Change and Social Responsibility
Social responsibility refers to the obligations a business has to pursue long term that are good for society – it poses an obligation to “do the right thing” even if there is no specific law forcing them to do so. Measures are needed to ensure they act above and beyond their legal requirements to give society the best they can offer employees, customers and other groups in society.
a) Ecological Sustainability
Businesses are beginning to realise it is in their interest to use production methods which are ecologically sustainable. Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their needs and this places responsibility on management to consider the environmental impact of their activities, eg: efficient use of scarce resources, waste disposal, types of materials used as inputs. Environmentally aware citizens put increasing social pressure on businesses to be more environmentally responsible.
Social pressure can be expressed in the market place, eg: refusal to buy tuna caught in drift nets, or the requirement to recycle a percentage of waste.
Social pressure can result in changes to laws, eg: laws on pollution and waste disposal.
Businesses also sponsor clean up programs and are taking a proactive role in managing environments. Large businesses should lead the way for other businesses to develop sustainable production and waste disposal systems above EPA (environmental protection authority) regulations.
b) Quality of Working Life
This involves balancing work commitments and other responsibilities and achieving happy, healthy and safe workers. This is concerned with worker wellbeing and it affects job satisfaction, productivity, absenteeism and staff turnover. This affects profitability. High morale will influence other workers and a positive work environment will result. Factors to improve quality of working life could include:
Efforts to enhance job satisfaction
Safe and healthy working conditions
Family friendly work arrangements
Programs that enhance employee dignity
Quality of life should ensure that workers who show commitment are in turn given a commitment by the business to provide employment and quality facilities.
c) Technology
Businesses have a responsibility to go beyond legal requirements is privacy protection, safety provisions and staff management as a result of technological developments. Changes in technology both improve and threaten our lives. Costs include pollution, loss of privacy, diseases from exposure to chemicals.
Technology has been responsible for de-skilling people and contributing to the unemployment of low skilled workers. Society may argue that business has a responsibility to help these people develop new skills through retraining. Job enrichment and rotation is needed when technology creates boring repetitive tasks.
d) Globalisation
This is the move towards a single world market. Social responsibility requires cultural sensitivity and actions to benefit that society. Providing infrastructure and employment to developing countries can be socially responsible even if low wages are paid.
e) Managing Cultural Diversity
This is about capitalising on the assets of a multicultural society and workforce – and effectively using skills and talents. Decision making can involve a broad range of opinions from many different backgrounds. If cultural diversity is effectively managed benefits could include:
New markets
Customer needs better served
Flexibility and responsiveness to change enhanced
Equal opportunity environments created
f) E-Commerce
E-Commerce involves using the internet to conduct business instead of a physical market/shop. Trust is involved because consumers can’t actually see and feel the goods. There are also concerns about payments (credit card) and privacy aspects of distributing personal financial details electronically.
Some businesses refuse to keep details and have privacy policies; others sell details to other businesses.
