Social Responsibility of Business

Meaning of Social Responsibility of Business

The actual meaning of social responsibility of business is the responsibility of business towards the different sections of society and in the same way, the responsibility of different sections of society, towards the business.

The object of a business is not to maximize the profit, yet profit has a definite role to play in business.

Profit can be no more the objective of a business than eating is the objective of living.

Responsibilities of Business Towards Different Sections of Society

Following are the responsibilities of business towards the different sections of the society.

1. Responsibility towards workers (or employees)

   Workers are in reality, the pillars of any industry. Hence, it is extremely important to keep them satisfied. The responsibility of business towards the workers is

   • To provide fair wages.
   • Healthy working conditions.
   • Stability of employees in their services.
   • Adequate opportunity for collective bargaining.
   • Social protection.
   • To devote attention to housing and workers’ living conditions.

2. Responsibility towards the owners (or shareholders): of the business

   The business must provide to the owners (or shareholders) of the business

   • Safety of investment.
   • Communication of programs and policies.
   • Listing of shares in organized Stock Exchange Market.
   • Fair return on the capital, invested by them.
   • Complete and correct information as to the working of the business

3. Responsibility towards Government

   The government is the guardian of the business community. Therefore, the business has too responsibilities toward the Government:

   • To pay taxes and other dues on time.
   • To comply with the laws passed by the Government.
   • They should provide constructive ideas to the Government.

4. Responsibility toward the consumers

   Production is meant for consumption and hence, the satisfaction of the consumers should be the primary concern of the business sector. The responsibilities of business towards the consumers are :

   • Good quality products at the lowest possible price.
   • Setting up and keeping standards of quality of goods and services.
   • Control on monopoly tendencies.
   • Fair trade practices.
   • Courteous to their customers.

5. Responsibility towards other Businessmen

   The responsibility of business towards other fellow businessmen that :

   • To avoid cut-throat competition.
   • To create an atmosphere for healthy competition.
   • To promote cooperation among the other businessmen.

6. Responsibility towards Society

   The responsibility of business towards society is also in the following ways :

   • To produce for the benefit of the society.
   • An attention to social uplift.
   • To promote health, education recreational activities etc.
   • To follow the principle of non-hoarding.
   • To provide employment opportunities.