Government regulation and public awareness are external forces that have increased the social responsibility of business. But business decisions are made within the company. Two contrasting philosophies, or models, define the range of management attitudes toward social responsibility; the economic and the socioeconomic model.
According to the traditional concept of business, a firm exists to produce quality goods and services, earn a reasonable profit and provide jobs. In line with this concept, the economic model of social responsibility holds that society will benefit more when business is left alone to produce and market profitable products that society needs. To the manager who adopts this traditional attitude, social responsibility is someone else’s job. After all, stockholders invest in a corporation to earn a return on their investment, not because the firm is socially responsible and the firm is legally obligated to act in the economic interest of its stockholders.
In contrast, some managers believe they have the responsibility not only to stockholders, but also to customers, employees, suppliers, and the general public. This broader view is referred...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
