Corporate Social Responsibility

Throughout the 1970s, the term "social responsibility" came into use in the 1970s. As a rule, it means corporate obligations. In accordance with this concept, organizations must take into account the interests of the whole society, not just their own. This means that they must be responsible for the impact their activities have on customers, suppliers, shareholders and other parties involved in the work process. Thus the accepted obligations can leave (and even should) for frameworks of what are established by the law. That is, the social responsibility of management is, among other things, independent taking measures to improve the lives and working people of the company, and the whole society.

Approaches to obligations to society in Europe

Many researchers pay attention to the fact that corporate activity is differently understood in the English-speaking countries of the world and in Europe. Some organizations are limited to helping the poor or local communities. While supporters of another, more active approach, believe that the social activity of corporations should be manifested not simultaneously, but to increase the education of the local population, to give him the opportunity to apply the newly acquired knowledge in accordance with the interests. Only thanks to such actions, in their opinion, a stable environment is created in society.

Reporting of social activities

The company is also obliged to report to the society for the actions taken, to keep records constantly. Thus, the social responsibility of a corporation, as a concept, must take into account the environmental, economic and other kinds of influence of its activities on certain interest groups or on the whole society. The main principles of this kind of accounting are a number of developed reporting standards and guidelines.

Impulses for Commitment by Corporations

The decision that social activity is used in practice is taken by organizations under the influence of a whole series of incentives.

1.Etic consumerism. The impact of user awareness of the environmental or social side of their purchasing decisions.

2. Globalization. Many corporations tend to be present in world markets to remain competitive.

3. The level of education of the society and its awareness. Use the Internet and the media to increase their own popularity and activity.

4. Legislation. Government regulation of business-related processes.

5. Involuntary responsibility for the consequences of crises.

Social responsibility of the state

It is a more general concept than the one discussed above. Its effectiveness can be judged by the policy it implements. So, the harder it is, the level of state responsibility before the society is lower. And, on the contrary, the better it is thought out, the less representatives of business violate the law, and the more citizens support the government.