responsible business management essay

An Introduction to Responsible Management: A Corporate Social Responsibility, Green Marketing, and Sustainability Management Perspective

• First Online: 31 October 2021

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• Eric Kwame Adae 7 ,
• John Paul Basewe Kosiba 8 ,
• Robert Ebo Hinson 9 ,
• Kojo Kakra Twum 10 ,
• Nathaniel Newman 9 &
• Francis Fonyee Nutsugah 11  

Part of the book series: Sustainable Development Goals Series ((SDGS))

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There are rising calls for the adoption of responsible management practices in virtually every economic sector of both developed and developing economies. Among others, efforts to promote responsible management have been championed by governments, international organisations, academic institutions, and industry regulators. In developing economies, such moves have spawned numerous success stories across diverse sectors such as energy, mining, manufacturing, and agriculture. Despite these glowing achievements, a plethora of challenges persist that threaten the sustainable development agenda. Against this backdrop, we address some crucial pathways for the sustainability logic and responsible management philosophy, as exemplified by contemporary practices across various sectors within the emerging markets context. We conceptualised responsible management as built on three pillars and examine the contribution of this triad of cognate concepts and practices: corporate social responsibility, green business, and sustainable management. We argue that social responsibility is pivotal to responsible management since it is imperative for corporations to consider the interests of multiple stakeholders, including employees, the society, the environment, future generations, and not only the interests of companies and investors. Akin to corporate social responsibility are sustainable management practices. We applaud current sustainability transitions concerning initiatives by businesses to drive meaningful and rewarding sustainability action. However, considering the upsurge of irresponsible and unsustainable business practices that harm the biosphere, needlessly kill wildlife, deplete natural resources, and destroy vegetation, the chapter explicates some specific ways in which businesses in emerging markets can drive green business initiatives from thought to finish, as expressed through green sourcing, green processing, green production, and green consumption practices. We also make recommendations regarding how governments, policymakers, and managers can support and embed the responsible management agenda in emerging markets. The chapter recommends that organisations must reimagine present-day sustainability actions by adopting innovative and sustainable initiatives such as reducing consumption, recycling, remanufacturing, reusing resources, and employing cutting-edge technology to monitor business processes across the entire value-chain from manufacturing to the end-user. At the micro level, we advocate that firm managers, entrepreneurs, and individuals must propel efforts in adopting responsible management practices. Finally, this chapter introduces the multisectoral chapters contained in the pages of this book, outline contributions to theory, and discuss practical managerial and policy implications.

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Adae, E.K., Kosiba, J.P.B., Hinson, R.E., Twum, K.K., Newman, N., Nutsugah, F.F. (2021). An Introduction to Responsible Management: A Corporate Social Responsibility, Green Marketing, and Sustainability Management Perspective. In: Adae, E.K., Kosiba, J.P.B., Hinson, R.E., Twum, K.K., Newman, N., Nutsugah, F.F. (eds) Responsible Management in Emerging Markets. Sustainable Development Goals Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-76563-7_1

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From there to here: 50 years of thinking on the social responsibility of business

It has now been 50 years since economist Milton Friedman asked and answered a fundamental question: What is the role of business in society?

Friedman’s stance was plain: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits.” That view has long influenced management thinking, corporate governance, and strategic moves. But more recently, many leaders have sought to expand that definition to consider all the stakeholders who stand to gain—or lose—from organizations’ decisions.

In 2019, Business Roundtable released a new “Statement on the purpose of a corporation,” signed by 181 CEOs who committed to lead their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders. The statement outlined a modern standard for corporate responsibility.

On the 50th anniversary of Friedman’s landmark definition, we look at how the conversation on corporate purpose  has evolved.

The pre-1970 conversation

Even before Friedman’s essay published, the social responsibility of business was a topic of discussion. McKinsey, for example, was part of the early conversation about corporate purpose, which centered on the idea of improving performance and a belief that healthier corporations meant a healthier society. The firm’s earliest formal expression of its objectives spoke of the value of “advancing the profitableness and welfare of American business and hence the welfare of the country as a whole” (1937).

The discussion of corporations’ role in society continued to unfold in the 1950s and 1960s, when Columbia University and McKinsey presented a lecture series in which executives discussed the challenges of large organizations. Many of those talks became books that addressed the issues Friedman would soon take on.

Friedman’s seminal 1970 essay

On September 13, 1970, when Friedman published his landmark piece, “The social responsibility of business is to increase its profits,” in the New York Times , he wrote:

In a free-enterprise, private-property system, a corporate executive is an employee of the owners of the business. He has direct responsibility to his employers. That responsibility is to conduct the business in accordance with their desires, which generally will be to make as much money as possible while conforming to their basic rules of the society, both those embodied in law and those embodied in ethical custom.

Like many businesses and thinkers, McKinsey has grappled with such ideas over the years. A 1971 statement of the firm’s goals highlights the role of profitability but acknowledges that it isn’t the sole social responsibility of business; consultants can also “do worthwhile things for society as well as to earn substantial financial rewards.”

Marvin Bower—McKinsey’s managing director from 1950 to 1967, who remained a vocal leader even after stepping down—also continued to emphasize the importance of enduring business values, which could be translated into societal as well as business impact:

Outside the service for which we are compensated, each of us has an opportunity, through the firm, to serve the society of which [we are] a part. Our knowledge of the problem-solving process enables us to contribute disproportionately to the welfare of our communities.

The 1980s and 1990s: An expanded global view

Management attention started to go global in the 1980s. The business world examined how Japanese companies in particular were revolutionizing manufacturing to compete against once-dominant Western players. Political and social changes were also afoot, and the shift toward globalization took hold.

