NEED FOR SOCIAL RESPONSIBILITY FOR BUSINESS
Commitment to socially responsible behavior is good business for both the public and private sectors. Every organization should always make a balance between profit and social responsibility. Business organizations are run by the profit motive. profit maximization should not be the only aim.
The following points highlights cases for social responsibility of business:
1. Concept of Trusteeship:
Commercial organizations operate within society. They are a part of society. Now it is observed that activity with is not good to go with the public is not performed by companies this is the theory of trusteeship. Businessmen are considered to be trustees of the society. This business is a social venture. e.g. seven multinational companies in India announced a common commitment to responsible marketing to children regarding cold drinks.
2. Changing Expectations of Society:
Rapid change is seen overtime period across the world. Over the years, social demands have changed and businesses should respond to them positively. