2023 Discussion Question The Iron Law of Social Responsibility indicates that society grants legitimacy | Assignments Online

Discussion Question 

The Iron Law of Social Responsibility indicates that “society grants legitimacy and power to

business. In the long run, those who do not use power in a manner which society considers

responsible will lose” (Davis, 1973, p. 314). This is why Carroll (1979) notes that it is business

leaders who are responsible in deciding which domains of CSR a company will integrate.

Therefore, it is the company which is responsible for its decisions and impacts on societal well-

being. As Uddin et al. (2008, p. 205) note, this shows “social responsibility being accountable

for the social affects the company has on people—even indirectly.” Thus, Thiel (2015) notes

how social responsibility has developed with businesses managing societal responsibility

expectations, leaving social responsibility the obligation of corporations instead of society.

This has resulted in four knowledge gaps.

Define and describe the four social responsibility knowledge gaps in CSR and sustainability, and

give an example of each.