ASSIGNMEN

T
TOPIC: SOCIAL
RESPONSIBILITIES OF BUSINESS
 SUBMITTED BY

AMULIYA VS

S1 MBA

ROLLNO: 5

ABSTRACT

In recent years, there has been much academic interest in the social role of companies and
ethical aspects of their businesses. Not only scholars of different fields such as economic,
political, or social sciences deal with business ethics. Many entrepreneurs, politicians, and
communication agencies have paid great attention to this topic as well. However, neither
corporate social responsibility nor corporate citizenship finds consideration in modern business
historiography.

The social responsibility of business organizations is getting increased attention in recent years,
and a strong perception has among the business managers worldwide and that organizations
need to be managed in a socially responsible way for economic viability and long term
sustainability. Therefore, the social responsibility of businesses has become an important part
of today’s business agenda. The paper aim is to investigate the social responsibility of business.
It can be concluded that sustainable development can only be achieved through long term
economic growth and therefore, intended to deliver the best to the customers, business
partners, stakeholders, employees and society by “being a partner in development”.

INTRODUCTION

The term social responsibility is an amalgamation of two words, social and responsibility. Social
is a word used about society while responsibility refers to the act of being accountable for
something or someone. Generally, a society refers to a group of people not only living together
but also interacting with each other. Therefore, social responsibility refers to the idea that
individuals or organizations must prioritize benefits of the society first before personal gains in
every activity that they engage in.

Social responsibility is the code that binds organizations and businesses to give pre-eminence to
the society that they operate in before any other thing. So in this social responsibility essay, we
seek to answer the question, “How do organizations carry out their social responsibility?”

Social responsibility in business or corporate social responsibility (CSR) pertains to people and
organizations behaving and conducting business ethically and with sensitivity towards social,
cultural, economic, and environmental issues. Striving for social responsibility helps individuals,
organizations, and governments have a positive impact on development, business, and society.

The social responsibility of business means various obligations or responsibilities or duties that a
business-organization has towards the society within which it exists and operates from.
Generally, the social responsibility of business comprises of certain duties towards entities,
which are depicted and listed below.
Meaning of social responsibility

According to Keith Davis, the term “social responsibility” refers to two types of business
obligations, viz, (a) the socio- economic obligation, and (b) the socio-human obligation.

The socio-economic obligation of every business is to see that the economic consequences of
its actions do not adversely affect public welfare. This includes obligations to promote
employment opportunities, to maintain competition, to curb inflation, etc. the socio-human
obligation of Evert business is to nurture and develop human values (such as morale,
cooperation, motivation and self-realization in work.

The core objectives of social responsibility of business are as follows:

1. It is a concept that implies a business must operate (function) with a firm mindset to
protect and promote the interest and welfare of society.
2. Profit (earned through any means) must not be its only highest objective else
contributions made for betterment and progress of a society must also be given a prime
importance.
3. It must honestly fulfill its social responsibilities in regard to the welfare of society in
which it operates and whose resources & infrastructures it makes use of to earn huge
profits.

4. It should never neglect (avoid) its responsibilities towards society in which it flourishes.

DIFFERENT VIEWS ON SOCIAL RESPONSILITY

There are four different views on the social responsibility of business. These are as under:

Communist View

Communist holds that free industrial civilization is not good because its values are of the wrong
order. Business has been concerned only with material gain. Economic expediency is taken to
be the sole criterion of decision. Therefore, business is evil. Compromise impossible between
the church and the idolatry of wealth which is the practical religion of capitalist societies.
Because of this immorality of business standards , this view advocates an imposition of social
responsibilities through legislation or force.

Capitalist view
This view holds that economic expediency alone is a just standard for business decisions and
that business has an unbridled and an uncontrolled right to make money free from all sorts of
social [Link] is argued that by maximizing its profit objectives, business gratifies its
personal desires and at the same time satisfies the needs of society. Therefore, business should
not have any responsibility beyond obeying certain legal codes in achieving its goals.

Pragmatic view

This view acknowledges the importance of profits but simultaneously stresses profitable. Profits
are the test of the efficient functioning of a business enterprise. A sick and bankrupt
organization is a social liability and can hardly contribute in the area of social responsibility.
Hence a businessman’s first responsibility is to keep his business solvent. But he must also
voluntarily assume social responsibilities beyond the legal minimum.

Trusteeship view

This view advocates the retention for personal use of so much as is necessary for an honorable
livelihood, no better than that enjoyed by million others, and the utilization of the rest for the
welfare of the community. The trusteeship slogan is enjoy they wealth by renouncing it.

SOCIAL RESPONSIBILITIES OF BUSINESS TOWARDES DIFFERENT GROUPS

TOWARDES THE CONSUMER AND THE COMMUNITY

 Production of cheap and better quality goods and services by developing new skills,
innovations and techniques, by locating factories and markets at proper places and by
rationalizing the use of capital and labour.
 Leveling out seasonal variations in employment and production through accurate
forecasts, production scheduling and product diversification.
 Deciding priorities of production in the country’s interest and conserving natural
resources.
 Providing for social audit
  Providing for after sale servicing
 Supporting education, slum clearance and similar other programmes.

TOWARDES EMPLOYEES AND WORKERS

 A fair wage to the workers

TOWARDS SHAREHOLDERS AND OTHER BUSINESSES

 Promoting good governance through internal accountability and transparency

TOWARDS THE STATE

 Observing all the laws of land which may have the following objectives
a) To provide direction to the economic and business life of the community
b) To allocate limited resources according to social priorities and preferences.
c) To implement rural uplift and secure balances development of the country.
d) To enforce distributive justice, especially weaker sections of the community
e) To enforce maximum production

CONCLUSION

The term social responsibility of business refers to two types of business obligations .first
business should see that the economic consequences of its actions do not adversely affect
public welfare. Second, it’s should develop human values such as morals, cooperation,
motivation and self-actualization in work.