Social Responsibility Framework

Topics: Social responsibility, Corporation, Economics Pages: 6 (966 words) Published: October 21, 2014
7/7/2014

95% of Respondents Agree

CHAPTER 1

Social Responsibility
Framework

• U.S. corporations should have more than one
purpose. They also owe something to their
workers and the communities in which they
operate, and they should sometimes sacrifice
some profit for the sake of making things
better for their workers and communities.
Source: "How Business Rates: By the Numbers, Business
Week, Sept. 11, 2000, pp. 148-149.

Social Responsibility Defined
• Social responsibility

What do you believe organizations
should be responsible for
accomplishing?

– The adoption by a business of a strategic focus
for fulfilling the economic, legal, ethical and
philanthropic responsibilities expected of it by
its stakeholders

• Businesses should look beyond their selfinterests and recognize that they belong to a larger group that expects responsible
participation.

Social Responsibility Defined (cont.)

Social Responsibility Defined (cont.)

• Applies to all types of businesses

• Adopts a strategic focus






Small businesses
Large businesses
Sole proprietorships
Multinational corporations

– Requires a formal commitment from top management
• Communicated through mission and vision statements,
annual reports, websites, and public relations
– Requires action and results
– Depends on collaboration and coordination across business and among constituencies
– Large companies often create specific positions and
departments to support social responsibility programs

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Social Responsibility Defined (cont.)

TOTO Corporate Responsibility Committee
Structure

• Fulfills societal expectations





Provides a return on investment for owners
Obeys the law and regulatory agencies
Acts in a just, fair, and correct manner
Promotes human welfare and good will

Pyramid of Social Responsibility

Social Responsibility Defined (cont.)
• Economic
– Maintain profitability

• Legal
– Abide by legal and regulatory influence

• Ethical
– Ensure just and fair behavior in the workplace

• Philanthropic
– Promote human welfare and goodwill

Social Responsibility Continuum

Add Figure 1.5 here

Who are the key
stakeholders of the organization?

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Social Responsibility Defined (cont.)

Stakeholders

• Requires a stakeholder orientation

• Those constituents who have a stake in, or
claim on, some aspect of a company’s
products, operations, markets, industry, and
outcomes
• Companies that operate with a stakeholder
orientation recognize that business and society
are interpenetrating systems, in that each
affects and is affected by the other.









Customers
Employees
Investors
Stockholders
Suppliers
Government
Communities

Evolution of Social Responsibility:
1940s–1960s

Evolution of Social Responsibility:
1970s–1980s

• 1940s
– Economic dominance of corporations
– Total autonomy of top management
• 1950s–60s
– Few formal governance procedures restraining
management actions
– Organizational charitable giving expanded
(charities, arts, culture, and community)
– Laws are passed that require protection of the natural
environment, safer products, promotion of equity,
and supporting workplace diversity.

• 1970s

Evolution of Social Responsibility:
1990s–2000s

Lessons Learned from Economic
Crises

• 1990s
– Less employee loyalty and increased “job hopping”
– Growth of temporary employment
– Greater interest in ethics and social responsibility
• 2000s
– Special interest groups, companies, human rights activists, and government strive to balance economic and social goals.
– Major scandals damage the global economy.









– World competition, bankruptcies, mergers and
acquisitions

• 1980s





Flatter organizations (downsizing)
More business scandals
Empowerment of lower-level employees
Focus on profitability and economies of...
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