McKinsey managing director Fred Gluck (1988–94) called on the firm to raise its sights and expand its horizons:

Beginning with a memo not two weeks before the Berlin Wall came down, he urged his partners to expand their vision beyond their usual business clients. As the world’s best problem solvers, he argued, McKinsey should aspire to advise national and world leaders on global issues like poverty, European integration, and the environment. It should help design and implement the reforms that were certain to follow in the wake of the revolutions unfolding in Eastern Europe, the Soviet Union, and Asia. Though not universally shared, Gluck’s call to action struck a chord with many firm leaders. … They were being challenged to help change the world.

The McKinsey Global Institute was founded in this era, looking to generate fresh insights through serious research that integrated the disciplines of economics and management. And although work continued to prize financial impact for clients, the thinking around future impact continued to expand.

The 2000s and 2010s: A focus on longer-term, inclusive growth

Technological advances may have facilitated globalization, but the dot-com crash of the early 2000s and ensuing changes—to say nothing of the global financial crisis of 2008—brought discussion on the social responsibility of business into the zeitgeist.

In a 2006 interview, McKinsey’s former London office manager Peter Foy reflected:

I have real misgivings about the way that [business] changed. Because the minute the world … changed from building great companies and keeping shareholders happy to serving shareholders on a quarterly delivery, wealth-creation basis … you changed everything in the business system. The motivation of the CEO, and the organization, and the time you spend on it all.

The conversations also entered the realm of public ideas. One particularly powerful statement in the March 2011 Harvard Business Review article “ Capitalism for the long term ,” penned by McKinsey managing partner Dominic Barton, called for business-led reform to go beyond quarterly capitalism:

This shift is not just about persistently thinking and acting with a next-generation view—although that’s a key part of it. It’s about rewiring the fundamental ways we govern, manage, and lead corporations. It’s also about changing how we view business’s value and its role in society.

Barton later helped found the not-for-profit Focusing Capital on the Long Term, which encourages long-term investing and business decision making.

Additionally, the McKinsey Quarterly marked its 50-year anniversary  with a special edition on the future of management. One key theme: Corporate longevity and a long-term view of performance.

2019, the Business Roundtable statement, and what lies ahead

On August 19, 2019, the Business Roundtable issued its latest statement on the purpose of a corporation :

Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth. While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders.

The statement was endorsed by 181 CEOs (along with McKinsey global managing partner Kevin Sneader ), each committing to leading their companies for the benefit of all stakeholders—customers, employees, suppliers, communities, and shareholders.

Echoes of that statement continue to resonate today, even as leaders navigate crises and contemplate the next normal beyond coronavirus . As Marc Goedhart and Tim Koller note in “ The value of value creation ”: “Long-term value creation can—and should—take into account the interests of all stakeholders.” And Sneader and his coauthors underscore it as a top-management ethos in a new article on the CEO moment :

[The] COVID-19 pandemic has laid bare the profound interconnectedness between businesses and the broader world in which they operate. … Employees, customers, and stakeholders expect a CEO to articulate where the company stands on critical issues.

What lies ahead on this topic? Write to us .

This article was conceptualized, illustrated, and edited by McKinsey Global Publishing colleagues Mike Borruso , Torea Frey , Gwyn Herbein ,  Philip Mathew , Janet Michaud , and Nathan Wilson , with Paul Lasewicz , our archivist, guiding us on this walk through history.

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5 Examples of Corporate Social Responsibility That Were Successful

• 06 Jun 2019

Business is about more than just making a profit. Climate change, economic inequality, and other global challenges that impact communities worldwide have compelled companies to be purpose-driven and contribute to the greater good .

In a recent study by Deloitte , 93 percent of business leaders said they believe companies aren't just employers, but stewards of society. In addition, 95 percent reported they’re planning to take a stronger stance on large-scale issues in the coming years and devote significant resources to socially responsible initiatives. With more CEOs turning their focus to the long term, it’s important to consider what you can do in your career to make an impact .

Access your free e-book today.

What Is Corporate Social Responsibility?

Corporate social responsibility (CSR) is a business model in which for-profit companies seek ways to create social and environmental benefits while pursuing organizational goals, like revenue growth and maximizing shareholder value .

Today’s organizations are implementing extensive corporate social responsibility programs, with many companies dedicating C-level executive roles and entire departments to social and environmental initiatives. These executives are commonly referred to as a chief officer of corporate social responsibility or chief sustainability officer (CSO).

There are many types of corporate social responsibility and CSR might look different for each organization, but the end goal is always the same: Do well by doing good . Companies that embrace corporate social responsibility aim to maintain profitability while supporting a larger purpose.

Rather than simply focusing on generating profit, or the bottom line, socially responsible companies are concerned with the triple bottom line , which considers the impact that business decisions have on profit, people, and the planet.

It’s no coincidence that some of today’s most profitable organizations are also socially responsible. Here are five examples of successful corporate social responsibility you can use to drive social change at your organization.

5 Corporate Social Responsibility Examples

1. lego’s commitment to sustainability.

As one of the most reputable companies in the world, Lego aims to not only help children develop through creative play, but foster a healthy planet.

Lego is the first, and only, toy company to be named a World Wildlife Fund Climate Savers Partner , marking its pledge to reduce its carbon impact. And its commitment to sustainability extends beyond its partnerships.

By 2030, the toymaker plans to use environmentally friendly materials to produce all of its core products and packaging—and it’s already taken key steps to achieve that goal.

Over the course of 2013 and 2014, Lego shrunk its box sizes by 14 percent , saving approximately 7,000 tons of cardboard. Then, in 2018, the company introduced 150 botanical pieces made from sustainably sourced sugarcane —a break from the petroleum-based plastic typically used to produce the company’s signature building blocks. The company has also recently committed to removing all single-use plastic packaging from its materials by 2025, among other initiatives .

