Does a company have to act selflessly to be considered socially responsible?
Does a company have to act selflessly to be considered socially responsible? For example, when building a new plant, a corporation voluntarily invested in additional equipment that enabled it to reduce its pollution emissions beyond any current laws. Knowing that it would be very expensive for its competitors to do the same, the firm lobbied the government to make pollution regulations more restrictive on the entire industry. Is this company socially responsible? Were its managers acting ethically?
A corporation or business is not just considered social responsible if it acts selflessly because business do fulfill some of their social responsibility by generating employment, provide strength to the economy, give taxes to government etc. If managers of a company makes arrangement to reduce pollution due to their production process than its very positive action from company management but it quite expensive for every organization to implement that. Those who don’t implement such process may not be considered un-ethical as they may be fewer resources. In my view both companies who implement this process or not considered as social responsible because they tries to fulfill their responsibilities up to some extent.
Most of the companies are established for self-benefits and self-founded. But this benefit must be within the public interest and not inconsistent with the others or harm them. The companies have the right to have their privacy, but should not be at the expense of others. And allow them to professional competition that based on better service or product.
Corporate responsibility does not require altruism or selflessness. Corporate responsibility is compatible with shareholder value. Responsible companies are able to balance the value created for all stake holders – not only shareholders. And this includes partners, employees, suppliers, society and environment.
The multitude of firms acting in the pursuit of self interest may accomplish such pursuit without injuring society in the process. Social responsibility is not an added requisite, but a reminder of what firms should be doing in the first place.