Social Responsibility

The doctrine of social responsibility has become an integral part of the corporate culture of many businesses today, and it is fundamentally changing the role of corporations in a capitalist economy device. The modern social thought is directed to the fact that organizations should have not only economic, but also social objectives. Those organizations that have recognized the need for social activities are trying to secure a long-term guarantee of profit. This trend has become a natural reaction to the improvement of society’s attitudes towards socially responsible companies. Social responsibility contributes to the formation of a positive image of business in society (Hond, Bakker & Neergaard, 2007). Commercial and industrial businesses and organizations can and should have the so-called social conscience. They should bear the responsibility to society for the simple reason that the responsible actions suit their own interests. Today, managers regularly make decisions related to the issues of social responsibility in different ways: charity, pricing, relationships between workers, preservation of natural resources, quality of goods and labor protection.

Famous economist and Nobel laureate Milton Friedman believes that the organization fulfills an economic function of production and services, provides jobs for citizens and the maximum profits of their respective owners (Friedman, 1970). Based on his theory, most modern managers are experts in the industry that are under the control and do not have their own business, and act as employees (Carroll, 1991). According to this fact, the researcher concludes that modern leaders must be responsible only to the companies’ owners of shares. Therefore, the main task of businesses or companies is to maximize the effective promotion of the interests of the owners of the companies. Thus, all the owners of the company have one and clear set purpose – they only mind about the effective use of their invested funds. This is the way that Friedman sees that term of social responsibility and argues that social responsibility of the company is only in its responsibility to the owners of the business, however, today’s vision of this term is rather opposite. Therefore, today social responsibility is more likely to be seen as a voluntary contribution of business to society in social, economic and environmental spheres, connected to the main activity of the company.