Along with these changes, the toymaker has committed to investing $164 million into its Sustainable Materials Center , where researchers are experimenting with bio-based materials that can be implemented into the production process.

Through all of these initiatives, Lego is well on its way to tackling pressing environmental challenges and furthering its mission to help build a more sustainable future.

Related : What Does "Sustainability" Mean in Business?

2. Salesforce’s 1-1-1 Philanthropic Model

Beyond being a leader in the technology space, cloud-based software giant Salesforce is a trailblazer in the realm of corporate philanthropy.

Since its outset, the company has championed its 1-1-1 philanthropic model , which involves giving one percent of product, one percent of equity, and one percent of employees’ time to communities and the nonprofit sector.

To date, Salesforce employees have logged more than 5 million volunteer hours . Not only that, but the company has awarded upwards of $406 million in grants and donated to more than 40,000 nonprofit organizations and educational institutions.

In addition, through its work with San Francisco Unified and Oakland Unified School Districts, Salesforce has helped reduce algebra repeat rates and contributed to a high percentage of students receiving A’s or B’s in computer science classes.

As the company’s revenue continues to grow, Salesforce stands as a prime example of the idea that profit-making and social impact initiatives don’t have to be at odds with one another.

3. Ben & Jerry’s Social Mission

At Ben & Jerry’s, positively impacting society is just as important as producing premium ice cream.

In 2012, the company became a certified B Corporation , a business that balances purpose and profit by meeting the highest standards of social and environmental performance, public transparency, and legal accountability.

As part of its overarching commitment to leading with progressive values, the ice cream maker established the Ben & Jerry’s Foundation in 1985, an organization dedicated to supporting grassroots movements that drive social change.

Each year, the foundation awards approximately $2.5 million in grants to organizations in Vermont and across the United States. Grant recipients have included the United Workers Association, a human rights group striving to end poverty, and the Clean Air Coalition, an environmental health and justice organization based in New York.

The foundation’s work earned it a National Committee for Responsive Philanthropy Award in 2014, and it continues to sponsor efforts to find solutions to systemic problems at both local and national levels.

Related : How to Create Social Change: 4 Business Strategies

4. Levi Strauss’s Social Impact

In addition to being one of the most successful fashion brands in history, Levi’s is also one of the first to push for a more ethical and sustainable supply chain.

In 1991, the brand created its Terms of Engagement , which established its global code of conduct regarding its supply chain and set standards for workers’ rights, a safe work environment, and an environmentally-friendly production process.

To maintain its commitment in a changing world, Levi’s regularly updates its Terms of Engagement. In 2011, on the 20th anniversary of its code of conduct, Levi’s announced its Worker Well-being initiative to implement further programs focused on the health and well-being of supply chain workers.

Since 2011, the Worker Well-being initiative has been expanded to 12 countries and more than 100,000 workers have benefited from it. In 2016, the brand scaled up the initiative, vowing to expand the program to more than 300,000 workers and produce more than 80 percent of its product in Worker Well-being factories by 2025.

For its continued efforts to maintain the well-being of its people and the environment, Levi’s was named one of Engage for Good’s 2020 Golden Halo Award winners, which is the highest honor reserved for socially responsible companies.

5. Starbucks’s Commitment to Ethical Sourcing

Starbucks launched its first corporate social responsibility report in 2002 with the goal of becoming as well-known for its CSR initiatives as for its products. One of the ways the brand has fulfilled this goal is through ethical sourcing.

In 2015, Starbucks verified that 99 percent of its coffee supply chain is ethically sourced , and it seeks to boost that figure to 100 percent through continued efforts and partnerships with local coffee farmers and organizations.

The brand bases its approach on Coffee and Farmer Equity (CAFE) Practices , one of the coffee industry’s first set of ethical sourcing standards created in collaboration with Conservation International . CAFE assesses coffee farms against specific economic, social, and environmental standards, ensuring Starbucks can source its product while maintaining a positive social impact.

For its work, Starbucks was named one of the world’s most ethical companies in 2021 by Ethisphere.

The Value of Being Socially Responsible

As these firms demonstrate , a deep and abiding commitment to corporate social responsibility can pay dividends. By learning from these initiatives and taking a values-driven approach to business, you can help your organization thrive and grow, even as it confronts global challenges.

Do you want to gain a deeper understanding of the broader social and political landscape in which your organization operates? Explore our three-week Sustainable Business Strategy course and other online courses regarding business in society to learn more about how business can be a catalyst for system-level change.

This post was updated on April 15, 2022. It was originally published on June 6, 2019.

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Responsible Business Essays

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What Does Responsible Business Management Really Mean?

According to gildas yombi it means acting socially and thinking economically..

Ever wonder what the difference between charity, social enterprise and responsible business management really is? Unsure as to where the social stops and the entrepreneurial begins? Gildas Yombi had similar questions. After working as a strategic consultant for a charity in Hong Kong, and starting his own social enterprise, he still felt he was lacking the tools to affect large scale change. In this interview he tells us what he what university can teach you about impact creation and what responsible business management can really achieve. 

How did you initially get interested in starting a social impact career?

I was actually never interested in a “Social Impact” career. You see, initially coming from a Social Science background – Political Science & Economic Sociology – I knew for a fact that everything, be it economic, political, or scientific, concur to the realization of the “Social”. So I have rather always been interested in an “Impact” career. As opposed to a social impact career, an impact focused career put emphasis on serving the general and greater good - serving the society - from whichever career perspective or direction you find yourself in.

Were you involved in Social Enterprise before you came to Berlin?

