What is the economic model of social responsibility?

What is the economic model of social responsibility?

The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable goods. The socioeconomic model places emphasis not only on profits but also on the impact of business decisions on society. (See Table 2.3.)

What are the models of social responsibility?

According to the model (Figure 1a), four kinds of social responsibilities constitute total CSR: economic (“make profit”), legal (“obey the law”), ethical (“be ethical”), and philanthropic (“be a good corporate citizen”).

Who are the 4 groups businesses are socially responsible to?

Generally, corporate social responsibility initiatives are categorized as follows:

• Environmental responsibility.
• Human rights responsibility.
• Philanthropic responsibility.
• Economic responsibility.

Why is the economic or socioeconomic model of social responsibility the best for business?

The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable goods. The socioeconomic model places emphasis not only on profits but also on the impact of business decisions on society.

Which of the following is a feature of economic model of corporate social responsibility CSR )?

The economic model of corporate social responsibility (CSR) holds that businesses should integrate social goals and economic goals. The philanthropic perspective of the economic model holds that business has no strict obligation to contribute to social causes.

What is the most responsibility of business?

Shareholders or Owners The first and most important responsibility of a business should be towards the shareholders or the owners who have invested money. They are eligible for a fair return on the money they have invested.

What does the socioeconomic model of social responsibility mean?

The socioeconomic model of social responsibility refers to the concept that a business should not only focus on earning profits but must also look after the effects of its decisions and functioning on society.

How does economic responsibility relate to corporate social responsibility?

Economic responsibility Economic responsibility initiatives involve improving the firm’s business operation while participating in sustainable practices – for example, using a new manufacturing process to minimize wastage. Business Benefits of CSR In a way, corporate social responsibility can be seen as a public relations effort.

What are the different types of corporate social responsibility?

Corporate Social Responsibility (CSR) 1 1. Environmental responsibility. Environmental responsibility initiatives aim at reducing pollution and greenhouse gas emissions, and the sustainable 2 2. Human rights responsibility. 3 3. Philanthropic responsibility. 4 4. Economic responsibility. 5 3. Operational cost savings.

Why is it important to have a socially responsible business?

Public Expectation. Public opinion supporting business pursuing social as well as economic goals. Long run Profit. Socially responsible business tend to have more secure long run profits. It is the result of better community relations and improved business image. Balance Responsibility & Power.

Which is the sole duty of a business?

According to the economic model of corporate social responsibility, the sole duty of a business is to: a. go beyond legal responsibilities to cater to the needs of the society. b. fulfill the economic functions that it was designed to serve. c. think beyond economic ends that have to be met to help the society.