Social responsibility towards different interest groups:
Social responsibility of business refers to its obligation to make those decisions and perform those actions which are desirable in terms of the objectives and values of our society. Reality is that, despite differing arguments relating to social responsibility, business enterprises are concerned with social responsibility because of the influence of certain external forces.
Social responsibility is a voluntary effort on the division of the business to take a variety of steps to satisfy the expectation of the dissimilar interest groups. But the question arises, why the business should come forward and be liable towards these interest groups. It is also the responsibility of the business world to cooperate and honest about the issues that affect public welfare.
Business enterprises have a responsibility towards –
(i) Public Image – The activities of business towards the welfare of society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities.
(ii) shareholders or owners – Owners are the persons who own the business and they are liable for the profit or losses and they contribute the capital and bear the risks.
(iii) Survival and Growth – Every business is an element of society. So for its survival and growth, maintain from society is very much necessary. The business utilizes obtainable resources like power, water, land, roads, etc. of the society. So it should be the liability of every business to spend a part of its profit for the welfare of society.
(ii) Workers – It is the essential account of the organization to take care of the interest of the employees and to accomplish their needs. Employee satisfaction leads to the attainment of organizational goals. For example, if a business spends money on training the employees, it will have more proficient people to work and thus, earn more profit.
(iii) Consumers – Business can only be survived with the sustain of customers. This has made it compulsory for the business to protect the interest of the consumers by providing eminence products at the most competitive price. The accomplishment of the business totally depends on customer satisfaction and customer loyalty.
(iv) Government Regulation – To avoid government regulations businessmen should expulsion their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business.
Government and community giving a fair return on and safety of investment to shareholders, providing opportunities to workers for meaningful work, supplying the right quality and quantity of goods and services to consumers and paying to the government, and protecting the natural environment are some of the social responsibilities of business. Firms should follow the rules framed by the government. These guidelines are for the security measures and for the assistance of society.
Responsibility towards Community:
- Progressive economic stability.
- Safeguarding Public Safety.
- Protecting the environment.
Responsibility towards the environment:
- Production of safe items
- Using biodegradable packages
- Educating consumers on Product use and disposal.
- Being truthful in advertising.