Iron Law of Responsibility
Social responsibility is difficult to determine and apply, but what is the consequence of responsibility avoidance? If responsibility arises from power then the two conditions tend to stay in balance over the long run and avoidance of social responsibility leads to gradual erosion of social power. This is Iron law of responsibility.
“In the long run, those who do not use power in a manner that society considers responsible will tend to lose it.” – This is Iron law of responsibility.
Society gives business license to subsist and this can be amended or revoked at any time if it fails to live up to society’s prospect. Therefore, if the business intends to maintain its existing social responsibility and power, it must react to society needs beneficially. This is known as “Iron law of Responsibility”.
This way, the resulting benefits would be: Reduce in misdeed, Easy labor enrollment, Reduced employee absenteeism, Dependable and preferred as a dealer, importer, exporter, etc.