This is a theory or ideology that states an individual, manager, has the obligation to perform actions that are of benefit or profit to the society as well as the organization.
While ethical responsibility has it that an individual ought to be a good citizen, social responsibility has its focus on the individual being a good organizational citizen.
Social responsibility has tended to be vital for the success of an organization such as businesses proving to be critical in increasing the total profits generated.
Friedman Kinicki argues that organizations need to have placed their focus on profit generation rather than on social responsibility. (Kinicki, 2009)
He argues that if focus is drawn to social responsibility, the organization will have been distracted from its real purpose- profit generation.
Paul Samuelson argues that for firms to be effective they need to be concerned with the social responsibility as well as the corporate profits. His view that organizations have profound effects and influences in the society-for example they can bring about the problems of pollution-they should step in cases of averting these negative influences they create.
Focusing attention of such organs as the government, organizations or individuals on social responsibility has a positive influence on the society, development and business (Kinicki, 2009).
In today’s competitive world smart business decisions not only are aimed at attaining maximum profits but are also concerned with having a comfortable and satisfied consumer population. Decision makers are having now under their objectives, the impacts of policies they formulate today have on the tomorrow’s choices. Jeb Emerson argues that organizations do not have to choose either social responsibility or profit generation (Kinicki, 2009).
They can have it both ways whereby he terms this idea as blended value where the firms’ investments are operating both on the social and economic realms (Kinicki, 2009). Sustainability and philanthropy are issues that are inked to social responsibility. Sustainability is described as development that enables the current generation to meet its demands without compromising the ability of the future generations to access and utilize the resources.
Philanthropy is concerned with the goodwill of the corporations to give charities that are aimed at improving the living standards and betterment of humanity (Kinicki, 2009). Social responsibility is the general view of the mangers that will ensure that its organization has a steady clientele. Customers tend to build trust on the firms that bear social and ethical responsibilities even if it means that they will have to spend more.
Records of poor social and ethical responsibility as well will have negative impacts on the total profit generated. Consumers prefer association with organizations that they consider to be ethical and well organized. It is up to a particular firm to identify the ethical standards of its target consumers and formulate policies that align with them. Honesty and good citizenship enhance the profitability of the respective firms as well consumers’ need. (Kinicki, 2009)
In the recent past consumer have been frustrated by fraud accusations of firms and managers. The quality of services and goods offered by the respective companies as well as the procedures indulged in procuring them by the consumers have the monopoly of dictating and shaping the consumer attitudes. These factors determine the social responsibility of particular firms, which they have to satisfy in order to be successful in the society.
Kinicki, A. (2009). Management a practical introduction, fourth edition. Tucson, Arizona. Arizona State University Press.