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Social Responsibilities of Business

The document discusses the concept of social responsibility in business, emphasizing that profit-making is not the sole function of businesses. It outlines various responsibilities businesses have towards different stakeholders, including owners, investors, employees, suppliers, customers, competitors, government, and society. The text highlights the importance of social responsibility for public image, government regulation, survival, employee satisfaction, and consumer awareness.

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6 views15 pages

Social Responsibilities of Business

The document discusses the concept of social responsibility in business, emphasizing that profit-making is not the sole function of businesses. It outlines various responsibilities businesses have towards different stakeholders, including owners, investors, employees, suppliers, customers, competitors, government, and society. The text highlights the importance of social responsibility for public image, government regulation, survival, employee satisfaction, and consumer awareness.

Uploaded by

mahaanandbara
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Business

Environment

1
V. NEELAMEGAM
M.A., [Link]., M.B.A., A.M.T., MIMA.
Senior Lecturer
School of Commerce and Business
Administration
Faculty of Science and Humanities
SRM University
Tamil Nadu

VRINDA PUBLICATIONS (P) LTD.


DELHI - 110 091.
[Link]

2
CHAPTER
5

Social Responsibilities of
the Business

3
Definitions

“Social responsibility is an obligation


of businessmen to pursue those
policies to make decisions, or to follow
those lines of action which are
desirable in terms of the objectives
and values of our society.”--Bowen

4
Concept of Social
Responsibility
Generally, the people engage in business to earn
profit. However, profit making is not the sole
function of business. It performs a number of
Social Functions, as it is a part of the society It
takes care of those who are instrumental in
securing its existence and survival like, the
owner, investors, employees, consumers and
government in particular and the society and
community in general. So, every business must
contribute in one way or the other for their
benefit.

5
Why should Business be Socially
Responsible
 Public Image
 Government Regulation
 Survival and Growth
 Employee Satisfaction
 Consumer Awareness

6
Responsibility Towards Different
Responsibility
Interest Groups Towards Owners
(a) Run the business efficiently.
Owners.
(b) Proper Utilization of capital and
other resources.
(c) Growth and appreciation of capital.
(d) Regular and fair return on capital
invested. 7
Responsibility Towards
Investors

(a) Ensuring safety of their investment,

(b) Regular payment of interest,

(c) Timely repayment of principle amount.

8
Responsibility Towards
Employees
(a) Timely and regular payment of
wages and salaries.
(b) Proper working conditions and
welfare amenities.
(c) Opportunity for better career
prospects.

9
Responsibility Towards
Suppliers

(a)Giving regular orders for purchase


of goods.
(b)Dealing on fair terms and
conditions.
(c)Availing reasonable credit period.

10
Responsibility Towards
Customers
a. Products and services must be
able to take care of the
needs of the customers.
b. Products and services must be
qualitative.
c. There must be regularity in
supply of good and
services.

11
Responsibility Towards
Competitors
a. Not to offer exceptionally
high sales commission to
distributors, agent etc.
b. Not to offer to customers
heavy discounts and/or free
products in every sale.

12
Responsibility Towards
Government
(a)Setting up units as per
guidelines of government.
(b)Payment of fees, duties and
taxes regularly as well as
honestly.
(c)Not to indulge in monopolistic
and restrictive trade practices.

13
Responsibility Towards
Society
a. To help the weaker and
backward sections of the
society.
b. To preserve and promote
social and cultural values.
c. To generate employment.

14
THE END

15

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