The concept of social responsibility of business

has its roots in the objective of the business

itself . The objectives and responsibility are
two side s of the same coin of business. This is
now realized by almost all businessmen al
over the world .
 According to Stanier , social responsibility of
business is concerned with understanding the
societys expectations and approval thereof
by the business unit and to co- operate in the
fulfillment of their expectations
Arguments for social
responsibility of
business:
Power of Trade Union Increased.
Awareness for Social Responsibility.
Growth and Development in Education
sector.
Raise in Standard of Living and Safeguard
duties.
 Employees contribution towards decision
making process.
Threat of Public Regulation.
Formation of Consumers Organization.
Spread of Gandhian Principle of Trusteeship.
Long Term Self Interest of Business.
Creating Better Public Image
 2. society has to pay cost: it is general opinion
of the business personnel that the cost of social
responsibility should be borne by society it self .
3. lack of social skill : business management
have no enough knowledge of social
responsibility. Hence how can business
managers will perform very well.
4. business has enough power : it is known that
business has enough social power, therefore
society should not take any steps which may
provide them more power. Business influence is
felt throughout society .e.g. in education in
market place in home and government.
 5 .social overhead cost :
cost on social responsibility is
consider to be a social cost will not be
immediately beneficial to the business. Then
which business can spend money on social
responsibility at the dismal performance of
business?
 6 . Lack of accountability :
the businessmen have no
direct accountability to the people. And
hence it is unwise to give businessmen the
responsibility for areas where they are not
accountable.
7. lack of broad support :
business involve in social goals
lack support from groups in society.
Social responsibility of
business
Towards different groups
Or
Scope of social
responsibility of business
Responsibility towards
consumers
5R=right quantity
right piece
right place
right quality
right time
 To produce goods that needs of consumers of
different sections .
To establish fair prices of products
To provide prompt and adequate service to
consumers.
 Responsibility towards
employees and workers
Fair remunerations
Job security and safety
Proper working conditions
trade unions right
participation in
management
Responsibility towards
shareholders
To ensure safety of investment
To provide highest long term rate of return
To provide information regarding business
Responsibility towards
communities
Aid schools ,colleges and other
educational institutions
Minimize problem of pollution
Encourages sports
 Responsibilities towards
state
To provide directions to economy
To pay taxes and duties and filing return
regularly.
To enforce distributive justice
To follows rules and regulations
To help government in forming policy
Main social responsibility of
business
organizations
To make profit
To generate employment
To optimum utilization of resources
To provide quality products
To protect environment
To provide quality of life to safeguard the
health
Fair trade practice
To development of nation
Common characteristics of social
responsibility
They bring the outside people for the needed
talents and additional set up
They encourage all employees to be part of
shared missions
They emphasis a democratic people
orientation do without autocratic attitude
They always look to the future but always pay
attention to the part