Yes I was involved in Social Enterprise. While working as a Management Consultant for a Hong Kong based charity organization dedicated to abolishing hygiene related child mortality by collecting, recycling, and redistributing discarded soap from hotels, I came to realize first hand that the charity model, while providing an effective response to a severe issue, was not efficient in widening and sustaining the impact. I therefore decided to move to Singapore where I was based before moving to Hong Kong, and built a (social) enterprise model of the same solution; a model that was not only more socially impactful but also economically and environmentally more viable. That is how Soaps4Lives was founded in January 2013. I have also been involved in a number of other initiatives that aimed at building the capacities of social entrepreneurs.

What motivated you to go back to studying?

I have always been driven by the desire to create and facilitate the avenue of the so needed ‘Change’ we all talk about. But I was in a point of my career where I came to realize that the socioeconomic turmoil the world is facing cannot be solved solely by social entrepreneurship. The issues are just too big, too complex, or simply require a response that social entrepreneurship is limited in its capacity to provide, but that ‘main stream’ entrepreneurship and industries have the ability to provide when undertaken ‘responsibly’. For me therefore, the question became the one of how to help main stream entrepreneurs and business leaders develop and execute more responsible, impact-driven and sustainable business models and management frameworks.

To achieve that vision, I needed to equip myself with specific adequate and up-to-date cognitive and practical tools – the perfect way to do that was to go back to studying. I was lucky to be admitted to the Executive Master Program in Responsible Management at the Institute Corporate Responsibility Management - Steinbeis University in Berlin ( ICRM ), where I focused my studies on Responsible Entrepreneurship and Sustainable Business.

What were the key things you took away from your masters for your future plans?

When I entered the masters, I was primarily aiming to equip myself with the knowledge, skills and competences that would enable me to achieve my vision of a more impact-driven and responsible entrepreneurial world. Not only have I met that objective, but furthermore, the program has given me the opportunity to create a platform that will help me affect positive change within any organization.

To be more specific, we are currently developing a platform – a centre – that will provide training and advisory support to (aspiring) entrepreneurs, businesses and other regulatory organizations on areas of social innovation and responsible  and sustainable entrepreneurship. As key learnings, my responsible business modelling and sustainable leadership skills are now much sharper. I am also able to design and embed business relevant CSR policies into any company and organization.

What impact do you think responsible business management can have?

Beyond merely being a management framework, responsible business management to me entails the commitment that business leaders and managers should make to always – and I emphasise ALWAYS - uphold ethical considerations in their daily handling of their business... Responsible business management has proven to be the most effective and efficient management framework for embedding business ethics, sustainability, and social entrepreneurship principles into any business model. It can ensure a more inclusive and sustainable socioeconomic development, and I believe it is the business management framework by excellence to help social entrepreneurs and entrepreneurs alike in their endeavours to build and execute more impact- driven and sustainable enterprise models. It has a substantial potential to increase the competitiveness of our economies by for example helping the ones come up with more economically viable social enterprise, while helping the others increase the social and environmental viability of their business; in both cases, it increases the sustainability – also taken in the perspective of durability - index the Enterprise.

In your thesis you focused on sustainable business models. Do you have three top tips for budding entrepreneurs?

• Act socially but think economically: it will help you build and implement a self-sustainable enterprise model with greater socioeconomic and environmental added value, and therefore higher propensity for social impact.
• Create an Operational Plan: it will give you a clear perspective of the frameworks, resources, and support ecosystems needed to execute your mission (business model). It is the navigator and computer panel that will help you not only foresee and mitigate the potential risks that may arise, but also identify and implement necessary pivots (improvements); thereby increasing the chances of success.
• Improve continuously: it will help you stay ahead of all plausible threats and opportunities. Don’t be for instance afraid to enhance your vision or mission statement; relevance, efficiency, responsibility and enhancement will increase the sustainability index of the enterprise.

This interview was provided in collaboration with Steinbeis University. It was originally published in October 2015. Learn more about the Steinbeis Master in Responsible Management . 

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What Is Social Responsibility?

Understanding social responsibility, areas of focus.

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Social Responsibility in Business: Meaning, Types, Examples, and Criticism

Social responsibility is an ethical focus for individuals and companies whereby they seek to take action and be accountable for practices that benefit society. Social responsibility has become increasingly important to investors and consumers who seek investments that not only are profitable but also contribute to the welfare of society and the environment.

While critics have traditionally argued that the basic nature of business does not consider society as a stakeholder , younger generations are embracing social responsibility and driving change.

Key Takeaways

• Social responsibility means that besides maximizing shareholder value, businesses should operate in a way that benefits society.
• Socially responsible companies should adopt policies that promote the well-being of society and the environment while lessening negative impacts on them.
• Companies can act responsibly in many ways, such as by promoting volunteering, making changes that benefit the environment, engaging in ethical labor practices, and engaging in charitable giving.
• Consumers are more actively looking to buy goods and services from socially responsible companies, hence impacting their profitability.
• Critics assert that practicing social responsibility is the opposite of why businesses exist.

Michela Buttignol / Investopedia

Social responsibility means that individuals and companies must act in the best interests of their environment and society as a whole. As it applies to business, social responsibility is known as corporate social responsibility (CSR) and is becoming a more prominent area of focus within businesses due to shifting social norms.

The crux of this theory is to enact policies that promote an ethical balance between the dual mandates of striving for profitability and benefiting society as a whole. These policies can be either commission (philanthropy: donations of money, time, or resources) or omission (e.g., “go green” initiatives such as reducing greenhouse gasses or abiding by U.S. Environmental Protection Agency regulations to limit pollution).

Many companies, such as those with “green” policies, have made social responsibility an integral part of their business models , and they have done so without compromising profitability.

