At a glance, a corporation is responsible for the general positive outcome and expectations by its stakeholders, who include customers, employees, and stockholders, as well as managers, suppliers, and distributors, community, society, and nation-state. Therefore, it is ethically important for an organization with such a structure to be socially responsible in the way they view their duties and obligations in making wise decisions that would protect and promote their reputation, especially with their stakeholders and the society as a whole. I have learned that the opportunity cost for not being a socially responsible organization can be very high if the social responsibility matter is taken lightly. On the contrary, the benefits of taking the social responsibility as a regular practice can bring any given organization success in increased efficiency, effectiveness, and production which, in the long run, increases a company’s performance, increases the national standard of living, and well-being as well as overall prosperity!
How does a company start and remain being socially responsible? It starts with the company’s core values and business mission. For example, when a company is formed or founded, its founding fathers lay forth their mission or put simply, their intent in running the business. Along these mission or missions are also the core values that cater for their direct stakeholders. A well-laid mission and/or core values would thereafter be the guiding growth or demise of the company, socially responsible speaking. Take for instance a company that is bursting with a vigorous culture and actively practicing their core values and business mission. They are most likely to succeed when the ripple effect of a business paradigm is effective. Team members who are happy are most likely to be motivated and innovative toward customer care, hence producing satisfied and delighted customers, sales growth, and profit growth. This effect carries on to creating more shareholders value which, in turn, improves the community and environment responsibility. When this approach is recycled, I believe it naturally creates an environment where managers can share ethical decisions in suitable ethical rules such as utilitarian rule, moral rights rule, justice rule, and/or practical rule.
In conclusion, there are far more rewards as to why an organization should be socially responsible. A company demonstrating social responsibility is proactively taking measures to build a good reputation, a trust, and goodwill that can lead others to want to do business with them. A good reputation increases business and a company’s ability to obtain resources from its stakeholders. Additionally, in a capitalist system, being socially responsible as a company that bears costs that protect its stakeholders in areas of providing health care, income, and paying taxes directly improves the society’s quality of life as a whole. It is also important for managers, as the front-liners of a company or organization, to communicate and teach ethical standards to all employees while monitoring their conformity to those standards in order to be great ambassadors to a socially responsible organization at large!