1. East West University
Department of Business Administration
Course title: Introduction to Business
Course code: BUS101
An assignment on
“Why is Social Responsibility? Why is it important for business to act in a Socially
Responsible manner? Do you think Social Responsibility is worth the cost?”
Prepared by
Name: Md. Shabab Mehebub

2. Why is Social Responsibility?
Social responsibility means sustaining the equilibrium between the society and environment.
Social responsibilities is an ethical framework which suggest that an entity, be it an organization
or individual has an obligation to act for the benefit of society at large. It should perform to
maintain a balance between the economy and ecosystem. It is the awareness about business
activities has an impact on society.
In simple, doing some activities beyond the profit that benefit the society is social responsibility.
Why is it important for business to act in a Socially Responsible manner?
It is important because a positive impact on society that impact on business which helps to
marketing their product and company. It reviews their service which helps to grown company
support.
1. Improving Community Support: Business firms are sensitive to the community needs, will get
a better community at the end and there will be a better environment for doing the business.
Business firms do this manner because they want to maintained the long term relation with
society so that they can make profit in long term way. It creates a good public image to get more
customers, better benefit and better skilled employees. When there public image is good in the
society the business firm will get skilled employees who will be the ultimate profit explorer of
that business. Many companies are doing some social activities around their community.
Example: P&G Company built school for educating poor children in India and Bangladesh.
British American Tobacco Bangladesh Company [BATBC] they plant tree in Bangladesh as an
activity of social responsibility. Through this type of activities business sector improved their
community support.

3. 2. Improving public image: Responsibilities to consumers may be seen as no more than a natural
outcome of good business. There are broader social responsibilities including providing good
product and services, safety and money. Increasing concern for social responsibilities to
consumers can be seen by the activities of such bodies as the consumers association and the
number of television and radio programmed devoted to this subject. As an example of
degrading the quality of life, some people believe that cigarette companies, because they
produce goods that harm the health and society overall, are socially irresponsible. By doing that
consumer will not buy the products and the organization will loses. Social initiative taken by
organization tends to promote goodwill, public favor and corporate trust for long run success.
3. Improving Stock Price: Activities of social responsibility of an organization would lead to
their suppliers and business associates more confident to the organization. Example: in this
section social responsibility might include fair standards of trading, rules and regulation of
purchasing and sale products and respect to copyright patent. By doing that the other
organization would view the company as less risky. This is in the stockholder best interest. It
will improve the price of stock in the long run because the stock market will views the company
as less risky and open to public attack. So it would reduce the production cost.
Do you think Social Responsibility is worth the cost?
Yes, I think that Social Responsibility is worth the cost. It helps the business to work properly.
By doing social responsibility profit, better skilled employees and better environment are
increase.
1. Profit: Social responsible work is not free of cost. But as business firm do the social
responsibilities to their community there will be create a good public image for this

4. business and the sale of products and services will be increase and as well as profit will
increase. By this process profit earning will be running a long term way.
2. Better skilled employees: When a business does Social responsible work they become a
famous company and the icon of business. Already, we know they can earn good profit
doing Social responsible work so they can take better employees for their company and
can give the better salary. So people will attract to work in this business. The better input
[employees] will give the excellent output [profit, fame, good quality of product].
Ultimately it is a indirect profit for this business
3. Capital Increasing: By doing Social responsible work when their public image will
increase, public will interest to invest their money by buying share. So that the capital of
the business firm will increase.