The Value of Social Responsibility to Entrepreneurs - Free Essay

Social responsibility is the way that any business or entrepreneur acts in a manner that benefits them and helps society and the people in the environment. According to Ganti (2020), Social responsibility is how businesses or entrepreneurs are ready to act in a manner that favors society's interest and the environment where they perform the businesses. Social responsibility has become essential to companies and entrepreneurs who consider the profits they are gaining and the well-being of the individuals and the environment around them. Hence, the essay discusses the benefits that entrepreneurs gain by exercising social responsibility, in the society or environment they hold their entrepreneurial practices.

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One example of the benefits that entrepreneurs gain after being socially responsible is building a reputation. Through developing a good reputation, an entrepreneur makes friendship with society. First, they can seek help from the people in their environment; for example, when in need of resources to improve his or her business, the entrepreneur can easily get assistance. Secondly, the entrepreneur can create a good image with people of the surrounding, which is a good thing for an entrepreneur in promoting his or her products.

Again, entrepreneurs practicing social responsibility attract more talents and can make the employees stay for long with the entrepreneur. It is not only the people of society happy with social responsibility but also other individuals who are motivated by improving others' lives. Therefore, being socially responsible as an entrepreneur is important for the attraction of employees with great talents and skills to improve the businesses that employees are managing. Additionally, social responsibility motivates employees to work hard and be more productive in their jobs. They would also love what an entrepreneur does to the society, which eventually bounces back to them (Murphy, 2019).

Subsequentially, exercising social responsibility, may help an entrepreneur in business, by attracting customers, and making sure they stay with the entrepreneur. Customers who realize that an entrepreneur gives back to society will keep coming to promote the entrepreneur. For example, any customer who realizes that part of his or her money goes back to help society will be ready to stand with the entrepreneur, which will be advantageous to the entrepreneur (Murphy, 2019). Therefore, it is an important entrepreneur to practice social responsibility. Also, entrepreneurs can attract potential partners with good funds and resources to boost the business "Partnerships enjoy the clout of more than one partner and, therefore, more than one financial statement" (Allen,2015, p. 311). Therefore, the corporation is important for entrepreneurs.

Nevertheless, practicing social responsibility by entrepreneurs, help them to be competitive in their line of business. For instance, an entrepreneur can reach a large number of people, while marketing the products, or when competing for customers with other entrepreneurs or business people. For example, a company that manufactures cars powered with electricity has attracted customers who care for their environment (Murphy, 2019). Also, social responsibility is a way of differentiating one's brand from others and be competitive in the market (Kaufman, 2016). Moreover, when entrepreneurs create a trademark, they choose one that would help them reach a large number of people, making them competitive (Allen, 2015).

In conclusion, practicing social responsibility is important to any business or entrepreneur. Therefore, any entrepreneur must exercise social responsibility to boost entrepreneurial skills and the business as well. Additionally, exercising social responsibility makes an entrepreneur competitive in the market and gives him or her a competitive advantage. In sum, engaging in social responsibility is healthy for any entrepreneur since a healthy society, registers a healthy business.

References

Allen, K.R. (2015). Launching New Adventures. An Entrepreneurial Approach. (7-ed). Cengage Learning.

Ganti, A. (2020). Social Responsibility. https://www.investopedia.com/terms/s/socialresponsibility.asp

Kaufman, S. (2016). Corporate Social Responsibility Can Give Entrepreneurs an Edge. https://www.entrepreneur.com/article/281817

Murphy, C. B. (2019). Why Social Responsibility Matters to Businesses. https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp#:~:text=Being%20a%20socially%20responsible%20company,greater%20productivity%20in%20the%20workforce