2. GROWTH AND SOCIAL
RESPONSIBILITY
Success in Competition - Today is the age of competitions. Various
entrepreneurs are engaged in the production and distribution of
some type of commodities and services.
Constitutional Provisions - Today the elements of economic and
social justice and directive principles are incorporated in the
constitutional provisions of almost all the countries.
Government Policies - The government policies, such as industrial
policy, license policy, Export-Import policy, etc.
Statutory Provisions - The government has made various statutory
provisions to regulate business activities and these provisions are
also revised from time to time
3. GROWTH AND SOCIAL
RESPONSIBILITY
Development of New Social Consciousness - In the modern age, new
social consciousness is taking place among all sections of society
Democratic Management - Since the present age is of Democratic
management, the concept of associating the workers in management
and profits have started being executed.
Professional Management - Modern business organizations,
particularly the companies and corporations are operated and
managed by the professional managers, who are aware of the
importance of the concept of social responsibilities and wants to
operate the business organization.
4. GROWTH AND SOCIAL
RESPONSIBILITY
Increase in Business Power - The size of the modern business has
substantially increased
Consumer Movement - Consumer movement has started forming
organizations and associations to protect their interest and to keep
watch on business activities.
Protection to Existence - If an entrepreneur intends to keep his
business activities in existence for long, he will have to fulfill social
responsibilities for various sections of the society.
Increase in Profits - One important argument in favor of assuming
social responsibilities towards various sections by the entrepreneurs,
is additions in their own profits, by assuming these responsibilities
5. GROWTH AND SOCIAL
RESPONSIBILITY
Expansion and Development of Business - Today’s entrepreneur does
not contend only when with the existing business activities if he
desires to rapidly expand and Develop his business in a long time
Increase in Labour Power - The power of labour unions has compelled
the entrepreneur to fulfill social responsibilities
Improving Interdependence - The entrepreneur is an important part
of the social system.
To Provide Maximum Satisfaction - Today’s entrepreneurs have
overcome the tendencies to exploit and are now giving emphasis on
maximum satisfaction to all groups.
6. GROWTH AND SOCIAL
RESPONSIBILITY
(1) Moral Justification
(2) Long-term Self-interest of Business
(3) Public Image
(4) Profitable Opportunities
(5) Ensuring Law and Order
(6) Balance of Responsibility and Power
(7) Public Expectations
(8) Interdependence
7. EXIT STRATEGIES
Close down a non-profitable business
Execute an investment or business venture when profit objectives are
met
Close down a business in the event of a significant change in market
conditions
Sell an investment or a company
Sell an unsuccessful company to limit losses
Reduce ownership in a company or give up control
8. ETHICS IN BUSINESS INSTITUTION
Business ethics is the study of appropriate business policies and practices
regarding potentially controversial subjects including corporate
governance, insider trading, bribery, discrimination, corporate social
responsibility, and fiduciary responsibilities.
9. SUPPORTING SMALL BUSINESS
ENTERPRISES
1. Small Scale Industries Board (SSIB) 2. Small Industries Development
Organisation (SIDO) 3. National Small Industries Corporation (NSIC) 4.
Small Industries Service Institutes (SISIS) 5. Specialised Institutions
6. State Directorate of Industries 7. State Small Industries
Development Corporations (SSIDCs) 8. Industrial Estates 9. District
Industries Centers (DICs)10. Technical Consultancy Organisations
(TCOS) 11. Commercial Banks 12. State Financial Corporations
13. Small Industries Development Bank of India (SIDBI) 14. National
Bank for Agriculture and Rural Development (NABARD) 15.
Entrepreneurial Guidance Bureau (EGB) 16. Khadi and Village
Industries Commission (KVIC) 17. Small Industry Extension Training
Institute (SIETI) 18. Small Industry Development Corporation (SIDCO).
10. SIDBI, IDBI, SIPCOT, TIIC, SIDCO, NSIC,
TCO
Small Scale Industries Board (SSIB):
Government of India constituted the Small Scale Industries Board in 1954 to
advice on the programmes and policies for the development of small-scale
sector. This board is also known as the Central Small Industries Board. The
SSIB consists of 50 members including the representatives of the Central and
State Governments, the Reserve Bank of India, the State Bank of India, State
Financial Corporations and non-officials.
(i) Bank credit to artisans, village and cottage industries would be treated as
composite term loan for equipment or working capital or both. But the
maximum limit of the credit with a repayment period or 7 to 10 years or more
has been fixed at Rs. 25000 only.
(ii) The rate of interest for all term loans has been brought down to 16 per
cent.
(iii) Application forms for credit have been simplified.
(iv) Reserve Bank of India has instructed banks to bifurcate the credit accounts
to show separately the dues of the SSI units and those remaining unpaid for
11. SMALL INDUSTRIES DEVELOPMENT
ORGANISATION (SIDO)
Small Industries Development Organisation (SIDO) is the apex level
organisation set up for policymaking, coordinating and monitoring
agency for the development of small-scale industries. It maintains a
close liaison with government, financial institutions and other
agencies which are involved in the promotion and development of
small-scale industrial units.
