Social responsibility is a business imperative that targets continuous improvement in order to impact and adapt to the social and ecological sustainability of the community. Social responsibility is a goal of perfection that will never be completely achieved. (Duckworth, Moore 2010)
Social responsibility is split up into two opposing views, the classical view, which states that managements only goal is to maximise profits, and the socioeconomic view, which states that managements social responsibility aims beyond making profits and focuses on improving and protecting welfare in society. (Werther, Chandler 2010)
Both views share the focus of a business's prosperity and longevity by setting goals to ensure this is the case, but they differ in their views of helping the environment and the community. The classical view reminds us that it is imperative to only maximise profits, however if this is its only focus then the business will last in the short term but in the long term it will suffer because of its lack of vision towards society's welfare. The business that uses the socioeconomic view will be profitable in the long term because of its consideration for society's longevity (Hawkins 2006)
The role of social responsibility is influenced by how managers make decisions when they plan, lead, organise and control. Reasons for being socially responsible include public image and how businesses can create a favourable public image by pursuing their social goals. Businesses can contribute to a better environment by helping solve difficult social problems. Authority of prevention over cure which is when businesses should address social problems before they become serious and complex to correct. Possession of resources is key because businesses have the resources to support public charitable projects the need assistance. Being socially responsible will improve a business's share price in the long run and therefore attract investors. The general public expects and...
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