'Social responsibility' is an
ethical or
ideological theory that an
entity whether it is a
government,
corporation,
organization or
individual has a responsibility to society. This responsibility can be "negative," in that it is a responsibility to refrain from acting (resistance stance) or it can be "positive," meaning there is a responsibility to act(proactive stance). While primarily associated with business and governmental practices, activist groups and local communities can also be associated with social responsibility, not only business or governmental entities.
There is a large
inequality in the means and roles of different entities to fulfill their claimed responsibility. This would imply the different entities have different responsibilities, insomuch as
states should ensure the
civil rights of their citizens, that corporations should respect and encourage the
human rights of their employees and that citizens should abide with written
laws. But social responsibility can mean more than these examples. Many
NGOs accept that their role and the responsibility of their members as citizens is to help improve society by taking a proactive stance in their societal roles. It can also imply that corporations have an implicit obligation to give back to society (such as is claimed as part of
corporate social responsibility and/or
stakeholder theory).
Social responsibility is voluntary; it is about going above and beyond what is called for by the law(legal responsibility). It involves an idea that it is better to be proactive toward a problem rather than reactive to a problem. Social responsibility means eliminating corrupt, irresponsible or unethical behavior that might bring harm to the community, its people, or the environment before the behavior happens.
Human responsibility
One half of social responsibility is being responsible to people, for the actions of people, and for actions that affect people. Social responsibility is about holding a group, organization or company accountable for its effect on the people around it. People within the company, people working with the company, the community the company is in and those who buy from the company.
The idea of being responsible to customers has actually long been imbedded in the ethics of business. The idea of treating a customer with respect and attention is not new particularly in sales and commission based work. What is new is the idea that it's not to profit from the customer, but to genuinely care about what the customer wants and needs.
Accountability for people inside a company is something new. Many times when a scandal or irresponsible behavior comes to light in the corporate world the company and those involved often try to distance themselves as much as possible. Cover ups, buy offs and “golden parachutes” all fall under this behavior. Social responsibility would nearly be the opposite of what goes on in the business world today – a company taking the blame and doing what is needed to fix the problem rather than committing more crimes to cover up the first one.
In many countries, by law, a corporation's only responsibility is to make as much money as possible for shareholders(economic responsibility) and to obey the law(legal responsibility). Social responsibility holds companies and organizations responsible for the people they affect, even indirectly. It also holds a company responsible for inaction, or indecision. Basing on the idea that a company or organization has the power to help people or, at the least, not harm them, it has the moral responsibility to do so. Social Responsibility is a doctrine that says that every being whether it is a village, town, state, corporation, organization, government or idividual has responsibility to society.
Environmental responsibility
The second half of social responsibility is the idea that a company has significantly more responsibility to the environment and to the world around it than an individual. Companies by nature act on a far larger scale than an individual does. Thus, their environmental impact is often far larger and far reaching than that of an individual consumer.
Choices made by the company often have far reaching effects and unforeseen consequences. Businesses have proven this repeatedly (See:
Monsanto). They also have actions and have products that are not readily available to consumers. There are very few people in the world with access to toxic or nuclear waste and even fewer have been convicted of illegally dumping or producing those products.
Also, the choices companies make affect the environmental impacts of their consumers. Many products use far more packaging then is required. This environmental impact and cost is passed directly to the consumer who is responsible for disposing of the packaging in an environmentally friendly manner. It is also not the responsibility of the company to provide the environmentally friendly option for disposing of the packaging, or even the product in some cases.
A socially responsible business would take these considerations into account when making a decision. It often falls to management and share holders to push for a company to be run responsibly and take initiative for its actions. It has often proven profitable for a company in the long run to spite short term costs. (See:
Whole Foods)
Criticism of the doctrine of positive responsibility
Many, particularly
libertarians, assert there is no "social responsibility" to do anything, but to refrain from doing. They argue that social responsibility only exists to the extent that an individual or business should not initiate physical force, threat of force, or fraud against another. In his famous article ''The Social Responsibility of Business is to Increase Profits'', Nobel economist
Milton Friedman(Classical View/theory of Social Responsibility) asserts that businesses have no social responsibility other than to increase profits and refrain from engaging in deception and fraud. He maintains that when businesses seek to maximize profits, they almost always incidentally do what is good for society. Friedman does not argue that business should not help the community but that it may indeed be in the long-run self-interest of a business to "devote resources to providing amenities to [the] community..." in order to "generate goodwill" and thereby increase profits.
Another famous economist highly critical of this doctrine is
R. Edward Freeman, author of a number of papers on
stakeholder theory from an explicitly libertarian perspective.
Some one liners on social responsibility
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The responsibility to profitably serve employees and customers in an ethical and lawful manner.
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An organization's obligation to maximize its positive impact and minimize its negative impact on society.
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The concern for the consequences of a person's or institution's acts as they might affect the interests of others, including the environment and involuntary customers.
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The concept that businesses should be actively concerned with the welfare of society at large.
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A business’s collective code of ethical behavior towards the environment, its customers, its employees, and its investors.
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Ethical obligations to customers, employees, and the general community
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The responsibility of a responsible agent who chooses to participate in a society and acquire the benefits thereof.
References
External links
Some groups of professionals have defined their own intrinsic social responsibilities. Here are some examples:
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csr-news.net
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Social Responsibility Summary
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Physicians for Social Responsibility
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interrupcion
★ - A community of organizations and individuals working together to promote social responsibility in all sectors of society.
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Computer Professionals for Social Responsibility
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Business for Social Responsibility
★ Artists for Social Responsibility
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American Engineers for Social Responsibility
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Institute for Social Responsibility
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National Association of Socially Responsible Organizations
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International Business Leaders Forum - a not-for-profit organisation which promotes responsible business
See also
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Corporate Social Responsibility
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Impact maximization
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Social enterprise
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Social entrepreneurship
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Socially responsible investing
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Inclusive business