The Nature of Social Responsibility

Organizational survival is dependent upon a series of exchanges between the organization and its environment. These exchange and continual interaction with the environment give rise to a number of broader responsibilities to society in general. The broader responsibilities, which are both internal and external to the organization, are usually referred to as social responsibilities. These social responsibilities arise from the independence of organizations, society and the environment.

The definition of social responsibity is management's obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organizational (Richard L.Daft, 1988). There are two principles provided the foundation for contemporary views on social responsibity, the principle of charity and the principle of stewardship.



Social responsibility is an exercise that is very important to the business organizations. The recognition of the importance of social responsibilities can be gauged in part by the extent of government action and legislation on such matters as, for example, employment protection, equal opportunities, companies acts, consumer law, product liability and safeguarding the environment. This has formalized certain areas of social responsibilities into legal requirement.

Social responsibilities may be viewed in term of organizational stakeholders. That is, those individuals or groups who have an interest in and / or are affected by the activities of the organization or the behavior of its members. The stakeholders included of employees, providers of finance, consumers, communities and environment, government, and other organizations or groups.

Social responsibility is both an issue of obedience to the law and of ethics. There are at least three major contrasting views of social responsibility - the profit concept, the stakeholder concept, and social responsibility concept.


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