Throughout the term “social responsibility” came into use in the 70s of the past century. As a rule, it means corporate liabilities. In accordance with this concept, organizations should take into account the interests of the whole society, and not just their own.
This means that they must be responsible for the impact their activities have on customers, suppliers, shareholders and other parties involved in the work process. Moreover, the obligations assumed may go beyond (and even should) beyond those established by law. That is, the social responsibility of management is including the independent adoption of measures to improve the lives of people working for the company and the whole society.
Approaches to Community Commitment in Europe
Many researchers draw attention to the fact that corporate activity is understood differently in the English-speaking countries of the world and in Europe. Some organizations are limited to providing assistance to the poor or local communities. While supporters of a different, more active approach, they believe that the social activity of corporations should not be manifested simultaneously, but should increase the education of the local population, give them the opportunity to apply the knowledge they have just acquired in accordance with their interests. Only thanks to such actions, in their opinion, a stable environment is created in society.
Social Activity Reporting
The company is also obliged to report to the company for its actions, constantly keep records. Thus, the social responsibility of the corporation, as a concept, should take into account the environmental, economic and other types of impact of its activities on certain interest groups or on the whole society. The basic principles for maintaining this type of accounting are a number of developed reporting standards and guidelines.
Impulses for corporate commitment
The decision to use social activity in practice is made by organizations under the influence of a number of incentives.
1. Ethical consumerism. The impact of user awareness on the environmental or social side of their purchasing decisions.
2. Globalization. Many corporations strive to be present in global markets in order to remain competitive.
3. The level of education of society and its awareness. Using the Internet and the media to increase their own popularity and activity.
4. Legislation. State regulation of business processes.
5. Forced liability for the consequences of crises.
Social responsibility of the state
It is a more general concept compared to that discussed above. Its effectiveness can be judged by the policy that it implements. So, the tougher it is, the lower the level of responsibility of the state to society. And, on the contrary, the better it is thought out, the less business representatives violate the law, and the more citizens support the government.
