Social Responsibility
Categories: Ethics/Morals
In the business world, everything used to be good as long as you were following the rules. Don’t do anything sketchy to get the IRS looking at you...do business in an honest-ish way, follow the laws and regulations, and you’re good to go.
Nowadays, the notion of social responsibility layers on an additional cost that businesses are willing to pay. As corporations grow larger in size, and as the public grows more vocal about the environment and social issues, businesses taking on more responsibility (beyond what’s required) is increasingly common. It's good PR...good for business, right? Sorta. Kinda.
Social responsibility happens when a corporation goes above and beyond laws and regulations to “do good.” Maybe their staff is volunteering, or they give large donations to charity. Maybe they’re greening their dirty operations, or are hosting fundraising events. There are lots of things a business can do to boost its social responsibility.
Why are businesses bothering? Because they're long-term greedy....and the assume that you’d better be doing it if your competitors are...otherwise, you might be losing valuable business. Socially responsible corporations pay a little effort to look like do-gooders, which should, over time, generate good will and increase profits, lead to loyal customers, and get biz positive press. (Free marketing.) If we believe that corporations are profit-maximizing, then that means the costs of social responsibility are well worth the benefits it gets in revenue. Good. For. Business.
See: Social Impact Statement.
