Social Resposibility

CONCLUSION

The concepts of social responsibility and ethics require an understanding of the stakeholder

view of the organization. Whereas the traditional view of socially responsible behavior

considers only the stockholders, contemporary theory recognizes a much broader group of

constituents stakeholders. Stakeholders include any individual or group that is affected by or

can affect the organization. Corporate social responsibility has been the subject of much

controversy and debate over the last several decades. Although the concept defies precise

definition, in a very general sense social responsibility refers to the interaction between

business and the social environment in which it exists. The concept of social responsibility

rests on two premises which are social contract and moral agent. Three perspectives of

corporate social responsibility have significant support from both practitioners and

academics. The economic responsibility perspective suggests that the only social

responsibility of business is to maximize profits within the "rules of the game."

The public responsibility perspective argues that business has an obligation to act in a way

that is consistent with society's overall expectations of business. Social responsiveness

supporters suggest that it is the responsibility of business to act proactively to improve the

welfare of society.

There are four distinct strategies for responding to social issues. These strategies, which span

a continuum ranging from "do nothing" to "do much," are reaction, defense, accommodation,

and pro action. Although none of these strategies is appropriate for all organizations, the

accommodation and pro action approaches to social responsibility are appropriate in most

cases.

As organizations consider a strategy for social responsibility, a number of "commandments"

should be considered. In general, these commandments suggest that organizations should be

observant of social issues, honest with their constituents, cooperative with stakeholders with

regard