Question

1.Discuss the four components of social responsibility. Why would you expect a trustworthy firm to have higher profits over the long term? What is an ethical dilemma?

Answer 1

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Discuss the four components of social responsibility.

The four components of social responsibilities include (3) moral obligations and (4) discretionary responsibilities.

1. Economic Social Responsibility: Economic social responsibility begins with the productivity. It has to be sustainable before a firm can give back. Sustainability involves making a profit for shareholders, paying fair salaries to its employees, paying corporate taxes and fulfilling other financial obligations. Corporations may demonstrate corporate social responsibility by being clear about the financial status of their company with all the stakeholders.

2. Legal Social Responsibility: Consumers are more likely to buy products and utilize services from companies they trust. A part of building that trust is in keeping with the laws that govern your business. All examples of legal social responsibility include paying the necessary taxes, adhering to labor laws and requiring inspections. It may sound simplistic, but not being attentive to your legal obligations may lead to a complaint against your company and damage the credibility of the business— and your reputation is crucial to your success.

3. Ethical Social Responsibility: Corporate economic and legal accountability lays the foundation for companies to move into ethical social responsibility, which means doing the right thing at all levels of your business. It ranges from paying a living wage and ensuring that all labor laws are adhered to by the businesses you work with and buy materials from. Of addition to maintaining fair working practices, attention should also be given to the environmental impact the company is having. Make the use of recycled materials and clean energy where possible. Go beyond meeting the minimum environmental criteria and see how you can surpass those standards, thus giving consumers a good impression of your brand.

4. Discretionary Social Responsibility: Discretionary social responsibility involves using the time and resources of your business to contribute in whatever way is important to you and your brand to the world at large. This may include providing opportunities for your employees to volunteer; donating money, resources or goods to charitable organizations; or creating your own charitable organization which is connected to the mission and objectives of your business. You might want to support multiple organizations, or just concentrate on one or two important ones.

Why would you expect a trustworthy firm to have higher profits over the long term?

I believe that reputable companies would have higher profits due to the lack of issues with agencies and an improved code of ethics – which is an ideal and excellent way to grow the business.

What is an ethical dilemma?

An ethical dilemma occurs when the values of different stakeholders of the organization are in conflict over a particular issue. They can also be related to the gray areas surrounding legal behavior; the definitions of what society views as right and wrong.