Social Responsibility

Reporter: Shiela G. Panglima

Social Responsibility
Social responsibility is managements obligation
to make choices and take actions that will
contribute to the welfare and interests of society as
well as the organization.

Total Corporate Social Responsibility

Economic Responsibilities
Legal Responsibilities
Ethical Responsibility
Discretionary Responsibility

Total Corporate Social Responsibility

Economic Responsibilities
Legal Responsibilities
Ethical Responsibility
Discretionary Responsibility

Total Corporate Social Responsibility

Economic Responsibilities
The businesses responsibility is to produce the
goods and services that society wants and to
maximize profits for its owners and shareholders.
May also be called profit-maximizing.
The corporation should be operated on a profitoriented basis, with its sole mission to increase its
profits so long as it stays within the rules of the game
(advocated by Nobel economist Milton Friedman).

Total Corporate Social Responsibility

Legal Responsibilities
Legal responsibility defines what society
deems as important with respect to
appropriate corporate behavior.
obeying the law (society's codification of right
and wrong);
playing by the rules of the game

Total Corporate Social Responsibility

Ethical Responsibilities
doing what is right, just, and fair; avoiding
harm
organization decision makers should act with
equity, fairness, and impartiality, respect the
rights of individuals, and provide different
treatment of individuals only when relevant to
the organizations goals and tasks

Total Corporate Social Responsibility

Discretionary/Voluntary Responsibilities
guided by a companys desire to make social
contributions not mandated by economics,
law, or ethics.
goes beyond societal expectations to
contribute to the communitys welfare.

The Pyramid of Social

Responsibility

A Stakeholder is any person or group within or

outside the organization that has a stake in the
organizations performance.

Total Corporate Social Responsibility

Relations with Owners and Shareholders
the business must maximize the owners
investment in the firm.
maintaining proper accounting procedures,
providing all relevant information to investors
about the current and projected performance
of the firm, and protecting the owners rights
and investments.

Total Corporate Social Responsibility

Employee Relations
providing equal opportunities for all
employees regardless of their sex, age, race,
religion, or nationality.
provide a safe workplace, pay them
adequately for their work, listen to their
grievances and treat them fairly.

Total Corporate Social Responsibility

Consumer Relations
The activities that independent individuals, groups, and
organizations undertake to protect their rights as
consumers are known as consumerism.
The right to safety means that a business must not
knowingly sell anything that could result in personal
injury or harm to consumers.
The right to be informed gives consumers the freedom
to review complete information about a product before
they buy.

Total Corporate Social Responsibility

Consumer Relations
The right to choose ensures that consumers
have access to a variety of products and
services at competitive prices.
The right to be heard assures consumers that
their interests will receive full and sympathetic
consideration when the government
formulates policy.

Total Corporate Social Responsibility

Environmental Issues
Animal Rights
testing of cosmetics and drugs on animals who
may be injured or killed

Pollution
Water pollution results from dumping toxic
chemicals and raw sewage into rivers and
oceans, oil spills.

Total Corporate Social Responsibility

Community Relations
responsibilities to the general welfare of the
communities and societies in which they
operate.

Thank you!