Social Responsibility

As the adoption by a business of a strategic focus for

fulfilling the economic, legal, ethical, and
philanthropic responsibilities expected of it by its
stakeholders.

Business Ethics, Corporate Volunteerism, Compliance,

Corporate Citizenship, Reputation Management.
Characteristics of Social Responsibility
License to operate
Long term business investment
Vehicles for achieving goals and reputation
Activity to avoid exposure and risk
Economic and Constructive
Relationship
Oxymoron
Social Responsibility Applies to All
Types of Business.

It is important to recognize that all types of businesses

- small and large, sole proprietorship and partnership,
as well as large corporations implement social
responsibility initiatives to further their relationship
with their customers, their employees, and their
community at large.
Social Responsibility Adopts a
Strategic Focus.
Social Responsibility is not just an academic term.

It involves action and measurement , or the extent to

which a firm embraces the philosophy of social
responsibility and then follows through with the
implementation of initiatives.
 Four types of Corporate Social
Responsibility
Economic Responsibility
Legal Responsibility
Ethical Responsibility
Philanthropic Responsibility
Economic Responsibility
At the lowest level of pyramid, businesses have a
responsibility to be economically viable so that they
can provide a return on investment for their owners,
create jobs for the community, and contribute goods
and services to the economy.

The economy is influence by the ways organization

relate to their stockholders, their customers, their
employees, their employees, their suppliers, their
competitors, , their community, and even the natural
environment.
Legal Responsibility
At the next level of pyramid, companies are required to
obey laws and regulations that specify the nature of
responsible business conduct.

Business ethics refers to the principles and standards

that guide behavior in the world of business.

Society enforces its expectations regarding the

behavior of businesses through the legal system.
Ethical Responsibility
The companies must decide what they consider to be
just, fair, and right realm of business ethics.

Business Ethics
Refers to the principles and standards that guide
behavior in the world of business.

These principles are determined and expected by the

public, government regulators, special interest groups,
consumers, industry, and individual organizations.
Philanthropic Responsibilities

This activities promote human welfare and goodwill.

By making voluntary donations of money, time, and

other resources that the companies contribute to their
communities and society to improve the quality of life.
Benefits of Social Responsibility
Initiatives in enhancing stakeholder relationships.

Improving performance of the company.

Creating other benefits that has been debated from

many different perspectives.
 The Role of Social Responsibility in
performance.

Customer and
Employee Trust

Customer
Satisfaction
Social Organizational
Responsibility Performance
Employee
Commitment

Investor Loyalty
Trust
It is the glue that holds organizations together and
allows them to focus on efficiency, productivity, and
profits.
Trust lies at the very core of effective human
interactions.
Compelling trust is the highest form of human
motivation.
Trust is also essential for a company to maintain
positive long term relationship with customers.
 Social Responsibility Model
STAKEHOLDERS
Employee
Investor
Customers
Business Partners
Community
Government
Environment
OUTCOME
Financial
STRATEGIC PHILOSOPHY Performance
Social Responsibility Commitment
Trust
Reputation
FOUR TYPES OF
RESPONSIBILITY
Economic
Legal
Ethical
Philanthropic