Social responsibility is an ethical framework in which an individual is obligated to work and cooperate with other individuals and organizations for the benefit of the community that will inherit the world that the individual leaves behind. In business, it is commonly known as Corporate Social Responsibility or CSR. For any company, this responsibility indicates that they acknowledge and appreciate the goals of the society, and therefore, would support them to achieve these goals.
Advantages of Social Responsibility
- The long-term interest of the firm.
- Avoidance of government regulation.
- Maintenance of society.
- Availability of resources with business.
- Converting problems into opportunities.
- A better environment for doing business.
- Holding businesses responsible for social problems.
Disadvantages of Social Responsibility
- Violation of profit maximization objective.
- The burden on consumers.
- Lack of social skills.
- Lack of broad public support.
Types of Social Responsibilities
Following Are the Different Types of Social Responsibilities:
1. Economic Responsibility
- Every business is engaged in economic activities.
- So, the prime social responsibility of every business should be economic responsibility.
- Hence they should sell products and services which can satisfy the need of society.
2. Legal Responsibility
- Every organization is should comply with the political and legal environment of the country.
- The company should consider protecting the environment.
3. Ethical Responsibility
- This type of responsibility expects a certain kind of behavior or conduct from the company.
- This behavior may not be documented by law.
4. Discretionary Responsibility
- These are voluntary actions taken by the entities in case of natural calamities, helping poor people, etc.
- They help them by providing charitable contributions, education activities, etc.
- It prevents investments of charitable funds into speculative activities.
Corporate Social Responsibility
Corporate social responsibility (CSR) is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically oriented practices. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels.