SYAMAPRASAD INSTITUTE OF TECHNOLOGY & MANAGEMENT

Continuous Assessment - CA2

Subject name - Values & Ethics

Subject code - GE6B-06

Student name - Sulagna Dutta

University roll no. - 15342723045

University Registration Number - 23151010045 of

2023-24

Semester - 3rd

Year - 2nd

Session - 2024-25
 Table of Contents
1. Introduction ................................................................1

2. Concept of Social Responsibility of Business ................2-3

2.1. Definition and Scope ............................................2

2.2. Key Components of Social Responsibility ..............3

3. Importance of Social Responsibility in Business ...........4-5

3.1. Economic Impact ...................................................4

3.2. Role in Sustainable Development ............................5

4. The Relationship between Business and Society ............6-7

4.1. How Businesses Influence Society ...........................6

4.2. How Society Influences Businesses ..........................7

5. Case Studies of Social Responsibility in Business ...........8

6.Conclusion....................................................................9

7.Bibliography................................................................10

8. Acknowledgement........................................................11
 1. Introduction
In today’s interconnected world, businesses are increasingly expected

to play a significant role in addressing societal issues. This expectation

goes beyond the simple generation of profits and extends into the

realm of corporate social responsibility (CSR). CSR reflects a

company’s commitment to acting ethically and contributing to the

economic development of the communities it operates in, while

improving the quality of life of its workforce, their families, and

society at large.

The relationship between business and society is symbiotic. Businesses

draw resources from society and in turn provide products, services,

employment, and economic growth. A business cannot thrive in a

failing society, and society cannot progress without a responsible

business community. This report explores the concept of the social

responsibility of business, its importance, and the vital relationship

between business and society.

1
2. Concept of Social Responsibility of Business

2.1. Definition and Scope

organization adopts to act in the best interests of society while pursuing

profit. It encompasses the idea that businesses should balance profit-

making activities with initiatives that benefit society. The scope of social

responsibility ranges from philanthropic efforts like donations and

community service to broader issues such as environmental sustainability

and labor practices.

Milton Friedman, a proponent of free-market capitalism, famously argued

that the sole responsibility of business is to increase its profits. However,

contemporary views challenge this perspective, emphasizing that

businesses, as corporate citizens, have moral obligations to multiple

stakeholders, including employees, customers, suppliers, and the broader

community.

2
2.2.2. Key Components
Concept of SocialofResponsibility
Social Responsibility
of Business

1. Economic Responsibility: Businesses are expected to be profitable and

financially viable. Profit generation is essential for providing returns to

shareholders, creating jobs, and contributing to the economy.

2. Legal Responsibility: Companies must comply with laws and

regulations, including labor laws, environmental standards, and safety

guidelines.

3. Ethical Responsibility: This involves doing what is right, fair, and just,

even when not required by law. Ethical responsibilities include treating

employees fairly, ensuring product safety, and avoiding harm to the

environment.

4. Philanthropic Responsibility: Beyond economic, legal, and ethical

obligations, businesses often engage in voluntary efforts to improve the

welfare of society. This may include charitable donations, supporting

educational initiatives, or providing disaster relief.

3
3. Importance of Social Responsibility in Business

3.1. Economic Impact

Businesses that integrate social responsibility into their operations often see

improved financial performance in the long term. Companies that engage

in CSR activities tend to attract and retain top talent, improve customer

loyalty, and enhance their brand reputation. For example, consumers are

increasingly supporting companies that adopt sustainable practices,

showing that CSR can directly contribute to a company's bottom line.

Additionally, socially responsible businesses help create a stable economy

by promoting fair trade, reducing poverty, and addressing global challenges

like climate change. By tackling these issues, businesses not only fulfill their

ethical obligations but also contribute to the overall health of the economy.

