The largest number of organisations are set up with clear goals and objectives in mind. Majority of these have profit and income generation at the centre of their objective. However, these organizations also want to build their reputation and relationships while they make money. This desire for cohesive coexistence with others is what motivates social responsibility. A company's social responsibility is aimed at having a positive impact on the society in which the organisation utilizes. Deliberate acts of social responsibility require the organisation to account for the well being of the staff, clients and all the stakeholders. This must be done with consideration to the environment and with adherence to the rule of law.
It is important for a company to develop a social responsibility policy. This will help the organisation to structure their agenda in giving back to society. Schwartz (2017) argues that policies are important because they allocate a budget to social responsibility activities. They determine what percentage of the profits will be invested back into the society that enables the organisation. For example, a profit making medical or pharmaceutical organisation may give back to society once a year. During this time, the organisation may organise for a free all expenses paid medical workshop to run for one week. Schwartz (2017) further explains this workshop may provide free diagnosis and consultation services to the area residents. Such a venture will meet the company's social obligation while still maintaining its profitability. This will happen because the patients who get free checkups will follow up their treatment in this organisation. The arrangement will benefit the society and it may even help the organization to get new clients. The various stakeholders will all benefit from the experience.
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The social responsibility agenda may create a conflict if the different stakeholders are not in agreement. This often happens when a person in management makes commitments without consulting those that they work with. This may happen when an over zealous top manager promises outstanding results without building capacity to meet them. Here is an example of a company dilemma that may result from such action. A vice president of a manufacturing plant may decide to increase the plants capacity in order to increase the sales. This goal may be implemented despite the advice of the experts who oppose such a move. Instead of implementing the plan that is attainable according to the experts projections, the vice president's plan is implemented. This leads to a strain on all the resources available. The vice president's goal to increase production may be seen as a social responsibility. This is because it creates more opportunities for society and in the purchase of raw materials. However, it reduces efficiency in the plant and causes the goals not to be met. It also sours relations between management, the stakeholders and the society because the unrealistic goals are not met (Schwartz, 2017).
The dilemma of over promising first affects the workers before any other stakeholders. The move causes the plant management to increase the lengths of its shifts and to require more overtime from staff. The long working hours demoralize the workers and lead to low morale in the workplace. This leaves workers disgruntled and rebellious towards management. Additionally, the increased working hours cost the company more money. The budget is also strained due to the hire of temporary staff and recruitment of extra workers. This disrupts the budget and money is redistributed in a way that affects other factors in the plant. After the unrealistic goals are proven not to work, the stakeholders and clients begin to lose faith in the leadership of the plant. Plans may be put in place to restructure the leadership or to lay off staff due to the resulting financial loss. Massive pay cuts and job losses may also negatively impact the company's public image. Outside parties may begin to view the company as an unreliable employer and a poor source of income. Strained relations between the company and its suppliers may also dampen long standing relationships and leave the company without the good working relationships it once enjoyed.
According to Ferrell and Fraedrich (2015), issues such as the one above can be avoided by the formation of a social responsibility policy. This kind of policy is vital as it aids the decision making process and gives every decision a structural backing. The policy in question will help to set goals that are achievable, measurable and realistic. Ferrell and Fraedrich (2015) further state that each company leader will be required to demonstrate the guidelines of his proposals. The policy will put measures in place to ensure that the company can afford the said proposals. It will also ensure that the proposal can be carried out within a specific time frame. The following is an overview for a company policy(Ferrell & Fraedrich, 2015).
The policy will be written by first determining the trait that makes the company stand out from its competitors. This information can be used to transform the society while promoting the brand. For example, if your product uses green energy, capitalize on this so as to make it more appealing to that demographic. Be sure to include details of the benefits to society. Compare this information to market standards and demonstrate how this fulfills the requirements of an internationally accredited bodies. At this stage, bring in employees to air their views on how to give back to society. Pay attention to the feedback from the accounting department as well as the department of health and safety. Use all this feedback to draft a program that the majority will be willing to take part in. Make this program stand out from those policies by other companies. Once the policy is in place, leave room for it to be monitored and evaluated. This will provide a suitable base for the improvement and adjustment that will be needed over time. Finally develop a curriculum to incorporate new employees and incoming stakeholders into the program.
The development of a policy may be met with some resistance from some quarters. First, stakeholders may oppose it because it has the potential to reduce their profit margin. Additionally, the shareholders may want to have a say in the choices made. For example, if an initiative supports a certain children's health facility, the shareholders may oppose this and front their own charity. This as well as the amount of financial allocations may be a source of conflict. Members of staff however, will have an opportunity to use this projects as team building exercises. Customer retention may be improved by the presence of a strong social responsibility policy. This may endear the brand to the clients who support the same cause. However, this efforts may be eroded by companies who combine social responsibility with superior products and services. This can be seen in brands that have high advertising and branding budgets (Schwartz, 2017).
The role of a social responsibility policy is to set goals that the organisation can use in the management of existing and future goals. The ideal policy must be realistic and specific in its mandate. It must have a time frame within which it will be implemented. The goals must have a means of measuring them so as to monitor the progress of the program. Finally, the goals must be attainable. This will build the company's reputation and help in increasing its popularity. Unrealistic organisational roles will lead the company to destruction while realistic ones will benefit the stakeholders as stakeholders as a whole.
References
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making " cases. Nelson Education.
Schwartz, M. S. (2017). Corporate social responsibility. Routledge.
