Introduction – Social Responsibilities in Business:
A business should function to earn money in such where that it fulfill the expectation of the society. Every person living in society has some obligation towards it. They have to followed social values and also norms of behavior. A business is permitted by society in order to carry on commercial or industrial activities wit help of that earn profit. But it is obligatory on the side of business that not to do anything, that is undesirable from point of view of society. The manufacture and sale of adulterated good, not paying due tax, doing deceptive, polluting environment works exploitation are some examples of undesirable practice in the point of view society. Let’s see the Social Responsibilities in Business.
What are the Social Responsibilities in Business?
Social responsibility is, literally, the responsiveness of business to the expectation of the society as to what constitutes its appropriate objectives and acceptable ways to attain these objectives. Social responsibility is the set of obligations an organisation has to protect and enhance the society in which it function.
Meaning of Social Responsibility
According to concept of Social Responsibility of business the objective of managers for taking decision related to business is not only to maximize profit or shareholder value but also to serve and protect the interest of other members of its society like consumer, worker and community as a whole
Business and Society
- Business and Society are correlated with each other. As business fulfill the needs of society and society gives business the resources required to it.
- The different businesses operating in society play our important role in functioning of society in different ways like business provide employment to various people of society.
- The basic objective of business enterprise is to develop, produce and supply goods and also service to customer.
- This need to be done in such a way which allowed companies to make profit, that in turn demands far more than just skills in companies on fields and processes.
Concept of Social Responsibilities in Business
- The evolution of the concept of social responsibility of business has passed through different stages of struggle.
- Business began merely as an institution for the purpose of making money. As long as a man made money and kept out of jail, he was considered successful.
- He felt no particular obligation and acknowledged no responsibility to the public. As an owner of his business, he thought that he had a perfect right to do with it what he pleased. Social norms and attitudes had very little influence on the practice of business.
For example:
Supplying good quality product, having healthy working condition paying taxes honestly, installing pollution controlling devises or prevention of pollution and sincerely solve customer complaints are some examples of social desirable activities which improve of business as well as make them profitable. Business can get durable success though social responsible ethically upright behavior
Importance of Social Responsibilities in Business
A growing body of evidence has identified a company’s role in its community as a factor in increasing profitability, promoting company image, reducing costs, and elevating employee morale and also customer loyalty, among other benefits. Social responsibility of business is important from the following point of view.
Employees:
With the help of companies employment and healthy working condition, social responsibility of business is important for employees.
Customer:
Under social responsibility, business follows ethical practice and manufacture the product which is as per expected quality and reasonable price.
Investor:
business who understand value of social responsibility is provide protection to the investor fund with help of development and growth of its business as well as expected return to investors with profit earn by it.
Suppliers:
The importance of social responsibility is also require to perform in case of suppliers as they are one to provide raw material to business as well as other required material. When they are paid on time as well as reasonable demands of them are satisfied company, suppliers are loyal to business.
Government:
When business pay regular taxes, follow the norms of government then it is consider as social responsibility of business which is duly fulfill by it.
Society:
Business need to work in society, some importance of social responsibility is also define from society point of view. The business provide good product, try to maintain clean environment, provide opportunity to participate to business as well as work for the overall development of society, these are the some example of it.
Corporate Social Responsibility
Corporate social responsibility (CSR) is how companies manage their business processes to produce an overall positive impact on society. It covers sustainability, social impact and ethics, and done correctly should be about core business – how companies make their money – not just add-on extras such as philanthropy.
Potential business benefits of CSR:
The scale and nature of the benefits of CSR for an organization can vary depending on the nature of enterprise, and are difficult to quantify, though there is large body of literature exhorting business to adopt measures beyond financial ones. The business case for CSR within a company will likely rest on one or more of these arguments.
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