Social responsibility is the set of obligations and organization undertakes to protect and enhance the society in which it functions. The complexities for managers in an international business are clear.
Clear means balancing the ideal of a global stance on social responsibility against the local conditions that may compel differential approaches in the various countries where the firm does business.
AREA OF SOCIAL RESPONSIBILITY
Organizations may exercise social responsibility toward their stakeholders, toward the natural environment, and toward general social welfare. Some organizations acknowledge their responsibilities in all three areas and strive diligently to meet each of them, while others emphasize only one or two areas of social responsibility.
- Organizational Stakeholders
- The Natural Environment
- General Social Welfare
Organizational stakeholders are those people and organizations that are directly affected by the practices of an organization and that have a stake in its performance. Most companies that strive to be responsible to their stakeholders concentrate first and foremost on three main group;
- Customers
- Employees
- Investors
Moreover, they should be accurate and candid in their assessment of future growth and profitability and avoid even appearance of improprieties involving such sensitive areas as insider trading, stock price manipulation, and the withholding of financial data.
The Natural Environment
A second critical area of social responsibility relates to the natural environment . Not long ago, many organizations indiscriminately dumped sewage, waste products from production and trash into streams and rivers , into the air, and on vacant land.Many laws regulate the disposal of waste materials.In many Instance, companies themselves have become more socially responsible in their release of pollutants and general treatment of the environment.
Companies need to developed economically feasible way to avoid contributing to acid rain and global warming;to avoid depleting the ozone layer and to develop alternative methods of handling sewage, hazardous waste and ordinary garbage.
- Some people believe that in addition to treating their stakeholders and the environment responsibly, business organizations also should promote the general welfare of society.
- Some people also believe that organizations should act even more broadly to correct the political and/or social inequities the exist in the world
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