Social Responsibility of Business

INTRODUCTION
The obligation of any business to protect and serve public interest is known as social responsibility of business. Profit making is not the sole function of business. It performs a number of social functions, as it is a part of the society. Every business must contribute in some way or the other for their benefit.

WHY SHOULD BUSINESS BE SOCIALLY RESPONSIBLE?

1. PUBLIC IMAGE

The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities.

People prefer to buy products of a company that engages

itself in various social welfare programmes.

Again, good public image also attracts honest and competent employees to work with such employers.

2. Government Regulation

To avoid government regulations businessmen

should discharge their duties voluntarily.

For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a

pollution free environment.

3. Survival and Growth

Every business is a part of the society. So for its survival and growth, support from the society is very much essential.

Business utilizes the available resources like power,

water, land, roads, etc. of the society.

So it should be the responsibility of every business to spend a part of its profit for the welfare of the society.

4.Employee satisfaction

Besides getting good salary and working in a healthy

atmosphere, employees also expect other facilities like proper

accommodation, transportation, education and training.

The employers should try to fulfill all the expectation of the

employees because employee satisfaction is directly related to

productivity and it is also required for the long-term prosperity of the organisation.

For example, if business spends money on training of the

employees, it will have more efficient people to work and thus, earn more profit.

5.Consumer Awareness

Now-a-days consumers have become very conscious about their rights.

They protest against the supply of inferior and harmful products by forming different groups.

This has made it obligatory for the business to protect

the interest of the consumers by providing quality

products at the most competitive price

SOCIAL RESPONSIBILITY OF BUSINESS TOWARDS DIFFERENT GROUPS

1.Owners or shareholders

fair and regular return on investment

safe and steady appreciations of investment ,

periodical disclosure of full and accurate information regarding financial and functional aspects of business

reasonable representation to minority shareholders to participate in business management.

Should have the internal accountability and transparency.

Fairness in relations with competitors i.e. competition on some ethics and fair play

2. Employees:

Providing fair compensation and Benefits Providing safe work environment Eliminating discrimination Having progressive human resource policies. Security of employment Representation in decision making bodies which effect their working life Providing fair opportunity for personal advancement through education and training Meaningful freedom and job satisfaction Humane treatment.

3.Consumers:

Supply goods of right quality, and right quantity at the right place and time at reasonable prices

Provide goods and services according to the needs, tastes and preferences of different classes of customers

Inform and educate the customers on the availability and use of alternative products which may be cheaper and better

Be honest and truthful in advertising the products Provide prompt efficient and effective after sales services Extend a hearty and courteous service Avoid un-healthy trade practices like black marketing, hoarding and adulteration etc.

4. Creditors and Suppliers:

Provide accurate information regarding the financial health of the firm

Ensure a reasonable price for the articles supplied

and make prompt repayments (including interest on

borrowings there should be fairness in transactions .

Promote a healthy atmosphere where creditors suppliers and other interest groups are treated as partners in a co-operative endeavour.

5. Community:

Progressive economic stability. Safeguarding Public Safety Protecting the environment, and Aiding in the development of Social and Cultural resources of the community. Proper and effective utilization of natural resources to produce cheaper and better goods, thereby rendering help to generate indirect self employment opportunities Contribute liberally and voluntarily to the community development and public utility services which promote communal harmony and cultural enrichment Help maintain law and order in the society by refraining from aiding and abetting anti social elements or activities Avoid exploiting the religious sentiments or backwardness of the minorities and weaker sections of society.

6. Government:

pays taxes regularly and correctly Applies faithfully to all the laws governing regulations of business Avoids lobbying through donations to political parties Follows a fair trade policy and refrains from unhealthy business practices like hoarding , black marketing and corruption etc Contributes its mite to the socio economic growth a goals of the nation Helps in tackling the problems of unemployment, poverty and price rise, etc Helps in establishing a secular democratic and socialistic patent of society.

7.Environment:

Production of safe items Using biodegradable packages Educating consumers on Product use and disposal. Being truthful in advertising, and Establishing a procedure for dealing with consumer complaints