4
3. Importance of Social Responsibility in Business
3.2. Role in Sustainable Development

Social responsibility has a direct impact on sustainable development. The

United Nations’ Sustainable Development Goals (SDGs) call for active

participation from businesses to address critical issues such as poverty,

inequality, and environmental degradation. Companies that prioritize

sustainability help mitigate the risks of climate change, reduce waste, and

preserve natural resources for future generations.

Businesses can play a pivotal role in fostering sustainable development by

investing in green technologies, promoting energy efficiency, and adopting

environmentally-friendly production processes. Such actions reflect their

broader responsibility towards the planet and society.

5
4. Importance
3. of Social
The Relationship Responsibility
between in Business
Business and Society

4.1. How Businesses Influence Society

Businesses have the power to influence society in various ways. They create

jobs, offer products and services that enhance quality of life, and contribute

to technological innovation. Through corporate social responsibility

initiatives, businesses also support local communities by investing in

education, healthcare, and infrastructure development.

Moreover, businesses shape societal values and behaviors through their

corporate cultures. When companies promote ethical practices such as

diversity, inclusion, and environmental sustainability, they set positive

examples for society as a whole.

6
3. Importance
4.2.
4. How SocietyofInfluences
Social Responsibility
Businesses in Business

Society, in turn, influences businesses by setting standards for ethical

behavior. Public expectations regarding corporate social responsibility have

grown considerably in recent years, with stakeholders demanding more

transparency and accountability. Consumers today are more informed and

concerned about the environmental and social impacts of the products they

purchase.

In response, companies are increasingly incorporating stakeholder

expectations into their business strategies. Governments and non-

governmental organizations (NGOs) also play a key role in shaping business

practices through regulations, advocacy, and public campaigns.

7
3. Importance
5. Case Studiesof
of Social
Social Responsibility in Business
Responsibility in Business

Several companies have become pioneers in corporate social responsibility,

demonstrating the tangible benefits of integrating social responsibility into

their operations. One such example is Unilever, which has made

sustainability a core element of its business strategy. Through its Sustainable

Living Plan, Unilever has committed to reducing environmental impact and

improving health and well-being across its supply chain.

Similarly, Patagonia, an outdoor clothing company, is renowned for its

commitment to environmental sustainability. Patagonia’s mission includes

efforts to use recycled materials, advocate for environmental causes, and

promote ethical labor practices.

These examples illustrate how businesses can simultaneously achieve

financial success and contribute positively to society.

8
6. Importance of Social
3. Responsibility in Business
Conclusion

The social responsibility of business is not merely a moral obligation; it is a

key driver of long-term success in the modern world. Businesses that actively

engage in responsible practices can foster a positive relationship with

society, benefiting both their bottom line and the communities in which they

operate.

The relationship between business and society is dynamic, with each

influencing the other. As societal expectations continue to evolve, businesses

must adapt to meet these demands, ensuring that they contribute to the

overall well-being of society while maintaining their profitability.

9
3. Importance of Social Responsibility in Business
Bibliography

Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility:

Toward the Moral Management of Organizational Stakeholders.

Business Horizons, 34(4), 39–48.

Friedman, M. (1970). The Social Responsibility of Business Is to

Increase Its Profits. The New York Times Magazine.

United Nations. (2015). Sustainable Development Goals (SDGs).

Kotler, P., & Lee, N. (2005). Corporate Social Responsibility: Doing the

Most Good for Your Company and Your Cause. Wiley.

10
3. Importance ofAcknowledgment
Social Responsibility in Business

I would like to express my sincere gratitude to Prof. Sourish Bhattacharya

for his invaluable guidance and support throughout the preparation of this

report. His insightful suggestions and constructive feedback have helped me

gain a deeper understanding of the concept of social responsibility in

business and its relationship with society.

I am also thankful for his continuous encouragement, which motivated me

to enhance the quality of my work and complete this assignment with clarity

and precision.

Thank you once again, Prof. Bhattacharya, for your dedication to our

learning and for being an inspiration to us all.

11