Businesses should always set an example and serve as role models by continuously acting honestly and with the utmost regard for society and the environment. The most successful businesses in the world serve a purpose that exceeds financial gains. Socially responsible organizations pay attention to social and environmental issues and address them using the power of their business. Socially responsible businesses have proven to have sustainable business models, improved recruitment, employee satisfaction, customer loyalty, marketing, richer partnerships and brand perception (Horoszowski). A large portion of consumers believes that businesses should align their financial goals along with social and environmental solutions.
The strategy that a company settles on determines the company's relationship with the society, which in turn influences its relationship with both consumers and rivals. Companies need to perceive social responsibility as more than a cost, or charitable deed and perceive social responsibility as a source of innovation, competitive advantage and opportunity. Evolutions heavily sway investors in the society. Companies which start in good time will gain a lot from the system which is slowly changing. Investors are more attracted to businesses which maximize positive impacts and cut down the negative impacts on society (Ferrell, Fraedrich and Ferrell 30). Social responsibility is a concept which concerns itself with the impact of its business practices to the society. Businesses are, therefore, inclined to adhere to social standards, attitudes and values. Most legal issues arise from practices which the society considers irresponsible, unethical or unacceptable.
Unethical practices are not necessarily illegal and vice versa, and both legal and ethical actions are extremely dynamic. Social responsibility, business law and ethics are used to ensure that businesses abide by a certain code of conduct. Problems at the workplace often arise when businesses fail to abide by the business code of conduct. The three; social responsibility, business law and ethics, ensure that companies behave in a responsible manner (Ferrell, Fraedrich and Ferrell 51). Businesses that are concerned with both the wellbeing of the society and profits are considered socially responsible. Businesses can be socially responsible by supporting social initiatives, and in turn, they will increase profits by earning consumer trust and loyalty. Socially irresponsible businesses suffer the risk of losing their consumers to competition and encourage both the public and the government to enforce constraints on their businesses practices.
Businesses are considered members of the society, and as such should perform their role and contribute to the societal wellbeing. Social responsibility is dynamic and flexible so as to accommodate the dynamic desires of the society. Socially responsible companies improve their business performance as consumers are more likely to refrain from companies that receive bad publicity due to misconduct (Ferrell, Fraedrich and Ferrell 43). The society associates itself with companies they consider role models in the society. Consumers, the society, the government and the public do not want to be associated with companies that have bad publicity.
In conclusion, social responsibility is a holistic concept which takes care of the well-being of the society by considering the environment and being a role model to the society. Socially responsible businesses take legal and unethical issues into consideration. Socially responsible companies remain popular with consumers, the public, the government and the society. Not all unethical issues are illegal, and both legal and ethical issues are very dynamic. The society is fast changing, and socially responsible companies conform to the desires of the society.
Works cited
Ferrell, O C, John Fraedrich and Linda Ferrell. Business ethics : ethical decision making and cases : 2009 update. Mason: South-Western Cengage Learning, 2010. Print.
Horoszowski, Mark. 5 Reasons Your Business Should Be Socially Responsible. 3 December 2011. Web. 3 September 2016. <http://blog.movingworlds.org/5-reasons-your-business-should-be-socially-responsible/>.
