Social Responsibility and Ethics

If organizations are to survive, they must make meaningful contributions to the societies in which they operate. In the United States, organizations are generally free to satisfy the needs of society by producing goods and services of their own choosing. Yet, social values and norms still serve to limit the alternatives available to all organizations.

Accepting changes in social and ethical values is a slow process Managers are now, however, recognizing the importance of adapting to dynamic, changing social  requirements. They are beginning to develop a more complete understanding to their role in society and what society expects from its organizational partners. To a considerable degree, this expectation is becoming more clearly defined as that of over coming values and attitudes that disregard human rights. As such, the expectation is also close to Dr. Albert Schweitzer's definition that states, "Ethics is the name we give to our concern for good behavior. We feel an obligation to consider not only our own personal well-being, but also that of others and of human society as a whole."

To understand the present level of socially and ethically responsible actions of managers, it is necessary to examine two major points.First, many organizations see their role as that of being an efficient supplier of goods and services demanded by the public. In the sense, they feel that the best way to solve social problems is to continue their contributions to economic growth.

A second point is that some organizations feel they lack both the wealth and skill to accept a heavy social responsibility. This belief implies that a major social burden might result in lower profits. Deciding where profits end and social responsibility begins, however, maybe impossible. In fact, it can be argued that profit, ethical behavior, and social responsibility must go together. By providing a proper balance among goals in each area, one is reached through an achievement of the others.

Just a managers consider themselves to be ethical, they also view their organizations as socially responsible entities. Consequently, it is not unusual to find them actively supporting educational programs or working to expand employment opportunities for minority groups. In so doing, these managers have found that people who are given a chance to succeed often make better neighbors, employees, and customers than these who are poor, ignorant, and neglected. Thus, their actions can have a favorable long-run impact on both the organizations and communities involved.

As concerns ecological problems, the future demands of stockholders are more likely to be met by organizations that work to eliminate pollution. Where ways to control air, water, and noise pollution are not at hand, new technology must be developed. Companies that are able to meet such challenges may find that future profits will increase as long-run social needs are balanced with short-run economic considerations. Perhaps the social audit that attempts to measure the impact of an organization's actions on society will be of value in seeking to maintain this difficult balance.