Business Studies - Social Responsibility of Business

Vocabulary flashcards covering the concept of social responsibility, its distinction from legal responsibility, and key arguments in favor of social responsibility from Chapter 6 of Business Studies.

Social Responsibility

The concept that a business firm operates in a manner to accomplish social gains along with economic gains, involving voluntary efforts for the benefit of society beyond mere legal compliance.

Legal Responsibility

Responsibility that is fulfilled by mere compliance with law, making it narrower in scope than social responsibility.

Justification for Existence and Growth

An argument for social responsibility stating that business is created by society to satisfy human needs through goods and services, treating profit as an outcome of service.

Long-term Interest of the Firm

An argument stating that fulfilling social responsibility toward groups like workers, consumers, shareholders, and government officials improves public image and long-run growth prospects.

Avoidance of Government Regulation

An argument for social responsibility where business voluntarily fulfills obligations to avoid government legislation that restricts freedom and flexibility.

Maintenance of Society

An argument asserting that businesses must fulfill social responsibilities to prevent aggrieved stakeholders from resorting to harmful anti-social activities.

Availability of Resources with Business

An argument stating that business enterprises possess financial and human resources, such as managerial talent and technical expertise, to effectively tackle social problems.

Converting Problems into Opportunities

An argument for social responsibility where businesses use risk-bearing capabilities to solve social problems and turn them into growth opportunities.

Better Environment for Doing Business

An argument suggesting that solving social problems creates a better overall environment for conducting business operations.

Holding Business Responsible

An argument stressing the need to strike a balance between responsibility and social power, given that business activities significantly impact economic growth and social issues.