Social Responsibility of Business Towards the Society

Question :

This sample will let you know about the:

Definition of Social Responsibility.
What are the main Social Responsibility of Business Towards the Society?
What is the Carroll Model of Social responsibility?

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INTRODUCTION

Different range of Social responsibility

Definition of Social Responsibility

Social responsibility is define as a different type of activity or responsibility which is performed by an entity, so that society used to get benefit at large. Responsibility hear define as a duty which need to be performed by an individual or organization to maintain a good sort of balance between economy and ecosystems of an society. In the recent past the biggest change which has been seen, is the changing view point of all the organization toward the social responsibility (Aguinis and Glavas, 2016). As large number of organization is indulging themselves in different type of social responsibility at their level. Reason behind the same is increasing awareness about different sort of social responsibility for an organization and understanding of what positive impact it used to bring on profitability of an organization. Social responsibilities of business used to varies in large number of range, as there are many different stakeholder to which company is liable, as a result organization in real has to compile with range of social responsibility in an organization. Order assignment help from our experts!

Example of Social Responsibility of an organization

First and foremost interested parties in an organization is the employee of an organization. The social responsibility of organization toward the same is safeguarding Human right as well as promoting fair labour practices in an organization (Ali, Frynas and Mahmood, 2017). It is very necessary for all the organization to make sure that they used to create the environment in an organization, where human rights of an organization are prevented and also organization has to make sure that all the labour practices in an organization is at the fair side. For example: Fantozzi, the restaurant used to make sure that all the policy which is made in an organization are made by compiling all the policy with the employment law and different human rights. In which they used to follow all the regulation related to minimum wage rate, used to install security equipment at workplace and many more (Flammer and Luo, 2017). This eventually help the company in retaining the employee for longer period of time and improving efficiency of business, this used to has a positive impact on the profitability of a business. On the other hand it has been also find out that compiling all the activity with social responsibility used to take more than expected time for the work to be completed in an organization. As it requires a variety of permission and supervision before going forward which used to has negative impact of efficiency and profitability of business.

Another imported stakeholder of business are the customer of an organization. All the organization are socially responsible to provide good quality of product to consumer for the purpose of consumption. As consumer are the sole responsibility of all the society, it is very important for all the organization to provide a good sort of product to them, so that it can help them in improving the level of lifestyle of consumer (Crane and Glozer, 2016). Also, it is sole social responsibility of business to provide all the information regarding the product to consumer in the market. For example: Fio's Food centre, grocery provider used to make sure that they used to clearly specify all the ingredients which is used by organization in preparing food. Organization also used to offer good quality of product to the consumer, so that lifestyle of consumer can be improved. This activity used to help the organization in building good customer base in the market, which eventually impact the profitability of an organization in positive way. The thing which is not in the favour of social responsibility is that it get very difficult for organization to understand lifestyle of all the consumer in an organization which eventually used to impact the efficiency of business in long run (Benlemlih and Bitar, 2018).

Application of Philosophical and pragmatic model of social responsibility of specific situation

Different Models of Social Responsibility

There are many different type of business situation through which an organization used to go to carry out different operation of an organization. As a result to understand the Social responsibility of an business at many different situation of an organization, Carroll has given up a model to understand the same called as Carroll's four part definition of CSR. This model used to encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time. This model in general used to argue about how and why organization used to meet the social responsibility of an organization.

Carroll Model of Social responsibility

In a business cycle all the organization used to go through two type of situation, that is recession and boom (Doh, Husted and Marano, 2018). Boom period is the period when organization used to make good profit out of the market. At the same time recession period company is not able to get the best out of the resources which is available with them. Irrespective of different situation in the organization it is the social responsibility of business to make profit to survive in the market for longer period of time. It is economic section of Carroll's Pyramid model. Next section of model is the legal section. This section used to explain that organization need to obey all the rules and other regulations to carry out the different operation of the business. Generally this section is looked by the organization at the time of making up of different sort of policy and regulation to be applied in an organization. As there are many different policy which used to be followed by all the employee to carry out different operation of an business. Organization at that time has to make sure that the different policy, which are being made in the organization does not impact the human right of an employee in the organization or impact the personal life of an employee.

