Components or Areas of Social Responsibility

We have observed in the previous section that a number of factors have influenced businessmen to make them realise their social responsibility. Now we shall explain the nature of social obligations to be discharged by the businessmen to the various sections of the society.

Towards Owners of Enterprise

The responsibility of business enterprises towards their owners are:

(a) Payment of a fair rate of dividend regularly.

(b) Maximisation of the net present value of the business through effective management.

(c) Ensuring full participation of owners in the management of the affairs of the enterprise.

(d) Arresting the tendency towards the growth of "Oligarchic management."

(e) Supplying of accurate and comprehensive reports giving full information on the working of the company.

(f) Disclosing of financial information and clarifying information and clarifying doubts, if any.

(g) Accessibility of chairman and directors to the owners for getting information relating to the company.

Towards Worhers

Some of the responsibilities of a business enterprise towards its workers are:

(a) Security of job with fair wages, bonus, profit-sharing, etc.

(b) Fair promotional practices.

(c) Equal opportunity for growth and development within the organisation.

(d) Facilities for training and opportunity to the workers for improving their skill.

(e) Encouraging participative management in the company.

(f) Providing employee welfare and social security and better working facilities.

(g) Protecting workers from occupational hazards.

(h) Encouraging the development of good trade union leadership.

(i) Change in the attitude of management towards workers and realise the fact that the management is the management of men and not of machines.

Towards Consumers

The responsibility of business enterprise towards consumers of its products are:

(a) Ensuring availability of products in the right quality, at the right place and at the right time.

(b) Supplying products of high quality.

(c) Charging reasonable prices for its products.

(d) Using correct measures.

(e) Providing good after-sales services.

(f) Avoiding restrictive trade practices and other undesirable methods to exploit the consumer.

(g) Encouraging the formation of associations of consumers satisfaction and welfare.

Towards the Society

The obligations of a business to the society are:

(a) Optimising the use of resources.

(b) Producing goods and services efficiently and contributing to the economic well-being of the society.

(c) Providing public amenities and avoiding the conditions of slums and congestion.

(d) Maintaining environmental ecology and adopting anti-pollution measures.

(e) Participating in social welfare programmes, such as adopting villages for their all-round development, providing for medical facilities, sanctioning educational scholarships to deserving students, constructing shelter at bus stops, contributing to funds meant- for the benefit of society, undertaking social forestry, etc.

(f) Ensuring that the gains of improved production of the enterprises are shared by all the constituents of the society, viz., management, shareholders, workers and consumers.

Towards the Government

The obligations of business enterprise to the government are:

(a) Strictly observing the provisions of the various laws and enactments.

(b) Extending full support to the government in its efforts to solve national problems such as unemployment, food, inflation, regional imbalance in economic development, etc.

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