The Four Components of Social Responsibility

1. Institutionalization
By sharing control, there is a better chance of transparency, real oversight, and accountability. However,
no one really likes sharing control, especially Greeks. Institutionalization means sharing control by
establishing a professional board of directors instead of a rubber-stamp board. ubber-stamp boards
notoriously contributed to the corruption and subse!uent scandals of "nron, #yco, $orld%om, &delphia
and many more corporations in the 'nited (tates and elsewhere. & truly professional board will include
men and women who are respected, competent, enthusiastic, and willing to roll up their sleeves and word
hard. &nd, most important of all, for a professional board, disagreement is a virtue, not a vice.
2. Solid business practices
& %( business must have solid business practices embedded into its entire operations, including a real
mission statement, strategy, and business plan.
3. A company of citizens
& %( business must cultivate )a company of citizens) where all employees are welcomed into the
corporation as morally competent agents, seen as specially !ualified for intelligent work, rather than as
mere units of labor.
4. Legal checks and balances
*nly a system with legal checks and balances will effectively encourage and enforce corporate
responsibility.
#he successful road for any business that wants to become a %( company is not a romantic, flower-
strewn path with an e+pansive vista, nor is it easily navigable. #he successful %( company must
navigate down the narrow and winding lane of business ethics with its many procedures and laws,
avoiding the potholes of sloppy and ineffective business practices, and the soft-shoulders of greed and
unethical behavior.
#o summarize, the components which contribute to a %( business are institutionalization, sharing
control, establishing a professional board, oversight, full disclosure, transparency, profits, sound
procedures, a company of citizens, and satisfied customers.