Social Responsibility Creates Better Environment for Business
A big argument favoring social responsibility is that it creates a better environment for business. The subject of business and society covers relationships to the broader social system outside its own organization. In an age of discontinuity, the public expects business to develop a greater social conscience, social concern, and social responsibility relating to its actions. Social responsibility creates a better environment for business operations as it improves Quality of life and standard of living of people. So, business will get the better community to conduct business.
This concept rationalizes that a better society produces environmental conditions more favorable for business operation. The firm which is most responsive to an improvement of community quality of life will, as a result, has a better community in which to conduct its business. Labor recruiting will be easier and labor will be of a higher quality. Turnover and absenteeism will be reduced. As a result of social improvement, crime will decrease, with the consequence that less money will be spent to protect property and fewer taxes have to be paid police forces. The arguments can be extended in all directions to show that a better society produces a better environment for business.
Another argument is that social responsibility is the public image of the business. Each individual firm seeks an enhanced image so that it may gain more customers, better employees, and other benefits. This type of behavior is traditional with business; therefore, it is easy to extend this public image concept to the accomplishment of various types of social goals. According to this line of the firm which wishes to capture a favorable public image will have to show that it also supports social goals.