In this context, social responsibility is a major concern for management from a reputation risk
perspective. Typically, reputation risk is associated with fraudulent reporting, regulatory actions against a
company, or misconduct of individual officers (for example, personal tax fraud). But the scope of social
responsibility has been expanding continuously to include several aspects that are perceived by the public to
be the social impact of business actions. Communities understand the impact of corporate influences in the
local dynamics of their marketplace and international human rights organizations help consumers to stay
informed of possible corporate transgressions that may or may not be unfounded