social responsibility of business

1. Social Responsibility of
Business

2. • Social responsibility is a voluntary effort on
the part of business to take various steps
to satisfy the expectation of the different
interest groups.
• Social responsibility of business refers to
all such duties and obligations of business
directed towards the welfare of society

3. Need for social responsibility
• Public Image - The activities of business
towards the welfare of the society earn
goodwill and reputation for the business.
The earnings of business also depend
upon the public image of its activities.
People prefer to buy products of a
company that engages itself in various
social welfare programmes.

4. • Survival and Growth -Every business is a
part of the society. So for its survival and
growth, support from the society is very
much essential. Business utilizes the
available resources like power, water, land,
roads, etc. of the society. So it should be
the responsibility of every business to
spend a part of its profit for the welfare of
the society.

5. • Employee satisfaction - Besides getting
good salary and working in a healthy
atmosphere, employees also expect other
facilities like proper accommodation,
transportation, education and training. The
employers should try to fulfill all the
expectation of the employees because
employee satisfaction is directly related to
productivity.

6. • Consumer Awareness - Now-a-days
consumers have become very conscious
about their rights. They protest against the
supply of inferior and harmful products by
forming different groups. This has made it
obligatory for the business to protect the
interest of the consumers by providing
quality products at the most competitive
price.

7. Social
responsibility
of business
Investo
rs
Emplo
yees
Govt.
Local
Community
Consum
ers

8. Social responsibility of Business towards
different groups
I) Responsibility towards the consumers.
• Provide quality product at fair price.
• Produce using appropriate technology.
• Provide proper service.
• Commitment to customer satisfaction.
• Provide sufficient information, risks associated
with product.
• There must be regularity in supply of
goods and services.
• Grievances of the consumers, if any, must be
settled quickly.
A happy customer is a loyal customer

9. II) Social Responsibility to Investors-
Investors are those who provide finance by
way of investment in debentures, bonds,
deposits etc.
The responsibilities of business towards its
investors are :
• Ensuring safety of their investment.
• Regular payment of interest.
• Transparency and access to required
information.

10. III) Social Responsibility to community
• A society consists of individuals, groups,
organizations, families etc. They all are the
members of the society.
Responsibilities
• To solve problem of unemployment.
• To develop infrastructure of country.
• To help in natural calamities.
• Taking appropriate steps to prevent environmental
pollution & to preserve the ecological balance.
• To conserve natural resources and wildlife.
• Development to backward areas.

11. IV) Responsibility to Human Resources
• Fair wages to employees
• Provide good career prospects
• Care for the welfare for employees
• Best working conditions
• Arrangements for proper training & education and
development
• Proper system of promotion
• Recognition, appreciation & encouragement of special
skills& capabilities
• Efficient grievance handling system
• Participation in management decision

12. VI) Responsibility to Government
• To pay taxes, duties in time
• To cooperate with government in their social
policies and programmes
• To obey all laws and acts

13. • Responsibility towards suppliers
Suppliers are businessmen who supply raw materials and
other items required by manufacturers and traders.
The responsibilities of business towards these suppliers are:
• Giving regular orders for purchase of goods.
• Dealing on fair terms and conditions.
• Timely payment of dues.

14. Barriers to social
responsibility
• Desire for excessive growth of wealth.
• Low profitability.
• Need for tackling other important internal
issues.

15. Social service activities undertaken by
BP
• Infrastructure Development
– Provision of Tube Wells etc for drinking water
and irrigation
– Construction of multipurpose community
centres
– Balwadi (for primary education)
– Health Care
– Sanitation
– Provision for alternate sources of Energy e.g.
solar energy

16. • Education Support
– Provision for uniforms and teaching material.
– Food supplements
– Educational Scholarships to economically
backward children.
• Health Care
– Regular health checkup for villagers
– Provision of free medicines for minor ailments
– Guidance on family welfare and general
health care
– Free dispensaries.

17. • Skill Enhancement
– Modern farming practices
– Distribution of fruit saplings
– Veterinary camps
– Distribution of smokeless chulhas.
– Organizing regular lectures for women on
family life and education