Social and Economic Objectives of Business: The purpose of business enterprise is to produce quality goods and distribute them and do it ethically so as to serve the general welfare. And therefore it should support and improve the society whenever it can. The fundamental essence of the existence of corporate social responsibility is for corporations to fulfill a sense of obligation towards the society, thus, balancing the social, environmental, and economic aspects of the business. TOS 7. The success of an organization depends to a very large extent on the morale of the employees and their wholehearted cooperation. This may be by adopting better designs, good advertisements, quick and safe delivery with after-sales service, reasonable price etc. a. (v) To make goods available according to the taste of the consumers. Healthy atmosphere to industrial peace. Many socially conscious public figures have called on businesses to show greater responsibility to the societies they depend on. All manage­ments also contribute indirectly to social welfare measures undertaken by the State by honestly paying the taxes out of which the State finances its welfare activities. The promotion of small scale industries will help not only nation but will also help in building up a better society. Adultera­tion, poor quality, failure to give full measure, lack of service and courtesy to the customer, misleading or dishonest advertising, are all examples of violation by business enterprise of its obligation to the consumers of its products. A social audit should generally adopt a four-step process, viz. Fitzgerald KBE & Mandy Cormak (2005), Modesto & Oliveira (2006) & Terziev (2012), attempts to investigate the role of the business organizations in the society and their social responsibility towards. (vii) Social Audit on Factual Assessment: This should be done by trained and professional personnel to show the social performance of business. What is, therefore, needed is that the government should adopt progressive legal tax policies, and to ensure their strict observance; reduction in tax burden; careful planning, keeping in view the economic principle; strict supervision of and penalty for defaulters; easily understandable laws which are not frequently changed. (a) Increase productivity and reduce prices. Cash contribution to educational institutions; b. As an economist, Freedman stated that the main purpose of businesses is to generate profits for its shareholders. Everything you need to know about the social responsibility of business towards different sections of society. To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise”. 1. The circumstances leading to these actions or activities must be explained; c. Some evaluation of the performance must be conducted and. Workers 6. Voluntary dividend restriction is desirable. To pay a fair return on their capital investment (dividend or interest). Employees form a reasoning and sensitive element of production. But adulteration of goods, poor quality, failure to give fair measure, lack of service and courtesy to the customer, misleading and dishonest advertising, are all examples of violation of its obligations by a business enterprise towards the consumers. It is the basic responsibility of the enterprise to produce wealth and also to provide opportunities for meaningful work. In the urban areas, slum clearance schemes, one or two room tenements with facilities for sanitation should be provided in labour colonies. Community, 7. It has been widely recognized that customer satisfaction shall be the key to satisfying the organizational goals. Despite the popularity of the Marketing Concept and the growing awareness of consumer rights, consumers all over the world are, by and large, dissatisfied. (iii) Assisting in the overall development of the locality. They shall not only offer wholehearted support and cooperation in the positive efforts of the company but shall also guide and control properly its policies and activities. It will pay its dues and taxes to the state fully and honestly; iii. The shareholders also have their obligations. From this point of view a manager has the following responsibilities: (i) To contribute towards international peace. To avoid being misled by wrong claims about products through improper advertisements or otherwise, the consumer should be provided full information about the products including their adverse effects, risks and care to be taken while using the products. Discretionary Responsibility. Buying capacity and consumer preferences should be taken into consideration while deciding the manufacturing policies. Similarly Godrej & Boyce, Shriram Industries and TVS groups are also good employers. Company should strengthen the share prices by its growth, innovation and diversification. If shareholders do not get proper dividend then they will hesitate to invest additional funds in the concern. It is needless to say that unfair competition enters with extortion, bribery, kick-backs and granting of discriminatory advertising allowances or brokerage fees and these should be avoided at all costs. The consumers themselves have social responsibilities to their fellow-consumers. In fact, it is a part of modern social responsibility of business that it should support educational programmes, more particularly technical education. Responsibility of business towards Community or Society or General Public Shareholders, 6. Responsibility of business towards community and society includes spending a part of profits towards civic and educational facilities. Business depends on society for inputs like money, men, and skills and also for market where products have to be sold to the customers. A manager should help the Government in the development of the country by observing these laws. Special training should be given to the displaced people apart from the cash compensation usually offered to them. RESPONSIBILITY TOWARDS SOCIETY:- Every business owes an obligation to the society at large. They should support the management’s efforts to balance the needs of the company for strong resources and continued development. 4. Social responsibility is a duty every individual has to perform so as to maintain a … The fact that the shareholders have taken a great risk in making investment in the business should be adequately recognized. A manager has the following responsibilities towards the government: (ii) To observe rules laid down by the government. They must be reasonably priced, be of a dependable quality and of sufficient variety; iii. A part in profit, if the Memorandum so specifies, in the shape of profit-sharing or bonus payment schemes; iii. To ensure the safety of such investment. Important responsibilities of the business to the customers are: (i) To improve the efficiency of the functioning of the business so as to. To ensure the progress of a country government makes certain laws and creates a tax structure. Shareholders, 6. The social responsibilities of business towards different stakeholder’s viz., consumers/customers, employees, shareholders/stockholders, other business firms, state and community. To pay fair wages and salaries to the workers and employees. (ii) To do research and development, to improve quality and introduce better and new products. Most of these practices boil down to cheating and playing with the lives of people. (iii) To contribute to the raising of the standard of living. Non- agricultural activities seeking linkage with the agricultural sector and the industrialised sector can also be developed. Then only can it build its image of a responsible business enterprise and be esteemed. In other words, business owes to itself the primary obligation to give a fair and square deal to its customers and consumers. It shall not result in the formation of islands of affluence or comfort in the midst of poverty and suffering at the expense of society. (vii) To be civil and polite to consumers. ), improving sanitary facilities (through construction of underground drains, cleaning of existing foul water and waste-carrying open drains, improving roads by filling pits and giving them a regular slope, provision of public toilets and bathrooms and maintaining their cleanliness). Owners, 3. According to the socioeconomic model of corporate social responsibility, a business has a responsibility to promote and uphold the interest not only of its shareholders but also of its entire stakeholders—including customers, employees, suppliers, and the public. Community involvement in itself can also be socially responsible. Plagiarism Prevention 4. 4. The industrial waste should be disposed off carefully or if possible can be recycled to minimise pollution. Promotion of sports and culture. To safeguard the capital of the shareholders and to provide a reasonable dividend, the company has to strengthen and consolidate its position. World Public in General 9. At the same time, they shall appreciate the responsibility of the business to other sections of society – to the workers, consumers and the community. To provide assistance to educational institutions, dispensaries, religious institutions etc., of the community. State. To their way of thinking end is all, means mean nothing, and Maximization of profits seems to be the prevailing norm. Shareholders should be kept fully informed about the working of the company for healthy growth of the business. Financial position of company and economic conditions of nation should be taken into consideration while spending on labour welfare during performance of responsibility towards employees. 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