Social Responsibility of Business

By: Amanjot Kaur (MBA 1st semester)

Contents

1. Introduction2.Social responsibility of business

towards different sections of society Towards owners or shareholders Towards employees Towards consumers Towards government and Suppliers Towards community3. Reasons for the development of

social responsibility concept4.Arguments against social

responsibility5.Social activities undertaken by some

companies

Introduction

According to H.R. BOWEN, ”Social responsibility is to pursue those policies and decisions or to follow those lines of actions which are desirable in terms of its objectives and values of our society.”

Social responsibility refers to the obligations and duties of the business towards the society.

The aim of business is no longer only profit maximization but also to be socially responsible.

Social responsibility of business towards different sections of society:

SuppliersSuppliers

OwnersOwners

EmployeesEmployees

Business

Community

Community

ConsumersConsumers

EnvironmentEnvironment

GovernmentGovernment

Being so much dependent on society ,the business has a definite responsibility towards different segments of society:

Towards owners or shareholders:

•To safeguard the capital.•To provide fair and regular return on the capital employed.•To ensure proper utilization of invested capital.•Timely payment of dividend.•To provide regular information about the company.

Towards employees:

•Proper selection,training and promotion.

•Providing fair wages.

•Ensuring health, safety and comfortable working conditions.

•Education of employees.

•Participative management.

•Providing an efficient complaint handling system.

Contd……

Towards government:

•To fulfill all legal requirements.•Payment of taxes in time.•Executing government contracts in a fair manner.•To provide inputs to government about changes in policy that can result in growth and development.

Towards suppliers:

•To develop and maintain healthy relations with suppliers.•Dealing with suppliers should be based on fair terms and conditions.•payment should also be made on time.

Towards consumers:

•To provide goods in time and also efficient after sales services.

•To manufacture the product according to the needs of customers.

•produce and supply quality products at reasonable rates.

•To avoid misleading the consumers by improper advertising of the products.

•To provide opportunity to consumers for making complaints and to handle the genuine complaints.

•To prevent black marketing .

Reasons for the development of social responsibility concept:

•Consumerism

•Government interference

•Trade unions

•Public opinion

•Awareness

•Professionalism

Arguments in favor of social responsibility

Dependence of business on society, Long run profit.Freedom from government control, huge financial resources.Consumer’s consciousness , better social environment…etc.

Arguments against social responsibility of business

•Ignoring the main objective ,Lead to increase in prices.•Overburden on business ,Need for profit maximization.• lack of accountability..etc.

Social activities undertaken by some companies

•Pedigree dog food built its brand by focusing

on the need for people to adopt homeless

dogs.

•Pedigree donates one bowl of food to animal

shelters every time it gets a Facebook fan.

•Pedigree's goal is to donate 4 million bowls of

dog food, enough to feed every shelter dog in

America for one day.

LENDING A HAND TO MAN'S

BEST FRIEND: PEDIGREE

BEAUTY COMES FROM WITHIN: THE

BODY SHOP

• Founder Anita Roddick led her company

to stand up for causes such as :

•self-esteem, environmental protection,

animal rights, community trade and

human rights.

• It sponsored posters in 1985 for

Greenpeace .

• It presented a petition against animal

testing to the European Union with

4,000,000 signatures.

Conclusion

As our business grows ,social

responsibility towards society

also grows.

Thank you for your

patience.