Social responsibility is a major subject of concern and action for all but the smallest or least aware of companies. Today it is generally accepted that business firms have social responsibilities that extend well beyond what in the past was commonly referred to simply as the "business economic function." In earlier times managers, in most cases, had only to concern themselves with the economic results of their decisions. Today managers must also consider and weigh the legal, ethical, moral, and social impact and repercussions of each of their decisions. In many company organizations, however, this area of social responsibility is often not identified as a major or separate functional area. Quite often the responsibility for actions in this area is vested in an individual or small staff, frequently within the human resources management area. Personnel assigned to this area, then, have responsibility for social issues in three major areas:

 - Total compliance with international, federal, state, and local legislative laws and acts

 - Moral and ethical standards and procedures under which the firm will operate

 - Philanthropic giving

Most companies find it no simple matter to formulate and implement socially responsible actions and programs. However, all companies must become concerned and involved in this area. To operate without major disruptions, a company must at all times be in compliance with legal requirements -- international, federal, state, and local. It must develop, establish, implement, and police a code of ethical and moral conduct for all members of its organization. In the area of philanthropic activity, where there is considerably more latitude of operations in how, when, where, and even if the company or division wants to contribute money or other resources to "worthy causes," the firm must deliberate about and resolve many questions prior to establishing fair and workable guidelines. Gone are the "public be damned" attitudes once held by some companies. With a more active government and populace, company social responsibility in each of the three major areas has continued to gain greater concern and prominence over the past several decades. Social responsibility will continue to take more time, money, consideration, and concern in all future management decisions and actions. Diverse managerial skills, ranging from simple to highly complex, are required in all of these areas of social responsibility.

Closely related to legal compliance are moral and ethical standards. Political contributions, bribery, and other acts of conduct illegal in this country may not be illegal in other parts of the world. They fall into this category, as do areas such as proprietary information, product misrepresentation, disparagement, premature disclosures, acquiring or divulging confidential information, certain gifts and entertainment, and conflicts of interest. One example of the border between legal and ethical-moral boundaries is Steven Jobs' leaving Apple Computer with some other employees to found another company.

To deal with areas that may be considered technically legal but, in the eyes of American Management, improper or unethical, companies must develop and disseminate explicit policies that are rigidly and expeditiously enforced if broken. A typical set of the clearly delineated policies generated by large companies is a small booklet handed out to IBM employees.

Developing a code of morals and ethics is not always simple. The frame of reference is large and sometimes complex. Consideration must be given to existing and proposed laws, Judeo-Christian values, family norms, society and industry as a whole, the firm, and the background and desires of owners, managers, and other employees. . .