Additionally, more consciously capitalistic investors and consumers are factoring in a company’s commitment to socially responsible practices before making an investment or purchase. As such, embracing social responsibility can benefit the prime directive: maximization of shareholder value.

There is a moral imperative as well. Actions—or the lack thereof—will affect future generations. Put simply, social responsibility is just good business practice, and a failure to do so can have a deleterious effect on the balance sheet.

Social responsibility can also boost company morale, especially when a company can engage employees with its social causes.

In general, social responsibility is more effective when a company takes it on voluntarily instead of waiting for the government to require them to do so through regulation.

The International Organization for Standardization (ISO) emphasizes that a business’s ability to maintain a balance between pursuing economic performance and adhering to societal and environmental issues is a critical factor in operating efficiently and effectively.

The key ways that a company embraces social responsibility include philanthropy, promoting volunteering, ethical labor practices, and environmental changes.

For example, companies managing their environmental impact might look to reduce their carbon footprint and limit waste. There’s also the social responsibility of ethical practices for employees, which can mean offering a fair wage, which arises when there are limited employee protection laws.

Examples of Socially Responsible Corporations

Social responsibility takes on different meanings within industries and companies. For example:

• Starbucks Corp. ( SBUX ) committed to social responsibility from the start, including sustainability and community welfare. It purchases Fair Trade Certified ingredients to manufacture products and actively supports sustainable farming in the regions where ingredients are sourced.
• Ben & Jerry’s Homemade Holdings Inc. has integrated social responsibility into the core of its operations. Like Starbucks, the company purchases Fair Trade Certified ingredients.
• Salesforce.com Inc. ( CRM ) developed what it calls the 1-1-1 model. The company dedicates 1% of its equity, 1% of its product, and 1% of its employees’ time back to the community.
• Big-box retailer Target Corp. ( TGT ), also well known for its social responsibility programs, has donated money to communities in which the stores operate, including education grants.

Criticism of Corporate Social Responsibility

Not everyone believes that businesses should have a social conscience. Economist Milton Friedman stated that “‘social responsibilities of business’ are notable for their analytical looseness and lack of rigor.” Friedman believed that only individuals can have a sense of social responsibility. Businesses, by their very nature, cannot. Some experts believe that social responsibility defies the very point of being in business: profit above all else.

However, social responsibility has become more mainstream and is now practiced among a wide range of companies. Younger generations, such as millennials and Gen Z , are embracing social responsibility and driving change in the workplace and as consumers.

What Are Examples of Social Responsibility?

Social responsibility includes companies engaging in environmental preservation efforts, ethical labor practices, philanthropy, and promoting volunteering. For example, a company may change its manufacturing process to reduce carbon emissions.

What Are the Main Benefits of Social Responsibility?

Benefiting society and lessening the negative impacts on the environment are among the main benefits of social responsibility. Consumers are increasingly looking to buy goods and services from socially responsible companies, which can have a positive impact on their bottom line.

How Does Social Responsibility Benefit Companies?

In addition to potentially increasing the bottom line, companies that implement social responsibility programs can also boost their brand image. Social responsibility programs can also have a positive impact on morale among employees.

Social responsibility benefits society and the environment while lessening negative impacts on them. Companies engaging in social responsibility can do so in a number of ways, including making changes that benefit the environment, engaging in ethical labor practices, and promoting volunteering, and philanthropy. Consumers are more actively looking to do business with socially responsible companies , which can also benefit bottom lines.

Lu, Hao and et al. " How Do Investors Value Corporate Social Responsibility? Market Valuation and The Firm Specific Contexts ." Journal of Business Research , vol. 125, March 2021, pp. 14-25.

International Organization for Standardization. " Standards ."

International Organization for Standardization. " ISO and Small & Medium Enterprises ."

Starbucks. “ Starbucks Ethical Sourcing of Sustainable Products .”

Starbucks. “ Becoming Resource Positive .”

Ben and Jerry’s. “ Fairtrade .”

Ben and Jerry’s. “ Our Values and Mission .”

Salesforce. “ How Far Can the 1-1-1 Model Go? This Tech Darling Has a Unique Approach .”

Target. " Offering Debt-Free Degrees to More Than 340,000 Target Team Members? Now That’s a Smart Move ."

Target. “ Sustainability & Governance .”

The New York Times. “ A Friedman Doctrine—The Social Responsibility of Business Is to Increase Its Profits .”

Massachusetts Institute of Technology, Sloan School of Management. “ Social Responsibility Matters to Business — A Different View from Milton Friedman from 50 Years Ago .”

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What Makes a Responsible Leader in Business?

So many things have changed in the last two years, and how we do business is definitely one of them. For this reason, there will likely be a renewed focus on the idea of responsible leadership post-pandemic . This makes sense, given the important role that businesses have played during the crisis. What does it mean to be a responsible leader, though? It’s easy to espouse these ideas but much more challenging to embody them. Here are seven ways you can adapt your approach and be a more responsible leader to meet the needs of these utterly transformed times.

1. Use empathy and understanding.

Businesses focused on the bottom line have been known to prioritize investors and clients above everyone else. A responsible leader thinks about their business at all angles. That means they show concern for the people who occupy all positions related to their business, including suppliers and employees at every level. This also entails considering the broader impact of every company action. For example, how will leadership decisions affect the general public? Just because their methods are legal doesn’t mean they’re necessarily ethical. A responsible leader recognizes this , listens to a wide range of perspectives and strives to act in the best interests of the majority.

