ASSIGNMENT 2

1. Explain why is Social responsibility is the extent to which a business adopts a strategic focus for
fulfilling the economic, legal, ethical, and philanthropic responsibilities?
- Social responsibility refers to the ethical and moral obligations that a business has
towards its stakeholders, including its customers, employees, shareholders, suppliers,
and the community in which it operates. These obligations are based on four distinct
areas of responsibility: economic, legal, ethical, and philanthropic.

Economic Responsibility: This refers to a business's obligation to generate profits and

create value for its shareholders. Economic responsibility is critical because it enables a
business to survive and thrive, which, in turn, benefits its stakeholders.

Legal Responsibility: This refers to a business's obligation to comply with all relevant laws
and regulations governing its operations. Failure to meet legal requirements can result in
penalties, lawsuits, and reputational damage.

Ethical Responsibility: This refers to a business's obligation to act ethically and morally in
all aspects of its operations. This includes treating employees fairly, ensuring the safety
and quality of its products and services, and avoiding actions that could harm the
environment or the broader community.

Philanthropic Responsibility: This refers to a business's obligation to engage in activities

that benefit society, such as donating to charities, supporting community initiatives, and
promoting social causes.

Adopting a strategic focus for fulfilling these responsibilities is critical for businesses that
wish to build long-term relationships with their stakeholders. By focusing on economic,
legal, ethical, and philanthropic responsibilities, businesses can build trust and credibility
with their stakeholders, enhance their reputation, and contribute to the broader social
good. Ultimately, this can lead to increased profitability, as customers, employees, and
investors are more likely to support and do business with companies that are socially
responsible.

2. Explain why Social responsibility applies to all types of businesses.

- Social responsibility applies to all types of businesses because every business has an
impact on the society and environment in which it operates. Regardless of its size,
sector, or industry, a business has a responsibility to conduct its operations in a manner
that is ethical, legal, and socially responsible. Firstly, every business relies on the society
and environment for its inputs, such as labor, resources, and infrastructure, and
generates outputs, such as products, services, and waste. Therefore, every business has
a direct or indirect impact on the environment and society. Secondly, businesses have a
 responsibility to their stakeholders, including customers, employees, suppliers,
shareholders, and the community in which they operate. These stakeholders have
different expectations of the business, and businesses have to balance their interests
while ensuring that they are fulfilling their social responsibilities. Thirdly, being socially
responsible can have a positive impact on a business's reputation, brand, and
profitability. Consumers are becoming more conscious of the social and environmental
impacts of the products and services they consume, and they are increasingly choosing
to do business with companies that are socially responsible. In summary, social
responsibility applies to all types of businesses because they have a social and
environmental impact and responsibility towards their stakeholders. By being socially
responsible, businesses can enhance their reputation, build trust with their stakeholders,
and contribute to the broader social good, which can ultimately lead to increased
profitability.

3. Explain why Social responsibility adopts a strategic focus.

- Social responsibility adopts a strategic focus because it is a critical component of a
business's long-term success. A strategic approach to social responsibility enables
businesses to align their social and environmental goals with their broader
organizational objectives, which can help them to create shared value for their
stakeholders and the broader society.

4. Explain why Social responsibility fulfills society’s expectations.

- Social responsibility refers to the ethical and moral obligations that individuals,
organizations, and businesses have towards society. It involves taking actions that
benefit society as a whole, such as reducing the negative impact of business operations
on the environment, promoting ethical labor practices, and supporting local
communities. Society expects individuals, organizations, and businesses to behave in a
socially responsible manner. This is because these entities have an impact on society and
the environment, and their actions can have both positive and negative consequences.
When individuals, organizations, and businesses act in a socially responsible way, they
are fulfilling society's expectations by making a positive contribution to the well-being of
society. For example, a business that engages in sustainable practices such as using
renewable energy, reducing waste, and promoting ethical labor practices can have a
positive impact on the environment, society, and its bottom line. By doing so, it can gain
the trust and loyalty of its customers, employees, and investors, which can lead to
long-term success. Likewise, individuals who engage in socially responsible behavior
such as volunteering in their local communities, donating to charities, and reducing their
carbon footprint, can also have a positive impact on society. They can inspire others to
do the same and create a ripple effect that can lead to positive change. In summary,
social responsibility fulfills society's expectations because it involves taking actions that
benefit society as a whole. When individuals, organizations, and businesses act in a
socially responsible way, they are making a positive contribution to society, which is
what society expects of them.
5. Explain why Social responsibility requires a stakeholder orientation.
- Social responsibility requires a stakeholder orientation because it involves considering
the interests of all stakeholders who are affected by an organization's actions.
Stakeholders include customers, employees, suppliers, shareholders, the community,
and the environment. A stakeholder-oriented approach to social responsibility
recognizes that an organization's success is not just measured by financial performance,
but also by its impact on society and the environment. It involves understanding and
addressing the needs and concerns of all stakeholders, not just those of the
shareholders or top executives. By adopting a stakeholder-oriented approach to social
responsibility, organizations can build trust and credibility with their stakeholders, which
can lead to long-term success. For example, a company that is committed to treating its
employees fairly, reducing its environmental impact, and contributing to the community
is likely to have a positive reputation and attract loyal customers, employees, and
investors. Moreover, a stakeholder-oriented approach to social responsibility can help
organizations identify potential risks and opportunities. By engaging with stakeholders
and understanding their perspectives, organizations can identify potential issues and
take proactive steps to address them before they escalate into bigger problems. In
summary, social responsibility requires a stakeholder orientation because it involves
considering the interests and perspectives of all stakeholders who are affected by an
organization's actions. By adopting a stakeholder-oriented approach, organizations can
build trust and credibility with their stakeholders, identify potential risks and
opportunities, and achieve long-term success.

