Arguments For And Against Social Involment

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

256

Pages:

2
Author:

JJIssac

ARGUMENTS FOR AND AGAINST SOCIAL INVOLVEMENT Arguments favoring corporate social involvement:      Firms depend on societal resources, so must be socially responsible As part of society, business must address varied societal needs Resourceful firms greater responsibility have Tax exemptions actually drive some social spending  It can affect competitiveness through higher costs and prices  It increases business dominance over society Social Audit Social audit systematically assesses and reports on the social impacts of organizational activities. Key aspects are:  Identifying activities potential social impacts with  Assessing associated costs and benefits social  Measuring the social costs and benefits  Reporting performance a Social involvement fosters mutual benefit and businesssociety harmony Some social efforts like recycling may be financially beneficial  Social responsibility discourages more government regulation/intervention  It can build a favorable public image and attract customers, talent and investors Arguments against social involvement:   Business should focus on core business; government and NGOs can handle social aspects  It may hurt profitability and enterprise health  If costs are passed on to consumers, there may be a net societal loss on social Objectives and benefits:  Evaluate and improve social performance  Increase visibility  Boost image through positive audit results Methods include:  Social process audit for better program management  Financial statement audit conventional formats  Macro-micro indicator against national policies  Constituency audit stakeholder criteria in audit against  Partial audit of specific aspects like energy conservation  Comprehensive audit of total performance  External evaluation by groups like NGOs Obstacles to social audit include lack of standard methodology, resistance in firms, difficulty quantifying social costs/benefits etc. But it is a powerful tool to promote corporate social responsibility.