Fundamentals of Social Responsibility

Fundamentals of Social Responsibility: Corporate Social Responsibility: The managerial obligation to take action that protects and improves both the welfare of society as a whole and the interests of the organization. Davis Model of Corporate Social Responsibility: Keith Davis: A generally accepted model of corporate social responsibility. List of 5 propositions that describe why and how business should adhere to obligation to take action that protects and improves the welfare of society as well as of the organization. Davis model: Proposition 1: Social responsibility arises from social power: Business has power over society and can influence minority and environmental pollution issues. Proposition 2: Business should operate a 2 way system: Inputs from society and open disclosure to the public. Proposition 3: Social costs and benefits shall be considered prior to proceeding: Profits are not the only factors involved. Proposition 4: Social costs shall be passed on to the consumer: Business can bot be expected to foot the bill for social activities; the cost must be passed along to the consumer as well. Proposition 5: Business has a responsibility for some social problems outside their normal area of operation: Business should help solve social problems, if they can. Performance of Social Responsibility Activities by Business: Perform all legally required social responsibility activities. Consider voluntarily performing social responsibility activities beyond those legally required. Inform all relevant individuals of the extent to which the organization will become involved in performing social responsibility activities.

Performing Required Social Responsibility Activities: Federal Legislation requires that business perform certain social