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Social Responsibilities Benefits in Organizations


Social responsibilities enable organizations to improve performance and enhance stakeholder relationships. It is the commitment by businesses to behave ethically as they improve the quality of the workforce’s life, local community, and society at large. It also involves the activities of the business and how those activities impact on the development of society. It is believed that organizations benefit in the long run as they promote social responsibilities. Some of the benefits that organizations get are the production of high-quality products, increased employee commitment, improved efficiency in daily operations, and customer loyalty.


Trust in organizations promotes motivation among employees. There exists a direct relationship between trust, employee performance, and the firm’s outcome. In organizations where trust does not exist, employees are always in conflict with each other and this can reduce the number of investors who would like to invest in the organization. Customers tend to shift from organizations that rarely meet their needs and go to their competitors who provide them with quality goods and services that they require. In a trusting environment, employees are treated with respect by subordinates and their seniors. It reflects the performance of the firm and adds effectiveness in the organization (Thorne, Ferrell, and Ferrell 29).

Customer Satisfaction

Customer satisfaction is a crucial factor in the continuity of all businesses and organizations. Consumer’s relationship which is built on cooperation and respect enhances the repeated purchase of commodities and services which are important for success. Customers’ trust in organizations can strengthen through proving services and goods that they require in good condition and on time when they require them. Organizations can understand customers’ needs if they promote respect and trust among them. Initiatives started to promote social responsibilities to bring more customers to a firm. Satisfied customers also bring more customer to a firm correspondingly dissatisfied customers’ shifts to other competitors and invite others to shift (Binder 86)

Employee Commitment

Social responsibility enhances employees’ commitment to their duties. The efforts enable them to understand the significance of developing and sustaining a good relationship with customers and colleagues. Committed employee understands that customers have the right to have the full value of their money. They are always ready to serve their customers with quality products. Failure of organizations to promote social responsibilities in the organization leads to the dissatisfaction of employees and as a result, they overlook their duties.

Investor Loyalty

According to Binder (37), successful relationship with investors and other stakeholders depends on trust and commitment of an organization. Organizations get a big return on investment if they are perceived to have a high degree of integrity and honesty. An organization where an employee perceives it to have a low degree of integrity earns a low return on investment. Investors are always concerned about the reputation of the firms in which they invest.

Irresponsible firms are perceived to be failures by investors and they evaluate their performances before they decide to invest in them. Asset management firms assist investors to determine the best firms to invest in. Most of the cases those firms are the ones that promote social responsibility. They recognize those firms to be efficient, productive, and profitable (Thorne, Ferrell and Ferrell 26).

Increases Profit

The research has proven that social responsibility organizations perform well financially. In the United States, organizations that promote ethics and emphasize on employees abiding by rules and regulations are said to perform well financially than those that are not (Thorne, Ferrell and Ferrell 28).

National Economy

Social institutions that promote trust foster the economic growth of an organization. The economy in some developing countries is suffering due to corruption, the promotion of monopolies, and lack of social responsibilities in organizations. Other countries with trust-based organizations provide an environment which is productivity-enhancing and improves the economy of the whole country.

Relevant Statements


Stephen R. Covey who wrote “The 7 habits of highly effective people” and stated that ineffective human interaction, there is always trust among people. Trust among employees promotes motivation among them. Trust takes time and patience and it does not require training or development (Thorne, Ferrell and Ferrell 25).

Customer Satisfaction

According to Thorne, Ferrell, and Ferrell (27), Social responsibility in organizations promotes customer satisfaction which leads to repeated buying. Harris Interactive Inc stated that a quarter of people in research done to reject the firm’s product and incited others to do so after they were not able to understand the firm’s activities and policies.

Employee Commitment

A survey done by a walker information global network revealed that only one person out of three is loyal to firms he/she is working in.

Investors Loyalty

Shareholders identified that corporate responsibility is the beginning of production efficiency and profit of a firm.


Organizations get great resources to promote social responsibility as they serve their customers, establish trust, and value their employees and the public irrespective of their sizes.

National Economy

Society has succeeded in the economy due to the organizational framework constantly promoting incentives to make organizations participate in productive activities.

Critical Analysis

Organizations that promote social responsibilities obtain positive results for organizations and stakeholders. This is evidenced by the performance of organizations that practice social responsibility. Trust among the employees, subordinates, and customers promote good relation among the individuals. A research which was done by cone-roper mentioned that poor services in organizations lead to customers shifting to other organizations where they are satisfied.

Organizations promoting social responsibility have proven to bring to market goods and services which satisfy the customers and, therefore, lead to competitive advantage. Social responsibility has been used by an organization to enhance employee commitment which also enhances motivation. Motivated employees can perform their duties as required (Thorne, Ferrell and Ferrell 26).

They recognize that customers have the right to attain the full value of their money and therefore serve them with their needs. Social responsibility in organizations increases the loyalty of investors in organizations they have invested in. Organizations that have ever been involved with misconduct behavior leads to investors lacking trust in them and moving to other responsible organizations. For example, when sunbeam was investigated by the Securities and Exchange Commission, investors lost confidence in the brand and shifted to other organizations and this had a great impact it existence in the market. It summarizes it all that social responsibility in organizations has a positive impact on the growth and continuity of organizations (Binder 35).

Practical Implication

Social responsibility should be applied in organizations like manufacturing, service, and financial institutions among others. Organizations can do this by providing a conducive environment for their employees, customers, and suppliers. Organizations can do this by obtaining all licenses, and legal documents required to avoid government interaction of the business. Organizations can adapt training and development forums for their employees. They can also promote diversity and innovation to promote growth (Thorne, Ferrell and Ferrell 29).

Lesson learned about the benefits of social responsibility is that it has a positive implication in the development and growth of organizations. All organizations have obligations to promote social responsibility to increase their performance.

Works Cited

Binder, Martin. Corporate social responsibility management as a strategic instrument for creating competitive advantage. New York: GRIN Verlag, 2010. Print.

Thorne, Debbie, Ferrell, Oliver and Ferrell, Linda. Business and society: a strategic approach to social responsibility. New York. Houghton Mifflin Company, 2010. Print.

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"Social Responsibilities Benefits in Organizations." StudyKraken, 26 Sept. 2021,

1. StudyKraken. "Social Responsibilities Benefits in Organizations." September 26, 2021.


StudyKraken. "Social Responsibilities Benefits in Organizations." September 26, 2021.


StudyKraken. 2021. "Social Responsibilities Benefits in Organizations." September 26, 2021.


StudyKraken. (2021) 'Social Responsibilities Benefits in Organizations'. 26 September.

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