Social Responsibility of Business

Organization should not avoid the social responsibility of business. Many firms recognize the importance of social responsibility and take steps to see that policies are taken and implemented in such a way that they make a positive impact on society.

They should practice social responsibility through community support, self regulation and social audit.

Social responsibility of business

Social responsibility is the awareness that business activities have an impact on society and the consideration of that impact by firms in decision-making. Business organization produces goods and services to generate profit.

At the same time, it does have some impact on the society as well as the whole community. Social responsibility is a must for a business organization.

If business organization. If business firms fail to discharge the responsibility then they will fail to crate goodwill and last long.

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Responsibility to the customer, employee, environment and investor

  1. Responsibility to the customersBusiness organizations survive through selling their products to the customers. And for a business organization customers are the main stakeholders. So the business organization must have some responsibility to the customers and these are discussed below:
    • The right to be sure about safety: The most basic consumer right is to be sure about safety of product’s possession. The business organization should taste the product and give direction to the consumer about its proper use. If should also monitor the product’s safety that are sold to the customer.
    • The right to be informed: Customer has the right to receive available information all relevant information belfry purchasing a product. The business organization should inform the customer about the limitation, or any kind of problem about product. They should inform the customer about the harmful effects of product like, “smoking is injurious for health”
    • The right to choose: Customers have also the right to choose variety of products at competitive prices. They also have the right to buy a product of right quality at fair price.
    • The right to be heard: The business firms should give the customers the opportunity to be heard before taking major decisions regarding the production of goods and services. Consumer relations depart must be activated to learn about consumers, grievances.
  2. Responsibility to the employeeNo business organization can run its operations without the co-operation of employees…So; the business firms have some responsibility to the employees. The employees expect safe working conditions, fair compensation, equal opportunities and adequate benefits etc. Major rights of the employees are discussed below:
    • Equity in the work place: Employees expect to be treated equitably in the work place. The business firms have to ensure fair treatment to all employees regardless of age, race, gender, religion or national origin.
    • Safety in the work place: The business organization organization should take necessary steps for safety programmes. Emphasis on safety training to avoid different types of accident should decrease repetitive motion. The organization should also introduce job rotation to avoid repetition.
  3. Responsibility to the environment:The business activities have an impact on the environment. Our environment is always polluted by the wastes of business organizations. So, the business organization has some responsibility to the environment and these are discussed below:
    • Preventing air pollution: Air polluting is caused by carbon monoxide and hydrocarbons that come from motor vehicles and smoke. Smoke come from brick fields. The business organizations organizations which manufacture motor vehicles should take a step to catalytic converters which have been developed to help control air pollution.
    • Preventing water pollution Land is polluted by coal and minerals, forest fires, garbage disposal, cutting of trees etc. Land pollution often results in water pollution because; toxic water drains into water supply. So, the business organizations can take steps by reusing materials such as papers, plastic, glass and aluminum to make other products and control land pollution.
  4. Responsibility to the investorsBusiness organizations also have some responsibilities to the people who invest money. Because the business is run with the investors money. The responsibilities of investors are given below:
    • Proper management of funds: Firms have a responsibility to manage funds properly. Management has the responsibility to safeguard the interests of the investors. They have to be conscious about the faith of the investors.
    • Access to information: Firms have the responsibility to make stock information available to all potential investors and have to stop insider trading for reserving the faith of the investors.
    • Executive compensation: The Company should maintain a suitable compensation structure for the executives. They should be well paid; and rewarded for good performance.
  5. Community Support Business organizations provide a wide variety of support for the community. They donate money for the welfare of the community. They build schools, parks, roads etc. and sponsor academic scholarships and help to reduce distress from the community.
  6. Self regulation Sometimes business organizations establish code of conduct and ensure that all the members to the community follow it.
  7. The social audit: Social audit means a systematic review of an organization’s performance of social responsibility activities. With information from social audit, managers can evaluate how effective are the current programs, prices safety, measures etc. and initiate new course of actions

Form the above discussion we have understood clearly the social responsibilities of business. Business organizations most take proper care of them in order to survive and grow.

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