CHAPTER 13
SOCIAL RESPONSIBILITY
MEANING OF SOCIAL RESPONSIBILITY
• It is an obligation to work towards improving the welfare of society
• An ethical viewpoint that says every individual or organisation has an obligation to benefit society as a whole
• The responsibility of every citizen individual or organisation to contribute towards the well-being of the
community and the environment in which they live in the form of:
- Avoiding any actions that could harm the environment and the society
- Acting in ways that improve other people’s quality of life
• It is the duty of all businesses to maintain a balance between the economy and the environment
MEANING OF TRIPLE BOTTOM LINE
• A triple bottom line means that businesses should focus on 1. profit (economic performance) 2. People
(social performance) and 3. Planet (environmental performance) - an accounting framework consisting of
the three elements
• Many businesses have adopted this framework to evaluate their performance to create greater business
value
• It is a way to measure business performance by evaluating its social, environmental, and economic successes
RELATIONSHIP and LINK BETWEEN SOCIAL RESPONSIBILITY AND TRIPLE BOTTOM LINE
Profit/Economic
- Triple Bottom line means that businesses should not only focus on profit and charge high prices, but
should also invest in CSI projects
- Businesses should not make a profit at the expense of its community
People/Social
- Business operations should not have a negative impact on or exploit people, employees, customers and
community
- Businesses should engage and invest in sustainable community programmes and projects that will
benefit communities
- Improve the lifestyle and quality of life of their human resources (employees)
Planet/Environment
- Businesses should not exhaust resources or harm the environment for production for profit purposes
- They may support energy-efficient and eco-friendly products/production methods
- Recycle and Re-use waste (e.g. packaging from recycled material)
WAYS IN WHICH A BUSINESS PROJECT CAN CONTRIBUTE TOWARDS THE COMMUNITY
➢ Charitable contributions to NGOs focused on the needs of the community
➢ Involvement in the community education or homeless and health programmes
➢ Train people within the community, especially the unemployed
SOCIAL RESPONSIBILITY
MEANING OF SOCIAL RESPONSIBILITY
• It is an obligation to work towards improving the welfare of society
• An ethical viewpoint that says every individual or organisation has an obligation to benefit society as a whole
• The responsibility of every citizen individual or organisation to contribute towards the well-being of the
community and the environment in which they live in the form of:
- Avoiding any actions that could harm the environment and the society
- Acting in ways that improve other people’s quality of life
• It is the duty of all businesses to maintain a balance between the economy and the environment
MEANING OF TRIPLE BOTTOM LINE
• A triple bottom line means that businesses should focus on 1. profit (economic performance) 2. People
(social performance) and 3. Planet (environmental performance) - an accounting framework consisting of
the three elements
• Many businesses have adopted this framework to evaluate their performance to create greater business
value
• It is a way to measure business performance by evaluating its social, environmental, and economic successes
RELATIONSHIP and LINK BETWEEN SOCIAL RESPONSIBILITY AND TRIPLE BOTTOM LINE
Profit/Economic
- Triple Bottom line means that businesses should not only focus on profit and charge high prices, but
should also invest in CSI projects
- Businesses should not make a profit at the expense of its community
People/Social
- Business operations should not have a negative impact on or exploit people, employees, customers and
community
- Businesses should engage and invest in sustainable community programmes and projects that will
benefit communities
- Improve the lifestyle and quality of life of their human resources (employees)
Planet/Environment
- Businesses should not exhaust resources or harm the environment for production for profit purposes
- They may support energy-efficient and eco-friendly products/production methods
- Recycle and Re-use waste (e.g. packaging from recycled material)
WAYS IN WHICH A BUSINESS PROJECT CAN CONTRIBUTE TOWARDS THE COMMUNITY
➢ Charitable contributions to NGOs focused on the needs of the community
➢ Involvement in the community education or homeless and health programmes
➢ Train people within the community, especially the unemployed
