1 What is Social Responsibility? The Concept of Social Responsibility proposes that a private...

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1 What is Social Responsibility? The Concept of Social Responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.

Transcript of 1 What is Social Responsibility? The Concept of Social Responsibility proposes that a private...

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What is Social Responsibility?

The Concept of Social Responsibility proposes that a private corporation has

responsibilities to society that extend beyond making a profit.

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The Purpose of Social Responsibility

• … is to balance the interests of “all” stakeholders.

1. Employees want better HR benefits which come from Company revenues.

2. Stockholders want a strong bottom line.3. Customers want a good deal, which means

quality at a fair price.4. The community wants to employ its

residents.

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Friedman’s Traditional View of Social Responsibility

“There is one and only one social responsibility of business – to use its

resources and engage in activities designed to increase its profits so long as

it stays within the rules of the game.”

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Pyramid of Social Responsibility

Discretionary

Ethical

Legal

Economic

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Pyramid of Social Responsibility

Discretionary

Ethical

Legal

Economic

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Pyramid of Social Responsibility

Discretionary

Ethical

Legal

Economic