The different concepts include:
- Profit responsibility
- Stakeholder responsibility
- Societal responsibility.
1. Profit responsibility: This concept focuses primarily on maximizing profits for the company’s owners or shareholders. The main goal of the company is to generate profits and deliver returns to its shareholders. The company may have other responsibilities, but these are viewed as secondary to the profit motive.
2. Stakeholder responsibility: This recognizes that businesses have a wider set of responsibilities beyond delivering profits to their shareholders. Specifically, businesses have a responsibility to their stakeholders, which can include employees, customers, suppliers, and the local communities in which they operate. The goal is to balance the needs of stakeholders against the profit motive to ensure that the company is acting in a socially responsible way.
3. Societal responsibility: This expands the responsibilities of a business beyond its stakeholders to include broader societal concerns. Specifically, businesses have a responsibility to act in a way that benefits society as a whole, such as by reducing their impact on the environment or by engaging in philanthropic activities to support social causes.
These concepts of social responsibility help to guide businesses in making decisions that are not only profitable but also socially responsible, taking into account the needs of different stakeholders and broader societal concerns.