We all know about the economic objectives of the business, by these objectives business can not survive but Social Responsibilities of Business also play a very important role in the business. Business is a major part of society so it must try to build up society.
The Content covered in this article:
- Concept of Social Responsibilities:
- Reasons to perform social responsibilities:
- 6. Resources used for moral justification:
For contributing to the social well-being a businessman do voluntary efforts.
“The idea of social responsibilities supposes that the corporation has not only economic and legal obligations but also certain responsibilities to society which extend beyond these obligations.”
– Joseph W. Mcguire
“Social Responsibilities of the business implies that the businessmen’s decisions and actions are taken for reasons at least partially beyond the firm’s direct economic or technical interest.”
“Social Responsibilities requires managers to consider whether their action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony.”
-Peter F. Drucker
Businessmen earn by performing social responsibilities. To survive and grow in society for a long period the business has to serve according to the expectations of the members of the society.
2. Good Environment for business:
Social responsibility creates a good environment for the business and improves the quality of life, the standard of living, so business will get good people to run the business. The better quality labour, better quality customers and society will be better so by this business will get better opportunities.
Businessmen must take initiative to resolve the problems arising in society. There are some social issues like pollution, creation of unsafe workplaces etc. so this is the duty and we can say the obligation of the businessmen to solve such kind of social problems.
4. Public image:
Businesses can improve their image by performing social responsibilities. If employees feel satisfied with their workplace, customers feel better to buy the product then it will give a big hike to the business which will give success to the business.
5. Avoidance of government interference:
Social responsibilities are very important for the business if there is any activity found related to black marketing, and businessmen avoid responsibilities towards social welfare. Then business could suffer from a huge loss and the government can impose fine or strict action against the business.
6. Resources used for moral justification:
The business has various resources such as money, expertise in technical work, finance. So the business can help society to solve the problems related to social differences by setting up industries in backward areas with employment opportunities.
- labour movements (trade unions, labour unionism) have forced the businessmen to take care of labour reward and welfare for their efficiency. Because now the labour force is well educated and having knowledge about the labour welfare laws etc.
- All the customers, investors, employees are well educated and more sensitive towards social issues so, the businessmen cannot ignore the social responsibilities towards them.
- Today’s business organisations are realised that they can survive in the market for the long term if they contribute to society by participating in welfare activities.
For example, the generation of employment, to educate poor children, clean and green projects for the environment, plantation projects, shelters for homeless people etc.
- Responsibilities of business towards consumers: Nowadays business firms have direct contact with their customers so business performs fair trade practices towards the customers to increase the satisfaction level of the customers. Because once the customer is retained it will give long term benefits to the business. So business performs social obligations towards the customers like to ensure regular supply of products, to handle consumer complaints quickly, being truthful in all transactions.
- Responsibilities towards the government: Business performs social responsibilities towards the government in the following ways:
a) Payment of taxes on time. b) Obeying rules and laws made by the government. c) cooperation with the government in planning and administrative activities.
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