Social Responsibility-Different Types and Benefits of Social Responsibility

Published by Mrutyunjay Dash on

Social Responsibility - Knowledge Dustbin

Social Responsibility Meaning:

The social responsibility includes the engagement of each person towards the community where he lives, which can be expressed as an interest in what’s happening in the community, and the active participation in solving some of the local problems. Social responsibility is about an individual becoming in his/her actions that have an effect on communities outside his/her immediate circle. The immediate circle being family and friends. There can be an argument about also including family and friends, but it would be rather pertinent to include them as part of individual personal responsibility.

Under community, we understand the village, the small town, or the residential complex in the big city, where he/she lives. Each community lives its own life that undergoes a process of development all the time. And every one of us could take part in that development in different ways, for example:

  • By taking part in cleaning of the street on which he lives.
  • By taking part in organizing an event, connected with the history of the town or the village.
  • By rendering social services to children without parents or elderly people.
  • Social responsibility also could be expressed in making donations for social, cultural, or ecological causes. There are many ways of donating goods or donating money through a bank account or online.

Social Responsibility Theory:

Social responsibility is interlinked with corporate social responsibility. An employee has to contribute his best to fulfill the corporate social responsibility for its economic, social, and environmental goals. Without employee contribution, a company cannot achieve goals.

As an employee, you can contribute environmentally to the company by switching off lights when not use, by switching off lights when not in use, by switching off computers when you are not working, or by using shared cabs and planting trees. Your individual responsible actions will help the company to reduce energy bills and reduce its carbon footprints. As an individual, you can contribute to the companies social commitments by visiting the social workers for the welfare of people who need your help in sanitary issues, health, and education.

You can contribute to the economic development of the company by practicing ethics and moral values and loyalty to the company when it’s a difficult situation. As an individual in society, you can help fellow individuals, care and love them only then one can say that one is a socially responsible citizen.

Is Social Responsibility Important?

Yes, social responsibility is importance in every situation and every body. There are many reason:

Public image:

The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of the activities. People prefer to buy products of a company that engages itself in various social welfare programs. Again, a good public image also attracts honest and competent employees to work with such employers.

Government Regulation:

To avoid government regulations businessmen should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a pollution-free environment.

Survival and growth:

Every business is a part of society. So for its survival and growth, support from society is very much essential. The business utilizes the available resources like power, water, land, roads, etc of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of society.

Employee Satisfaction:

Besides getting a good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education, and training. Employers should try to fulfill all the expectations of the employees because employee satisfaction is directly related to productivity and it is also required for the long-term prosperity of the organization. For example, if a business spends money on training the employees, it will have more efficient people to work with and thus, earn more profit.

Consumer awareness:

Nowadays consumers have become very conscious about their rights. they protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.

Social Responsibility Example:

Coca-cola: a case study

Coca-cola India as one of the largest beverage companies in India, realized that Corporate social responsibility had to be an integral part of its corporate agenda. According to the company, it was aware of the environmental, social, and economic impact caused by a business of its scale and therefore it had decided to implement a wide range of initiatives to improve the quality of life of its customers, the workforce, and society at large.

However, the company came in for severe criticism from activists and environmental experts who charged it with depleting groundwater resources in the areas in which its bottling plants were located, thereby affecting the livelihood of poor farmers, dumping toxic and hazardous waste materials near its bottling facilities, and discharging wastewater into the agricultural lands of farmers. Moreover, its allegedly unethical business practices in developing countries led to its becoming one of the most boycotted companies in the world.

Coca-cola –

Notwithstanding the criticisms, the company continued to champion various initiatives such as rainwater harvesting, restoring groundwater resources, going in for sustainable packaging and recycling, and serving the communities where it operated. Coca-cola planned to become water neutral in India by 2009 as part of its global strategy of achieving water neutrality. However, criticism against the company refused to die down. Critics felt that Coca-cola was spending millions of dollars to project a ‘green’ and environmental-friendly image of itself while failing to make any change in its operations. They said this was an attempt at greenwashing as Coca-Cola’s business practices in India had tarnished its brand image not only in India but also globally. The case discusses the likely challenges for coca-cola India as it prepares to implement its new CSR strategy in the country.

We know that business is an economic activity, which is carried out on a regular basis to earn profit. However, we must have seen businessmen spending money on different aspects, which is not going them any profit straightaway. For example, we must have seen businessmen maintaining and developing gardens on streets and squares in the cities. some businessmen engage themselves in research for improving the quality of products, some providing housing, transport, education, and health care to their employees and their families. In some places, businessmen provide free medical facilities to poor patients. Sometimes they also sponsor games and sports at national as well as international.

Business with Social Responsibility:

Every business operates within society. It uses the resources of the society and depends on the society for its functioning. This creates an obligation on the part of the business to look after the welfare of society. So all the activities of the business should be such that they will not harm, rather they will protect and contribute to the interests of the society. Social responsibility of business refers to all such duties and obligations of business directed towards the welfare of the society. These duties can be a part of the routine functions of carrying on business activity or they may be an additional function of carrying out welfare activity.

