Wednesday, November 9, 2011

(27) Social Responsibility and a Better Community

        Is a better community in the best interest of the company? Should a business even care?

Social Responsibility and a Better Community-- In the Best Interest of Business

*A better community attracts and keeps better employees (i.e., nice places to live in, little crime, cultural activities, good schools, etc.).

*A better community improves the morale and thus productivity...perhaps less strikes, discipline problems, alcohol, drugs (i.e., cultural and recreational opportunities, sports teams, etc.).

*A better community provides the infrastructure and services that the company and employees need - as roads, water, electricity, sewage, police and fire protection, hospitals, stores, etc.

*A more prosperous community means a better market (sales).

*A healthier community means healthier workers and less lost time.

*Social responsibility means a better image and better public relations which cause greater sales and cooperation.

*Social responsibility means less law suits and less government intervention, all of which are very costly.

*The firm gains the confidence of the consumer (sales) & respect of the workers, which mean less labor problems.

*Hospitals and good health care minimize lost time.

*Good stores make supplies easily available to business and its employees.

*Good schools mean better employees.
*A good community attracts good professional people from the outside and keeps them from leaving the company.

*A good reputation attracts capital through loans or sales of stock.

*Social responsibility prevents problems. Cures are costly.

*The public expects social responsibility to match its power. Greater long-run profits and a higher stock price will follow since the company is less open to public attack and gains the respect of the people.


How Can Business Contribute to Community Development?

*Donations of money, expertise, equipment and materials to locate charities and schools.

*Summer jobs, internships, and scholarships to college students.

*Advising local institutions in legal matters, management, finances, etc.

*Plant visits for students.

*Sending experts to give talks at schools, clubs and groups.

*Encourage employees to do voluntary community work.

*Hire the handicapped and hard core unemployed and train them as well.

*Help with fund raising.
*Social responsibility means a better image and better public relations which cause greater sales and cooperation.

*Social responsibility means less law suits and less government intervention, all of which are very costly.

*The firm gains the confidence of the consumer (sales) & respect of the workers, which mean less labor problems.

*Hospitals and good health care minimize lost time.

*Good stores make supplies easily available to business and its employees.

*Good schools mean better employees.
*A good community attracts good professional people from the outside and keeps them from leaving the company.

*A good reputation attracts capital through loans or sales of stock.

*Social responsibility prevents problems. Cures are costly.

*The public expects social responsibility to match its power. Greater long-run profits and a higher stock price will follow since the company is less open to public attack and gains the respect of the people.


How Can Business Contribute to Community Development?

*Donations of money, expertise, equipment and materials to locate charities and schools.

*Summer jobs, internships, and scholarships to college students.

*Advising local institutions in legal matters, management, finances, etc.

*Plant visits for students.

*Sending experts to give talks at schools, clubs and groups.

*Encourage employees to do voluntary community work.

*Hire the handicapped and hard core unemployed and train them as well.

*Help with fund raising.
*Social responsibility means a better image and better public relations which cause greater sales and cooperation.

*Social responsibility means less law suits and less government intervention, all of which are very costly.

*The firm gains the confidence of the consumer (sales) & respect of the workers, which mean less labor problems.

*Hospitals and good health care minimize lost time.

*Good stores make supplies easily available to business and its employees.

*Good schools mean better employees.
*A good community attracts good professional people from the outside and keeps them from leaving the company.

*A good reputation attracts capital through loans or sales of stock.

*Sponsor sports teams, projects and activities in the community.

*Award coupons to children for reading books, good grades, etc.

*Help schools that collect proofs of purchase.

Business has the financial resources, technical expertise, and managerial talent to do all of this and still make a profit. Of course, a business is not a charitable institution. But, it can do something. As Bob Evans said, “Business can give something back to the community.”

How You Can Organize a Social Responsibility Program in Your Company
  1. Obtain the commitment of top management.....their example and support.
  2. Appoint a Planning Committee.
  3. Appoint a director to form policies and help the departments to understand and live up to its social responsibilities.
  4. Do an annual Social Audit to evaluate how the firm is doing regarding social responsibility in its operations.
  5. Assure that performance appraisals include social responsibility.
  6. Hire people who are ethical and socially responsible.
  7. Conduct Ethics Training.
  8. Draw up a Code of Conduct.

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