Social Responsibility in Small Business Management

Social responsibility is having a sense of duty toward society and everything that is part of it. In other words, "social responsibility" means that corporate managers are accountable to society at large — not just to their shareholders. But social responsibility is equally important in the management of smaller businesses. Learn more about the topic below!

Social responsibility is a key aspect of the capitalist system as a whole. Individuals and consum

A world with more socially responsible managers also leads to fewer government regulations, as such regulations are almost always introduced as a reaction to businesses that profit at the expense of the surrounding society.

It is expected that the company itself (through its mission and vision statements), those responsible for its administration (the managers), and the people who generate value for it (regular employees) act in a socially responsible way.

This means thinking in the public’s best interest, acting accordingly, being willing to face the consequences of their actions (if any arise), controlling negative behaviors that could lead to harmful outcomes, and — most importantly — being fair to oneself and to those around them.

Top management — such as CEOs, presidents, senior vice presidents, VPs, sales managers, and many others — are tasked with being role models, supporters, executors, implementers, and delegates of social responsibility.

Beyond management, there are those who hold them accountable: you, me, the media, the government, regulatory agencies, critics, customers, investors, activists, and so on. “Bad press” and “good press” are some of the strongest motivators for managers to act with social responsibility.

If the public begins to view a company negatively, its competitors will quickly take advantage and steal market share.

Everyone is a stakeholder — including owners (or shareholders), employees, customers, suppliers, and society as a whole.

The Role of Managers in Social Responsibility

A company’s management should spare no effort in presenting itself as socially responsible in everything it does and represents.

This helps maintain the company’s good image with its customers and also proactively avoids issues related to new government regulations. Managers can be socially responsible by following these practical tips:

• Work with people capable of recognizing socially responsible or irresponsible behavior. Social responsibility is about listening and learning from people and the environment to which it applies. Being constructive means listening to complaints — both internal and external — and being willing to act on them.

• Focus on the present. The past is gone — what matters is the here and now. Don’t be afraid to try new things or explore different options, because things will always change. Change is something we all must face as we move toward the future.

• Be open to external research and concerns. Companies must be willing to listen to new research and outside feedback, even if it requires fundamental changes in their products or business practices.

• Be socially responsible in all areas of your life and career. Flexibility makes it harder for critics to question your leadership or accuse you of neglecting social responsibility.

• Take initiative. Don’t wait for others to enforce social responsibility. Businesses receive the best media attention when they are proactive in addressing social issues — before being forced to act by government regulation.

  
  

Final Thoughts

In the end, a manager must decide whether to remain stagnant or evolve toward greater social responsibility. Choosing the first option may lead to public scrutiny or even disgrace. Choosing to change, however, earns recognition for embracing social transformation — and leaves a lasting legacy.

Social responsibility should not be ignored — it should be the first and most important task when planning a business strategy if the goal is long-term success.