TOWARD A SPECIFICATION OF BUSINESS SOCIAL RESPONSIBILITY

Abstract

I This paper suggests a framework within which the notion of social responsibility may be operationalised in the enterprise. The thrust of the model which is presented is toward a more efficient allocation of a firm's resources, incorporating social costs and benefits into the capital budgeting decision. It may be argued that the approach which is taken considers only the economic role of the modern corporate institution. The corporation was created and supported by society because it fulfilled certain societal needs (Including economic ones). These needs or priorities are continually changing, thereby demanding that the corporation respond to new societal aspirations. Nevertheless, the business enterprise is still a predominantly economic institution, justifying the following emphasis on the efficiency with which it performs its economic function. An understanding of the rationale for the proposed model is best gained by a brief review of the foundations upon which the notion of social responsibility is based.