CHAPTER 13

SOCIAL
RESPONSIBILITIES
OF
ENTREPRENEURS

SOCIAL RESPONSIBILITY
EXPLAINED
THE CONCEPT OF SOCIAL
RESPONSIBILITY HAS VARIOUS
MEANINGS TO DIFFERENT
INDIVIDUALS. FOR INSTANCE,
BANKER HIS SOCIAL
RESPONSIBILITY IS TO LEND
MONEY EVEN POOR
PRODUCERS, AND NOT ONLY
TO THE RICH ONES.

Professor Howard Bowen defines it as the

obligations of business to pursue their
policies, to make those decisions, or to
follow those lines of actions which are
desirable in terms of the objectives and
values of society.

Historical Development of Social Responsibility

During the ancient times, the Greeks despised
trade and commerce. Only the slaves and lowclass citizens were engaged in business. The
Romans had the same negative attitude
towards business.
During the medieval times-which started after
fall of the Roman Empire in 746 A.D. - business
activities were influenced by Christian
doctrines. The church then was a very
powerful institution. The most famous
Christian doctrine was the compensatory
justice of St. Thomas Aquinas. It is composed
of just wage and price

In the latter part of 1700s the industrial

Revolution emerged. This further bolstered
the growth of capitalism which had become
strong during the early 1600s. at that time
the influence of the Church fade away. The
state adopted a laissez faire policy.

Theory of Karl Marx

Marx, a German Philosopher, stressed the
social importance of labor. He said that
workers are the real producers o goods. Yet,
he claimed that the benefits of production go
to the capitalists and not to the workers.

Robert Owen, the Social Utopian

Robert Owen was a product of the University of
Experience. He started making a living at the
age of 10 as a shop boy. At 18, he was already
managing his own small spinning mill. At 20, he
was the head of a large Manchester cotton mill.
And at 29,he was the director and co-owner of
a large textile factory in New Lanark, Scotland.

The Creation of Wealth

In Europe and the United States during
the 1800s, the captains of industry believed
that their social responsibility was to create
wealth-not to share it. The Protestants o
Europe claimed that industry and frugality
could create wealth. However, John
Rockefeller, who became super rich from his
oil business, said:

Theories on Social Responsibility

Economic Model
Socio-economic Model
Classical Model
Social Responsibility to Consumers
The right to Safety
The right to be informed
The right to choose
The right to be heard
Other Social Responsibilities
Employment
Education and training
Community Development