Social Responsibility of Business
Social responsibility is the idea that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.
According to Keith Davis & Robert L. Blomtrom, “Social Responsibility referes to the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interest.”
The major responsibilities of business are:
The employees directly directly involves in production and distribution activities. The successful functioning of business totally depends on the activities of employees. They are the assets of business and must motivate and encourage for their better performance. Management should develop good working environment so that employees can feel the sense of membership.
- Provides better working environment to satisfy the employees
- It provides salary, bonus, provident funds and job security.
- It also provides financial and non financial supports.
- Enriches employees’ performance
- Provide training to develop their skills.
- listen and handle their complaints and issues
Creditors are the one who provide loan and supplies good/raw material in credit when the company is in need. It’s a business responsibility to pay back and clear the debt of the creditor.
- Make duly payment
- satisfaction of creditors with proper relationship
- Helping them to create their own market.
- Entrusting the right of proper selling of goods and services of their goods
- Copyright and other legal rights.
Consumers are the key figures in the market for growth and development of business. Consumer’s need and desire are changing and satisfying by fulfilling their need and wants as per their preference help to sustain in market. Continuous improvement of quality of product and delivery in time helps to increase costumer and revenue.
- Better quality of goods and services by charging reasonable price
- Supply of commodities is also to be done according to needs of customer
- Helps to achieve needs and want
- Provide right goods at right place in right time.
- Provide proper pre-sale and post sale information
- Provide proper information about new products
investors invest capital fixed and working capital for establishment of business and for day to day activities. Investors have direct interest with the business and it’s business responsibility to fulfil expectation of investors.
- True information about earning power of business
- The objectives are to provide reasonable rate of return to shareholder.
- Provide the information about plan of business.
- Ensure safe investment
- Promote utilization of resources without leakage
- Ensure transparency of business activities
Government is the responsible institution for the administrative and developmental work of the country. Its business responsibility to conduct business as per the government rule and regulation.
- Increase in tax i.e. Increase in government revenue
- Fulfill demand of government
- Non violation of rules and regulation of government.
- Avoid unfair trade
- Provide essential information to the government.
- Solve national problems like natural calamities.
- Avoid malpractice like black marketing, adulteration, smuggling
Every business organisation perform their business activities inside the society and normally public expects some social welfare activities from the business organization.
- Protect environment
- Employment opportunities generation.
- Utilize Resources
- Maintain Social Value
- Participate Social Walfare