1. Define social responsibility and what it involves.

Social responsibility is the expectation of the business to go beyond there self- interest and recognize that they belong to the community and they are obliged to provide responsible participation. Thus the company should be able to balance between the profit-making and doing what is they are expected to do.

2. What are the four types of responsibility that businesses should accept and abide by? Provide a brief explanation of each stage, including an example of how a company may fulfill each responsibility.
3. Financial viability: business should be able to generate enough funds to meet the operating cost, paying off debts, and allow growth of both the society and the industry. The example is through being able to offer a healthy return to investors
4. Ethic, principles, and values: the company must adhere to the business ethics which are values that are meant to guide behaviors in the world of businesses.
5. Philanthropic activities: business should carry out activities that are meant to promote the goodwill and welfare of society. For example, the company may decide to fund a medical checkup for the people in a specific locality or even make a donation.
6. Maintain compliance with the legal and regulatory requirements: For a start, the business should be able to state what the nature of it is operating. They should fulfill all the statutory requirement as the society enforces its expectations through the law.
7. Describe the social responsibility continuum, including the two endpoints of the continuum and the types of responsibilities and stakeholders considered at the parameters.

The social responsibility is viewed in such a way that all four dimensions are considered as related. Due to this companies can manifest the various degree of social duties at a different time. They range from minimal to a strategic focus. Minimum focus sees firms concentrate on the shareholders and the cost of operation while imperative operates on a legal perspective.

4. Trace the recent history of social responsibility in the United States, including key events and trends that led to current expectations of business.

The introduction of charters which were issued by the government states, and acted as a “License of Operation” and they specified the internal structure of the firms and which allowed ease of monitoring their actions. In the 1900s and 1800s profit and responsibilities of the stakeholders become a significant corporate goal.

In the 1950s, 130 largest companies in the US provided more than half of the country’s manufacturing output. Top 500 accounted for more than 2/3 of the country non-agricultural economic activity.

During 1950 and 1960s companies contributed to the charities, the arts, culture, and other activities that were both beneficial to the company and the society. They provided many of the services that are now being offered by the US government. The roles of these corporations were by Economic turmoil during the 1970s and 1980s.

The 1980s and 1990s brought focus on profitability and economy of scales. Efficiency and productivity become the primary objective of the business which led to restructuring and left a lot of people without financial security. In 1990s corporate responsibilities were renewed. The organization becomes ready to take more responsibilities and acceptable practices.

In 2007 and 2008 there was the housing boom which led to the collapse and thus setting off a financial crisis. This led to the house owner being unable to pay their mortgages.

In 2010 Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. They were meant to protect the economy from the financial crisis in the future by creating more transparency in the financial industries.

5. What are the performance benefits of social responsibility?

It enhances the stakeholders’ relationships, improves performance. It increases efficiency in daily operations, greater employee commitment, higher product quality, improved decision making, increased customer loyalty, and improved financial performance.

6. What impact do corruption and weak social institutions tend to have on a country’s economy?

Corruption reduces the economic performance, due to the increase of transactions, cost of uncertainty, inefficient investments, and misallocation of production factors.

7. Describe why social responsibility needs a strategic focus. What steps do companies need to take to create a strategic focus?

Social responsibility is an important business concept and should involve significant planning and implementation. This because it requires a formal commitment and a way of communicating the company social responsibility philosophy the same way the company talk about its goals and objectives

8. For companies that operate in some locations, describe the relationship between social responsibility expectations in the home market and social responsibility expectations in host markets.

9. Explain what a stakeholder orientation is and why it is required for an organization to be socially responsible?

The stakeholder orientation means that the organization is focused on the stakeholders’ concern. The companies should be socially responsible as they probably affect society even much more in terms of monetary, or financial conditions.

10. Outline the benefits of social responsibility to investors, customers, and employees.

To the investors, they get to get more income as the customers are loyal and this leads to increased profit.

The customers get to get good quality products due to the employee’s commitment to wearing.

Employees get to enjoy increas4ed productivity which means there is increased profit.

Questions Chapter 2

1. Describe the purpose of the stakeholder interaction model. Sketch a diagram of the model and briefly explain the types and direction of those relationships that exist.

In the stakeholder interaction model there are two ways relationship between the firm and the host of stakeholders.

2. Describe the differences between primary and secondary stakeholders.

Primary stakeholders- those who have a continued association with the organization and is vital for its survival.

Secondary stakeholder- do not typically engage in the direct transaction with a company and thus not essential for its survival

3. Name the three attributes of stakeholders, and explain how these attributes may affect the development of a relationship between a stakeholder and a company.
4. Power- a stakeholder has the potential to the extent that it can gain access to impose or communicate its views on an organization.
5. Legitimacy- perception or belief that stakeholder actions are proper, desirable or appropriate within the given context.
6. Urgency- they exercise greater pressures on managers and organization when they stress the importance of the claims.
7. What is reputation management? Describe the four components of the reputation management process, and explain how these components work together.

Reputation management is the process of building and sustaining a company’s good name and generation positive feedback from stakeholders. The components include organizational identity, image, performance, and reputation.