Social responsibilities of a business!

[Mellorando]

A business Enterprise is not profit oriented alone; it is also set up to contribute to the welfare of the people in his environment. The concept of social responsibility in relation to business means that the firm functions to accomplish its financial objectives and serves the society as well. No business exists in isolation. Every organ of the society contributes towards the success of a business. Thus it becomes imperative that business too does something for the society in return. This responsibility of business towards the society is called social responsibility.
A socially responsible firm should not work solely for profit maximization but should also seek the welfare of different sections of the society. Social responsibility of business refers to its obligations to take those decisions and perform those actions which are acceptable in terms of the objectives and values of the society. “ Social
responsibility of business refers to the obligations of businessmen’s decisions and actions taken for reasons at least partially beyond the firm’s direct economic and technical interest. “Social responsibility is to pursue those policies, to make those decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society.”

The following reasons have been laid down to explain the significance of social responsibility for a business enterprise:

1. Long-Term Interest:
It is in the long-term interest of the business to discharge its social obligations by serving different interest groups such as employees, consumers, government and citizens. Wise business persons know that unless they serve the society by fulfilling its needs, they will not be able to climb the success ladder. Working for the society, stakeholders and government helps an organization in establishing a strong public image. On the other hand, a business organization with vested selfish interests may get ignored by the society.

2. Indebted to Society:
A business uses the resources of the society for its functioning. Hence, it becomes obligatory for it to pay back its dues by serving the society. Businessmen should tend to the needs of the society and use its resources for community welfare. This practice ultimately helps the organization in establishing itself on the strong foundation of a pleased society and a cooperative labour force.

3. Social Power:
Business persons are endowed with a lot of social power. They have the potential to change the destiny of the population by collectively deciding for the country on crucial issues such as rate of economic progress, distribution of income among different income groups etc. Ideally, business persons should take up social responsibilities in proportion to their social power. If the business enterprise misuses its social powers for selfish motives, the society can intervene via government controls and other laws. Therefore, it is morally right for a business to embrace its social obligations and discharge them loyally.

4. Public Image:
A business devoted towards fulfilling its social responsibilities is regarded highly by the society. Good rapport with employees, suppliers, customers and government helps in building a favourable public image of the business enterprise. Moreover, a socially responsible organization is considered trustworthy by the shareholders and investors.

5. Social Awareness:
These days, employees and customers are more informed about their rights. While consumers expect the seller to abide by the fair trade practices, workers want fair wages and other employee benefits. If the expectations of these interest groups are not met, they may resort to either anti-social activities or seek help from trade unions and consumer courts. This will lead to industrial turmoil and unrest within the society which is harmful for proper functioning of the business.

6. To Avoid Government Intervention:
If a business organization fails to acknowledge and perform its social duties, it is bound to lose its freedom and flexibility in the long-run. The Consumer Protection Act and other legislations passed by the government safeguard the interest of the customers against business persons indulging in black-marketing, adulteration, hoarding and many other illegal trade practices. Since, government intervention is not welcomed by business enterprises, social duties should be voluntarily carried out by all the organizations to avoid such situations.

7. Law and Order:
A peaceful society is congenial to the expansion of business. Unable to withstand exploitation by the business enterprises, the weaker sections can rebel and take the law and order in their hands. As a result, the survival of the business can be threatened.

8. Moral Justification:
A business possesses resources such as finance and talent pool to help bail out troubled masses out of social issues like poverty, dowry, unemployment and illiteracy by organizing special campaigns and programs. Additionally, business houses can assist the government in solving many other issues like lack of foreign exchange etc. Moreover, business organizations increase pollution by releasing untreated sewage into the environment. Thus, it is a moral obligation of the business to render its services in tackling these issues.

9. Socio-Cultural Norms:
India has a rich legacy of business values passed down by the legendary and morally upright business owners like Ratan Tata, Azim Premji, etc. Only those business persons who sincerely abide by the canon of business will get the privilege of being honored by the citizens and the government. Hence, the business should aim to promote equal opportunity and maintain healthy inter-personal relations with all the stakeholders such as customers, employees to carve a niche for itself as a honest enterprise.

