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Social Responsibility 4
Social Responsibilities towards Shareholders 4
What are the Advantages of being Socially Responsible? 5
How Can Business Ethics be Improved? 5
Environmental Issues and Responsibilities for Business 6
Effects of the Environment on Business 6
Characteristics of an Environmentally Conscious Business 7
Effect on Costs of Meeting Ethical, Social and Environmental Responsibilities 7
Effects on Revenue 7
- Social responsibility is the duty of a business to conduct business in an honest and fair way. A business has an obligation to have a positive impact on the individuals and environment it affects. Example: a business using environmentally friendly machinery in its factory.
Social Responsibilities towards Shareholders
Examples of Social Responsibility
- Giving them honest financial information about the performance of the business.
- Paying them a reasonable dividend.
- Providing employees with safe working conditions.
- Giving them a fair wage for the work they do.
- Treating all employees fairly and with respect.
- Providing good quality products and services that are safe.
- Fairly priced goods.
- Deal with complaints in a timely and fair fashion.
- Advertising honestly.
- Obey the laws of the country.
- Pay taxes in full and on time.
- Controlling noise pollution and traffic disruption.
- Buy from local suppliers.
- Hire local people.
Environment ( 3 P’s)
- Safe and clean production process.
- Safe and healthy products.
- Packaging that can be recycled.
What are the Advantages of being Socially Responsible?
- Customer Goodwill: most consumers like to buy from businesses that care about society and the environment. They like businesses that are ethical.
- Happier Employees: employees with good pay and working conditions will be happier in their employment. There will be a lower labour turnover and employees will work harder.
- Easier to ...
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