The Growing Importance of Social Responsibility in Business

“The Growing Importance of Social Responsibility in Business” by Chastity Heyward, published in Forbes on November 18, 2020. (Heyward, 2020)

HTTPS://www.forbes.com/sites/forbesbusinesscouncil/2020/11/18/the-growing-importance-of-social-responsibility-in-business

The article highlights the growing importance of social responsibility in business and how it is becoming a critical factor in attracting and retaining employees, improving customer perception, and fostering a more productive and positive work environment for employees. Here are the five most important aspects of the case:

Economic aspect: Companies that prioritize social responsibility can attract more talent, leading to a more productive and positive work environment for employees. (Heyward, 2020)

Legal aspect: Corporate social responsibility (CSR) is not compulsory, but it is important for companies to prioritize social responsibility as it can help them avoid legal issues and negative publicity. (Heyward, 2020)

Ethical aspect: CSR is a business’s obligation to pursue achievable and good long-term goals for its people and the world at large. Companies that use social responsibility to give back to society and thank customers for their loyalty will likely win consumers. (Heyward, 2020)

Economic aspect: CSR efforts can help foster a more productive and positive work environment for employees. It promotes volunteering and positive efforts from employees. (Heyward, 2020)

Ethical aspect: Some companies are taking the lead and venturing into humanitarian projects ranging from constructing roads to alleviating poverty. (Heyward, 2020)

The article discusses the growing importance of social responsibility in business and how it can benefit both the company and the community. Here are three instances of how the article draws on the concepts from the assigned textbook readings:

Higher Purpose: The article emphasizes that social responsibility is not just about making profits but also about pursuing achievable and reasonable long-term goals for its people and the world. This aligns with the concept of “higher purpose” discussed in Chapter 1 of “Conscious Capitalism: Liberating the Heroic Spirit of Business” by John Mackey and Raj Sisodia. According to Mackey and Sisodia, a higher purpose is a company’s reason for being beyond just making money. The “higher purpose that goes beyond only generating profits and creating shareholder value.”.(Mackey & Sisodia, 2013 p. 33)

Stakeholder Integration: The article highlights that companies that prioritize social responsibility can attract and retain employees, foster a more productive and positive work environment, and improve customers’ perception of their brand. This aligns with the concept of “stakeholder integration” discussed in “Conscious Capitalism”. According to Mackey and Sisodia, “All the stakeholders of a conscious business are motivated by a shared sense of purpose and core values. (Mackey & Sisodia, 2013 p. 34)

Conscious Leadership: The article mentions that some companies are taking the lead in venturing into humanitarian projects ranging from constructing roads to alleviating poverty. This aligns with the concept of “conscious leadership” discussed in part 2 of “Conscious Capitalism.” According to Mackey and Sisodia, conscious leaders are” motivated primarily by service to the firm’s higher purpose and creating value for all stakeholders.” (Mackey & Sisodia, 2013, p. 34)

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Opening Paragraph

The role of social responsibility in business is a complex and evolving decision-making issue. From an economic perspective, companies that prioritize social responsibility can attract and retain employees, foster a more productive and positive work environment, and improve customers’ perception of their brand. From a legal perspective, CSR is not compulsory, but companies need to prioritize social responsibility as it can help them avoid legal issues and negative publicity. From an ethical perspective, CSR is a business’s obligation to pursue achievable and reasonable long-term goals for its people and the world.

This paper will explore the economic, legal, and ethical aspects of social responsibility in business, as well as how it relates to the concepts of higher purpose, stakeholder integration, and conscious leadership. The paper will also discuss the challenges of measuring the impact of social responsibility initiatives, balancing social responsibility goals with the need to make a profit, and encouraging other businesses to adopt more socially responsible practices.

References

• Heyward, C. (2020). The growing importance of social responsibility in business. Harvard Business Review. 

Provides an overview of the growing importance of social responsibility in business, including the economic, legal, and ethical benefits.

• Hartman, L. P., DesJardins, J. R., & MacDonald, C. W. (2019). Business ethics: Decision making for personal integrity and social responsibility. McGraw-Hill.

Provides a framework for ethical decision-making in business, including a discussion of social responsibility.

• Mackey, J., & Sisodia, R. (2013). Conscious capitalism: Liberating the heroic spirit of business to create a more sustainable and just world. Harvard Business Review Press.

Introduces the concept of conscious capitalism, which is a business philosophy that emphasizes the importance of purpose, stakeholders, and conscious leadership.

• Harvard Business Review (2018). The business case for social responsibility. Harvard Business Review.

Presents the economic benefits of social responsibility, such as increased employee engagement, improved customer loyalty, and reduced risk.

• Forbes (2020). The future of business is conscious. Forbes.

Argues that businesses that adopt a conscious capitalism approach are more likely to succeed in the long term.

• Inc. (2021). The importance of social responsibility for businesses of all sizes. Inc.

Highlights the benefits of social responsibility for businesses of all sizes, including increased brand awareness, improved employee morale, and reduced costs.

Questions

• How can businesses measure the impact of their social responsibility initiatives?
• How can businesses balance their social responsibility goals with their need to make a profit?
• How can businesses encourage other businesses to adopt more socially responsible practices?
• Question for Partner
• I am particularly interested in the question of how businesses can measure the impact of their social responsibility initiatives. What are some of the best practices in this area? What are some of the challenges that businesses face in measuring impact?
• I would appreciate any feedback you can provide on my opening paragraph and my question for you.