Meaning Of Social Responsibility Of Business
Social responsibility is a universally accepted aspect of business management. Business and society are interrelated and inter-dependent. Society depends on business for meeting its need and for welfare. Business also depends on society for its existence and growth. It needs inputs like money, men and skills for the orderly conduct of its activities. Business has to look after its economic interest, which facilitates its survival, stability and growth. Along with this, it has to give satisfaction and welfare to different social groups or the society as a whole. Business has to meet the needs of the people and contribute for raising social welfare. This constitutes social responsibility of business. It is a social aspect of business management. It is one revolutionary change introduced in the business philosophy in recent years.
Society is the home of business. Business depends on society for the needed inputs for production activities. Dependence of business on society is complete and business can exist and operate as long as society wants it. Being so much dependent, business has definite responsibility towards society popularly called “Social responsibility of business”. Business is no island and business executives do not function in vacuum. It is for the benefit of the society. Naturally, business must accept certain obligations towards different social groups. This constitutes social responsibility of business. Businessmen need co-operation from the society and in return they are expected to fulfill certain social obligations. Private business, which is the hard core of the present economic system has realised the need of discharging social obligations for orderly business and social welfare.
In brief, social responsibility of business means duties and obligations of business towards different social groups i.e. shareholders, consumers, employees, local community and the society at large. Business enterprises have to honor such responsibilities honestly and also on their own. Such positive approach is beneficial to the society and also to the business for its growth and prosperity. The concept of social responsibility is applicable to all business enterprises, irrespective of their nature, size, area of operation, profitability and so on.
52 Comments