What Is The Social Responsibility Of Business?

1379 words - 6 pages

Social responsibility is the business’s concerned for the welfare of the whole society (Nickels et al. 95). Sometimes the news reports a lot of information that pertains to the social issues or lack of social issues companies are facing. People’s view on companies may start to change and they may see those companies as having a negative impact on society. What a lot of people don’t know is that their view on the situation is at most times wrong. For example, there are companies that have a program which allows their employees to work for a non-profit organization for up to a year, while still receiving full salary benefits and job security. In a study conducted by a group called Students for Responsible Business two thirds of the students surveyed said they would take a lower paying job so that they may work for a socially responsible company. When the same students were asked to define a socially responsible company it was difficult for them to explain. It appeared that even those who wanted to be socially responsible can't agree or does not understand what it involved. In an article titled “Putting Customers Ahead of Investors” John Mackey argues that in order for a business to be successful they have to put their customers first (194). He believes that without the customers purchasing the product and creating a profit for the business, there would not be a business in the first place. Not all business owners have the same ethics of those of John Mackay. In an article titled “Put Profits First” T.J. Rodgers argues that putting customer first is good business (197). In his business world what is important making money. He believe that in making money his investors and shareholders will be able to profit while continuing to invest in the business, budget for retirement and giving back to the community. These two may not see eye to eye but the outcome is still the same; a company is in business to make money no matter what way we look at it. I believe that all businesses have a social responsibility to their customers, investors, employees and society in general.
One social responsibility of a business is to satisfy customers by offering them goods and services that is of real value. This responsibility is not as easy as it seems. Keep in mind that 3 out of 5 new businesses fail perhaps because the owners failed to please their customers. One of the quickest ways to fail to please a customer is by not being totally honest with them. For example, if it was reported that a car was likely to roll over if a driver swerved violently in an emergency the people who bought that car take caution when driving. If the top executives were questioned and they denied there was a problem their sales would dropped significantly. In another example, if a car was being tested and while doing a test simulating the swerve around a curve the car rolled over. This time the company admitted there was a problem and came up with a solution. They committed the money...

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