What do you understand by Social responsibilities of Business?

Pont out the various

elements involved in this?
Ans. Responsibilities towards Different Sections
A business enterprise should consider its social responsibility towards owners, employees,
consumers, the government and the comrnunity.
• I. Responsibility towards Owners
It is a primary responsibility of the management. These may be:
(1) A fair and reasonable rate of return on capita! and fair dividend for their investment;
(2) A share in the profit in the shape of profit sharing, i.e., bonus payment schemes;
(3) Capital appreciation;
(4) Security for Investment;
(5) Corporate Image; and
(6) Knowledge about the working of the enterprise and its periodical report.
II. Responsibility towards Employees
The responsibility of the organisation towards employees includes:
1. Payment of fair and reasonable wages to labour and fair salaries to the staff members
based on the principles of adequacy, equity and human dignity;
2. Provision of reasonable working hours and just working conditions;
3. Establishment of fair work standards and norms;
4. Provision of labour welfare facilities such as medical facilities, accommodation,
canteen facilities;
5. Offering promotion schemes and providing job security;
6. Adoption of progressive labour policy based on recognition of genuine trade union
rights;
7. Joint consultation and collective bargaining;
8. Proper training and education of the workers;
9. Proper recognition, appreciation and encouragement of special skills of the employees
and workers; and
10. Provision of religious, social and political freedom to workers.

Ill. Responsibility towards Consumers

The following are the important responsibilities of the business towards consumers:
1. Needs of the consumers of different classes, tastes and purchasing power must be
satisfied by the proper and adequate supply of goods;
2. The goods must be of appropriate standard and quality;
3. Proper customer service should be provided;
4. Concentration of goods and services in the few hands should be prevented;
5. Appropriate steps should be taken to prevent profiteering, hoarding, black marketing,
etc and
6. Provision of redressal of genuine grievances of the consumers.

1
IV. Responsibility towards the Government
The responsibility of business towards the government includes the following:
1. The enterprise should conduct its affairs in a raw abiding manner;
2. It should pay its dues and taxes to the Government honestly;
3. It should not make any attempt to buy political support or patronage;
4. It should not follow corrupt practices.

V. Responsibility to the Community

A business has certain responsibility towards community also. These responsibilities are as
follows:
1. It should provide employment opportunities to the socially handicapped and weaker
sections of the community;
2. Efforts should be made to prevent environmental pollution and preserve the ecological
balance;
3. Setting up new industries in backward and less developed regions;
4. Promotion of cottage, village and small-scale industries;
5. Prevention of slum development and elimination of crimes in industrial areas;
6. Welfare programmes for providing relief to victims of natural calamities;
7. Should contribute towards promotion of education, population control, AIDS control
programme etc.; and
8. Contributing to the overall development of the locality in which the business is situated.