The main problem which managers face in the area of social responsibility is the targets and guidelines which they should follow in meeting social obligations. Keth Davis has laid down the following guidelines:1
- Social responsibility arises from social power : Decisions of businessmen have social consequences. Unless they assume the responsibility for these consequences, they will lose the power of decision-making.
- Open disclosure of operations and open receipt of inputs from society are essential : Social responsibility requires that managers should let the public know what they are doing. They must also be sensitive to what is going on in society.
- Social costs as well as technical feasibility and economic profitability should be taken into account in deciding what to proceed within any given activity, product or service. A cost-benefit analysis should be undertaken in which social costs should be included.
- Social costs should be included in the ultimate price of the product or service. In general, the consumer should pay, for his or her consumption including social costs.
- Managers and non-managers have responsibility for social involvement in their areas of competence. When there is improvement in society, all members of the society benefit. Therefore, they should all contribute their talents to help solve social problems.