2. Place purpose above profit.

Of course, businesses are based on turning a profit . However, responsible businesses plan to achieve much more than that. They have a bigger purpose, one that’s rooted in social good. In practice, this means not every decision made will necessarily be the most profitable one possible. At times, profit margins might be sacrificed to ensure the business stays aligned with its values. A responsible leader understands that their business can contribute to social problems or promote positive change. They will strive for the latter, even if that goes against conventional economic wisdom. Essentially, every decision a responsible leader makes should be guided by their purpose.

3. Be brave.

It’s incredibly easy to follow trends and obey prevailing ideologies. However, it can also be extremely irresponsible. Sometimes hegemonic ideas need to be challenged for progress to be made. This is the role of a responsible leader, who shouldn’t be afraid to try something new and daring if it could have a positive impact. The word “responsible” might sound boring. In practice, it should be anything but! Responsible leadership doesn’t mean maintaining the status quo. In a business context, it means taking ownership of a problem and being brave enough to act, even if that action is unconventional or unpopular, to solve it. Not every idea will generate positive results, of course. There is bravery involved in failure, though, and a responsible leader accepts, admits, and learns from their mistakes.

4. Think long-term.

Responsible leaders aren’t reactive; they’re proactive! They anticipate problems and take preventative action rather than just waiting for issues to arise. Long-term thinking is vital for responsible leaders. After all, what might be immediately profitable could be incredibly damaging to the environment in years to come. A one-day deal that attracts crowds of customers could seriously overwork loyal employees for a month. To be a responsible leader , your overriding goal must be to build a sustainable business. This means developing products, business models, and modes of working that won’t burn out. A responsible leader often has to balance competing demands. That’s because they aren’t just interested in the long-term potential for profit; they’re also invested in the long-term future of the planet and the people who live on it.

5. Be receptive.

Outdated notions of leadership revolve around one appointed superior dictating their plans to the rest. This doesn’t fit the new model of responsible leadership, which recognizes the importance of open dialogue. A responsible leader doesn’t need to know everything. It’s more important that they know they don’t know everything! Instead, they should be willing to listen to experts on topics beyond their scope of knowledge. They should also be comfortable participating in collective decision-making. This shows that they value the perspectives of those they work with. Faith in responsible leadership, then, isn’t generated through transmitting illusions of infallibility. Instead, it comes as part of the development of sincere and trusting mutual relationships. In this way, responsible leadership is much more about listening than it is about talking.

6. Approach innovation responsibly.

In our increasingly digitized and tech-heavy times, companies often rush to be the “first.” As a result, there is pressure to constantly break new ground to stay relevant and get ahead of the competition. A responsible leader has a sensible approach to innovation. They only launch products and services that align with their purpose. Being consistently ethical is more important than coming first. Before introducing innovations to the public, responsible leaders consider the potential consequences. With technology, for example, they measure privacy and wellbeing concerns against the potential social good of each product. “Should we?” is just as important a question as “can we?” to a responsible leader.

7. Take diversity seriously.

Arguably, diversity has been treated as a buzzword by most business leaders in the past. They may have claimed a commitment to the concept, but there has been a lack of concrete action to back up their alleged beliefs. Responsible leaders are different. They incorporate diversity into every element of their business , and the measures they take are impactful as opposed to merely tokenistic. The diversity measures of responsible leaders aren’t based on assumptions or stereotypes. Instead, these leaders are committed to learning more about what diverse communities need, directly from the communities themselves. Then, they use this information to guide their approach.

Based on this list, the leadership qualities required to be responsible include empathy, integrity, bravery, accountability and openness. This shows that the old-fashioned idea of an aggressively authoritative leader is obsolete. Instead, the new model of responsible leadership is much more focused on soft skills: a human touch and strong working relationships. Also, a mere awareness of social and environmental concerns is no longer sufficient. A responsible leader should be deeply committed to enacting positive change, even and especially if that comes at a financial cost.

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Responsible Management - Essay Example

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Responsibility and Accountability Management Essay

Introduction, management, responsibility, and accountability in university students.

In any work place, management, responsibility, and accountability are indispensable terms. Employees have the responsibility of ensuring that they accomplish all duties assigned to them. To portray their responsibility, employees are obligated to try their best to deliver their assignments in a timely and professional manner. Management is an indication of power, where, managers have the authority to give orders to their subordinates and influence them to work according to their policies.

Through all ways and means, the managers should have the power to influence their subordinate staff to obey them. Lastly, accountability is an act of being liable for one’s actions. Employees are answerable for their general performance, and the managers take accountability of the entire institution. Employees who fail to deliver their duties are accountable to their immediate supervisors.

They have to explain the reasons as to why they were not able to perform as expected. Management, responsibility, and accountability are inter-related terms that apply in personal lives. This paper will try to relate the three terms to the lives of students in the university.

Universities are high-level educational institutions where students study to obtain educational degrees and do extensive researches. Students in the university meet and integrate with different people from all over the globe. The academic freedom in the university is immeasurable, and students have the supremacy to choose what is right for them. In many cases, university students are advised to be their own managers. They ought to be responsible and accountable for their own lives.

Since they are their personal managers, students are in charge of their lives, where, they have the power to control themselves from participating in unethical behaviors. Good personal managers will control their choice of friends, their choice of actions, and their choice of direction in every incidence. On the other hand, poor managers are swayed by peer pressure.

They will do things to please their friends regardless of the consequences of their actions. The reality is that poor managers will blame others for their misfortunes in the future; however, they ought to learn that everything that happens in their lives is a result of a choice that they made earlier.

Responsibility is the foundational principle that obligates students to embrace the rightful behaviors that bring success and happiness in their entire life. Responsible students will always make the right choices in any dilemmatic situation. In a case where students have to choose between going for entertainment and going for classes, a responsible student would opt to attend classes and forego the entertainment session.

