Stakeholders, Business Structures, and Social Responsibility

Explain why it is important for entrepreneurs to exercise social responsibility.

Entrepreneurs and Social Responsibility

ANSWER

Entrepreneurs and Social Responsibility

Social responsibility is a progressive management approach utilized to focus on long term returns and goals. These are a series of activities done by entrepreneurs to contribute to effective social well-being (Muku, Hanagandi, and Jayadatta, 2019). Socially responsible entrepreneurs benefit from happy employees, publicity, and loyal customers.  Social responsibility ensures that an entrepreneur engages in sound policies and ethical practices addressing ethical dilemmas within the business.

Social responsibility seeks to harmonize association with stakeholders. The company implements and identifies activities that go beyond ethical and legal standards (Muku, Hanagandi, and Jayadatta, 2019). Entrepreneurs increasingly ramp up their social responsibility to project more attractive images to shareholders and consumers, which serve to influence their reputation positively.

Entrepreneurs can build their company and brand by being socially responsible. Taking up social responsibility goes along with attracting consumers and retaining clients, which is essential for its long-term achievement. Relatively, social responsibility empowers employees and boost employee morale, which plays a significant role in improving productivity (Muku, Hanagandi, and Jayadatta, 2019). Socially responsible entrepreneurs tend to attract workers who are eager to bring changes and innovation.

More impressively, entrepreneurs with reliable social responsibility programs see retention rates and increased engagement among employees. For instance, employees are more willing to engage with companies that are viewed as ethical. Therefore, they are willing to make more sacrifices and work harder for more responsible companies. These companies also enjoy improved work results and creativity from the employees.

Ideally, increased employee efforts can enable an entrepreneur to achieve substantial goals, which boost productivity. For instance, setting high ethical standards, reducing the negative impacts, and avoiding corruption improve the business values and goals that maximize economic growth. Sustainable systems are essential for entrepreneurs since employees enjoy working in organizations that have a good public image. Social responsibility and sustainability ware ways of extending the exclusivity, add value, improve profitability, lower risk for the business.

References

Muku, K., Hanagandi, R., & Jayadatta, S. (2019). Integrating Corporate Social Responsibility with Business Strategy. Srusti Management Review, 12(2), 1-12.