Operation Management

SOCIAL
RESPONSIBILITY OF A
BUSINESS
Social duty or responsibility in business relates to
individuals and associations carrying on and leading
business morally and with affectability towards social,
cultural, financial, and natural issues. Being a Socially
Responsible Business can help your company in
increasing its reputation as a "good business". Which can
boost your overall sales and exposure to much larger
communities.
There are two types of views on Social Duty or
Responsibility
o The Traditional View
o The Financial View
Organization and Management Concepts:
A. Social Orientation of a Business:
Social Orientation is a theory that explains a specific behavior, relationships or actions of a

person with other people or in a society.
Social Orientation is also called Social Dominance Orientation it is used to predict attitudes or
behaviors of work groups.
B. Social Responsibility Models
The pyramid model of Corporate Social Responsibility has 4 sorts of obligations. It is made by
made by Dr. Archie B. Carroll. The first is about the monetary obligation to be productive. The
second is the obligation to pursue the laws. The third is moral duty which is to make the wisest
decision notwithstanding when business isn't constrained to do as such by law. The fourth is
charitable duty it is best depicted by the assets contributed by companies toward social,
instructive, recreational as well as social purposes.
FRIEDMAN MODEL (1962-1973), states that businessmen should
perform his objectives well as well as moral duty.
ACKERMAN’S MODEL(1967) Is focused on the policy goals and

their relation to responsibilities.
EXTENT OF SOCIAL ORIENTATION
AND INVOLVEMENT
Social Orientation alludes to the hypothesis that

clarifies why a man has specific practices,
connections, and adaptions with other individuals
or potentially society when all is said in done.
•SDT or Self Determination
Theory is a hypothesis about
human inspiration and identity
that worries individuals natural.
development inclinations and
intrinsic mental requirements.
There are three components of
SDT. To control the outcome and
find experiences is Competence.
To interact, to care about
someone, to feel cared is
Relatedness. And the last,
Autonomy is the all-inclusive
inclination to be easygoing
specialists of one's own life and
act in congruity with one's
incorporated self.
Responsibilities of Different Sections in a business:
To be a successful company is to acknowledge the tasks and objectives to various

segments of the public.
1. Responsibility to Shareholders - The responsibility of a company to shareholders is to

guarantee a sensible measure of return and guarantee organization's advancement as per
the general inclination of the investors.
2. Responsibility to Workers - The responsibilities of a company and workers is reasonable

wages, business security, government disability borer chance to develop with the
organization are regular desires for each laborer of any organization.
3. Responsibility to Consumers - The responsibilities of a company to consumers is timely,

quality supply, best possible service, good relation and honest commercials
4. Responsibility to Society - The responsibilities of a company to society is to be honest

and direct. A business having confidence in it self constructed its picture of capable
business endeavor. It at that point appreciates great notoriety.
Arguments in Favor and Against Social Involvement
1. Arguments in Favor of Social Involvement
• Social involvement demoralizes extra government direction and intervention. The outcome
is more opportunities and greater adaptability in business
• Present day society is an associated framework and the inside exercises of the undertaking
affect the outside condition
• Social involvement creates a favorable public image. Which may attract customers and
employees to a business
• It is much better to counteract social issues in business rather than fixing it.
• Improving the social environment can benefit the society and the business. Society increases
through better neighborhoods and work openings business profits by a superior network,
since the network is the wellspring of its work drive and the buyer of its items and
administrations.
2. Contentions against Social Involvement
• The fundamental undertaking of a business is to benefit through monetary

exercises. Social association could diminish financial effectiveness.
• Business has enough power and additional social incorporation would

furthermore construct its ability and effect.
• There is an absence of responsibility of business to society. Except il

responsibility can be built up, business ought not get included.
• There is little to no support for involvement in social actions. If there are

disagreements in the groups, it may cause problems.
• Social Involvement can debilitate the balance of payments. The expense of

Social projects would need to be added to the price of the item.
Social Audit
strategies, set of principles, and different components to decide its impact
on a general public. The goal a company's different working goal is to
determine if there is an impact to the society to what the company has
done.
Objectives and Advantages of Social Audit
The objectives and advantages o social contributions of a business social

audit are:
1.To determine and measure the
2. To help identify if the business' plans and strategies are up to standards in

social principles
3. Encourages local democracy
4. Trains the community on participatory local planning
5. Promotes collective decision making and sharing responsibilities

Methods of Social Review
or Audit
•A social review is directed over the

life expectancy of a plan or
program, and not simply in one go
or at one phase. There are no
concrete ways in doing a Social
Audit, everybody has a different
method. This is an example in
conducting a social audit. The
preparation, Skill Development,
Field Level Implementation, Data
Analysis and reporting, Data
presentation in public hearing,
Consent Data and recommendation.

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SOCIAL

Social Orientation is a theory that explains a specific behavior, relationships or actions of a

B. Social Responsibility Models

ACKERMAN’S MODEL(1967) Is focused on the policy goals and

Social Orientation alludes to the hypothesis that

To be a successful company is to acknowledge the tasks and objectives to various

1. Responsibility to Shareholders - The responsibility of a company to shareholders is to

2. Responsibility to Workers - The responsibilities of a company and workers is reasonable

3. Responsibility to Consumers - The responsibilities of a company to consumers is timely,

4. Responsibility to Society - The responsibilities of a company to society is to be honest

1. Arguments in Favor of Social Involvement

• The fundamental undertaking of a business is to benefit through monetary

• Business has enough power and additional social incorporation would

• There is an absence of responsibility of business to society. Except il

• There is little to no support for involvement in social actions. If there are

• Social Involvement can debilitate the balance of payments. The expense of

Objectives and Advantages of Social Audit

The objectives and advantages o social contributions of a business social

1.To determine and measure the

2. To help identify if the business' plans and strategies are up to standards in

3. Encourages local democracy

4. Trains the community on participatory local planning

5. Promotes collective decision making and sharing responsibilities

•A social review is directed over the

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