Social Responsibility مسئولیت اجتماعی

Social Responsibility

Social Responsibility

Social responsibility is the ethical framework in the organization that companies are responsible for performing civic duty and actions that benefit society. If a person takes actions that cause damage to the environment, he is considered socially irresponsible. According to this concept, managers should make decisions that, in addition to increasing the profit of the organization, also protect the interests of society.

Ethics Principles

Ethical principles are a set of principles that govern the behavior of a company or person. Organizations must follow ethical principles according to decisions that affect others. Social responsibility rules should be applied when interacting with others outside the company and inside the organization.

Benefits of the Organization’s Social Responsibility

1. Helps the Company’s Competitive Advantage

Most customers agree that the organization’s social responsibility is one of the main criteria when buying or trading, and the organization uses this issue to advertise in business situations.

2. Attracts the Attention of Investors to the Business

Investors believe that commitment to social responsibility is the best way to position the company. Establishing a balance between focusing on the organization’s profitability and its social responsibility creates many opportunities for companies.

Social Responsibility مسئولیت اجتماعی
Investors
3. Attracting Strong Applicants

The success of the company is influenced by the people who work for the company. If we are familiar with the culture of social responsibility of employees, we can attract capable people for employment.

4. Improves Business Culture

By observing social liability initiatives, employees are more motivated towards the activities of organizations. This feature can motivate employee initiatives, pride, and loyalty, which makes team members engaged and productive.

Social Responsibility مسئولیت اجتماعی
Businesses
5. Increases Customer Loyalty and Popularity

Consumers are attracted to companies that they recognize as a good corporate citizen. Customer support is one of the most important keys to attracting new customers. Loyal customers boost our business by talking about the product and sharing positive reviews.

6. It Improves the Image of the Company

If the organization regularly acts to comply with social liability, the investors’ customers think that they have the ability and potential to earn money from an economic point of view. This makes it attract new investors.

7. Increases Profitability and Value

In many cases, companies are finding that when they adopt energy-efficient methods, they are actually reducing the organization’s costs and benefiting the environment. Social liability with such analyzes increases shareholder investment.

Disadvantages

1. Implementing them is Costly

Given that large organizations can allocate funds for corporate social responsibility reporting, this can be costly for organizations. If small companies can use social media to share their CSR policies or initiatives with customers. The company may need to hire additional staff to manage processes effectively, which can be challenging for small businesses.

2. It Affects Profitability

The organization has a fiduciary responsibility to the shareholders and social responsibility costs affect this issue. This conflict can be challenging for managers and they may have to choose between the organization’s decisions and actions and focusing on the company’s profit margin.

3. It Causes Green Washing

Green washing refers to human behaviors that are apparently friendly and supportive of the environment, but harm it and unnecessarily cost the environment. Social responsibility measures are the best trick to improve a company’s image, even if no real change has taken place. For this reason, we should consider which actions we want to implement in the organization and evaluate their impact on the organization.

Social Responsibility مسئولیت اجتماعی
Green Washing

Up to Sum

Corporate social liability is part of the organization’s internal culture, which both managers in their decisions and employees in their actions are obliged to follow. Among the benefits of this responsibility, we can mention profitability, attracting new customers and investors for the organization, etc. However, we will also face disadvantages such as being costly in this field.

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