Let us consider an example: A drug manufacturing firm undertakes extensive research and thus, produces drugs that are qualitatively superior. It also provides scholarships or fellowships to the family members of its employees for studying abroad. We find in both cases, the drug manufacturing firm is carrying out its social responsibility. In the case of the former, It is part of its routine business function while in the latter case it is a welfare function.

Social responsibility is a voluntary effort on the part of a business to take various steps to satisfy the expectation of different interest groups. The interest group may be owners, investors, employees, consumers, government, and society or community. But the question arises why the business should come forward and be responsible towards these interest groups.

Social Responsibility by Companies:

The more socially responsible the company , the more supportive the community and consumers become. Corporate social responsibility comes in many forms. Even the littlest company impacts social change by making an easy donation to an area bank . Millennials would also wish to participate in initiatives like having the ability to participate in volunteer work or making donations towards a company’s charitable efforts. For brands of all sizes it’s key to concentrate to the problems that your customers have an interest in and therefore the impacts your company can make at a community and global level.

CSR is titled to assist an organization’s mission also as a function a guide to what the corporate represents for its consumers. Executives have a robust desire for building a positive work context that benefits CSR and therefore the company as an entire. Developing and implementing a CSR strategy represents a singular opportunity to profit the corporate. we believe that a company will find its greatest success by marrying purpose and profit. Any steps a company can fancy reduce its footprint is taken into account good for both the corporate and society. CSR is often beneficial to a corporation in two ways. the primary is by improving its brand image. The second benefit relates to employee morale.

15 Different types of companies in the world:

  • Google
  • McDonald’s Corp.
  • Infosys
  • Mahindra
  • TATA
  • BMW
  • Starbucks
  • Coca-cola
  • Nike
  • Rolex
  • Microsoft Corporation
  • Toms shoes
  • Intel
  • Adidas
  • Ben and Jerry’s

Social Responsibility in Management:

The first step and the best thing management can do is include all stakeholders in their decision-making by making them a part of what the organization stands for (vision, mission, goals) and how they operate. The internal stakeholders are the shareholders (owners) and the employees. Shareholders demand that a business does well, which can be seen when their earnings increase and they are able to receive dividend rewards because of it. Do whatever you can to be socially responsible in all areas of your life and your career. By being more accommodating you will make it harder for critics to question your management ability or implicate you in crimes against social responsibility.

Practically, it is more cost-efficient to deal with the social issues before they turn into disaster consuming a large part of management’s time. The primary responsibility of management ii to assure a fair and reasonable rate of return on capital and fair dividend to the shareholders as investors and risk bearers.

The development of professional management classes has resulted in a divorce between ownership and management. These professional managers exercise independent control over the business enterprises and adopt a new and enlightened management approach for managing their business concerns. Besides the management, there are those who keep such people in line and make sure they’re accountable and responsible for everything that happens: you, me, the media, the government, regulatory agencies, critics, customers, investors, activists, and so forth. “Bad press” and “good press” are the biggest motivators for managers to act with social responsibility. If the public sentiment starts viewing a company negatively, its competitors will be very eager to start stealing business.


1. What are the main benefits of social responsibility?

  • Best brand recognition
  • Positive business environment
  • Increased sales
  • Loyalty customer
  • Improved public image
  • Long term future for your business
  • Organizational growth
  • Promotes professional growth
  • Develop personal growth
  • Best financial performance
  • More business opportunities
  • Good relationships with customers
  • Increased creativity
  • Supports being an employer

2. What are the 4 types of social responsibility?

Environmental Social Responsibility:

Environmental responsibility initiatives aimed at reducing pollution and greenhouse emission emissions, and therefore the sustainable use of natural resources.

Economic Social Responsibility:

Economic responsibility initiatives involve improving the firm’s business operation while participating in sustainable practices – for instance, employing a new manufacturing process to attenuate wastage.

Human Rights Social Responsibility:

Human rights are relevant to the economic, social, and environmental aspects of corporate activity. For example, labor rights requiring companies to pay fair wages affect the economic aspect. Human rights such as the right to non-discrimination are relevant to the social aspect. And the environmental aspects of corporate activity might affect a range of human rights, such as the right to cleanliness and safe drinking water.

Philanthropic Social Responsibility:

The philanthropic responsibilities are the voluntary responsibilities of the enterprise. They reflect the current expectations of the public towards the enterprise. These volunteering activities are animated only by the desire of the enterprise to involve itself in community activities that are not imposed or requested by law and which generally are not to be expected from an enterprise, in an ethical way.

3. How can I be socially responsible?

  • Treat everyone equally and fairly.
  • Treat people with reverence, respect, and dignity
  • Be kind, compassionate, and sensitive to each person, including greeting them warmly and chatting with them courteously.
  • Honor and respect my parents, and to assist them,
  • Be kind and constant to my family, to my brothers and sisters, my grandparents, and everyone my relatives.

4. What is the role and responsibility of the individual in society?

  • Solving any conflict in a peaceful manner.
  • Recognize that living an honest and successful life involves diligence, which anything worthwhile only comes with effort.
  • Work hard and do our greatest in everything we do.
  • Recognize that love means a long-term commitment, and therefore the responsibility to determine strong and loving families.
  • This right must not ever be wont to expose children to child labor.

Thank You.

About Author
Mrutyunjay Dash
I am a business entrepreneur. I always research new things and create innovative ideas.


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