Social Responsibilities of Business
Business interacts with several interest groups of society. These interest groups are s follows:
INTEREST GROUPS
Owners and Employees Consumers Supplies Government Community
Investors and general
Public
The responsibilities of business towards these interest groups are summarized below:
- Responsibilities Towards Owners and Investors: (a) To provide a fair return on their investment (b)To furnish regular, accurate and complete information abut the working of the company (c) To maximize the shareholders’ wealth by means of increase in the value of shares (d) To allow the shareholders representation and participation in the management of business.
- Responsibilities Towards Employees: (a) To pay fair wages for the contribution of employees (b) To provide security of job and promotion opportunities (c) To offer welfare facilities like safe working conditions, housing, medical and leave, retirement benefits etc. (d) To treat employees as partners in the management and progress of business (e) To evocate work according to their knowledge an aptitude is as to ensure job satisfaction.
- Responsibilities towards Consumers: (a) To provide goods and services of the right quality and at reasonable prices(b) To avoid unfdair trade practices such as adulteration. Black-marketing, misleading advertising, etc. (c) To handle consumer grievance quickly and courteously. (d) to provide effective and prompt after sale service.
- Responsibilities towards Suppliers: Every business firm should develop and maintain healthy relations with suppliers and competitors. It must pay the right price and make regular payments to its suppliers. In regular dealings with competitors, a business enterprise must not adopt unfair trade practices such as price cutting to gain unfair advantage.
- Responsibilities towards the Government: (a) To comply with the laws passed by the government (b) To pay all taxes honesty and in time (c) To assist the government in the formulation and implementation of proper business policies (d) To support the government efforts in improving the quality of life of people.
- Responsibilities Towards the community and General Public: (a) To reduce pollution (b) To take adequate safety measures against production of hazardous or unsafe products (c) To contribute to social welfare by helping educational institutions, hospitals, weaker sections of society, etc. (d) To provide relief in times of natural calamities such as drought, flood, earthquake, etc. (e) To promote sports, art and culture (vi) To prevent discrimination on the basis of sex, caste, race, religion, etc. in providing employment.