Five propositions for social responsibility

Abstract

Business's need for social response and social responsibility has been discussed loudly and at length. What does it all mean? One way to understand the issues is to examine the basic propositions offered in the social responsibility debate. Modern society presents business with immensely complicated problems. Technology has advanced to a level that tests intellectual capacities, markets have become more complex and international in scope, and difficult new problems of social issues and social responsibility have arisen. In earlier periods, the mission of business was clear. It was strictly an economic o n e t o produce the best quality of goods and services at the lowest possible price and to distribute them effectively. The accomplishment of this mission was remarkably effective, so effective that large numbers of the population found their minimum economic needs reasonably satisfied and began to turn their thoughts toward other needs. Beginning in the 1950s, the public's mood shifted sharply toward social concerns, and this mood was reflected in extensive social demands made on institutions. Since business interacts extensively with all of society, perhaps more of these demands were made on business than on any other institution. By sticking strictly to its economic role in the past, business had left the social side of its activities largely untended and was unprepared to deal effectively with social issues. However, the public also was unprepared for its new role as social protagonist, and, as a result, churning and ferment have marked discussion of social priorities, how they are to be accomplished, and what role business should play in this accomplishment. After more than twenty years of controversy, the debate over business and social issues has now reached some maturity. Out of this maturity, a degree of uniform support is developing for certain social propositions to guide the conduct of business as well as of other institutions. These guidelines apply to a greater or lesser degree according to individual circumstances, bu t the important point is that they do apply. Intelligent businessmen will take heed of these guidelines if they wish to avoid unnecessary confrontations with society. This article examines five of these guide19