Social Responsibility of Business

Increasingly, organizations are expected to legitimize their existence by making socially responsible decisions and acting on them accordingly. However, organizations operate in dynamic and diverse contexts, both within and between their national boundaries, which challenge their ability and willingness to act ethically. This is evidenced by recent and continued business ethical scandals that have led to enormous social impact with global implications and have affected the survival of some organizations.
It is therefore important to understand how organizations’ interactions with their various constituencies impact on their ethical and social responsible behavior. This understanding ought to make us more informed about the contextual factors that foster the presence or absence of ethical decisions with the aim of preventing future unethical and social irresponsible behaviors.