Social responsibility of a business is a certain positive and voluntary reaction of a company to social problems. There are two opinions on the level of participation at which an organization is considered to follow this principle. First: the social responsibility of business is that the company conducts its activities aimed at increasing profits without violating the law. Second: the organization, in addition to meeting the requirements of the economic plan, must make a certain voluntary contribution to solving the problems of society and take into account how it affects workers, consumers, and the environment. It is certain that in recent years, the second point of view has become increasingly prevalent among companies and experts.
If you rely on it, then you should understand that a socially responsible business should form a specific behavior oriented towards solving problems that are positive for society in all areas of the company. All this should be reflected in the mission, goals, values, as well as in local documents governing the organization. Moreover, social responsibility is not only a certain behavior of the top management of the company, but the principles that are observed at all levels of the organization. In practice, there are several common manifestations of these principles.
The first is the formation of the so-called package of certain benefits for the company’s employees (it includes various types of assistance in difficult situations, voluntary medical insurance, additional pension benefits, various recreational activities, free meals, summer holidays for employees' children). Basically, all this can be found in large companies.
The second manifestation of the social responsibility of business at the location of the organization is the presence (from the Soviet era) on the balance sheet of enterprises of various infrastructure that is not related to production activities: dispensaries, kindergartens, dormitories, engineering networks, sports complexes. Moreover, the maintenance of fixed assets requires the company to maintain a balance of interests between economic efficiency and solving social problems. However, when a company finds itself in a difficult financial situation, non-core real estate is often the first where management seeks reserves to reduce costs.
Also, the social responsibility of business can be manifested in charitable activities that are carried out in relation to certain categories of citizens (veterans, newborns, disabled people, students, etc.), objects of cultural, historical value. In addition, it may consist in financing any activities (sports, cultural, holidays).
Solving such problems, the company works to create a positive image and receives certain intangible dividends. In particular, the social responsibility of business strengthens trust on the part of partners and authorities, forms a “well-being zone” around the organization, and attracts qualified and trained personnel.