Responsible people will experience the joy of being able to control their lives, and they will make the right choices because they are aware that they will account for everything that they choose to do. Responsible people will take time to listen to their heart and mind. They will foresee the consequences of an action, and thereby make the best choice of all the possible alternatives.

Accountability is a moral principle that will obligate university students to do the right thing at the right time. Responsible students who fail a test can account for their poor performance, whereas irresponsible students cannot have the basis to give significant reasons behind their failure. Responsible students will always account for the time that they stayed in school, while irresponsible students will have wasted some considerable time in school.

Missing classes is a customary thing in the university. Some students may miss classes occasionally due to unavoidable circumstances; however, others miss classes for lame excuses, and they cannot account for the time lost. Students who have a habit of missing classes are irresponsible of their own lives.

They will always blame the lecturers and their peers for their poor performance in exams. Essentially, irresponsible students will tend to declare that every misfortune in their life is someone else’s fault. However, they usually realize their mistakes when it is too late. Cases have happened where some university students fail to graduate in time for various reasons. In most incidences, the underlying reason is the lack of authority, responsibility, and accountability of one’s life.

In real life, there is no particular corrective measure to influence authority, responsibility, and accountability of personal life. However, the manner of upbringing children, and the environment in which children are raised are somewhat related to the ability of children to take responsibility for their own lives. Therefore, parents should learn to nurture their children responsibly, and they should advise them in every step of their lives.

From one time to another, children should attend guidance and counseling classes to obtain some mentorship. Students should have a role model, and they should learn to work towards attaining what their role models have achieved. Lastly, university students should learn to take responsibility for their lives. They should learn to stand by their feet, refuse to do things because of peer pressure, and most importantly, they should learn to be accountable for all their actions.

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Ethical And Socially Responsible Business Practice Management Essay

Published Date: 23 Mar 2015

Disclaimer: This essay has been written and submitted by students and is not an example of our work. Please click this link to view samples of our professional work witten by our professional essay writers . Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of EssayCompany.

Around the world organizations are being forced to struggle to meet the requirements of the existing generation without compromising the facilities of the succeeding generations to come across their own needs. Organizations are requested to take responsibility for the actions their conduct influence humanities and the natural environment. Additionally, they are being requested to implement sustainability principles to the habits in which they do their business. Sustainability in the organization refers to voluntary activities that exhibit the presence of public and ecological concerns in business actions and in connections with stakeholders. It is no further acceptable for an organization to practise economic success in separation from those which are impacted by its actions. An organization should now emphasize its attention on both maintaining its profits and being a good corporate citizen. Organizations have been forced to restructure their frameworks, rules and business models to provide both private and public benefits while keeping well-informed of global trends and remaining devoted to financial duties. To understand and improve existing efforts, the most socially responsible organizations carry on revising their short-term and long-term plans, to stay ahead of rapidly changing challenges. Although it is easier said but in reality the implementation is challenging and limited in scope, however, there are benefits to the organization.

This piece of work will give an outline of the challenges, limitations that a business encounters and the strengths that are derived from their ethical and socially responsible business practice.

"Employees work excessive overtime, in some cases seven days a week, and live in crowded dorms. Some say they stand so long that their legs swell until they can hardly walk. More troubling, the groups say, is some suppliers' disregard for workers' health. Two years ago, 137 workers at an Apple supplier in eastern China were injured after they were ordered to use a poisonous chemical to clean iPhone screens. Within seven months last year, two explosions at iPad factories, including in Chengdu, killed four people and injured 77." - Duhigg & Barboza. The New York Times (2012). In China, Human Costs Are Built Into an iPad. 

Organizations, here for instance Apple Inc., to escape from their unethical and embarrassing situation to entail them to additional costs in order to decrease the excessive hours of labour. For example, a decrease in the regular working hours from the existing sixty to seventy hours per week to forty-eight hours per week would demand in the region of more than 30 per cent upsurge in the labour force to sustain the existing rate of productivity. In order to provide accommodations for the increase in labour force the factory would be required to build extra related infrastructure, such as kitchenettes, security guards, healthcare policies and transportation facilities. The initial capital investment has to be quite generous to rapidly amend all the situations at hand.

The labour force, usually in developing countries, do not prefer less overtime hours because it sinks their earnings. Factory owners love to keep regular wages as low as possible so as to incentivize workers toward overtime work. Considering the point of view of the factor owner or organizations, such as Apple Inc., the actual cost is the average wage per hour and the difference between fixed and overtime wage rates is a scheme to make the labour force work more hours.

The issues surrounding well-being and safety relating to production facilities are also rooted in the principal manufacturing scheme and occur for reasons that are similar to wages and working hours. The improvements to the physical conditions to the factory would include improved air filtration arrangement, better tangible work assets and the establishment of safety equipment would entail to non-productive capital factory area and result in the rise of operating expenses without proportionate rise in the quantity of units manufactured per any measures of productive efficiencies. From Apple's viewpoint, the disputes of the labour force earnings and working environment has been the needless interference that must be minimized before the strong and determined displeasure of Apple's customers, stockholders and regulators - who are their three main body of voters.

To abide by with higher standards of social responsibility, organizations have undertaken inspection on the firms they employed in their supply chain. Differences between authentic and audit results do exist. For example, at Foxconn after the heart-breaking events of workers suicide, Apple inspected the working condition of those related factories. Its enquiry report demonstrated no problems of worker overtime and no child labour. Ironically, after the assurance of good working conditions in the enquiry report, the suicide incidents have continued. The difficulty in auditing is that the firm can hide the faults and workers can hide the truth out of fear.

