Social Responsibilities of an Organization

Organizations may exercise social responsibility toward their stakeholders, toward the natural environment, and toward general social welfare. Some organization acknowledge their responsibilities in all three areas and strive diligently to meet each of them, whereas others emphasis only one or two areas of social responsibility. And a few acknowledge no social responsibility at all.

Organizational Stakeholders

All organizations have a variety of stockholders who are directly affected by the organization and who have a state in its performance. These are people and organizations to which an organization should be responsible.

Most companies that strive to be responsible to their stakeholders concentrate first and foremost on three main groups: customers, employees, and investors. They then select other stakeholders that are particularly relevant or important to the organization and attempt to address their needs and expectations as well.

      

The natural environment:

A second critical area of social responsibility relates to the natural environment. Not long ago, many organizations indiscriminately dumped sewage waste products from production and trash into streams and .rivers, into the air, and on vacant land. When Shell Oil first explored the Amazon River Basin for potential drilling sites in the late 1980s, its crews ripped down trees and left a trail of garbage in their wake. Now, however, many laws regulate the disposal of, waste materials. In many instances, companies themselves have become more socially responsible in their release of pollutants arid general treatment of the environment.

Still, much remains to be dong. Companies need to develop economically feasible ways to avoid contributing to acid rain, global warming, and depletion of the ozone layer, and to develop alternative methods of handling sewage, hazardous wastes, and ordinary garbage.

The internet is also seen as having the potential to play in important role in resource conservation, as many e-commerce businesses and transactions are reducing both energy costs and pollution.

General Social welfare:

In addition to treating constituents and the environment responsibly, business organizations also should promote the general welfare of society.

Examples include making contributions to charities, philanthropic organization and not for profit foundations and associations, supporting museums, symphonies and public radio and television, and taking a role in improving public health and education.

Organizations should act even more broadly to correct the political inequities that exist in the world.