6. Development of Social Responsibility?

- The concept of social responsibility has evolved over time as society's expectations of
businesses and organizations have changed. Here are some key milestones in the
development of social responsibility:

Early 20th Century: Philanthropy - In the early 1900s, businesses began to engage in
philanthropic activities such as donating to charity or supporting community projects.
This was primarily driven by the desire to improve public relations and gain favorable
public opinion.

1950s-1960s: Corporate Social Responsibility (CSR) - The 1950s and 1960s saw the
emergence of CSR, which focused on the social and environmental impacts of business
activities. This was driven by concerns over pollution, labor rights, and other social
issues. Businesses began to take responsibility for their impact on society and the
environment.

1970s-1980s: Stakeholder Theory - In the 1970s and 1980s, the concept of stakeholder
theory emerged. This theory argues that businesses have a responsibility to consider the
interests of all stakeholders, not just shareholders. This included employees, customers,
suppliers, and the community.

1990s-2000s: Corporate Citizenship - In the 1990s and 2000s, the focus shifted to
corporate citizenship, which emphasized the idea that businesses are members of
 society and have a responsibility to contribute to the common good. This included
initiatives such as sustainability, diversity and inclusion, and community development.

2010s-Present: Sustainability and ESG - In the 2010s and beyond, the focus has been on
sustainability and environmental, social, and governance (ESG) considerations. This
includes initiatives such as reducing carbon emissions, promoting social justice, and
improving governance and transparency.

In summary, the concept of social responsibility has evolved over time, reflecting
changing societal expectations and concerns. From philanthropy to CSR, stakeholder
theory, corporate citizenship, and sustainability and ESG, businesses and organizations
have increasingly recognized their responsibility to consider their impact on society and
the environment.

7. Global Nature of Social Responsibility?

- Social responsibility has a global nature, as the actions of businesses and organizations
can have an impact on people and the environment beyond national borders. In a
globalized world, social responsibility involves considering the impact of business
activities on a global scale and addressing issues such as climate change, human rights,
and social inequality. Social responsibility has a global nature, and businesses and
organizations have a responsibility to consider the impact of their actions on a global
scale. This involves promoting environmental sustainability, respecting human rights,
ensuring fair labor standards, maintaining ethical supply chains, and contributing to
community development.

8. Benefits of Social Responsibility?

- Social responsibility can have many benefits for businesses and organizations. Here are
some of the key benefits:

Enhanced reputation - Social responsibility initiatives can enhance an organization's

reputation and build trust with customers, employees, and stakeholders. This can lead to
increased loyalty, customer retention, and positive word-of-mouth advertising.

Increased employee engagement - Employees are more likely to be engaged and

motivated when they work for a company that is committed to social responsibility. This
can lead to higher productivity, lower turnover rates, and a more positive work
environment.

Risk mitigation - By addressing social and environmental risks, businesses can reduce the
likelihood of negative events such as legal action, negative publicity, or supply chain
disruptions.

Cost savings - Social responsibility initiatives can also lead to cost savings through
increased efficiency, waste reduction, and energy conservation.

Improved relationships with stakeholders - Social responsibility initiatives can help

businesses build stronger relationships with stakeholders such as suppliers, regulators,
and communities. This can lead to greater collaboration, trust, and long-term
partnerships.

Competitive advantage - Social responsibility can also provide a competitive advantage

in the marketplace, as more customers are prioritizing ethical and sustainable practices
when making purchasing decisions.

In summary, social responsibility can have many benefits for businesses and
organizations, including enhanced reputation, increased employee engagement, risk
mitigation, cost savings, improved stakeholder relationships, and competitive advantage.