What Are Socially Irresponsible Companies?

Socially irresponsible companies are organizations that operate in a way that doesn't take into account social, economic, environmental and cultural implications. Being dishonest with customers or sacrificing the betterment of a community to make money quickly are primary examples of social irresponsibility.

A company is socially irresponsible when its actions or activities cause harm to a key stakeholder. Along with customers, suppliers, employees and community members are key stakeholders for most businesses. Misleading suppliers or failing to pay bills on time are examples of irresponsible social behavior with suppliers. Paying unfair wages or providing poor working conditions are irresponsible actions toward employees. Building roads or putting up signage without thinking about the effect on the community at large demonstrates a lack of social responsibility toward the community. Some citizens also consider it socially irresponsible when a company doesn't give back financially or volunteer to the communities that support it.

Environmental irresponsibility is typically viewed as part of or an extension of social irresponsibility. When a company pollutes the environment or fails to operate with sustainability, it is acting irresponsibly. Making money in ways that harm plants and animals, instead of preserving them, is socially irresponsible. Socially and environmentally responsible companies are generally expected to help preserve natural resources through reuse, renewal and recycling.