The next obligation is to grow bigger and constantly to grow better through innovation. (ii) To do research and development, to improve quality and introduce better and new products. Factors affecting Social Responsibility of Business â Promoters and Top management; Board of directors; Shareholders; Societal Factors 2. RESPONSIBILITY TOWARDS SOCIETY:- Every business owes an obligation to the society at large. The first task of business enterÂprise is to stay in business. To Safeguard Money The goods must meet the needs of the consumers of different classes, tastes and the purchasing power; ii. It will pay its dues and taxes to the state fully and honestly; iii. For this purpose, the business should get the survey done by its experts in the field of climate, soil conditions, breeding of livestock facilities for irrigation, water supply and actual supply of fertilizers, seeds, pesticides, expertise, and finances. : a. Business depends on society for inputs like money, men, and skills and also for market where products have to be sold to the customers. They should play a constructive role in encouraging the directors to pursue a responsible policy towards the company, its obligations to the community, employees and customers, upon which in the long run, the company’s reputation and future prospects depend. To handle the customer’s grievances promptly. Our mission is to liberate knowledge. As a result of which the concept of ‘consumerism’ has come up to protect the rights of consumers. Responsibility of business towards Community or Society or General Public Content Filtrations 6. Holding of open camps for operation of minor ailments, eye diseases, family planning (vasectomy or tubectomy) can also be arranged by them. The enterpriseâs stakeholders take a great risk in trusting and invest in an organization. 4. (ix) To provide an opportunity for being heard and to redress genuine grievances. Mental, physical, economic and cultural satisfaction of employees should be taken care of. (vi) To treat different types of shareholders equally. To develop their skills through training and education. Hence, it should develop and improve its business and build up its financial independence. In fact, business depends on the society for its existence, growth and promo tion. In a business context, this refers to the charitable donations and volunteer work they do in support of the local community. Business and other agencies can help the government by undertaking studies and programmes of technical and financial assistance for the development of cheap public transport and distribution systems through improved journey planning and traffic regulation, increased operational efficiency and utilisation of road capacity, improved systems and procedures of granting licenses, more rational and scientific estimates for vehicle fleet size and manpower for different modes of transport, improved maintenance and replacement policy for the spares and structural changes in urban and rural layouts. Content Guidelines 2. They can also distribute free medicines, nutritious food to school-going children and pregnant mothers, the aged and the sick. To be able to discharge its social responsibilities an enterprise must work towards growth, expanÂsion and stability. Business is continuously influenced by the environment. To uplift the weaker sections of the society. He alone gives employment. To cooperate with the government voluntarily in solving national problems such as poverty, unemployment, illiteracy etc. 6. An organization is thus bound to safeguard the interests of such people who are its owners. (viii) Promotion of ancillarization and small-scale industries. Company should strengthen the share prices by its growth, innovation and diversification. A manager has the following responsibilities towards the government: (ii) To observe rules laid down by the government. The shareholders also have their obligations. 2. Business is accountable towards owners as well as managing business profitably, ensuring fair and regular return on capital employed, consolidating financial position of business, guaranteeing capital appreciation so as to enable the owners to withstand any business contingencies. There should be a sense of participation between capital, on the one hand, and labour and skill, on the other, in their objective towards prosperity and progress. Many socially conscious public figures have called on businesses to show greater responsibility to the societies they depend on. TOS 7. Society in general. Difference between Administration and Management – Explained! Controlling in Management # Meaning, Definition, Types, Process, Steps and Techniques. Consumerism is an organized endeavour of the consumers to protect their rights. To generate more employment opportunities. Business can, therefore, play its role in changing house-building, extending loans and financial-aid facilities, providing material and manpower support. Company should provide a fair return on the investment made by shareholders. Such responsibilities extend beyond the business to the lives of the people and the community and as such they should endeavour to: a. So, in addition to giving a fair return on the capital invested and risk taken, the company should supply to its shareholders continuous, comprehensive and accurate reports giving full information about its working. (iii) Clearance of the principal amount on or before due date. But adulteration of goods, poor quality, failure to give fair measure, lack of service and courtesy to the customer, misleading and dishonest advertising, are all examples of violation of its obligations by a business enterprise towards the consumers. Corporate social responsibility (CSR) is a business model that helps a company be socially accountable to itself, its stakeholders, and the public. 4. They should be charged a fair and reasonable price which should be well within their reach. Destructive competition is always harmful, as it destroys confidence in business and introduces chaos instead of order and discipline. 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