SOCIAL RESPONSIBILITIES OF BUSINESS.
Prof. Vinayak. Gopal. Patil.
Yadavrao Tasgaonkar School of Business Management,
Always it has been said that business is carried out for only profit earning. But profit earning is not a sole object of any business as well as it should not be. ‘Mere Money Chasing’ is not a objective of any business. Every company has two types of balance sheets. One is financial balance sheet and another is social balance sheet. The social balance sheet is nothing but a content of social interest, social welfare of the society. As society is a group of people where they comes together share joys and sorrows together. It should not forget that the person who works in an organization is a part of the society. As he contributes his efforts towards the development of organization, at the same time the organization also should keep in mind that he (organization) is oblige him. He is liable to contribute towards the society. This responsibility is termed as a ‘Social Responsibility’. Though there is no exact meaning or definition for social responsibility according to H.R. Bower social responsibility means obligation ( of Organization) to pursue those policies, objectives, decision which are desirable in terms of objectives and values of the society. The organizations are obliged to make decisions that are within the scope of social values of the nation.
At Present there is a great awaking and consciousness of social responsibilities of busiens. The social responsibilities of business is generally concerned with : 1. Towards the consumers. 2. Towards the Shareholders. 3. Towards the society. 4. Towards the State. 5. Within inter business relations. 6. Towards the employee. Before going to discuss the above factors or areas it is very essential to focus the light on the reasons due to which the social responsibilities are gaining much important now a days. Why emphasis increasing on social responsibilities. The answer of this question is hidden in the following points.
- Increasing in public regulations.
- Growing pressure from organized labour unions.
- Growing consumerism instead of consumer protection.
- Human relationship approach of management.
- Self interest of businessmen to give stability to their operations.
Now let us study the responsibilities towards the above said areas.
1. Towards the consumers :
– To provide the products at right time, at right price, at right place in right quantity, quality.
– To ensure wide and effective distribution of products without exploitation of consumers.
– To create awareness about consumerism.
– To disseminate the company’s policy, objectives, services, new plans of the future from time to time.
– To follow the activities which are belongs to market and marketing.
2.Towards the shareholders : The owner of the business may be proprietor, partner, member or shareholder. The basic responsibility of business towards the shareholder is to ensure of safety of investment, high and long run rate of return and steady amount of capital appreciation on their investment.
3.Towards the society : Development and welfare of the society is the fundamental responsibility of business. The support of the society of the community us a sine- qua – non for the progress of any business. It is very important to take into account that the business exist because the public allow it to exist. So, management is obliged to inform the society about the company’s policy, programme, operations, problems and its nature of contribution to the development of the locality and welfare of the community. The important aspects of social responsibilities of business towards the society are;
1. To promote the society help by aiding local red cross, hospital board and medical research. 2. Promote cultural enrichment of the society by encouraging great appreciation of arts, culture and arts, music, drama. 3. Encourage and provide sports and recreational facilities. 4. Organize forums and discussion groups and thus promote better understanding of national and local affairs. 5. Help the local government in the improvement of public services and facilities. 6. Take preventive measures for air, water, noise pollution in the locality for the well being of the society.
4.Towards the state : Government is taking keen interest in trade production, distribution and control and regulation of business. The government play vital role in protection the business by passing the statues. It facilitates the friendly relationship with the other countries for the purpose of incremental in trade. It is the state which creates an healthy, atmosphere for the business to carry on its activity smoothly, efficiently, economically and effectively.
5. Responsibilities towards the inter business relationship: healthy and cooperative inter business relationship should be developed by any enterprise. Fair trade practices of prices, quality, quantity, delivery, payment and services can be expression of proper discharge of social responsibilities.
6.Towards the employees : The profit is joint product of labour and capital. The business prospers only because of the employees. The old and traditional hire and firing workers are need to be replaced by human approach. The social responsibilities of the business towards the employees are ;
- To pay fair wages and Salaries : The workers should pay the wages and salaries according to hazards of work and the efforts taken by them. The consideration should be given for linking wages and productivity. They pay should enable to satisfy his family’s basic need and to help them to provide education, care and protection against misfortune.
- To provide better working conditions and welfare activities : The working condition directly affects the performance of the employee in any organization. So, it is the duty of manager to provide the standards of cleanliness, heat, ventilation, light and safety. In addition to this the rest pause, games, entertainment, sanitation, housing, medical care, sports, old age pension, insurance, compensation comes in this title.
- Training and Development programme : With consultation trade union the management should take into account the training programme for the employees. The management also should make more provision for education and training of its employee.
- Workers participation in management : So as to express the ideas, views, opinion in the decision making of organization the workers should get sufficient scope. For this the workers are being invited in decision making of the organization. Due to this it may help to create and maintain the morale of the workers in an organization.
- To follow the H.R Policies, H.R programmes, and Strategies in an organization.
- To maintain the quality work life of the employees.