What Is Social Responsibility?

WHAT IS SOCIAL RESPONSIBILITY?

I like to introduce this chapter topic by bringing in current stories about companies being socially responsible and being socially irresponsible. I ask my students what they think about what these companies are doing. Help students understand why these types of issues draw so much attention.

Q&A 5.1 Why are social responsibility issues drawing so much attention these days?

(Organizational managers, especially managers in for-profit business organizations, and their social responsibility or lack of social responsibility do seem to be a favorite target of the news media, don’t they? Why is this? The main reason is that business organizations play an important role in our society. These organizations control vast amounts of resources and provide the multitude of goods and services that society desires. So we look at what these organizations do�the good, the bad, and the ugly. We ask, are they being socially responsible and can they improve their contributions to society. When we feel these organizations are not being responsible, we want to know why and what they’re going to do about it. Fortunately, we don’t always dwell on the negatives. When organizations are doing good things for society, we also applaud and commend them. For instance, you may have heard or read about Aaron Feuerstein’s fabric mill in Malden, Massachusetts. When it burned to the ground, his decision to continue paying his employees until the mill was rebuilt made him into an overnight celebrity because of his ethical and socially responsible action. [If you want more information, do a Web search for the story.])

WHAT IS SOCIAL RESPONSIBILITY? ARGUMENTS FOR AND AGAINST

You may find that you have students who feel strongly for one side or the other. It’s important to point out that even those who argue against firms being socially responsible aren’t really arguing against the concept of social responsibility, but rather to whom the firm is responsible. Help your students better understand this concept.

Q&A 5.2 What’s the big fuss? Who could ever argue against firms being socially responsible?

(The key to understanding arguments against firms being socially responsible is understanding to whom the organization is responsible and the extent of that responsibility. Those who argue against firms being socially responsible are saying that firms do have a social responsibility, but that responsibility is not to society and other stakeholders but to the organization’s stockholders. It’s a narrow view, but the opponents of social responsibility believe that businesses are being socially responsible when they attend strictly to their economic interests.)

FROM OBLIGATIONS TO RESPONSIVENESS TO RESPONSIBILITY

One way to help students see how social responsiveness differs from social responsibility is by looking at the time frame of each. A socially responsive business does seem to be focused on popular social issues.

Q&A 5.3 What implications does time frame – that is, short run versus long run – have in issues of social responsibility?

(Time frame is one of the key factors we use to differentiate between social responsibility and social responsiveness. Remember that social responsibility is the obligation of a firm to pursue long-term goals that are good for society. It’s a reflection of the organization’s desire to do something good because that’s the moral and ethical thing to do. On the other hand, social responsiveness is much more pragmatic. A socially responsive organization is focused on a medium and short-term time frame because its desire is to respond to changing societal norms and demands. As social “causes” come and go, a socially responsive organization will adapt its involvement in society to meet what it perceives as important to society. However, a socially responsible organization takes a more long-term commitment to improving society and views its involvement as transcending the popularity of changing societal causes.)

FROM OBLIGATIONS TO RESPONSIVENESS TO RESPONSIBILITY

If you like to challenge your students to think…try this! Have them think about this Q&A and have a classroom discussion about it.

Q&A 5.4 Can you be a socially responsible person and still work for a company whose products can injure and even kill people? (Think of alcohol manufacturers, tobacco companies, food manufacturers whose products have high fat content, and so forth.)

(Wow!