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Social Responsibility In Business Essay Sample

Social Responsibility In Business Organization Essay

Definition of business organization

Business organization is an organization that provides good or services in order to earn profit. Indeed, the prospect of earning profit is the different between a business's revenues and its expenses that is what encourages people to open and to expand business. The principal purpose of a company is not to make a profit. It is to make a profit in order to continue to do things or make things, and to do so ever better and more abundantly. To say that profit is a means to other ends and not an end and semantic quibble, it is a serious moral point. A requirement is not a purpose. In everyday life those who make the means into ends are usually called neurotic or obsessive. We have to eat to live, but if we live to eat we become distorted in more senses than one. In ethics, to make the means for the ends is to be turned in on oneself, one of the worst sins. So, in my opinion, business organization in today's society cannot avoid defining some socially responsible role for itself.

Definition of social responsibility

Social responsibility is the managerial obligation to take action that protects and improves both the welfare of society as a whole and interests of the organization means, not an end. We have sought to demonstrate social responsibility ourselves, and hope through education to inspire other businesses and organizations to examine social responsibility. Business organizations operate in a context that is much broader than just their immediate marketplace. Their activities have social, economic and political consequences whose impact may be felt on a local, national or even international scale. Even small, local businesses have a large social impact collectively. Stakeholders - customers, suppliers, employees, the local community; in fact everyone who comes into contact with a business - have the right to demand accountability. Dimensions of social responsibility encompass: how the business uses human resources, the extent of community involvement, the environment impact of the business, an analysis of the product or services the business produces. To be socially responsible, a business must have a clear, rational definition of social purpose, a system of setting priorities based on their social implications, and a structured, integrated approach to financial and social action. Implicit in social responsibility is a new definition of success for small business.

Area of Social Responsibility

When defining its sense of social responsibility, a firm typically confronts four areas of concern: responsibilities toward the employees, environment, customers and its investors.

Social responsibility towards employees

In the best tradition of participative management, the organization...

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Nowadays, an increasing impact on the image and reputation of the organization has occupied its social position. Evaluating its activities, the community not only examines the operational and financial performance, but also how the organization conducts its activities, takes care of its own employees, as far as its activities in the interest of other market participants, residents of the territories of its presence, as well as society as a whole.

The concept of social responsibility

There are many reasons that social responsibility should be given special attention. First of all, it is important to note that the increasing globalization, consolidation and growing influence of business organizations intensify the competition in the market and, hence, increase the role of brand and company image. In this case, civic awareness activates, the struggle between companies for highly qualified personnel intensifies.

Social responsibility can be defined as a set of commitments that the organization should implement in order to strengthen the community in which it operates. Organizations have social responsibility in respect of their units, in relation to the environment and prosperity of society as a whole.

Corporate social responsibility is the voluntary contribution of business to society in social, economic and environmental spheres, connected directly to the main business of the company and beyond a statutorily prescribed minimum.

Responsibility is incurred as a result of neglect or lack of attention to the subjects of business requirements and demands of society and is manifested in slowing the labor resource’s reproduction in areas that are a resource base for this type of business.

Experts note that many areas of business activity include certain socially important components. High social responsibility of business encompasses: overall policy, strategy business structure, work organization, process control, procurement, product delivery, sale of goods, services, consumer, marketing tactics of the company, employment relationship of an employer and employees, investor relations, business partners, design, planning production, relationships with government agencies, services, environmental protection, behavior with respect to competing firms.

Social responsibility can create a positive image of the company or enterprise and gives the company certain benefits:
assist in expanding its customer base, strengthen partnerships;
facilitate access to credit, simplify insurance;
make more constructive engagement with government agencies;
provide an opportunity to attract / retain the staff in the company of highly skilled professionals;
strengthen the position in the ranking domestic and international markets.

The ethical level of any organization is characterized by a degree of compliance with its managers and staff moral standards of business cooperation. To maintain the proper ethical level, many organizations accept codes that represent a set of rules of conduct for managers and employees.

Principles and rules enshrined in codes of ethics can be actively used for promotional purposes of the organization.
In addition, it is important when codes of ethics not only strengthen employees’ responsibility to the organization, but also the obligation of the organization to its employees and society as a whole.

To maintain a high level of ethics in the world along the creation of codes it is important to apply the following approaches: the organization of the standing committee on ethics, the establishment of an Ombudsman on ethics, whose function is to directly inform senior management on emerging issues of a moral plan, the creation of a “hotline” for comments and complaints, conducting audits of ethics, an expression of gratitude for the exemplary ethical behavior of employees, etc.

How to improve the company’s social responsibility?

In order to improve the company’s attitude toward social responsibility it is necessary to follow the next steps:
“Communicate with your employees on a regular basis, through newsletters, email and other forms of communication that managing ethics is an ongoing process that requires attention” (Duggan, 2011, para. 2).

Hold regular meetings to argue how to deal with ethical issues and to improve social responsibility and business in society.

Check that both daily operations and strategic objectives reflect the ethical values of the company.
Assess the ethical training program that will help to improve social responsibility of the company.
Publish and create schedule of seminars and case studies including role-playing activities, which will help the workers make different decisions that support the company’s values.


To sum up the above-mentioned information, it is possible to draw a conclusion that Company Q is not a socially responsible company and needs to improve its social responsibility. Studying this area of business, such as social responsibility, it is necessary to pay attention to costs of working with the staff, investing in the maintenance of product quality and improving productivity. An analysis of the social enterprise activity can stabilize its performance; make it more effective and successful. It should be noted that social responsibility is a “fruit” of belief, not a search result of any benefits to business. Participating in social programs, the company may receive certain benefits, but not profit. Practice shows that the most effective areas of activity where social responsibility pays high ratings are public relations, environmental programs, and promotion staff charity.

July 12, 2015 |Free Essay Sample Papers|Tags: social responsibility

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