Question

Johnson & Johnson has a reputation for being a company with a high level of corporate social responsibility to all of its stakeholders. Which of the following arguments also support the need of companies to adopt positions of social responsibility? Check all that apply

A. Organizations are responsible for acting as good citizens in the society in which they operate
B. People should be allowed to choose their charities for themselves. When organizations donate money to charity, the bottom line suffers.
C. Organizations must act in a sustainable fashion. In the long run, what is good for the environment will be good for the organization

Answer 1

Companies should adopt social responsibility because it aligns with being good societal citizens and acting sustainably, which benefits both society and the organization in the long term. Stakeholder primacy also proposes that companies should consider the interests of all stakeholders, not just shareholders.

Step-by-step explanation:

Arguments that support the need for companies to adopt positions of social responsibility include the belief that organizations are responsible for acting as good citizens in the societies where they operate and must act sustainably. Acting responsibly benefits both the environment and the long-term interests of the company itself. While concerns about the bottom line are valid, they are often counterbalanced by long-term gains in reputation and stakeholder trust that stem from responsible conduct.

Moreover, the theory of stakeholder primacy suggests that corporations should balance the interests of all their stakeholders, not just shareholders, which includes taking responsibility for social, economic, and environmental problems. This aligns with regulatory frameworks ensuring workplace safety and encourages companies to engage in ethical practices as they grow in influence and control within the market.

Therefore, businesses adopting social responsibility not only comply with regulatory standards but also contribute to the overall welfare of the society and environment, aligning with modern expectations of corporate ethics and morality.