In addition to legal and economic responsibilities businesses have social obligations which require the businesses to forgo some level of profit at the expense of accomplishing some non-economic activities. However, this concept of business social responsibility helps it in protecting its reputation. Some of the socioeconomic responsibilities include: donating to charity work, providing their employees with the quality hygienic standards at their place of work, and, use the business’ resources in financing major social problems (Reznikova, 2014).
Business' social obligation can be divided into three segments; that is the intermediate circle, which puts into consideration the changing social norms, the inner circle, which clearly distinguishes essential responsibilities for efficacy in executing economic duties (In Yüksel & In Idowu, 2013). And lastly, the outer circle which highlights responsibilities that are emerging and the business should assume to be intimate in improving the environment. Exercising social responsibility should be consistent, although they are not legally required it is upon the society to meet the society’s expectations. In most nations, fulfilling economic and legal obligations is regarded as inadequate for legitimizing a business’ vision (Mareș, 2008). A corporate therefore has to bring up their concern for the society to coincide with their prevailing expectation. It is advisable for a corporation to be operating at a higher level of moral standards in the market. This makes the business stand out and not be under the tension of government regulations.
In conclusion, viewing a business’ socioeconomic responsibilities from a different angle it calls for a company to select a goal and evaluate the outcomes not solely by the criteria of making a profit and its well-being but by judgments of society desires. As a business seeks to make a profit, they should obey elementary ethics such as honesty and good faith (Herring, 2014). Transparency and accountability should be upheld. The environment should not be polluted and just in case accidentally it is caused it should be cleaned.
Herring, J. (2014). Lawyers’ social responsibilities. Legal Ethics, 367-385. doi:10.1093/he/9780198703457.003.0013
In Yüksel, M. A., & In Idowu, S. O. (2013). Corporate social responsibility in the global business world.
Mareș, R. (2008). The dynamics of corporate social responsibilities. Boston: Martinus Nijhoff Publishers.
Reznikova, E. V. (2014). THE ROLE OF SMALL AND MEDIUM-SIZED BUSINESSES IN THE SOCIO-ECONOMIC DEVELOPMENT OF COMPANY TOWNS. jour, (3), 88. doi:10.17747/2078-8886-2012-3-88-93