A Study of Social Responsibility in Large Scale Enterprises.

Abstract

The nature and timing of social actions of 232 industrial and non-industrial corporations appearing on Fortune's list are analyzed and the motivational bases for these actions are assessed in this paper. Approximately half of the firms studied appear to have well-developed programs in urban, consumer, and environmental areas, with most initiated since 1968. These companies have strong policy support from top management and usually have a high level executive with defined social-program responsibilities. Despite tremendous external pressures, however, a large number of companies have obviously not instituted well-planned and-integrated responses. Although structural mechanisms do not guarantee effective responses, they do indicate the kind of management leadership and company climate that seems prerequisite for company actions. Corporations cite enlightened self-interest as their prime motivator for various social actions; however, legal compliance is a major stimulant, particularly in the environmental area. Corporate experience with governmental regulations indicate, however, that their self-interest is best served by a sensitivity to social concern and by a willingness to take initiative before a confrontation. Finally, a company's size and industry characteristics seem to significantly influence its social actions and motivations and these are important considerations for public policy.