Social Responsibility of Business
Social Responsibility of Business
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Social Responsibility of Business
Open with the idea that business is not judged only by profit today. The lesson traces how expectations widened from making money to meeting wider responsibilities.
What words come to mind when you hear responsible business?
Use the responses to surface prior ideas such as profit, fairness, law, environment, workers, customers or charity. Refer back to the cloud later when the four responsibilities have been explained.
How the idea changed
In the early view, business existed mainly to make money.
If the owner earned profits and stayed within the law, that was often seen as enough.
Over time, public expectations changed. Society began to expect businesses to think about workers, consumers, communities and the environment as well.
Emphasise that this is an evolution in expectations. The lesson is not claiming all businesses behaved the same way, but showing the broad shift in what society expects from them.
From private gain to public impact
Earlier, owners often saw business as private property
They believed they could run it as they wished
Social norms had limited influence on business practice
Today, business decisions are judged by their wider effects
Link this slide to modern ideas of accountability: customers, governments, employees and communities now all influence what counts as responsible business behaviour.
Why social responsibility matters
A business does not operate in isolation. Its decisions affect consumers, employees, investors, government and the wider community.
Because of that, social responsibility means balancing profit with duties to people and society.
This slide sets up the four responsibilities that follow. Keep the focus on business decisions and their consequences.
Four main responsibilities
Economic responsibility - earning profits by meeting consumer needs
Legal responsibility - obeying laws and regulations
Ethical responsibility - doing what society sees as right, even beyond the law
Philanthropic responsibility - supporting and improving society through voluntary help
Present these as distinct but connected. Businesses are expected to earn profits, but not at the cost of breaking laws or ignoring ethics.
What best shows the modern view of social responsibility?
Private ownership only
Wider social impact
Quick profit only
No public role
Checks the shift described in slides 2 to 5: from a narrow focus on profit and owner choice to judging business by its effects on workers, consumers, communities and the environment.
What best shows the modern view of social responsibility?
Private ownership only
Wider social impact
Quick profit only
No public role
Checks the shift described in slides 2 to 5: from a narrow focus on profit and owner choice to judging business by its effects on workers, consumers, communities and the environment.
Economic responsibility
Business is an economic activity, so its basic function is to earn profit.
Profit is not only about selling more. It depends on understanding what consumers want in terms of quality, price and value.
Clarify that economic responsibility is not greed. It is the responsible task of running a viable enterprise that serves consumer demand effectively.
Meeting needs creates profit
Consumers buy when products match their needs
Businesses must pay attention to quality and price
Profit comes from serving demand successfully
Connect this to basic market logic: businesses survive when they satisfy customers better than alternatives.
Profit with a purpose
Economic responsibility means:
understanding demand
offering suitable products
pricing effectively
earning profit through useful economic activity
This slide summarises the first responsibility before moving to legal responsibility.
Economic responsibility mainly means earning profit by...
avoiding all risk
meeting consumer needs
cutting all wages
ignoring product quality
The distractors target common oversimplifications of profit. The correct answer matches slides 6 to 9: profit comes from understanding demand, quality, price and value.
Economic responsibility mainly means earning profit by...
avoiding all risk
meeting consumer needs
cutting all wages
ignoring product quality
The distractors target common oversimplifications of profit. The correct answer matches slides 6 to 9: profit comes from understanding demand, quality, price and value.
Legal responsibility
As business is an entity itself, it must also follow laws and rules.
Every business has a responsibility to operate within the boundaries set by the various commissions and agencies at every level of the government.
These rules and regulations are set for maintaining balance and the greater good of the society.
Stress that legal responsibility applies to the business as an entity, not just to individuals working in it.
Examples of legal duties
following labour law
following environmental law
obeying criminal law
paying taxes
keeping accurate account books
You may briefly explain that accounts help government monitor the economic condition of the company and support transparency.
Ethical responsibility
Ethical responsibility includes behaviour that society expects, even when it is not written into law.
The factors of ethical responsibility include that the business must be environmentally friendly
It is about doing what is morally right, not only what is legally permitted.
This is the key contrast with legal responsibility. A business can obey the law and still face criticism if its actions are seen as unfair or harmful.
Ethical responsibility in practice
Ethical responsibility means asking:
Is this fair?
Does this harm people or nature?
Would society see this as the right thing to do?
Use this as a practical test for ethical judgement. It helps students distinguish ethics from simple legal compliance.
Philanthropic responsibility
Business is an important part of society, so it can also support social improvement.
Philanthropic responsibility means voluntarily helping society through donations, services or other forms of support.
Make clear that philanthropic responsibility goes beyond core operations. It is voluntary support rather than a legal requirement.
Ways businesses can help
donating funds
donating goods and services
supporting community groups
helping people affected by disasters
Link disaster support to the examples in the source text such as floods and earthquakes.
Supporting education and development
A business may contribute by opening or supporting educational and training institutes.
This helps people build skills and can improve both individual opportunity and social development.
Keep the focus on social contribution rather than marketing benefit, although teachers may mention that reputational gains can also follow.
How the four responsibilities connect
Economic responsibility keeps the business viable.
Legal responsibility sets the minimum rules.
Ethical responsibility asks the business to do what is right.
Philanthropic responsibility encourages it to give back to society.
Use this as the landing point for the lesson's central question: social responsibility developed from a narrow focus on profit to a broader view of business obligations.
Which action is philanthropic responsibility?
Obeying criminal law
Matching market prices
Reducing waste output
Donating goods locally
Draws on slides 18 to 21. The distractors belong to legal, economic and ethical responsibility.
Which action is philanthropic responsibility?
Obeying criminal law
Matching market prices
Reducing waste output
Donating goods locally
Draws on slides 18 to 21. The distractors belong to legal, economic and ethical responsibility.
Glossary
social responsibility - the duty of a business to consider its effects on society
economic responsibility - the duty to earn profit by meeting consumer needs effectively
legal responsibility - the duty to obey laws and regulations
ethical responsibility - the duty to act in ways society sees as morally right, even beyond the law
philanthropic responsibility - voluntary support given by a business to improve society
consumer demand - the wants and needs of buyers in the market
incentives - rewards linked to performance or success
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