S U M M A R Y
This chapter deals with the relationship of the corporation to society.
Social responsibility refers to the extent to which business firms should act in the public interests while conducting their operations.
The question of whether or not it is proper for a corporation to pursue social responsibilities objectives has long been a subject of controversy among researchers and managers. The classical view holds that business should not assume any social responsibility. The contemporary approach to social responsibility is that business, as important and influential members of society, are responsible to help maintain and improve the society's overall welfare.
Today it is generally accepted that business firms have social responsibilities. Moreover, managers feel that in order to respond effectively and efficiently to the major social issues, corporate social policy must be integrated into corporate strategy.
Social responsibility is complex because must be made in a wide variety of areas. It encompasses three major areas for social issues: (1) total compliance with international, federal, state, and local legislative laws and acts; (2) moral and ethical standards and procedures under which the firm will operate; (3) philanthropic giving.
To help evaluate how well as company is doing in the areas of social responsibility, the social audit has been developed as preliminary guide. Based on the results of this basic evaluation, the company can see what and where improvements can be implemented.