What are the components of organizational responsibility?

Question

What will be an ideal response?

Answer 1

Organizational responsibility includes several important components. First, as noted earlier, the definition refers to all types of organizations regardless of ownership structure, mission, and size. For example, although their focus is not on economic performance, even governmental and nongovernmental organizations (NGOs) need to be managed in financially sound ways to survive. Second, this definition goes beyond a more passive underlying value position of “not doing harm,” to a more proactive position of “doing the right thing.” Third, as noted earlier, this definition subsumes the concept of ethics because voluntary actions or patterns of behavior that have the potential to harm or alter the welfare of others are considered unethical. By taking into account stakeholders’ expectations, the chances of causing harm are reduced. Accordingly, OR leads to more ethical actions and policies. Fourth, also related to stakeholders, an important component of this definition is that their expectations are taken into account. Stakeholders are the groups and individuals who affect or can be affected by the achievement of the organization’s objectives (Aguinis & Glavas, 2012; Freeman, 1984). Thus, stakeholders can include owners and investors, employees, external contractors, suppliers, customers, partners in various collaborations, and the surrounding community. Considering their expectations means going from stakeholder analysis or stakeholder management to stakeholder engagement. Although HRM researchers and practitioners typically think about employees and other internal issues (Moir, 2007), considering stakeholders’ expectations more broadly forces the HRM field to think about external stakeholders as well. Because there are both internal and external stakeholders, OR is driven both internally and externally, and OR initiatives do not take place only reactively as a consequence of external forces, but also proactively as a consequence of internal and external stakeholders’ expectations. Responsible organizations go beyond merely disseminating organizational information and, instead, communicate with stakeholders in an ongoing two-way process (Burchell & Cook, 2006). Unless there is stakeholder engagement, OR risks becoming an inconsequential statement posted on an organization’s Web site (Aguinis & Glavas, 2013).