Answer to Question #170953 in Economics for Trina

Question

Essay Differentiate the different models and Frameworks

of Social responsibility.

Answer 1

Social responsibility is a concept that substantiates that an individual, a group of individuals, an organization (and more often it is about the social responsibility of business) is not only responsible for the observance of laws and the production of a quality product or service but also voluntarily assumes obligations to society, works to improve the quality of life of people. It is a voluntary response to the social problems of society.

There are 3 views on corporate social responsibility

1) the theory of corporate selfishness, emphasizes that the only responsibility of a business is to increase profits for its shareholders.

2) the theory of corporate altruism - proves that corporations are obliged to make a significant contribution to improving the quality of life.

3) the theory of "reasonable egoism", according to which the social responsibility of business is a long-term investment. By spending money on social and philanthropic programs, the corporation reduces its current profits, but in the long run creates a favorable social environment and, therefore, sustainable profits. Leads to increased company reputation and brand loyalty.