Who are the stakeholder and what are the responsibilities of a manager towards them along with arguments in favour and against

1. Social Responsibility of
Managers
By
Shivendra Singh
Assistant Professor, MG Central University
Social Responsibility of
Managers
By
Shivendra Singh
Assistant Professor, MG Central University, Bihar

2. Meaning
•The term social responsibilities may
obligation of management towards , the society and
others concerned with the activities of the
organisation.
The term social responsibilities may be defined as the
obligation of management towards , the society and
others concerned with the activities of the

3. Stake-Holders of the Organisation
As the outcome of the increasing concern for the social
of management, it is now recognised that, besides taking care of the
financial interest of owners, managers of
take into account the interest of various other groups such
employees, consumers, the government, and the community as a
whole
of the Organisation
the outcome of the increasing concern for the social responsibility
now recognised that, besides taking care of the
managers of business firms must also
take into account the interest of various other groups such as
, consumers, the government, and the community as a

4. These interested groups are directly or
pursuit of business activities and they are
business enterprise.
are directly or indirectly affected by the
they are the stake-holders of the

5. Social responsibilities of management
towards each of the interested
•Responsibility towards owners
•Responsibility towards employees
•Responsibility towards consumers
•Responsibility towards the
•Responsibility towards the community and society
responsibilities of management
the interested groups
owners
employees
consumers
Responsibility towards the governments
Responsibility towards the community and society

6. 1. Responsibility towards owners
• The primary responsibility of management ii
and reasonable rate of return on capital and fair dividend to
the shareholders as investors and
• With the growth of business the shareholders can also
expect appreciation in the value of their capital.
towards owners
The primary responsibility of management ii to assure a fair
and reasonable rate of return on capital and fair dividend to
as investors and risk bearers.
With the growth of business the shareholders can also
value of their capital.

7. 2. Responsibility towards employees
• Management responsibility towards employees
fair wages and salaries, satisfactory work environment,
labour management relations, and employee welfare
• the provision of welfare amenities like
working conditions, medical facilities, housing,
leave and retirement benefits.
towards employees
Management responsibility towards employees relate to the
and salaries, satisfactory work environment,
, and employee welfare.
amenities like safety and security of
working conditions, medical facilities, housing, canteen,
and retirement benefits.

8. 3. Responsibility towards
• Consumers are often victims of unfair trade
unethical conduct of business
• Management should satisfy consumer needs and protect
consumer interests.
• Goods must be of appropriate standard
available in adequate, quantities
towards consumers
are often victims of unfair trade practices and
consumer needs and protect
Goods must be of appropriate standard and quality and be
adequate, quantities at reasonable prices.

9. 4. Responsibility towards the
governments
• As a part of their social responsibility. management
conduct business affair in lawful
taxes and dues, and should not corrupt public officials for
selfish ends.
• Business activities must also confirm to the economic and
social policies of the government
towards the
responsibility. management must
conduct business affair in lawful manner, honestly pay all the
and dues, and should not corrupt public officials for
must also confirm to the economic and
the government.

10. 5. Responsibility towards the community
and society
• Provisions for the employment of handicapped persons, and
weaker sections of the community, environmental
protection, pollution control, setting up
backward areas, and providing relief to the victims of natural
calamities.
towards the community
employment of handicapped persons, and
the community, environmental
protection, pollution control, setting up industries in
backward areas, and providing relief to the victims of natural

11. •Coca-Cola, the world’s largest soft drink company,
announced that 100 percent of its
machines and coolers would be hydrofluorocarbon
free (HFC-free) by 2015.
•This initiative alone would have the same effect on
global carbon emissions as taking 11
the road for a single year
Cola, the world’s largest soft drink company,
announced that 100 percent of its new vending
machines and coolers would be hydrofluorocarbon-
alone would have the same effect on
global carbon emissions as taking 11 million cars off

12. Arguments for Social Responsibility
A. Changed public expectations
B. Better environment for business
C. Balance power with responsibility
D. Business has resources
E. Prevention is better
F. Moral responsibility
G. Globalization
H. Better employees
Arguments for Social Responsibility
Changed public expectations
environment for business
power with responsibility

13. Arguments against Social Responsibility
a. Violation of Profit maximization
b. Dilution of purpose
c. Lack of social skills
d. Social overhead cost
e. Lack of broad support
Arguments against Social Responsibility
maximization

14. Thank YouThank You