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SOCIAL RESPONSIBILITIES OF MANAGEMENT

Social Responsibility of business refers to what the business does, over and above
statutory requirement, for the benefit of the society.

TWO VIEWS OF SOCIAL RESPONSIBILITIES


TRADITIONAL VIEW
Milton Friedman The business of business is business.
social obligation - Friedman argues that the profit earned by business belongs
exclusively to the shareholders of the business and these profit cannot be diverted to any
other social purpose
Spending the organizations resources for social good
MODERN VIEW
Business is a social and economic institution which cannot live in isolation.
Social responsiveness means that a company engages in social actions in response to
some popular social need.
Social responsibility means a businesss intention, beyond its legal and economic
obligation, to for the right things and act in ways that are good for society.

Milton Friedman, an American economist, statistician, and writer, was a recipient of the 1976
Nobel Memorial Prize in Economic Sciences, and is known for his research on consumption
analysis, monetary history and theory, and the complexity of stabilization policy.

SOCIAL RESPONSIBILITIES OF BUSINESS:


Towards Owners/Shareholders:
Fair Dividend
Solvent and Efficient Business
Optimum Use of Resources
Planned Growth
Effective Communication
Towards Employees:

The successful organization depends to a very large extent on the morale of the
employees.
Meaningful Work
Job Satisfaction
Fair Salaries & Benefits
Best Quality of Work life
Succession Planning and Development
An opportunity for participation in a management decision.
Towards Customers:
Customer satisfaction shall be the key to satisfying the organizational goal.
Understand needs and wants of the customers
Fair Price
Superior Service
Superior Product Design
Quick and complete Information
Towards Government:
Payment of Taxes, Custom Duties etc.
Adibe by the Laws
Observe the Policies
Maintain Law & Security
Towards Inter-Business:
The social responsibility of a business includes a healthy cooperative business
relationship between different businesses.
Cooperation for Sharing of Scarce Resources and Facilities
Collaboration for Maximization of Business Efficiency
Towards Society:
Employment
Welfare Services
Maintaining Pollution Free Environment
Major areas where business can and does contribute towards community welfare

Taking appropriate steps to prevent environmental pollution and preserve ecological


balance.
Assisting in over all development of locality.
Conserve scarce resources
CORPORATE CITIZENSHIP
Ways in which a companys strategies and operating practices affect its stakeholders, the
natural environment, and the societies where the business operates.
Directly linked to the companys business model in that it requires companies to pay
attention to all their impacts on stakeholders, nature, and society.

ORGANIZATIONS THAT PROMOTES SOCIAL RESPONSIBILITY


USING ITS ECOMAGINATION: GE
Ecomagination helped GE build its business by increasing awareness of how the
company is using renewable energy and reducing carbon emissions.
BREWED RESPONSIBLY: STARBUCKS COFFEE
One of Starbucks' main focuses is the sustainable production of green coffee.
LENDING A HAND TO MAN'S BEST FRIEND: PEDIGREE
Pedigree dog food built its brand by focusing on the need for people to adopt homeless
dogs.
A SHOE FOR ME IS A SHOE FOR YOU: TOMS SHOES
Blake Mycoskie started Toms Shoes on the premise that for every pair of shoes sold, one
pair would be donated to a child in need.
A WHOLE LOT OF GOOD: WHOLE FOODS
Whole Foods supports sustainable agriculture, promotes the reduction of waste and
consumption of nonrenewable resources and encourages environmentally sound cleaning
and store-maintenance programs.
CANON
CANON PROJECT REBUILD
A Canon has recently created Canon Project Rebuild (CPR), a disaster relief project
intended to respond to crises and calamities. Staying true to its corporate philosophy of
Kyosei, or living and working together for the common good, Canon not only aspires

to reach out to those in need, but more importantly to give genuine joy and sustained
support to any victims of calamity. Through CPR, Canon has also promoted the spirit of
generosity and volunteerism among its employees.
PRINT FOR SMILES
Canon has started Print for Smiles to help Operation Smile generate funds for the free
reconstructive surgeries they give to children with cleft lip and palate. Through Print for
Smile, customers can have their photos printed using Canon Large Format Printers for a
very minimal cost.

While the program helps support numerous operations, it also

promotes the impeccable printing quality and service of Canon products.


KIDS heART BANTAY BATA
Children of The Filipino Channel (TFC) paint to raise funds for ABS CBN Foundation
Internationals flagship program
Ronald McDonald House Charities (RMHC)
Helping families stay together. A labor of love since 1974.
Ronald McDonald House Charities (RMHC) creates, finds and supports programs that
benefit childrens health and well-being. As our Charity of Choice for nearly 40 years,
McDonalds proudly helps RMHC impact the lives of 7 million children and their
families around the world each year.
SM Foundation
SM Foundation is the socio civic arm of the SM Group of Companies through which it
helps the less fortunate in the communities it serves. These are areas within the vicinity of
SM

Department

Stores

and

Supermalls

that

need

assistance.

The Foundation has four areas of advocacy: education through scholarship programs and
donations to schoolhouses; mall-based outreach programs; health oriented projects like
medical missions, a mobile clinic, and hospital activity centers and religious community
projects.

SM City Baguio plants trees

A total of 9,557 seedlings have already been planted by SM City Baguio as an initial step in fulfilling its
commitment to plant 50,000 trees around Baguio City, underscoring the companys commitment for
corporate social responsibility.
Issue: Cutting of trees in SM Baguio : Whos to Blame?
Other environmentalists think that the blame should not all be fired at SM Management. In the first
place that is their property so they can really do whatever they want. If were going to attack them via
social responsibility and environmental concerns they have already said that their efforts still took on all
aspects of environmental considerations.

Philex Mining Corporation


Social & Environment Responsibility
-

Shows genuine concern toward its host communities to improve quality of life

Supports and practices the environment, safety, and health guidelines of Philex Mining
Corporation

Actively participates in the company's community development and environmental


programs

Issue: Mining firm takes on social responsibility for spill


The Philex Mining Corporation expressed its willingness to take its social responsibility following the
effect of the tailing spillage to the waters in Benguet.
We are willing to pay the fine and suspend our operations (until proper repair and remedy are
implemented), Philex corporate lawyer Miguel Toledo said in reaction to the impending imposition of
fine against the mining company by the Department of Environment and Natural Resources (DENR).