Business-the collection of private, commercially oriented organizations, ranging in size from one-person proprietorships to corporate giants. Between these two extremes, of course are many medium-sized proprietorships, partnerships and corporations.
A community, a nation, or a broad group of people with common traditions, values, institutions, and collective activities and interests.
Some industries are simply more conducive than others with respect to the creation of visible social problems. For example many manufacturing firms by their nature cause air and water pollution. They contribute to climate changes. Such firms, therefore are more likely to be subject to criticism than a life insurance company, which emits no obvious pollutant.
A macroenvironment is the complete societal context in which the organization resides. Includes the total environment outside the firm. Another way of thinking about society.
The social environment focuses on demographics, lifestyles and social values of the society. Of particular interest here is the manner in which shifts in these factors affect the organization and its functioning
Pluralism refers to a diffusion of power among society’s many groups and organizations. “A a pluralistic society is one in which there is wide decentralization and diversity of power concentration. Power is dispersed among many groups and people.
Prevents concentration of power.
Pursuit of self-interest.
Maximizes freedom of expression and action.
Proliferates organizations and groups with overlapping goals.
Disperses individual allegiances.
Forces conflicts to center stage.
Creates diversified set of loyalties.
Provides checks and balances.
Entitlement mentality is the general belief that someone is owed something just because she or he is a member of society
Iron Law of Responsibility-In the long run, those who do not use power in a manner society considers responsible will tend to lose it. Whenever power and responsibility become substantially out of balance, forces will be generated to bring them into closer balance.
Social contract-Set of two-way understandings that characterize the relationship between major institutions in our case business and society.
1. Laws and regulations that society has established as the framework within which business must operate and
2. Shared understandings that evolve over time as two each group’s expectations of the other
At the micro level, social status and social roles are the most important components of social structure.
Corporate Social Responsibility
Seriously considering the impact of a company’s actions on society.
Requires the individual to consider his or her acts in terms of a whole social system, and holds him or her responsible for the effects of his or her acts anywhere in that system.
The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time.
It addresses social issues brought on by business, and allows business to be part of the solution.
Enlightened self-interest: businesses must take actions to ensure long-term viability.
Wards off future government intervention.
It addresses issues by using business resources and expertise.
It addresses issues by being proactive.
The public supports CSR.
Responsibility- obligation and accountability
Responsiveness- action and activity
Performance- outcomes and results
Corporate Social Responsiveness
An action-oriented variant of CSR.
Implies a state or condition of having assumed an obligation.
Connotes a dynamic, action-oriented condition.
The performance focus is intended to suggest that what really matters is what companies are able to accomplish the results or outcomes of their acceptance of social responsibility and the adoption of a…