Social Responsibility

Define what does Social Responsibility mean. Explain your answer.

            Social is a word that relates to society or organization, a life that is living in a community. And Responsibility means the condition or reality of being obligated to deal with something or having authority over someone. the capacity to act autonomously and make judgments without being directed.

           According to Pachamama Alliance that Individuals are held accountable for performing their civic duties under social responsibility, and their activities must benefit society as a whole. In this sense, there must be a balance between economic progress and societal and environmental well-being. If this balance is maintained, social responsibility is achieved.

            A social responsibility audit is a procedure that reviews and evaluates a company's social responsibility (CSR) performance. Social accounting is the process of conveying the social and environmental consequences of an organization's economic activities to certain interest groups within society, such as investors, consumers, and non-governmental organizations (NGOs).

            Individuals and groups can benefit from social responsibility and ethics theory. It should be incorporated into daily actions/decisions, especially those that affect other people and/or the environment. Maintaining social responsibility inside a corporation protects society's and the environment's integrity. For personal gain, the ethical consequences of a decision/action are frequently disregarded, and the advantages are typically material.

            The theory of social responsibility is based on an ethical framework in which decisions and acts must be morally verified before they are carried out. If the action or choice has a negative impact on society or the environment, it is termed socially irresponsible. Every individual has a responsibility to act in a way that benefits society rather than just themselves. People have their own knowledge on how to do their duties in a society, it depends on their decision on how they will act to it. The key to a successful and healthy society is the people who know and act at their responsibility.

Some critics argue that corporate social responsibility distracts the fundamental economic role of businesses.

            Some of the businesses here in the Philippines uses lots of our natural resources and some of them are free. There's no ownership in terms of raw lands, raw materials like mountains, rivers, sea. All you need to do is provide your materials and documentation that your enterprise will not destroy the balance in ecosystem then you can go proceed doing your business. Corporate social responsibility is not necessary in the business firm, most enterprise use it to build strong bond and image with their customer.

Executing corporate social responsibility will may be have cost a lot but it is necessary for the business to execute. To return the favor to the environment for their help running the business itself, to return the favor for the use of natural resources which own by no one. To give favor also to the people who lives beside those resources who also have the right to use that land, and maybe affected for the changes happens in that specific location. Customers are the one of the reasons why businesses exist if we did not give value to them more maybe you can lose in the competition. Establishing good brands using corporate social responsibility is one of the good brand promotions that you can have.

            Let's go back to the question that the CSR distracts the fundamentals of economics, it is not. The law of supply and demand will not be affected by the CSR programs of the business entity, because the budget for that project is not relatively to the price of the product. And the materials that is used for that program will not affect the supply in the market as well as the demand. So, let's stop seeing CSR as a hindrance in the business, let's see it as returning the favor to the people and the environment itself. You must question yourself. Would you choose to focus on gathering profit only, or returning the favor to what and who you owe? CSR is not mandatory it's just internal motive of every businessman. Therefor it will not affect the fundamentals of economics.

Corporate Social Responsibility or CSR

The benefits that a company can drive from corporate social responsibility if it is practiced and applied.

            According to Skye Schooley in Business News Daily that Corporate social responsibility (CSR) is a kind of self-regulation practiced by businesses with the goal of becoming socially accountable. There is no one "correct" approach for businesses to conduct CSR; various corporate CSR programs aim to favorably impact the public, the economy, or the environment. In today's socially conscious world, workers and customers value working with and spending money with companies that promote CSR. 

            Corporate social responsibility (CSR) is a company's commitment to managing the social, environmental, and economic consequences of its activities responsibly and in accordance with public expectations. Corporate social responsibility (CSR) is a management approach in which businesses attempt to have a beneficial influence on society while conducting business. Evidence shows that CSR undertaken freely by businesses will be far more successful than CSR imposed by governments. Developing a reputation for social responsibility is associated with increased profitability, especially when companies freely acknowledge the good and bad consequences of their social responsibility efforts. 

            Companies can demonstrate corporate responsibility by contributing money, goods, or services to charitable organizations and social causes. Participating in local causes or giving your time (and the time of your employees) reveals a lot about a company's genuineness. Companies may demonstrate their support for certain concerns and social causes by conducting good actions without expecting anything in return. 

            Companies can benefit from enacting corporate social responsibility in the following ways: improved brand recognition, because businesses that understand the impact of their activities on society, the environment, and the economy and are sufficient to evade them will help them capture the attention of their market, and good action will make their brand recognizable to the market. In addition, the firm will have a good corporate reputation, which will assist them grow sales and customer loyalty. Many consumers prefer a product from a firm with a good business reputation, and by implementing CSR, they may easily establish a good business reputation in their sector. Companies can also reduce operating expenses, enhance financial performance, and have a better capacity to recruit and retain personnel. Corporate social responsibility will assist businesses in their organizational growth and provide them with easier access to financial services.