Social responsibility of management Essay Example

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Social Responsibility of Management


International organizations have increased market competition challenges. In this case, organizations have increasingly sought to establish strategies through which to increase their overall market competitiveness. Among them was the adoption of social responsibility approach in management. Management social responsibility can be described and defined based on two theoretical approaches namely the classical and the social approaches. On one hand, the classical theory was the traditional business management approach. In this case, the theory argued that organizations’ management has an obligation and social responsibility to the organizational shareholders. In this case, the responsibility lies in the role of profit maximization. However, the development of the sociological approach to management expanded an organizational management social responsibility scope. In this case, the theory held that organizations have increased social responsibility not only to the shareholders but also to the society at large. In this regard, the organizational managements have an increased responsibility in ensuring societal well being and success (Sims, 2003). Therefore, in the current global context, the social responsibility of the management ranges from shareholder value maximization to society well being enhancement.


The adoption of social responsibility practices has increased merits to the overall organizational performance and eventual success. On one hand, the adoption enables increased organization and consumers’ relationship development. Sanrego and Antonio (2013) conducted a study to evaluate the role of organizational social programs n a society. The society sought to establish if the adoption of social responsibility program and market approaches increased the overall organizational success rates. In this case, the study developed a hypothesis that the industry was largely influenced by the presence of these social practices. In its analysis, the study established that the organizations have increased success rates as a result of the adoption of these approaches. One among the benefits of developed customer relationships is an increased organizational reputation in the market. Carter (2007) conducted a study to evaluate the business performance implications of increased customer relationships. In this case, the study sought to reveal if these existed a relationship between developed customer relationships and reputation in the market. The study revealed that increased customer relationships increased overall consumers trust in an organization. It is human nature to develop trust towards individuals demonstrating concern and care. In this case, human beings feel safe and valued by such established relationships.

Therefore, they develop trust and lasting ties with the involved parties. This is the case in the consumer market. Customers develop buying behaviour decision making model. The decision making process is a sequential process with five distinct stages namely the need identification, information search, alternative’s evaluation, purchase and post purchase stages. In this case, the adoption of social responsibility programs has diverse implications on consumers buying decision making process. In this case, the organizational consumer base trust creation implicates on the information search, alternatives evaluation and post purchase decision making stages. As such, the organizations face increased market success rate as the consumers are inclined to search information related to the organizational products, choose the organizational products alternatives and develop subsequent repurchases decision.

In this case, increased organizational reputation breeds increased consumer satisfaction. As organizations increasingly demonstrate their social concern to the environment, they result to the increased use of the organizational products and increased customer satisfaction. Consequently, this has increased the overall customer loyalty and subsequent re-purchases in the market. In addition, the adoption of social management programs in management enhances increased organizational strategic success in the market. In this case, the adoption of social responsibility plays a significant role in enhancing non financial, organizational performance. This is based on the principles and new concepts of business performance evaluation. Niven (2006) argued that organizations use the balanced score card in the market. The balanced scorecard is a financial and non-financial evaluation tool. In this regard, the organizational management evaluates business performance based on the concepts of non financial gains such as reputation and brand positioning. Consequently, through an evaluation of business performance and success based on the balanced scorecard establishes that increased social practices in the organization increases an organizational strategic performance and eventual market competitiveness.

Further, the adoption of social management approaches in the market allows for increased organizational strategic performance through increased societal development. Besides increasing profit margins to the organizational performance, the adoption of these strategies increases the overall societal development through increased environmental performance. This is due to increased market responsibility in the market that allows for organizational management sustainability and environmental friendly production and distribution channels in the supply chain. Therefore, based on this analysis, it is apparent that increased social management responsibility in the economy results to increased organizational success in the economy allowing for increased organizational success in the market through increased market success as a result of increased reputation, satisfaction and eventual strategic competitiveness.

Management Roles

This essay has established that the organization has increased market success rates due to increased adoption of social responsibility in the management. In this case, the organizational management has the responsibility to execute the social responsibility programs. In this case, the management has an increased responsibility to adopt transparency, ethical and moral management approaches.

