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SOCIAL RESPONSIBITIES

OF
BUSINESS
Submitted by,
Haris H
Commerce

SOCIAL RESPONSIBILITY
The corporate social responsibility is operating
a business in a manner which meets the
ethical,
legal,
commercial
and
public
expectation that a society has from the
business.
The term social means everything dealing
with people and Responsibility means
accountability between two.

Social Responsibility of Business refers to the


obligations of business to make decisions and
follow in lines of action which are desirable in
terms of objectives and values of society.
These decisions may affect environment,
customer and the community.
Social responsibility is thus an obligation of
the decision makers to take appropriate
actions which protect and improve the welfare
of the society as a whole along with protection
of their own interests.

SOCIAL RESPONSIBILITY OF BUSINESS


TOWARDS DIFFERENT GROUPS
Business is responsible towards different
groups in the environment and includes
Owners, Customers, Employees, Government,
Society and the Dealers/ Distributors.
Basically, there are two important interest
groups, they are Internal Interest Groups and
External Interest Groups.

Chart showing the relationship of Business with other


Interest groups :

BUSINESS AND ITS INTEREST


GROUPS
RESPONSIBILITY TO SHAREHOLDERS

The shareholders are the real owners of the


business. It is the duty of the business to
safeguard the capital of the shareholders and
to provide a reasonable dividend to them. The
shareholders are interested not only in the
protection of their investment and the return
on it but also in the image of the company.

RESPONSIBILITY TO THE EMPLOYEES


The payment of fair wages.
Offering better working conditions.
Establishment of fair work standards

and
norms.
Provisions for sufficient labour welfare
facilities.
Reasonable chance for promotions.
Linking salaries with responsibilities.
Industrial Legislations.

RESPONSIBILITY TO CONSUMERS
To supply quality goods at reasonable prices.
To provide the required after sales-services.
To ensure that the product supplied has no

adverse effect on the consumer.


To provide sufficient information about the
product.
Products produced must meet the needs of
the consumers.
No hoarding.
Following the Quality and Standards.

RESPONSIBILITY TO THE COMMUNITY


Development of backward area.
Contributing to the national effort to build up

a better society.
Assisting in the over all development of the
locality.
Taking appropriate steps to prevent
environmental pollution.
To preserve the ecological balance.
Taking steps to conserve scarce resources
and developing alternatives.

RESPONSIBILITIES TO GOVERNMENT

To pay the taxes and duties honestly and


in time.
Employer has to follow the laws enacted
by the Government.
Must not indulge in political support.
Avoid adulteration.
To maintain fair trade practices.
To avoid hoarding and cornering.

RESPONSIBILITIES TO DEALERS OR
DISTRIBUTORS

Supply of products in time.


Make sure that the quality of the

products supplied.
Extend facilities which benefit to the
dealer or distributor.
Give proper knowledge about the
products supplied.
Take measures for extending the after
sale service.

CHANGING VIEWS OF MANAGEMENTS


RESPONSIBILITY
The following are the changing views of the
mangements responsibility in the past & the
present:

Past:
Profit Maximising Management
of
Trusteeship Management; and
Quality of Life Management
the past.

Change in attitude
Management in taking

social responsibility in

PRESENT :
Peter Drucker argued that Management
should assume Social Responsibility. He
observed that managements should
Modern
consider demands made by the society View
on the enterprise, the quality of
Product and customer service.

The social responsibility of business involves


ethics which must be reflected in the philosophy
of business organization. To be effective, sound
ethics must be recognized by top management
and reflected in the policies of the firm.
The business exist in the society and depend
on the society and the environment for inputs
like men and their skills, money, material
machinery and methods and for the marketing f
products on the one hand and for existence and
sustenance on the other. All these calls for
increased responsibility of business towards the
society.
.

THANK YOU