Final answer:
Social responsibility in a business context refers to the obligation of companies to act for the benefit of society at large, beyond their own profit maximization. This includes addressing social, economic, and environmental issues and abiding by ethical practices, especially with new technological advancements. Governments regulate these responsibilities through laws, and companies often codify them in their codes of ethics.
Step-by-step explanation:
Social responsibility in a business setting involves a company's duty to act in the best interests of the environments and societies in which it operates. While traditional views, as expressed by Milton Friedman, suggest that a business's primary responsibility is to increase its profits, contemporary perspectives argue that corporations must also address social, economic, and environmental problems. This includes ethical practices in operations, such as avoiding bribery and discrimination, promoting environmental sustainability, and ensuring consumer safety and satisfaction.
Establishing ethical practices is especially challenging with emerging technologies where the full implications on society and the environment are not yet understood. Thus, businesses are encouraged to not only comply with legal standards but also integrate ethical considerations into their corporate strategies, extending their responsibilities beyond just profit-making.
These ethical standards and social responsibilities of businesses are reflected in the various laws and regulations imposed by governments, which aim to safeguard the interests of the society while balancing the individual liberties of the people within it. By adhering to codes of ethics and corporate social responsibility initiatives, businesses contribute to the welfare of the community and the larger global society.