On one hand, the management has a responsibility to adopt transparent management approaches. Pies, Beckmann and Hielscher (2010) conducted a study to evaluate the role of transparency in management issues and its implications in the overall organizational success and consumer influence. In the study, the authors established that the organizational transparency in the market increases overall customer satisfaction and reliance in the industry. As such, the study argued that the consumer market was receptive to organizations adopting transparent and open approaches in management. As such, confidence levels and trusts in such management practices increased considerably with increased and perceived management practices in the management. In this case, transparency is enhanced through increased communication process.

In this case, communication plays a significant and vital role in facilitating organizational policies and strategy awareness in the market. Through efficient communication channels, organizations pass on their strategies, plans and policies in the market to their respective consumers. In this case, in order for organizations to enhance and perpetuate an openness policy, organizational managers should ensure the development of appropriate communication channels in the market. In this case, the managers should enhance the development of both internal and external communication channels to reach out to both the shareholder and the consumers respectively.

In addition, the management should enhance ethical management and business practices. Organizational social responsibility is purely an ethical aspect in the management. In this case, the programs seek out to develop ethical approaches to facilitate increased market success. As such, the management should ensure that the ethical practices in production processes are employed. In this regard, the managers are mandated to act on behalf of both the shareholders and the society at large. This falls under the principles of agency theory. The agency theory holds that the managers act as the shareholders agents in managing the organizations. In this regard, the theory holds that such agents only act in the interests of their shareholders. This theory application of further expanded by the concepts of the corporate governance principles that extend the manager’s responsibility to the shareholder and the overall society at large. Consequently, the management has a responsibility to enhance increased customer interests safeguarding in the market. Therefore, the management has a responsibility to enhance increased organizational ethical practices. As such, the managers should seek to evaluate and establish systems through which any established unethical practices are reviewed and eliminated.

In addition, the management is charged with the responsibility of ensuring increased social management approaches by ensuring sustainable production and this case, it a general societal interest in the market in the respective consumer markets. Environmental pollution in the industry has increased societal concerns in the market. Therefore, in order to enhance organizational success in the industry and increase the relative market competitiveness through increased production sustainability. Therefore, based on this analysis, it is apparent that organizational managers have an increased responsibility in the market to enhance an increased social programs adoption approach through strategic systems and processes such as increased sustainability production, enhancing transparency and ethical issues in the market. The analysis establishes that the adoption of these systems facilitated the eventual management success and increased organizational strategic performance in the market.


In summary, this essay analysis establishes that the social responsibility in the management is an imperative developmental concept in the market. As such, the market faces an increased need for the adoption of these social programs in the market. In this case, the essay establishes that the organizational concept of management social responsibility in the management has evolved overtime. As such, the description has evolved from the classical to the sociological approaches. In this regard, the definition evolved from profit maximization responsibility to the shareholders to incorporation of consumers’ interests in the market.

Moreover, the essay evaluates the benefits of increased market social programs in the market. In this case, the essay establishes that increased benefits in the industry increases customer satisfaction, loyalty and eventual market competitiveness. In addition, the essay evaluates the role of managers in enhancing increased social responsibility management. In this regard, it reveals that the management has an increased responsibility in enhancing transparency in organizational operation through the development of efficient communication channels both internal and external. In addition, the management has an increased responsibility to enhance increased management success through the adoption of ethical and sustainable production practices.


Carter, I. M. (2007). Customer-supplier roles and relationships in the management of research projects. Journal of Research Administration, 38(2), 59-66,7-8

Niven, P. R. (2006). Balanced scorecard step-by-step: Maximizing performance and maintaining results. Hoboken, N.J: Wiley.

Pies, I., Beckmann, M., & Hielscher, S. (2010). Value creation, management competencies, and global corporate citizenship: An ordonomic approach to business ethics in the age of globalization. Journal of Business Ethics, 94(2), 265-278.

Sanrego, Y. D., & Antonio, M. S. (2013). The Effect of Social Capital on Loan Repayment Behavior of the POOR (A study on group lending model (GLM) application in Islamic microfinance institution). Journal of Indonesian Economy and Business : JIEB., 28(2), 209-231

Sims, R. R. (2003). Ethics and corporate social responsibility: Why giants fall. Westport, Conn: Praeger.