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Social resonsibility (FOR SOCIAL RESPONSIBILITY (public expectations, more…
Social resonsibility
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CLASSICAL VIEW
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managers decide on their own to spend the organisations resources for the 'social good', they are adding to costs of doing business
costs have to be either passed on to consumers in the form of higher prices or absorbed by shareholders through a smaller profit returned as dividends
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COMPARING THE TWO VIEWS
Stage 1
- manager is following the classical view of social responsibility and pursue shareholders interest for complying with all the laws and regulations
Stage 2
- Manages expand their responsibilities to another important stakeholder group - employees
Stage 3
- -Managed to expand their responsibilities to other stakeholders in a specific environment primarily customers and suppliers
- Social responsibility action for these stakeholders might include fair prices, high quality, products and services, safe products, good supplier relations and simple actions
Stage 4
- Manages feel a responsibility to society as a whole
- They view their business as a public entity and feel that is important to advance the public good
- This therefore means managers actively promote social justice, preserve the environment and support social and cultural activities
- They do these things even if these actions may negatively affect profit
SOCIOECONOMIC VIEW
managements social responsibility goes beyond making profits to include protecting and improving society's welfare
a responsibility to the larger society that allows their formation through various laws and regulations and supports them by purchasing their products and services