Social Responsibility

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The social responsibility concept is based on the premise that business has greater impact on society than can be measured by profit or loss. As a participant in society, business should contribute to the human and constructive social policies that guide society. The concept of social responsibility is merely a first step towards social effectiveness of business. It is the underlying value which gives businessmen a sound basis for social action. It is the philosophy which justifies business involvement in its social community, but philosophy by itself is incomplete. It must be followed by effective social action. Philosophy without program is a shadow without substance. Perhaps, one should take, therefore, less of corporate social responsibilities and more of corporate social responses. The former is too redolent of legalism and the notion of fixed obligations, the latter more open permits voluntary and creative undertakings by business on behalf of society’s larger needs.

Social responsibility means that organizations are part of a larger society and are accountable to that society for their actions. Like ethics, agreement on the nature and cope of social responsibility is often difficult to come by, given the diversity of values present in different societal, business, and corporate cultures. There are three concepts of social responsibility which are profit responsibility, stakeholder responsibility, and societal responsibility. Profit responsibility holds that companies have a simple duty that is to maximize profits for their owners or stockholders. Nonetheless, there are concerns about profiteering. Profiteering occurs when a company makes excessive profits usually by taking advantage of a shortage of supply to charge extremely high prices. In addition to sales through company-operated retail stores, Starbucks sells whole bean coffees through supermarkets and it has leveraged its brands by expanding beyond its coffee kiosks and stores to bring the...
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