Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.
Organizations that operate for-profit healthcare argue that they offer patients more options and flexibility. On the other hand, nonprofits claim to provide a superior patient experience and are more cost-effective. In keeping with their charitable mission and community focus, nonprofit hospitals are often affiliated with a particular religious denomination. For-profit hospitals are either owned by investors or shareholders of a publicly-traded company. For-profit healthcare entities are more likely to prioritize treatments that generate higher profits, such as open-heart surgeries.
Worth, Michael J. Nonprofit Management: Principles and Practice. N.p.: n.d., 2013.
No longer satisfied to depend on limited perceptions of aid, or to view businesses as their adversaries, nonprofits have finally discovered methods to work within the economy and support companies to do good deeds as they prosper. Until recently, nonprofits had been paradoxically viewed within our economic sectors of society. Traditionally, these organizations are expected to make an extraordinary impact on their social purpose yet, they are frowned upon when they choose to amplify their shoestring budget to fulfill this charge. It is a “double bottom line,” this requirement for nonprofits to balance between monetary return and social impact (Worth, 2013, p.7). Nonprofits can effectively utilize the strategies discussed by “Making Markets Work” to bring awareness and financial stability to its social purpose.
In 1970 Friedman wrote an article in The New York Times Magazine, where he says he believes the social responsibility of a business is to increase its profits. In this essay I hope to give my opinion on this issue and discuss examples we can see today
In 1987, a man named Michael Josephson who had been teaching law for twenty years and was the CEO of a legal education company, decided to sell his business and create a non-profit agency in honor of his parents. The agency is called the Joseph and Edna Josephson Institute of Ethics. He runs this collecting no salary for his contributions. In 1992, he developed an extensive study for measuring values, attitudes, and conduct of high school students. The study is called; Character Counts, more than 23,000 students throughout the United States participate and it consists of 63 questions, characterized into the following groups of questions; What do you think, Values and priorities, Have you done these things, and Feelings about school.
To begin with, the economic model has a management style that mirrors that of market-driven businesses, aligning goals and objectives with business principles such as supply and demand (Brainard & Siplon, 2004). On the other hand, the voluntary spirit model relies on a management style that is intentionally different from product and services businesses (2004). In other words, the voluntary spirit model insists that nonprofit missions are not business-like, but instead, are centered on solving problems and nurturing relationships (2004). Next, the organizational structure for the economic model has a relatively strict hierarchy where decisions are driven from the leadership, but the voluntary spirit model’s structure relies on collaboration among members to collectively determine goals and objectives (2004). Lastly, since the economic model is business-like, the incentives for staff appeal to self-serving needs, which means the incentives are often materialistic or monetary (2004).
Nonprofit Organization and Management Week 8 Assignment The case study of 2V/ACT has several different problems that need to be addressed. The three solutions that were presented each addressed an important issue area and provided a valid solution, however, the solution that I would choose is the Revenue and Do Scenario. This option would include a board member that is committed to meeting the fundraising needs of the organization and would develop a ten-month plan that would outline how it would be accomplished.
The Non-Profit Organizations, I have chosen is the Hispanic Scholarship Fund. Most negative characteristic perception of the organization will be that only Hispanic person can apply for this scholarship, leaving the rest of the world, out like if they didn't exist. Another negative aspect of this non-Profit organization will be that you need a minimum GPA requirement, any students that need a university or college funds that want to apply to college or university can't do with this requirement is stopping them from studying cause they have a low income, but the GPA requirement isn't has high as it supposed to be. My finding wasn't having difficult has I thought it will be it was more of a simple and straight to the point task. Their main goal is to build a coalition of corporate and philanthropic partners and a nation committed to increasing Hispanic degree attainment.
In addition, to the above mentioned factors, ‘community perception’ has a strong impact on the demand of the for-profit
Non-profit sector is very different from both the public and private sectors. It is a tax-exempt organization or social sector which is mainly formed for the purpose of education, religious, art, animal right or charitable (Hatten, 1997). Popular examples for the non-profit organization are World Wildlife Fund, Do Something, United Nations Children’s Fund (UNICEF), Green Peace and Malaysia Red Crescent Society. The ownership of the non-profit organizations does not belong to anyone, even the founder of organization, which is very different from other form of business.
SOCIAL RESPONSIBILITY As we defined above that social responsibility is to protect and enhance well-being of living things. Every organization is socially responsible to protect the environment and they can do there much which is legally required for the organizations. The very first social responsibility of every business is that to earn enough profit to meet his expenses. If the firm cannot earn profit no social need and social responsibility can be met by the firm the firm fails.
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
The aim of the paper is to provide the case study on the Coventry Cyrenians on the basis of the leadership and management while comparing it with the international non-profit organisations like Oxfam. It is evident from the paper that the nature of the discussion is solely based on the innovation of services and products due to the increasing competition in the sector. The paper is therefore also providing the influence of the external factors on the selected non-profit organisation to reflect the understanding of the innovation and enterprise in development of the social economy. Overview of Coventry Cyrenians The Coventry Cyrenians is non-profitable organisations providing its services for homeless and vulnerable people.
Thus, instead of focus on short-term profit maximizing or costs saving, firms should be stakeholder-oriented. A firm which is stakeholder-oriented focuses on the need of their stakeholder such as employees, customers, society and others who have a direct economic link to the firm (Habil, n.d.). Businesses that are socially responsible will avoid actions that may cause detrimental to stakeholders. They have greater concern on stakeholder well –being. A firm that decided to ignore the social issues may results in a loss of strategic opportunities ('Shareholder value or social responsiblity?', 2007).
