Social responsibility of business - the way to stability

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The social responsibility of business is a certain positive and voluntary reaction of the company to social problems. There are two opinions about the level of participation at which an organization is considered to follow this principle. First: the social responsibility of business is that the company conducts its activities aimed at increasing profits without violating the law. Second, the organization, in addition to fulfilling the requirements of the economic plan, must make a certain voluntary contribution to solving the problems of society and take into account how it affects employees, consumers, and the environment. It is certain that in recent years, the second point of view has begun to dominate among companies and experts.

If you rely on it, it should be understood that a socially responsible business must form a certain behavior focused on solving problems positive for society in all areas of the company's activities. All this should be reflected in the mission, goals, values, as well as in localdocuments governing the activities of the organization. Moreover, social responsibility is not only a certain behavior of the company's top management, but principles that are observed at all levels of the organization. In practice, there are several most common manifestations of these principles.

The first is the formation of the so-called package of certain benefits for the company's employees (it includes various types of assistance in difficult situations, voluntary medical insurance, additional pension provision, various recreational activities, free meals, summer holidays for employees' children). Basically, all this can be found in large companies.

The second manifestation of the social responsibility of business at the location of the organization is the presence (since Soviet times) on the balance sheet of enterprises of various infrastructure that is not related to production activities: dispensaries, kindergartens, hostels, engineering networks, sports complexes. At the same time, the maintenance of fixed assets requires the company to maintain a balance of interests between economic efficiency and the solution of social problems. True, when a company finds itself in a difficult financial situation, non-core real estate is often the first place where management seeks reserves to reduce costs.

Also, the social responsibility of business can be manifested in charitable activities that are carried out in relation to certain categoriescitizens (veterans, newborns, disabled people, students, etc.), objects of cultural, historical value. In addition, it may consist in financing any events (sports, cultural, holidays).

Solving such problems, the company works to create a positive image and receives certain intangible dividends. In particular, the social responsibility of business strengthens the trust of partners and authorities, forms a "well-being zone" around the organization, and attracts qualified and trained personnel.