Certificate III in Office Management & Administration

Social Responsibilities of a Business

Learning Objectives:
Understand the meaning and definition of Social responsibility and Social Audit Understand and analyze the need and importance of social responsibility Explain the benefits and limitations of social responsibility and social audit

Social Responsibility
Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem.

Social Responsibility
Social responsibility means sustaining the equilibrium between the two. It pertains not only to business organizations but also to everyone whose any action impacts the environment. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

Types of Social Responsibilities

Individual Social Responsibilities

Corporate Social Responsibilities

Individual Social Responsibilities

Individual social responsibility or ISR is the responsibility of every individual for his/her actions. It is morally binding on everyone to act in such a way that the people immediately around them are not adversely affected. ISR is a commitment everyone has towards the society contributing towards social, cultural and ecological causes

Corporate Social Responsibilities

CSR is one of the newest management strategies where companies try to create a positive impact on society while doing business. There is no clear-cut definition of what CSR comprises. Every company has different CSR objectives though the main motive is the same. All companies have a two point agenda- to improve qualitatively (the management of people and processes) and quantitatively (the impact on society). The second is as important as the first and stake holders of every company are increasingly taking an interest in the outer circle-the activities of the company and how these are impacting the environment and society.

Benefits or Importance of Social Responsibility in Business

Best Interest of Business to Promote and Improve the Communities Improves Public Image of the Firm Improving Stock Price

Solving Social Problems

Resource given by the organizations to solve the social problem

Social Audit
A social audit looks at factors such as a companys record of charitable giving, volunteer activity, energy use, transparency, work environment and worker pay and benefits to evaluate what kind of social and environmental impact a company is having in the locations where it operates. Social audits are optional--companies can choose whether to perform them and whether to release the results publicly or only use them internally.

Benefits and Advantages of Social Audit

Trains the community on participatory local planning. Encourages local democracy. Encourages community participation. Benefits disadvantaged groups. Promotes collective decision making and sharing responsibilities. Develops human resources and social capital

Limitations

The social responsibility actions of business are limited by Cost Efficiency Relevance and Scope

As result of these constraints, social responsibility actions fall short of public expectations.

References
http://socialresponsibility.vinsign.com/importancesocial-responsibility.html en.wikipedia.org/wiki/Social_responsibilityCached Similar www.nos.org/Secbuscour/cc04.pdfSimilar http://www.investopedia.com/terms/s/socialaudit.asp#ixzz1bgxFNXWM http://wiki.answers.com/Q/What_are_the_limitatio n_of_social_responsibility#ixzz1bgya1jdr

Thank you!!!