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Social Responsibility of Business
By:Jaspreet Kaur
(B.ed Pupil
Teacher)
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
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.
Social responsibility of business towards
different sections of society:
Suppliers
Owners
Employees
BusinessCommunity Consumers
Environment
Government
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.
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.
Contd……
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.
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 .
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.
Social activities undertaken by some companies
Socialresponsibility 120923120025-phpapp01
Socialresponsibility 120923120025-phpapp01

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Socialresponsibility 120923120025-phpapp01

  • 1. Social Responsibility of Business By:Jaspreet Kaur (B.ed Pupil Teacher)
  • 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: Suppliers Owners Employees BusinessCommunity 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. 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. Contd……
  • 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. 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.
  • 10. Social activities undertaken by some companies