Social responsibility, according to the article business and society by Thorne, Ferrell and Ferrell, incorporates the roles and obligation by which the management of an organization decisively takes actions that are paramount to the well being and interests of the organization and the larger society. This 2011 article is focused to define strategies employed to social responsibility in an organization, and ethics. The social responsibility is not focused to the interests of the business only, but to all stakeholders with their demands and expectations being fulfilled. The expectations to be fulfilled includes: the economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. All stakeholders must be incorporated by the management in the process of decision making on social responsibility. The stakeholders are in the context involves all participants in the activities of business operations from its initial processing stage to the final consumption stage. The organization thus, needs to be oriented to the stakeholders’ demands, and respond with utmost satisfaction. Social responsibility on a global perspective is determined by the host country social structure, home country and the presence of other organization. Social responsibility has benefited organizations through social trust and stakeholder satisfaction, commitment by the employees and improved profitability that enhance inter-countries trust environment.
Social responsibility is the key phrase in the article which depicts all the ethical activities in which, a business acts upon without violation of the right of all the stakeholders socially environmentally and ethically. The stakeholders in this context are the customers of the organizations products, investors to the organization, and the employees of the organization are the pillars. The organization its elf constitutes of the company’s management team who are responsible with the running of operations. Social responsibility has been seen to accrue benefits to the society and the organization due to building of trust with the stakeholders (Ferrell, 2011).
Social responsibility is the obligation with which the management of an organization must consider while making decision and the actions which reflects the interests and demands of its stakeholders. The focus of business in fulfilling social responsibilities is the economic, legal, ethical and philanthropic responsibilities, which the stakeholders expect to derive from the organization. Thus, there need to focus beyond the organizational interest through recognition of the larger society while conducting activities that conform to society’s expectations. The viability of the investment that creates jobs and provides goods and services to the society depicts economic responsibility, as the business must `operate in accordance to law that regards its behavior. The ethical behavior needs to be considered for fair and just rights that comply with the standards which guides behavior, and must promote the well being of human through its involvement in societal activities. (Ferrell, 2011)