When becoming involved in ethical business practices, developing consumer scepticism limits the business progress. They are doubtful about the true incentive behind the practices and are not easily influenced that a business is acting in the benefits of the community. Another significant limitation that results from business practices is that it can negatively affect business profits. How can a business defend expenditure on activities that offer no returns for the business? Unethical practices will cause a bad reputation which in effect will result in falling stock prices. Organizations that maintain high ethical principles are provided with legal and financial incentives by regulatory bodies.

"Facing mounting criticism, factories have made significant changes, but bigger steps are ahead for electronics supplier. Foxconn, Apple's top manufacturer, has improved safety conditions and cut working hours in an effort to resolve violations at its plants that triggered a global scandal for the iPad and iPhone maker. The FLA said Foxconn had made significant improvements such as introducing more breaks and better maintenance of safety equipment. The company more than doubled wages after protests from worker groups and is backing a local law adjustment that will extend unemployment insurance." - Dominic Rushe. The Guardian (2012). Apple manufacturer Foxconn improves on Chinese workers' hours and safety.

Evaluating the above reference it is observed that Apple realized the bigger picture. In general and in accordance to the reference, a number of strengths can be derived in advantage to Apple and organizations. Ethical business practices can provide a distinction of an organization from its competition. Whether an organization is affiliating with non-profit organizations, offering employee benefits, maintaining environment friendly policies - these practices will improve your company's internal atmosphere and industry connections. All these aspects will develop the organization reputation and build a long-term strategy for success.

As the organization grows a reputation for ethical business practices, the customers will begin to consider the business as trustworthy and morally honest. The confidence your customers sense for the organization is an essential element in developing long-term customer relationships and brand loyalty provided your business provided quality products. These passionate customers will talk to their related people and positively create more brand loyal customers. Brand loyal customers are a good medium of advertising helping organizations to become profitable and successful.

Ethical and socially responsible business practices towards the organizations employees such as providing being working environment and incentives will lead to efficiency and productivity. The productivity of employees increases with good ethical practices existing in an organization.

People regard ethics, social responsibility and business ethics in terms of administrative defiance with legal principles and observance to internal regulations. In order to achieve success many organizations believe that they must earn the respect and assurance of their customers. Organizations are being questioned, encouraged and pushed to improve their business practices to put emphasis on legal and ethical conduct. Companies, professional firms and individuals are being held more and more responsible for their engagements, as demand grows for higher principles of corporate social responsibility. Business will be obstructed by challenges and limitations but it will require a lot of patience, encouragement and money to gain the benefits from their ethical and socially responsible practices.

- 1347 words

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• News for ALSO

ALSO announces areas of responsibility of the new Group Management: Clear sales focus for further growth

ALSO announces areas of responsibility of the new Group Management: Clear sales focus for further growth  

Five of the eight members of the management team will have direct customer responsibility: Espen Zachariassen is Regional Managing Director for the North/East region, Jorge Gállego for the South/West region. Germany, the largest ICT market in Europe, will be managed by CEO Wolfgang Krainz. 

Tom Brunner will be responsible for sales in the Consumer sector across all regions. Jan Bogdanovich will assume this role for Commercial (corporate reseller and SMB). They will coordinate the manufacturers' sales programmes with local sales activities, closely collaborating with the Regional Managing Directors to ensure ALSO's renowned market proximity is upheld.

Ingo Adolphs, Chief Technology Officer, is responsible for the technical development of the digital platforms as well as business intelligence and the group-wide ERP. The appointment of a CTO emphasises the strategic importance of technology for the Group.  

As Chief Operating Officer, Thomas Meyerhans will assume responsibility for the Logistics division in addition to the areas of Legal and Human Resources. Andreas Kuhn will continue as Chief Financial Officer.

Wolfgang Krainz, CEO of ALSO Holding AG (SIX: ALSN): ‘Our primary goal is to continue to create sustainable profitable growth. The clear division of responsibilities will help us to grow even more efficiently with and within our ecosystem. With our Group-wide harmonised digital tools, we can keep a close eye on the development of EBITDA and ROCE, which continue to be the key performance indicators for us.’

Ansprechpartner ALSO Holding AG

Kilian Maier Investor Relations E-Mail: [email protected]

ALSO Holding AG (ALSN.SW) (Emmen/Switzerland) is one of the leading technology providers for the ICT industry, currently active in 30 European countries and in a total of 144 countries worldwide via PaaS partners. The ALSO ecosystem comprises a total potential of around 135,000 resellers, to whom we offer hardware, software and IT services from more than 800 vendors in over 1,540 product categories. In the spirit of the circular economy, the company provides all services from provision to remanufacturing from a single source. The business activities comprise the areas of Supply, Solutions and Service. Supply stands for the transactional provisioning of hardware and software. Solutions supports customers in the development of customised IT solutions. Subscription-based cloud offerings as well as digital platforms for IoT, cybersecurity, virtualisation and AI are at the heart of the Service division. The main shareholder is the Droege Group, Düsseldorf, Germany. Further information can be found at https://also.com

The Droege Group (founded in 1988) is an independent investment and consulting firm under full family ownership. The company acts as a specialist for tailor-made transformation programs aiming to enhance corporate value. Droege Group combines its corporate family-run structure and capital strength into a family-equity business model. The group invests its own equity in “special opportunities” with a focus on medium-sized companies and spin-offs as well as strategically in buy & build transactions. With the guiding principle "execution - following the rules of art", the group is a pioneer in execution-oriented corporate development. Droege Group follows a focused investment strategy based on long-term oriented megatrends. Enthusiasm for quality, innovation and speed determines the company’s actions. In recent years Droege Group has successfully positioned itself in domestic and international markets and operates in 30 countries.  

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1898081  08.05.2024 CET/CEST

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