Union Carbide took immediate action and also shut down its plant in West Virginia. This initiative was created to empower five million women entrepreneurs worldwide by 2020. One big bonus of financial contributions is that the amount given is usually tax deductible. Environmental efforts: One primary focus of corporate social responsibility is the environment. Prime Time TV and Radio Show Host, Author, Speaker. Social responsibility refers to the concept of businesses having an obligation to better society through their actions. There’s no shortage of people who want to believe they can make a difference in the world. So, the lesson is that you don’t need to be an engineer to know that without a solid foundation, your house will crumble. In this electronic age, consumers are far more savvy and can search for a company’s record and labor practices any time they want. Pretend for a moment that you have been named CEO of a drug manufacturing plant in the Pacific Northwest. However, many companies have made it work, so it is doable with the right motive behind it. Businesses, regardless of size, have large carbon footprints. For example, many drug or chemical companies that produce pesticides or pharmaceuticals may find that the byproduct can be pollution, damage the surrounding environment, or present potential danger to employees and even residents. Joining the local Chamber of Commerce and attending events has the dual benefit of getting support and helping strengthen the local community. The fish population took years to even begin to recover from the contamination. Ethical practices – Social responsibility starts with who a business is, which translates to what that business does. Forty tons of a lethal chemical used to manufacture pesticides leaked from a storage tank in India. In fact, one of the most important things a business can do is get involved in the local community. For that reason, he stressed that only individuals can have social responsibility, not corporations and organizations. The times, they are a-changin’. On the other hand, if you announce the reason for offering the stocks, public outcry may sabotage the efforts to raise the funding necessary. Copyright © 2020 Entrepreneur Media, Inc. All rights reserved. The data backs the efforts, and the numbers don’t lie. This is especially important in an era with sites like Glassdoor, which allow current and former employees to review the corporate culture as well as the behavior of business leaders. What's more, companies with these reputations are more likely to stumble into legal troubles, which could result in their failure. No, But Anyone Can Still Be a Hero. Business ethics take into consideration responsibilities not just inside the workplace, but also within the environmental, cultural, and social structures of communities. It’s important that leaders find something in which they believe and tie it to the mission of the business. Needless to say, it will cost a lot of money to deal with the cleanup. Leaders who embrace social responsibility can also improve work culture by providing employees with opportunities to pursue their own social interests. Educational advancement – Training and education programs can help communities grow. There is no industry or company that does not, at least once, deal with an ethical problem or an unethical employee. When it comes to values and social responsibility, businesses and corporations should not only take care of their stockholders, but also be able to benefit society in some way. Remember that values were described as standards or beliefs that encourage people to behave a certain way. Asking workers from the start to vote on which nonprofits to support can make a big difference in itself. Financial responsibility – As businesses earn a profit, this principle states that they have a duty to put some of that money back into the community. While every business wants to make a profit, such profits should be made by following basic rules of society, which include ethical and legal considerations. Corporate social responsibility is one of the ways business has changed and will continue to do so throughout this new year. Corporate responsibility and accountability spreads into areas of ethics, legalities, and regulations. … Then there was the Exxon Valdez disaster off the coast of Alaska in 1989, when an oil tanker ran aground and spewed more than 11 million gallons of crude oil into in Prince William Sound. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Finding a middle ground in such situations is not easy, and unfortunately, more often than not, businesses have been much more concerned with the financial bottom line than with the safety or health of people or the environment. Businesses that make a conscious effort to shop local and do everything they can to boost nearby businesses usually benefit from that extra effort. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. While modern society is relying more and more on nuclear energy, we have yet to determine a proper and guaranteed safe manner in which to dispose of nuclear waste. Reforestation: 4 Reasons Startup Founders Should Care, How the 'Change Generation' Is Motivating Businesses to Commit to Sustainability. How would you deal with this dilemma? Why a Tech CEO Toured the South With the San Francisco Gay Men's Chorus. They also deal with accountability issues involved in scientific research, consumer protections, and the overall structure of any business or corporation. Companies have a huge impact on their surrounding communities and environments. Scholarships and grants – Assisting college students with the high cost of going to college is a great way businesses can give back. The company has partnered with local governments and non-profits in order to transform the economic architecture of developing countries. Consumers frown upon companies that ignore social responsibility and develop unethical reputations. This type of social action can take the form of classes to help disadvantaged members join the work world, training for disabled adults, education programs for youth and courses that relate to the products or services a business provides.