Why Do Companies Need Social Responsibility?

While social responsibility has become a business trend for growth opportunities and long term stability, some corporations argue there are no factors requiring them to carry these duties. This leaves the remaining question of whether the only social responsibility of a company is to use its resources and engage in activities that increase profits. But do businesses have duties to the community beyond conducting business operations that obey the law? Every individual has a responsibility to act in manner that is beneficial to society and not solely to the individual. These ethics relates to businesses as well. According to Freidman, "a corporation is an artificial person and in this sense may have artificial responsibilities" (NYT Mag). Although he continued with the theory that these artificial responsibilities do not exist, the theory of social responsibility actually applies to both individuals and groups. Companies take on these responsibilities when beginning a company.
Companies are the largest contributors to pollution, energy usage, and resources. Not only the individual who was behind each social issue is responsible. Employees act on behalf of the company; the company must respond on behalf of employees. Companies must keep this in mind when making decisions. When …show more content…
Because many managers focus on the responsibility to generate profit, it is difficult to decide whether to withdraw additional money to benefit others and society. Businesses have many cost and expenses that need to be taken care of in addition to reinvesting in the company for future growth. Yet although the companies will suffer short term financial losses, social responsibility can actually result in saved cost. When being ethical, a company will incorporate its values into the company’s daily actions and decisions. For example, they can choose to save cost by cutting energy usage and less