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Social Responsibility Framework

University: University Of Northampton

  • Unit No: 9
  • Level: High school
  • Pages: 10 / Words 2533
  • Paper Type: Assignment
  • Course Code: BUS3001
  • Downloads: 338
Question :

This sample will let you know about:

  • Explain about the social responsibility.
  • Discuss about the major objective of social responsibility.
  • Discuss about the a major role of organization.
Answer :
Organization Selected : N/A


Social responsibility is predominately the means and ethical framework where organizations or an individual have the obligations for working towards the interest of stakeholders and thus perform ethically. Social responsibility reflects that where organization performs its functions in ethical manner or not. The main aim of this report is to discuss the contrasting views of research that whether social responsibility of business is to increase their profit or not.

This report gives a brief overview of the statement “Social responsibility of the business is to increase its profit”



As per the view of Moratis and Cochius (2017), Social responsibility predominately suggests that the businesses should act and perform in manner which is highly beneficial for society in addition to increasing and maximizing the value of shareholders. It has become highly important as well as essential for the investors as well as the consumers who generally seeks the investments which are not highly profitable and thus contributes for welfare of entire society as well as environment. In short, social responsibility is mainly duty of each and every individual for performing and acting towards the interest of society and to have a thorough balance between economy as well as ecosystem. Many researchers claim that social responsibility is basically the most imperative as well as profitable way through which organizations can increase their overall profits. The organizations mainly views the social responsibility as the only means through which they can increase their profits. Want to get Assignment Samples?Talk to our Experts!

According to Harrison and et.al.,(2019), The organization whether big or small have the major objective of increasing the profit in addition to satisfying the customers. Nowadays, even a small barber shop starts the shop with the aim to diversifying and making as much money as possible. Thus, organizations now have become highly profit oriented where they are focused towards exploring the different ways for increasing their sales and raising the revenue ratio. Within present climate of the opinion along with widespread aversion to the capitalism, profits have become the soul of each and every corporation and this is one of the bets way to generate goodwill within market as by-product of the social responsibility. Social responsibility of the business is mainly to maximize their revenue and profit in one or the other way and thus is the most comprehensive way through which an organization can gain a large market share and achieve the competitive advantage.

As illustrated by Sroka and Szántó (2018), The Social responsibility in organizations have lost the rigour and is mainly directed for providing a great market share to the business. As businesses are not basically the moral persons thus they cannot have the responsibilities and are not bound to carry out these responsibilities in the way suggested by others. These business mainly have the notion that how to generate more and more profit and what strategy could be applied which will help them in gaining competitive advantage in terms of sales, profit, revenue, return on investment etc. As the organizations have large number of shareholders associated with them who invests their money in the organization with a belief that they will get a good return on investment thus these organizations becomes bound by these investors and their main objective becomes maximizing profit and increasing the revenue ratio.

It has been found that profit and revenue forms the major core strength of any organization which distinguishes small and large organizations There is a broad line between small and large organizations which makes them different from each other which is the amount of revenue generated by them and their turnover. Thus, in order to gain a reputation in market and to increase the market capitalism, it becomes highly essential to have a great turnover and raise the profit ratio. The social responsibility for these businesses is to find ways and work towards the interest of society just for increasing profit and capture a great market share. Working towards the welfare of society will eventually increase the profit ratio of these businesses and will help them to gain an edge over their competitors.

As per the view of Leipziger (2017), Social responsibility is basically working towards the interest of society and entire community and thus to remain responsibility for the actions. Social responsibility is not merely a means of maximizing the profit but is the only way through which an organization can increase its image and reputation among customers and make their contribution for welfare of the society. Managers generally have the moral responsibility for acting towards the best interest of shareholders and increase their trust and confidence on the organization. Social responsibility mainly addresses that the organization should engage in the activities which will increase social welfare and should continuously perform their functions in the ethical manner. While rendering their services, organization have the prime motive of enlarging the customer base not by fooling them but with ethically and morally generating a trust among them for their organization. Morality generally sets rules as well as obligations as to how organizations should be governed and what ways the organization should adopt in order to work towards the welfare of society and entire community. Corporate executive have direct responsibility towards their employers as well as shareholders thus it is sole responsibility of the manager of every organization to conform with basic rules as well as regulations of society. Ask for assignment help from our experts!

Social responsibility in not all about maximizing and raising the revenue as well as profit ratio but it is to remain responsible for the one's own actions and thus working towards the interest of the stakeholders.

Example 1

For example- being a small organization, Barker and Stonehouse performs its functions in an ethical manner and thus works towards the interest of stakeholders. Barker and Stonehouse has committed to make use of recycled material and renewable resources for producing furniture and thus contributes towards sustainability.

Example 2

Besides this another example is offering the sustainable products to the customers like it uses older furnitures for making new furnitures and reuses it (Cortina, 2017). Barker and Stonehouse provides the sustainable and innovative products to customer for solving their problems.

Example 3

Third example is that Barker and Stonehouse contributes towards environmental sustainability by optimizing its process and supply chain like it uses double strollers for transporting its furnitures so that bulk item is transported in few rounds due to which rounds for transportation is reduced and this decreases overall carbon emission.

Example 4

Fourth example is that this company fulfills the customer expectations by designing various innovative products like folding furnitures.

Illustration 1: Social responsibility

(Source: Social responsibility, 2019)


Friedman theory

This is the highly used as well as well-known theory of the social responsibilities within organization and states that the organization generally have no social responsibility towards public as well as society but it is mainly responsible for its shareholders and has direct responsibility for employers. Milton Friedman argued that shareholders are the major economic engine of organization and and is the entity to which firm is generally responsible.

