Social Responsibility :( We prosper by helping society prosper)

Business is an integral part of the communities in which they operate. All good executives know that their long-term success is based on continued good relations with the wide range of individuals, group  and institutions. So in general, social responsibility refers to transparent business practices that are based on ethical values, compliance with legal requirements and respect for people, communities and the environment. Thus, beyond making profits, companies are responsible for the totality of their impact on people and the planet.

According to Griffen: “Social responsibility is the set of obligations an organization has to protect and enhance the societal context in which it functions.”

Approaches to social responsibility:

1. Social Obstruction: The organization which performs as low as possible social responsibility.  And sometimes even crosses the ethical boundaries. E.g. adulteration in products.
2. Social Obligation: The organization which only performs that much social responsibility which is bound by laws. E.g. writing warning in cigarette packets.
3. Social Response: The organization which performs those activities which are legal and ethical. Such as providing toothpaste and toothbrush in dental camp, collecting blood for Nepal Red cross Society etc.
4. Social Contribution: Organization itself participates actively in the development and welfare of the society. E.g. Building hospitals, schools, conducting skill development program etc.

Areas of Social Responsibility:

1. Organizational Stakeholder: Creditors, suppliers, local community, employees, government, are the stakeholder of the organization. Thus, to have a good relation with them, the organization should produce qualitative products, provide reasonable salaries to employees compare to competitors, no discriminations between the employees, pay taxes etc.
2. The natural environment: There is a globally high concern on natural resource depletion. Protection of water, soil and air from pollutants are the global issues which the organization should deeply consider while taking corporate decisions.
3. General Social Welfare: For the perpetual growth and existence, an organization should have good relation with society. This relation can be strengthened by contributing in charities, establishing health care centers in remote areas, providing jobs, etc.