Business Makers

A business owes the following responsibilities to the government:

To comply voluntarily with the laws passed by the government.
To pay taxes and duties honestly and in time.
To make constructive suggestions regarding formulation of policies which have a bearing on business?
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To cooperate with the executive organs of the government regarding proper implementation of laws and policies.
To support the efforts of the government for improving the quality of life of people and in solving the pressing national problems in the country.
To plan and establish new endures joint rural and backward areas in the interest of balanced regional development of the country.
To continue towards rescue and relief work in times of national calamity or disaster such s droughts, floods, earthquake, etc.

A business owes its existence to its consumers. The responsibilities obtuseness towards the consumers is given below:

To produce the goods and services needed and desired by consumers.
To provide goods and services of goods quality at reasonable prices.
To provide current information about goods and services.
To avoid malpractices such as adulteration, black marketing, misleading advertising, etc.
To redress the grievances of consumers effectively and promptly.
To comply with the laws aimed at protection of consumed.
To provide prompt and effective aftedr-sale service.

The responsibilities of business towards its shareholders are as follows:
To ensure safety of investment.
To provide a fair and regular dividend.
To provide regular, accurate and up-to-date information about the company.
To utilize the capital productively.
To ensure growth of business.
To offer reasonable opportunities for participation of shareholders in policy decisions.

The responsibilities of a business towards its employees are as under:
To give them fair wages a full employment.
To provide good working condition.
To offer security of service and job satisfaction.
To provide suitable opportunities for promotion and career advancement.
To develop a sense of belonging and dignity of labor.
To offer reasonable opportunity for participation in the management of business.
Employees are the greatest assets of a business. The improvement of their value is both a matter of material advantage and moral obligation. They should be fully informed, fairly rewarded, properly assigned, trained and developed and treated as honorable individuals both on and off the job.

Some people criticize the concept of social responsibility. They put forward the following arguments to oppose the assumption of social responsibilities by businessmen.

Dilution of Business Goals: If a business firm involves it in social activities, its economic goals might get diluted. Its positing in the market place might be weakened. As a result it may accomplish poorly in both its economic social goals. Society will lose when productivity of business declines. The economic role of business in society would also become confused.

Lack of Social Skill: Generally businessmen lack the perception a skill required for effective handling of social problems. Their outlook is primarily economic and they do not feel comfortable with social mattes. Their mental make up is suited for handling business matters only.

Rise in Prices: Social involvement of business requires financial expenditure. Unless the government or social institution bear the costs, business is likely to pass his cost on to consumers by increasing the prices of goods and services.

Lack of Accountability: A business enterprise is responsible mainly to its owners. Involvement of business in social matters will give businessmen more owners. As public has little control over them it swills be difficult to check miscue of this power. If different sections of society are represented in the management of business to ensure accountability, decision-making process would become political and freedom of enterprise would be undermined.

Reeducation in Competitiveness: If business firms are asked to spend considerable money on social activities, their competitive position in international markets may go down.

Lack of Measurement: There are no clear-cut criteria to judge the social performance of a business enterprise. Economic values are the only precise criteria to measure the performance of business. Moreover, business corporations are not more agents.
The arguments given above suffer from tow limitations. First, they require business firms to ignore social demands on them. Business enterprises cannot afford to do so. Business concerns are no longer mere economic institutions. They are also social institutions. Businessmen are trustees of various social groups. Secondly, these arguments overstress the power and influence, which businesses may exercise by assuming social responsibilities.

Business should assume social responsibility due to the following reasons:

It is in the long term interest of business

It will help to improve the public image of business

It will avoid government regulation of business activities

It is important to full fill social obligations unmoral

Consumers are now more conscious of their rights and demand such obligations from business enterprises.
Social obligations refer to the obligations or responsibilities of business to act in manner which will serve the best interests often society. Social obligations are different form legal obligations. Legal obligations are compulsory and can be fulfilled merely by complying with the law. Social obligations, on the other hand, relate to the voluntary efforts on the part of businessmen to sue social problems. The concept of social obligation is based on the assumption that what is good for society is also good for business.
Business should assume social obligations due jot the following reasons:
Long Term Interest of Business: Business gees its resources form the society. It is the duty of business to satisfy the needs of society. If business spends a part of is profits for improving social conditions, it will rat an environment more favorable to the long term prosperity of business. Education, pollution control, enlistment of the poor and such other measures can be adopted or the improvement of society In the long run, a successful business can be built on the foundations of a happy community. Thus. Assumption of social obligations is in the long-term interest of business itself.
Public Image: A business firm can improve its public image by fulfilling its social obligations. Such a business will enjoy the support of is customs and other interest groups. They will patronize it and as a result, it will earn more profits.
Avoidance of Government Control; If businessmen voluntarily discharge their social obligations, need of government controls avoided. Government control is costly to business as it reduces the flexibility for decision king. For example, if a factory is causing pollution of air or water, the owner should take steps to prevent I. if this in not done, government may ask the firm to shift to another area or to close down. By assuming social obligations, businessmen cnmaintain freedom of enterprise.
MoralJustificatioin: Everybusienss enterprise makes use of physical, financial and human resources of the society. It also depends intersociety for sale of goods and services. Moreover, business firms make use of roads, power, water supply and other common facilities provided by the society. Therefore, it is the moral responsibility of business to use all resource for the well-being of society. Businessmen also have the knowledge, experience and he financé to cooperate with the government and help the society in solving its problems.
Social Awareness: In recent years, consumes have become increasingly aware of their rights. Consumed groups and consumed courts are compelling business mentor dress the grievances of consumes. Works have gone united in the form of trade unions to protect their interests. These dovecotes make it necessary for businessmen to serve the interests of consumes, employees and other interest groups.
Social Power: Business enjoys considerable social pawed because its decisions affect all sections of society. Social responsibility is necessary to balance power and responsibility. If business does not assume obligations to society, the swear of society will be affected. Other social groups may take away the social power of business.,
Resources Skills: Business has considerable resources ad skills some of which fan is useful involving society’s problems. Busies is also known for its innovative skills sands efficiency in the use of physical so financial resources. These deform business should help the society.
Creator of Social Problem: Business causes pollution and makes work places unsafe therefore it is the responsibility of business to help society in dealing with the negative impact of business activities.