 

[Jasz]

Social responsibilities of a business may vary from an industry to another. The common social responsibilities of businesses include, fair trade, environmental concerns, working conditions and corporate governance.


It is rightly said that the fastest way to lose a customer is to forget him. Nowadays, when a company starts to grow, the eyes of the public get directed towards it, and thus, it is important for a business to take positive steps to keep its image positive and healthy.

Social responsibilities are very much essential for a business, as they help in maintaining healthy and positive relationship with the customers as well as with other strategic business partners.

A business should be responsible towards the society. The social responsibility of a business is the obligation of a business to act in a way that benefits the common good and not necessarily just profit, as well a responsibility to protect the natural environment, consumers and workers.


The purpose of considering social responsibility as a fundamental concept for creating business policies is to maintain balance between what is good for the business, customers, employees and the communities in which they operate.



Businesses play a significant social responsibility. They are part of the society are expected to exhibit corporate social responsibility. Businesses should conduct their businesses without damaging the ecosystem on which they depend. The modern world has become complex and interdependent, which means that the businesses have a larger role in making our world better. It's not only their duty but also the demand of global economy, market and stakeholders.

 

[Kingsley]

It is true business organization are suppose to give back to their host community where they are situated, infact in advance countries where the laws are working perfectly well, they have placed laws that make business organizations to give back to their host communities in various ways and not just distributing hand out, but carrying out developmental project that will better the lives of those living around their host community, some do this by providing portable water, good roads, establishing of schools and they even give out grant and scholarship to those students living in the host community.

And in extreme cases such organizations are suppose to also fashion out ways of supporting the government of the country they are been established. And also look for other ways of touching the lives people outside their host community. This is the true picture of how things are done in a saner clans but in the reality in some countries is truly a far out cry because these business organizations are contributing little to nothing in their host community and rather than bring something positive to the host community they bring negative effect to the communities a case study is in the southern parts of Nigeria, the oil companies are really degrading the their host communities.

 

[jemmy]

For an entrepreneur, the aim isn't to make money or much money out of what you do but rather to solve a problem and there by making a huge return out of it.

 

[btaliat]

Business owners should always think in the direction 9f what they can offer the community that allow for their businesses. Giving back to the society is however termed social responsibility for all businesses owners. There are many reasons why a business owner must involve in this act and among include developing of the community they are operating by ensuring conducive environment for their business and also for the inhabitants of the community. Business can be giving out scholarship to the indigents students in the community there business is, they can as well construct social amenities and embark on some developmental projects in their communities.

 

[Chibson]

Exactly, it is very much important for someone to start a business on the note of what he can offer to the society. When you are dentify a particular problem in a particular environment then you can be able to solve the problem and at the same time make a lot of profit. This should definitely be the mindset of an average business owner. Sometimes it is not always about profit but what your business can offer to the public. Any business that fails to carry out his social responsibilities is definitely bound to fail on the long run.

 

[Alexandoy]

I know that there are big businesses here that are engaged in charitable works like helping the citizens in rural towns with their civic programs like scholarship for children and livelihood programs. However, I do not agree that a business has a social responsibility. The reason for the business is to facilitate the flow of goods and services aside from the earning of the profit. There is no such thing as social responsibility in the business based on my college education - I have a business course with management major. This is not to say that the business is only for profit. But think if you have a nearby grocery store that makes it convenient for you to shop then that is the benefit that the business can give to the people. There is no need for extra responsibility because the business does not owe anything to the society.

 

[eldavis]

Good write up, there are some business owner that are not even aware they have a social responsibility to the community or location their business is seated then not to mention doing or carrying out these responsibility. As a business owner, you are to contribute effectively to the growth and development of the society. There are some companies who help by donating street lights, or one thing or the other, it could also be visiting orphanage to support them. These are ways to give back, it's a way of saying thank you.