Question

What is meant by social responsibility of business? Describe various view in favour and against

Answer 1

Social responsibility know as CSR Corporate Social Responsibility

Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. It is an ethical framework and suggests that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large.

It can involve a range of activities such as:

1. Working in partnership with local communities
2. Socially responsible investment (SRI)
3. Developing relationships with employees and customers
4. Environmental protection and sustainability

Arguments in favor of Social Responsibility:

• Socially responsible firms gain more customers and employees feel proud to work for such organizations.
• Government is a massive institution with long arms. It seeks to regulate business in public interest.
• With a pool of resources, such as capital, labour and expertise, business is in a better position to tackle social problems and work for social goals.
• It is that many other institutions have failed in handling social problems. So why should not a business enterprise handle social problems

Arguments against of Social Responsibility:

• Managers are here to solve economic problems and they do not possess knowledge or skills to provide the right solutions for social problems.
• The costs of social responsibility will be passed on to the society and the question is can the society bear these additional costs?
• Profit maximization is the ultimate goal of businesses
• Business already is wielded with enough social power. The society should not take any steps, which will make it stronger.