Karuna Sharma

BY: KARUNA SHARMA

SOCIAL RESPONSIBILITY OF BUSINESS

Karuna Sharma

BUSINESS AND SOCIETY

Business is an integral part of the society

It is affected by other elements of society which in turn are affected by the business

The old concept of business confining to its commerce and private profit has undergone a radical change

Today, business is regarded as a social system

Karuna Sharma

BUSINESS AND SOCIETY

David and Blomstorm: ‘ business is a social institution performing a social mission and having a broad influence on the way people live and work together’

Calkins: ‘ it is now recognised that the direction of business is important to the public welfare, that businessmen perform a social function’

Karuna Sharma

SOCIAL RESPONSIBILITY OF BUSINESS

Social responsibility is the company’s mission to be responsive to social needs by earmarking a part of its resources so that they may be allocated for achieving social goals and tackling social problems.

There are many situations where social responsibility of business becomes necessary like: to create good corporate image, social commitment, because of legal provision etc.

Karuna Sharma

Social responsibili

ty of business

Shareholders

Global Env.

Employees

Govt.

Local Communit

y

Consumers

Karuna Sharma

I. Responsibility towards the consumers

II. Social Responsibility to shareholders

III. Social Responsibility to community

IV. Responsibility to Human Resources

V. Responsibility to Government

VI. Social Responsibility to Global Business

environment

Social responsibility of Business towards different groups

Karuna Sharma

Responsibility towards the consumers

Provide quality product at fair price. Produce using proper quality materials. Produce using appropriate technology. Provide proper service. Commitment to customer satisfaction. R & D for better & new products Steps to remove imperfection in distribution system (check

middle man) Ensure product has no adverse effect. Provide sufficient information, risks & care to be taken. Avoid misleading by improper advertisements. Redress genuine grievances. To understand customer needs & to take necessary

measures to satisfy these needs

Karuna Sharma

Social Responsibility to shareholders

Safeguard the capital of shareholders. Provide a reasonable dividend. Transparency and access to required

information

Karuna Sharma

Responsibility to Human Resources

Fair wages to employees Provide good career prospects Care for the welfare for employees Best working conditions Establishment of fair work standards & norms Arrangements for proper training & education and

development Proper system of promotion Recognition, appreciation & encouragement of

special skills& capabilities Efficient grievance handling system Participation in management decision

Karuna Sharma

Social Responsibility to community

To solve problem of unemployment To develop infrastructure of country To help in natural calamities Taking appropriate steps to prevent environmental

pollution & to preserve the ecological balance Rehabilitating the population displaced by the

operation of the business. Taking steps to conserve scare resources &

developing alternatives where ever possible Improving efficiency of business operations Contributing to R &D Development to backward areas Contribute to education & population control

Karuna Sharma

Responsibility to Government

To pay taxes, duties in time

To cooperate with government in their social

policies and programmers

To obey all laws and acts

Karuna Sharma

Social Responsibility to Global Business environment

To adhere to the conditions of such a global

environment

To satisfy global customer needs

Karuna Sharma

Barriers to social responsibility

Urge for profiteering

Desire for excessive accumulation of wealth

Low profitability

Frequently changing government mechanism

Need for tackling other important internal

issues .

Recession and depression

Karuna Sharma

ARGUMENTS FOR SOCIAL RESPONSIBILITY

Business survives using the resources of the society has a responsibility to the society

Business is resourceful and needs to oblige the society

Social responsibility would foster a harmonious and healthy relationship between the society and business

Discourages government regulations and intervention

Better public imageFinancial effects like recycling saves paper etc

Karuna Sharma

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY

Business should confine to its own businessGovt and social organisations need to carry

social activitiesExpenditure on social welfare leads to severe

burden on organisationsNo point in exalting social involvement as the

burden is shifted to the consumersA source of tax exemptionCould lead to an increase in the dominance

or influence over the society