SPECIFIC SOCIAL RESPONSIBILITIES

Specific social responsibilities of business could be described under the following categories:

(a)        Responsibility to itself

The Primary social responsibility of business is one that it owes to itself. A business entity is supposed to earn a reasonable amount of profits to ensure its own survival and gradual growth. Lack of profits or incurring of losses will ultimately lead to business closure one day- with the following social implications:

-          loss of employment to those employed in business

-          depriving public on the consumption of useful goods/ services, supplied/

-          provided by the business.

-          setback to economic growth of society, etc. 

 

(b)        Responsibilities towards owners

Some specific social responsibilities of business towards owners are:

(i)         Paying a reasonable rate of dividend as a reward for risking capital business.

(ii)        Ensuring safety of investment of funds provided by owners.

(iii)       Giving owners a true and fair account of the functioning, profitability and financial position of the company.

(iv)       Showing due regard towards the interest of minority of members.

(v)        Ensuring growth of the company.

(vi)       Not to indulge in undesirable speculation to the detriment of the interests of genuine investors.

(vii)      Not to mislead prospective investors

 

(c)        Responsibilities towards workers

Some specific social responsibilities of business towards workers are:

(i)         Payment of adequate and timely wages

(ii)        Providing congenial work environment

(iii)       Providing adequate industrial safety devices

(iv)       Granting job security.

(v)        Providing opportunities for promotion and advancement.

(vi)       Providing benefits like – subsidized housing, free medical care, leave with pay, entertainment and recreational facilities etc.

(vii)      Ensuring reasonable worker’s pa11icipation in management.

(viii)     Giving workers their due share in the excess profits of the business.

(ix)       Giving human treatment to workers.

(x)        Taking care of the personal problems of workers, of a serious nature.

 

(d)       Responsibilities towards consumers

Some specific responsibilities of business towards consumers are:

(i)         Supplying goods for good quality, at fair prices

(ii)        Avoidance of indulging in unfair trade practices like, Supplying lesser weight Defective packing of goods Black-marketing, hoarding and profiteering. Adulteration etc.

(iii)       Taking due care of after-sales services.

(iv)       Not to indulge in false, misleading and vulgar advertising

(v)        Immediate redress of consumer grievances

(vi)       Discouraging salesmen from resorting to pressurizing tactics to win customers

 

(e)        Responsibilities towards suppliers and fellow-businessmen

Some specific responsibilities of business towards suppliers (and fellow businessmen) are:

(i)         Fair settlement of accounts-in time

(ii)        Abiding by the terms of contracts made with suppliers (and fellow businessmen).

(iii)      Development of sound business relations with suppliers (and fellow businessmen)

(iv)       Refraining from exploitation of the small businessmen, by their bigger counterparts.

 

(f)        Responsibilities towards the State

Some specific responsibilities of the business towards the State (i.e. the government) are:

(i)         Timely payment of legitimate taxes.

(ii)        Co-operating with the government in the implementation of its economic and social policies.

(iii)       Supplying the required information to government departments, from time to time.

(iv)       Refraining from corrupting public servants.

(v)        Not to indulge in winning political favors for selfish interest.

 

(g)        Responsibilities towards the society at large

Some specific responsibilities of business towards the society, at large are:

(i)         Ensuring best utilization of the scarce economic resources of society.

(ii)        Generation of maximum employment opportunities.

(iii)       Controlling environmental pollution.

(iv)       Preventing urban congestion.

(v)        Undertaking programs for rural development.

(vi)       Helping in spread of housing, medical, educational and recreational facilities in society.

(vii)      Innovating and implementing schemes for the uplift of the downtrodden.