1 What is Social Responsibility? The Concept of Social Responsibility proposes that a private corporation has responsibilities to society that extend beyond.

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Presentation transcript:

1 What is Social Responsibility? The Concept of Social Responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.

2 The Purpose of Social Responsibility … is to balance the interests of “all” stakeholders. 1.Employees want better HR benefits which come from Company revenues. 2.Stockholders want a strong bottom line. 3.Customers want a good deal, which means quality at a fair price. 4.The community wants to employ its residents.

3 Friedman’s Traditional View of Social Responsibility “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.”

4 Pyramid of Social Responsibility Discretionary Ethical Legal Economic

5 Pyramid of Social Responsibility Discretionary Ethical Legal Economic

6 Pyramid of Social Responsibility Discretionary Ethical Legal Economic