Social Responsibility of Business

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Every business enterprise is an integral part of the society. Social responsibility of business refers to the obligation of business enterprises to adopt policies and plans of actions that are desirable in terms of the expectation, values and interest of the society.

Social Responsibilities Towards Different Groups

Social responsibilities towards different groups

Social Responsibilities Towards Different Groups

Social responsibilities towards different groups

  • Responsibility towards the shareholders or owners: Shareholders or owners are those who invest their money in the business. They should be provided with a fair return on their investment. It takes form dividend. the shareholders also expect an appreciation in the value of shares

  • Responsibility towards the Employees: business enterprise must ensure a fair wage or salary to the workers based on the nature of work involved and the prevailing rates in the market. Working conditions must be good in respect of safety, medical facilities, canteen, housing, leave and retirement benefits etc.

  • Responsibility towards the Consumers: Business enterprise must supply quality goods and services to the consumers at reasonable prices

  • Responsibility towards the Government: A business enterprise must follow the guidelines of the government while setting up the business.

  • Responsibility towards the Community: Every business is a part and parcel of our community. So it should contribute towards the general welfare of the community. It must take every step to protect the physical and ecological environment of the society. Contribute to the community development programmes like public health care, sports, and cultural programmes.

Social Responsibility Undertaken as Reported by Some Companies

Larsen and Toubro Ltd. (L&T): Addresses social issues of health and environment with the same professional vigour that it adopts for business issues.

Oil and Natural Gas Corporation Ltd. (ONGC): Responsible corporate citizen is focused on promotion of vocational education, health care and entrepreneurship in the community coupled with initiatives in water management and disaster relief in the country.

Reliance Industries Ltd. (RIL): Towards community assistance and social development, RIL

Grasim Industries Ltd. (GIL): Social vision is to make a qualitative difference to the lives of the weaker sections of the society in proximity to its plants and improve the human development index of the nation.

Business Ethics:

  • Conduct and activities of the people based on moral principles.

  • It is concerned with what is right and what is wrong in human behaviour on the basis of standard behaviour or conduct accepted by the society.

  • Honesty, truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.

At Business Point of View:

  • It provides certain code of conduct to carry on the business in a morally justified manner.

  • Business ethics are the moral principles, which guide the behaviour of businessmen or business activities in relation to the society.

  • Some of the ethical behaviour of business like quality of goods, charging fair prices, abiding to laws, paying taxes, duties