Getting good sort of profit from the market or making up of good customer base in the market, is not the only motive of all the organization in current scenario (González-Rodríguez and et.al., 2019). As it is the responsibility of all the organization to perform this sort of activity in an organization but at the same time making it sure that this is perform by looking at the ethical aspect behind the same as well. This is the thing which is explained by Carroll's next segment as well, as next segment which is ethical one used to explain that it is responsibility of organization to act morally and ethically in an organization. This social responsibility is performed in the organization at the time when there is good amount of employee turnover in the organization or there is good sort of working pressure in an organization. At that time organization has to make sure that they used to provide good sort of working environment to all the employee in the organization so that they feel secure in the organization. Secure hear is used in the context of explaining their thoughts or showcasing their skill in an organization (Kim, Kim and Qian, 2018). For example: Despina Food, the grocery seller used to organize informal meeting of all the employee in the organization on last day of month, so that all the employee can gel with each other in the organization and carry out different operation of the business.

Last segment of Carroll's model is Philanthropic segment, it is the segment which used to explain that the organization should pay it back to the society which has given so much into the success of business. As organization used to use the variety of natural resources to carry out the operation of the business, it is the responsibility of all the business to return some sort of profit back to the society of a nation. Organizational generally used to take help of charitable donation to pay something back to the society. For doing the same the organization generally used to invest some percentage of their profit toward social responsibility of an organization.

Fried Man theory

This is the theory which used to explain that all the consumer in the market used to make different decision on the basis of looking at the future income which will be possessed by them. As a result all the SMES in the market used to plan different activity in the way that they will able to satisfy the current as well as future demand of the consumer in the market.

Ethical and Sustainability of range of organization

Definition of Ethics and Business Ethics

Ethics stands for moral principles which used to govern the person behaviour of conducting different activity in the organization. Whereas Business ethicsrefers to implementing appropriate business policies and practices with regard to arguably controversial subjects

Ethical and Sustainable Audit

All the organization which had been mention in the above literature, used to perform variety of social activity in the organization to ethical sustainable in the market (Glavas, 2016). As Fantozzi, the restaurant used to specify all the ingredient which will be used by the restaurant in preparing a dish at the menu of the restaurant itself. This helps the organization in promoting the clarity of thoughts to the consumer in the market, this help the company in building a good trust within the customer base in the market. This has helped the company in retaining the consumer in the market for longer period of time. Fio's Food centre, grocery provider used to provide good sort of training to all the employee in the organization, so that they can build a good sort of skill set in themself to carry out the different operation of the business. This help the organization in passing on the positive message to the employee, at the same time with the help of same the organization is also able to maintain efficient workforce in the organization as well (Aguinis and Glavas, 2016). This help the company in building good working environment in the organization in the ethical way. Despina Food used to donate some sort of their earning toward the social cause of the society. In which they used to promote the product by highlighting that some percentage of your spending will be diverted toward overcoming some or the other social issue which is prevailing in the market. This eventually helped the organization in satisfying two social responsibility in once. As this has helped the company in satisfying the economic responsibility as company is able to improve sell of company, which has eventually raise the profit of company. At the same time this has also helped the company in satisfying Philanthropic responsibility as well. As company is giving some sort of return back to the society in regards of contribution which is done by society on organizational operation (Ali, Frynas and Mahmood, 2017).

There were many different issue as well which was linked with the variety of the activity which has been performed in the organization to maintain a good sort of ethicality and sustainability in an organization. The biggest issue was that all of this three activity used to increase the cost of the company in carrying out the different social responsibility in the organization. To reduce the impact of same social responsibilities organization may have developed some innovative product to be offered to the market to improve the quality of life the consumer is enjoying. This would have helped the company in improving the profit of the company, as it would have helped the company in getting the competitive advantage in the market (Flammer and Luo, 2017). At the same time would have fulfil the economic responsibility of an organization. Another option through which the organizations would able to satisfy the social responsibilities of an market, is by investing in the resources of the nation. This can be done by the organization by educating the children who are not that financially strong or eradicating extreme hunger in the nation. As it is very important for all the society to look behind the human resources which is available in the market. This type of human resource will help the company in building good sort of goodwill in the market and will also help the organization in satisfying the Philanthropic responsibility of an organization in the market.

After going through the different social responsibilities of an organization and their impact on the profitability of the organization (Crane and Glozer, 2016). It can be said that social responsibility activity of an organization used to help company in building good sort of goodwill and develop good customer base in the market but it has been also seen that social responsibilities activity also used to create some issue like increasing cost of the company. So organization has to make sure that they used to become more selective toward selecting the activity to carry out social responsibilities.