Examining the impact of technology on social responsibility practices

Societal expectations that organizations employ their resources in a socially responsible manner have grown exponentially over the past three decades. By enabling stakeholders greater access to information, technology is a key driver underlying this trend. The rapid and all-encompassing advance of technology affords managers methods and tools with which to address successfully its corporate social responses. Technology has been used by organizations from the beginning of the “information age” to increase revenues and reduce costs. This paper suggests that the application of technology is also a necessary and integral component in the link between the abstraction of social responsiveness and its practical reality. This link is exemplified by the growth and success of Socially Responsible Investment Organizations (SRIOs). These firms not only use technological tools to identify, research and classify companies' suitability, but also to communicate demands from investors and concerns to corporate management. Additionally, corporate managers are able to use technology in developing mechanisms for reporting, measuring, monitoring, and disseminating vital information to various stakeholders. The impact of technology on social responsibility practices is presented in a model for operationalizing the management of corporate social performance and stakeholder relationships.