The document discusses the social responsibility of businesses. It defines social responsibility as a business's obligation to consider the welfare of society in addition to profits. The document presents three models of social orientation for businesses - Carroll's model of economic, legal, ethical and discretionary responsibilities; Halal's model of return on resources; and Ackerman's three phase model of social responsiveness. It classifies businesses based on their level of social orientation from anti-social to committed and active. The key idea is that businesses have a duty to society beyond generating profits.

1. Social Responsibility of Business
By,
Praveena Richu Jacob
Marthoma College of
Management and

2. Social Responsibility
Social Responsibility is one of the social issues
in International Business.
It refers to obligation of an organization's
management towards the welfare and interests
of the society in which it operates.
The word ‘responsibility’ means that the
business has some moral obligations to the
society.
The profit is not the primary purpose.

4. The companies social performance can be
judged by social responsiveness shown to the
needs of the community.
The primary objective is to strengthen itself
with due regard to the interests of the
shareholders, employees, and consumers.
Business should pay attention to the long term
welfare of society.

6. Social Orientations of Business
 Social Orientation is a business philosophy
that takes the society’s well- being into
account, in addition to the satisfaction of the
consumer’s wants.
The extent of social involvement of a company
may change over time and can be described by
some models such as:
a) Carroll’s Model
b) Halal’s Model
c) Ackerman’s Model

7. Carroll’s Model
Archie B. Carroll proposed a model having 4
categories of obligations of corporate
performance.
-Economic
-Legal
-Ethical
-Discretionary
Economic entity: The firm should have
efficient operations to satisfy economic needs
of the society

8. Legal responsibilities: A company is bound to
obey the law of the land.
Ethical responsibilities: Norms which the
society expects the business to observe though
they are not mandated by law.
Discretionary responsibilities: voluntary
contribution of the business to the social cause.

9. Halal’s Model
William E. Halal’s proposes ‘return on
resources model of corporate performance’.
No corporate social posture will be value-
free.
Beyond a certain level of economic activity,
the social issues at stake may become
conflicting.

10. Ackerman’s Model
It has 3 Phases in the development of social
responsiveness:
a) Top management recognizes the existence of
a social problem.
b) Company appoints staff specialists to study
the problem and suggest ways.
c) Implementation of social responsibility
programmes.

11. Extent of Social Orientation and
Involvement
On the basis of extent of social orientation and
involvement of companies, they are classified
as:
a) Anti- social: No social orientation but they
are unfair in the conduct of the business.
b) Indifferent: No social orientation beyond
discharging legal as well as economic
responsibilities.
c) Peripheral: social orientation for name sake

12. d) Socially oriented: high level of social
orientation but real involvement is constrained
by limited resources
e) Committed and very active: high level of
commitment and real involvement in the social
welfare programmes.

13. Thank you…