There is no doubt that a successful organization has to have proper strategies, marketing and effective management. However, there are more different responsibilities that organizations have to face in order to become the leader in today's competitive business world. This paper will mainly focuses on the influence of economic responsibilities, legal, ethical and discretionary responsibilities, several real life examples will be discussed to illustrate the themes of all these responsibilities.
What is social responsibility? .
It is the obligation of organization management for the stakeholders. Stake holders are: government, share holder, customers, supplier, potential investors, employer and employees.
As far as social responsibility is concerned, there are two points of view: Classical and Socio-economic view. From the classical point of view, management is only responsible for the employer, thus, maximizing profits is the only critical issue. In addition, maximizing profits can be divided into short, medium and long term. Therefore, different goals and objectives must be set for different management in order to work efficiently. .
From Socio-economic point of view, besides making profit, management should protect and enhance the welfare, and contribute to the society as well as the organization. .
Economic responsibility is generally divided into 2 categories: external and internal responsibilities. In terms of external responsibilities, corporate should ensure all accounts payable to creditors or suppliers are done on time. If corporate causes any bad debts to suppliers, it will lower the liquidity and decrease their consuming power. In addition, bad debts will also affect other relevant industries of the creditors. Therefore, a vicious circle would result. It will weaken the system of the economy in general aspect. .
As far as internal responsibilities are concerned, wages should be prompted absolutely.