Importance of Social Responsibility
Upon completion of the Required Readings, write a thorough, well-planned narrative answer to each of the following discussion questions. Rely on your Required Readings and the Lecture and Research Update for specific information to answer each discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question responses should be both grammatically and mechanically correct, and formatted in the same fashion as the questions themselves. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your responses and document in a bibliography using APA style
Explain why it is important for entrepreneurs to exercise social responsibility.
Importance of Social Responsibility
Businesses are a part of the community in which they function. These businesses rely on society for the necessary resources, growth, promotion, and continued existence. In this regard, business owners have a clear social obligation to the community. “Social responsibility” refers to a company’s obligation to several facets of society. Socially conscious business owners develop brand recognition, boost client retention, and draw top talent. Integrating these elements is a vital strategy for boosting revenue and economic breakthrough. This paper discusses the importance of social responsibility to entrepreneurs.
Social responsibility initiatives increase employee motivation, output, which affects a company’s profitability. According to detailed testing, a solid feeling of worker significance and social responsibility contributes to greater employee participation. Work engagement is a valuable tool to improve other corporate performance metrics and a vital indicator for gauging social responsibility’s success. Research indicates that employee engagement increases productivity by roughly 18%, profits by about 21%, while decreasing absenteeism by almost 40% (Carroll & Brown, 2018). In a motivating environment, creativity also rises. Hence entrepreneurs need to exercise social responsibility to get good results from their employees.
Enterprises can boost consumer commitment and retention by implementing social responsibility activities. Consumers and enterprises both use social responsibility as an initiative to influence international and remote societies. According to Sroka & Szántó (2018), 87% of American customers are more inclined to purchase an item from a business that encourages a cause that is essential to them, and 75% would resist upon learning that the company backed a cause that went against their values. Therefore, a firm that practices moral and social responsibility can establish reliability and retain customers, which leads to client retention and higher sales. An entrepreneur must implement social responsibility to record high sales and retain customers
Additionally, social responsibility enhances the image of an enterprise. Discovering and retaining talent can be tricky. According to a study, 82% of employees consider social responsibility necessary when choosing their future job, and 65% are open to taking a pay sacrifice to operate at an organization that values social responsibility (Carroll & Brown, 2018). If given the opportunity by a business with a steadfast reputation, 90% of all personnel would prefer quitting their jobs. As such, entrepreneurs should consider the advantages of good social responsibility to enhance their public image. Besides, effective social responsibility increases the publicity of a company. Entrepreneurs’ brand image and general online product loyalty increases following an outstanding social responsibility program (Sroka & Szántó, 2018). However, the developed social responsibility must align with business values and mission for an authentic press opportunity.
Social responsibility also provides a competitive edge for enterprises. The tendency of customers to associate with a firm that cautiously addresses societal challenges is high. Besides, customers tend to support organizations that uphold their ideals. Social responsibility also increases investor interest. Shareholders are concerned with a company’s consumers’ loyalty, sustainability, and competitiveness (Font & Lynes, 2018). It is possible to draw both shareholders concerned with social duty and those focused on long-term economic success by including social responsibility.
Generally, social responsibility is increasingly impacting a business performance. More consumers have resolved to support businesses that strive to refine the planet, and hence SR should be embraced exponentially. The paper outlined various benefits of this tenet including increasing profitability and enhancing a firm’s image.
Reference
Carroll, A. B., & Brown, J. A. (2018). Corporate social responsibility: A review of current concepts, research, and issues. Corporate social responsibility.
Font, X., & Lynes, J. (2018). Corporate social responsibility in tourism and hospitality. Journal of Sustainable Tourism, 26(7), 1027-1042.
Sroka, W., & Szántó, R. (2018). Corporate social responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship, Management and Innovation, 14(3), 111-126.