Example 1

In this context, the main goal of Barker and Stonehouse is to increase and maximize the returns to their shareholders.

Example 2

Barker and Stonehouse is mainly oriented to work towards its shareholders and continuously assesses the marketing environment in order to provide greater returns to their shareholders.

Freeman theory

This theory mainly states the relation between business as well as its stakeholders. According to this theory firm should develop products as well as services which creates a value for every stakeholder ranging from customers to employees. It provide emphasis on stakeholders rather than shareholders.

Example 3

For example- Barker and Stonehouse comes up innovative idea of foldable dining table in order to solve the problem of less space by various customers. This product helped company to create value for all stakeholders like for customers by providing solution to problem of limited space and employees by offering great challenging work.

According to Dawson (2018), another one of the most imperative as well as widely known theory which reflect social responsibility of businesses to high extent is business ethics theory. This theory is mainly based on the premise that the organizations have moral as well as social obligations towards the society and is mainly based on three interrelated grounds. First one is changing as well as emerging social perspective and social responsiveness to specific social problems. Second addresses that internal ethical values are highly normative and relates to human rights, social justice. Third is the corporate citizenship means corporation as the better citizen within society. Thus this is the most remarkable theory of social responsibility which seems to be highly comprehensive and thus shows that each and every organization have some responsibilities and ethics which they are required to adhere. The theory of the business ethics mainly views social responsibility more as philanthropic as well as ethical responsibilities instead of legal as well as economic responsibilities. For example- Barker and Stonehouse have the prime objective to continuously innovate the products which will provide solution to all the problems of customers rather than just maximizing the profit.

As illustrated by Grayson and Hodges (2017), When an organization is highly involved in social responsibility and thus contributes to the environment as well as works for the welfare of entire community then this not only helps them to increase the brand reputation but also assists in their positive growth and development. For example- when organization produces the innovative products which provides a complete solution to the emerging problems of people then this eventually increases the brand recognition as well as brand awareness of organization and thus eventually leads to better financial performance. Therefore, social responsibility eventually increases the profit of company when the organization works towards the welfare of society and thus performs ethically. Social responsibility is not all about maximizing the profit and revenue ratio but it is mainly complying to the rules as well as regulations of the society and becoming socially responsible by making a huge contribution towards environment. Besides this, as employees forms the integral part of any organization thus protecting the moral rights of employees is one of the major social responsibility of the management. Proving the equal wages, eliminating discrimination, cross-cultural differences, maintaining diversity within organization is what helps the company to achieve competitive advantage and build a great reputation and goodwill within the minds and hearts of people. Thus, maintaining the ethical and socially responsible environment within organization helps to decrease the turnover rate and thus assists in retaining the employees for extended period of time. Ask for assignment writing help from our experts!


Ethics are basically the moral principles which guides as well as governs behaviour of the person and deals with good practices. Business ethics basically is study of the business policies as well as practices and are moral rules which provide right direction to organization and helps in decision-making.

Audit skill is predoinately the process which is used for identifying skills gaps within organization. The major outcome is the training for bridging skill gaps. Skill audit mainly helps Barker and Stonehouse to increase the skills as well as knowledge of their employees and make them competent. For example- through skill audit, management of Barker and Stonehouse finds that employees in HR department are not able to effectively attract candidates and lacks the recruitment skills. Thus company will provide effective training to personnels regarding recruitment.

Not only does the employees forms a major link between the brand reputation and profit maximization but shareholders are the another most important assets for organization. Investors and shareholder mainly invest their money with a belief that organization will remain transparent to them and will provide a great return on investment. Thus, maintaining a transparency with shareholders and revealing the financial and other information of organization reflects that organization works towards their interest. Due to this transparency, organization build a great image within the minds of other investors and in market and thus this increase their overall profit and market capitalism. Therefore, social responsibility and profit maximization shares a great relation when organization performs their functions and operations in ethical manner. Barker and Stonehouse are highly accountable and transparent towards their shareholders and this is the main reason why they are financially stable despite having small business. Due to their ethical mode of conducting business, the investors of Barker and Stonehouse has increased from last few years and have provided them the opportunity to diversify their business. Order Dissertation writing service Now!!

According to Cortina (2017), Most of the researchers argues that when the company helps the entire society by making a great contribution towards sustainability like reducing environmental pollution, adheres to environmental policies then a sense of trust and loyalty is generated among people of society for that organization, and they tend to become highly oriented towards that organization. This at the end leads to increase in sale of products and services of the organization and thus increases their profit margin. This also increases their share in market and hence helps them to gain the competitive advantage. Therefore, instead of making social responsibility as prime objective for increasing profit margin when organization uses social responsibility for the aim to work ethically and towards the welfare of society then it automatically increases the profit and revenue of organization. Social responsibility plays an important role within organization and helps to diversify in the wider geographies.


It has been summarized that social responsibility plays a major role within organization and thus helps the organization to take their brand message to wider audience. Some of the researcher believes that the social responsibility of the business is just to increase their profit while some argues that being socially responsible means to remain accountable to stakeholders and working towards their interest. Social responsibility of organizations is not only to maximize their profit and revenue ratio but to comply to the moral ethics and legislation of society. By contributing towards the environment and working for welfare of society, an organization is able to build a great reputation within hearts and minds of people and this eventually helps them to increase their profit.

Read Also - Overview of Research on Brand Identity

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