Social responsibility of business towards different sections of society .Reasons for the development of social responsibility concept,Arguments against social responsibility,
Social activities undertaken by some companies
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What might I learn?
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2. Contents
1. Introduction
2. Social responsibility of business towards different
sections of society
Towards owners or shareholders
Towards employees
Towards consumers
Towards government and Suppliers
Towards community
3. Reasons for the development of social
responsibility concept
4. Arguments against social responsibility
5. Social activities undertaken by some companies
3. Introduction
According to H.R. BOWEN, ”Social responsibility is to
pursue those policies and decisions or to follow those
lines of actions which are desirable in terms of its
objectives and values of our society.”
Social responsibility refers to the obligations and duties
of the business towards the society.
The aim of business is no longer only profit
maximization but also to be socially responsible.
4. Social responsibility of business towards
different sections of society:
Owners
Employees
Suppliers
Community
Business Consumers
Environment
Government
5. Being so much dependent on society ,the
business has a definite responsibility towards
different segments of society:
Towards owners or shareholders:
•To safeguard the capital.
•To provide fair and regular return on the
capital employed.
•To ensure proper utilization of invested
capital.
•Timely payment of dividend.
•To provide regular information about the
company.
6. Contd……
Towards employees:
•Proper selection,training and promotion.
•Providing fair wages.
•Ensuring health, safety and comfortable working
conditions.
•Education of employees.
•Participative management.
•Providing an efficient complaint handling system.
7. Towards government:
•To fulfill all legal requirements.
•Payment of taxes in time.
•Executing government contracts in a fair manner.
•To provide inputs to government about changes in
policy that can result in growth and development.
Towards suppliers:
•To develop and maintain healthy relations with
suppliers.
•Dealing with suppliers should be based on fair terms
and conditions.
•payment should also be made on time.
8. Towards consumers:
•To provide goods in time and also efficient after sales services.
•To manufacture the product according to the needs of
customers.
•produce and supply quality products at reasonable rates.
•To avoid misleading the consumers by improper advertising of
the products.
•To provide opportunity to consumers for making complaints
and to handle the genuine complaints.
•To prevent black marketing .
9. Reasons for the development of
social responsibility concept:
•Consumerism
•Government interference
•Trade unions
•Public opinion
•Awareness
•Professionalism
10. Arguments in favor of social responsibility
Dependence of business on society, Long run profit.
Freedom from government control, huge financial resources.
Consumer’s consciousness , better social environment…etc.
Arguments against social responsibility of business
•Ignoring the main objective ,Lead to increase in prices.
•Overburden on business ,Need for profit maximization.
• lack of accountability..etc.