What is social responsibility?
Companies that are socially responsible make sure they assume responsibility in all their actions. These companies are concerned with a much wider pool of stakeholders, hence shareholders, customers, employees and the society alike are taken into consideration in their decision making processes. The very nature of the company’s operations is to have a positive impact on all stakeholders. While creating profits for shareholders, by providing good products or services, through employees that are motivated to do a good job, the company works towards a greter good which improves our community. The stakes of one party are never compromised for the benefit of another party. On the contrary, treating employees well will result in better served customers, and serving the community will increase its well being and purchasing power, both leading to higher returns for the business. Social responsibility is about doing better business and creating better communities resulting in more profitable business, and everybody will win. A common definition of a company’s purpose is, “to maximize shareholders' return”, to create as much economic benefit as possible. If things go well the company’s managers might decide to share a part of the earnings with society, give something back to those in need, after all it can only do good for the company’s image. This is charity or philanthropy. When speaking about corporate social responsibility it is often attributed to philanthropic and charitable donations to worthy causes or to those in need. The true meaning of social responsibility is actually somewhat different. Social responsibility and social awareness is really about how companies choose to act and behave in their daily business. Charity is needed and wellcomed, but it should not be mistaken for corporate social responsibility.
