crucial sensitivity towards the society’s - social, cultural, economic, and environmental issues. Performing social responsibility helps individuals, organizations, and governments to have a positive impact on development, business, and society.
To initiate a smart business decision, the companies are required to earn the belief of the society by serving them rather than only counting the short-term dollars or rupees. Decision makers should consider the future impact of today’s choices on the societal people, on the community at large, and on customers and their cultural opinions. Social Responsibility helps the business by:
Providing a cultural view of the company and understanding of quality
Generating new career paths for quality professionals who are experts in Social Responsibility related decisions.
Providing methods to enhance the efforts of SR professionals’
Growing the community of SR practitioners
All this will help to communicate the value of SR
Social responsibility of business means the obligations or duties of the management of a business enterprise to protect the interests of the society at large. According to the concept of social responsibility, the objective of managers for taking business decisions is not only to maximize the profits or shareholders’ wealth but also to serve the societal interest and protect the interests of workers, consumers and the community as a whole.
There are various types of social responsibilities that can be served by the corporates:
This is the most common form of corporate social responsibility a number of companies focus on this type of CSR efforts which focuses towards reducing their hazardous impact on the environment. After harmful effects on the environment were once ejected in the environment as an unavoidable cost of doing business, pollution and excessive consumption of resources now threatens social and political concern on a global level. For this reason, environmental CSR is now prioritising the impact that their business has on the environment.
Ethical corporate social responsibility programmes ensure that all the stakeholders in a business will receive fair treatment, from employees to customers.
Ethical responsibilities are self-enforced initiatives that a company puts in place because they believe it is the morally correct thing to do rather than out of any obligation. Businesses consider how stakeholders will be affected by their activity and work to have the most positive impact.
While the economic and legal responsibilities are the primary concerns of a company, after addressing the fundamental requirements businesses, they can then focus on their ethical responsibilities. Ethical CSR are intended to enforce fair treatment for all employees, including paying higher wages, offering jobs to the individuals equally on the basis of required criteria.
Philanthropic social responsibilities extend further than simply operating as ethical in making the society better. This corporate social responsibility is moreover associated with donating money to the charities, with many businesses supporting the particular charities that are related to their business in some way. Not only charity donations but other common philanthropic responsibilities include investing in the community or participating in the local projects. The main intention is to support a community in a wholesome manner.
Economic responsibility is ensuring an economic advantage both to the region from where the purchase arrived and to the region where it is destined to be marketed.
The responsibilities are the basic social responsibilities of the business. Economic Responsibility is viewed by some economists as the legitimate social responsibility of business. Living up to the economic responsibilities requires managers to maximize the profits wherever and whenever it is possible. The essential responsibility of business is to be assumed to provide goods and services to the society at a reasonable cost. In performing that economic responsibility, the company also emerges as socially responsible by providing jobs for its workforce.
1. What is Meant By Ethics?
Ans. Ethics are defined as the moral principles that govern the behaviour of an individual in conduct of his day-to-day activities. Ethics is simply the moral values that are inherited by an individual. While business ethics means the business moral values that help the business organization to endure and create a good impact on the society.
2. What is CSR?
Ans. CSR is the abbreviation of Corporate Social Responsibility which means the responsibility that should be mandated to be performed by the corporate sectors in accordance to the society where it functions. CSR is the same as Business Social Responsibility.
3. Towards Whom the CSR is Intended?
Ans. Towards the society at large the CSR is intended. In the society exists the work force like the employees and the labourers working, the stakeholders, the consumers all include this society. Hence, the social responsibility is extended towards them.
4. What is the Importance of CSR?
Ans. Serving the society becomes the main function of the business organization. With the advent of modernization, the corporates emit a lot of poisonous material in the society with the manufacturing of updated materials, this effect is to be compensated with the sheer responsibility of the business towards this emission, thus they plant trees in the roadside in the area of their business.
Also, they pay attention to fair wages to the workforce, paying attention to the consumers' goods as well, with all these tasks the business will earn the trust of the society this will not only help them to earn profit but also goodwill in their name.