Social Responsibility for Socially Business - MyAssignmenthelp.com

Question: What is socially responsible business? Answer: Socially responsible business can be defined as the business that works for earning profit along with the practices that accounts for the sustainable world and society. The major aim of these types of businesses is more than just serving the market but these businesses try to change the world and the society for their benefits (Friedman, 2007). They have the tendency and the intension to uplift the society by some of the activities. If any of the organization is socially responsible then the company looks for the activities that provide profits to the stakeholders as well as add some of the extra value to them other than money. In other words, it can be said that the socially responsible organization is the one who earns profit as well as work for the societal good. In doing so, the business tries to engage in the activities that aims at improving and developing the society and the environment (Campbell, 2007). The aspects that are involved in being socially responsible starts from t he stakeholders benefits to the societal benefits and then to the development and sustainability of the environment. Socially responsible business is the concept that focuses on the involvement of the community and the company. it is a similar concept as Corporate Social Responsibility. This is because the concepts aim at providing benefits to the society by conducting the activities that results in least harm to the environment and the society (Carroll Shabana, 2010). socially responsible business goes beyond that as they try to collaborate with the society or the community in order to make positive contribution to develop the society by sustaining the environment. The businesses that calls themselves socially responsible needs to collaborate with all of the other segment of the community in order to make their contribution for the same. There are many ways in which a company can contributes to the society. This depends on the values and the beliefs of the company that what path they are following (Dahlsrud, 2008). One of the most common way that is processed by every company these days is to adapt the concept of corporate social responsibility in the company. this concept allows the companies to donate some of the share of their profits to the society or the community that are in need (Du, Bhattacharya, Sen, 2010). The biggest example of this type of contribution is set by the company called American Express. The company has started the campaign for restoration of the Statue of Liberty in which the company has donated 1 cent for every dollar that has been spent by the customers on Am Ex card. In totally, the company contributed $1.7 million for the liberty lady but in addition to it, the company has experienced 47% growth in the card use that helps the company to create awareness about the brand as well. There are many other ways in which the companies can contribute their part such as by donating some amount of money for needy people, by collaborating with the NGOs or orphanage, by reducing the harmful emission caused by the factory activities in order to save the environment etc. Different stakeholder has different roles to play in terms of making the organization responsible towards the society. stakeholders can be defined the one who are directly or indirectly associated with the firm (Kurucz, Colbert Wheeler, 2008). The direct stakeholders ae the shareholders, employees, customers etc. while the indirect stakeholders are the suppliers, distributors etc. involvement of stakeholders in making companys decision helps in sharing the results of that decision. If the stakeholders views are taken into conservation then the organization becomes more ethical and socially responsible as the stakeholders are the one from the community only. the most costs stakeholders for the company are its shareholders (Matten Moon, 2008). Providing additional benefits along with the profits helps the shareholders to be associated with the company for long and thus restrict the firm to take any unethical action towards the society. this is because the shareholders or the nay of t he stakeholders such as employees and customers are then from the society and only and they also want to be associated with the companies those provide a sustainable environment for the future generations. Exploiting the society and the environment in order to serve the market with the products is not the ethical way of doing business. Being ethical is the major concern of the socially responsible business (Devinney, 2009). The theory of being socially responsible is based on the ethics and the ethical consideration of the society because the organization which conducts any of the unethical practice cannot be termed as socially responsible organization because it is ruining one of the parts of society intentionally or unintentionally. As far as the Australian organizations trades are considered, it has been analyzed that some of the top leading companies in being socially responsible such as Deloitte, KPMG, National Australian Bank etc. are focusing on partnership strategy to contri bute their part towards the society. the organizational are adapting such strategies in order to serve their part for the society by helping those companies how are doing for the societal good. There are many areas where businesses can engage themselves in order to improve the welfare of the society. some of them are environmental affairs, urban and rural affairs, consumer affairs, employment affairs etc. it has been arguing that organizational and business are the subset of society and they are earning profits because of the involvement society thus, they have the responsibility towards society as well (Carroll, Shabana, 2010). It is the fact that profitability of the organization and the growth does not only depend on the products quantity and the quality of the products but it also depends on the way an organization is contributing towards the society. References: Campbell, J. L. (2007). Why would corporations behave in socially responsible ways? An institutional theory of corporate social responsibility.Academy of management Review,32(3), 946-967. Carroll, A. B., Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice.International journal of management reviews,12(1), 85-105. Dahlsrud, A. (2008). How corporate social responsibility is defined: an analysis of 37 definitions.Corporate social responsibility and environmental management,15(1), 1-13. Devinney, T. M. (2009). Is the socially responsible corporation a myth? The good, the bad, and the ugly of corporate social responsibility.The Academy of Management Perspectives,23(2), 44-56. Du, S., Bhattacharya, C. B., Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication.International Journal of Management Reviews,12(1), 8-19. Friedman, M. (2007). The social responsibility of business is to increase its profits. InCorporate ethics and corporate governance(pp. 173-178). springer berlin heidelberg. Kurucz, E. C., Colbert, B. A., Wheeler, D. (2008). The business case for corporate social responsibility. InThe Oxford handbook of corporate social responsibility. Matten, D., Moon, J. (2008). Implicit and explicit CSR: A conceptual framework for a comparative understanding of corporate social responsibility.Academy of management Review,33(2), 404-424.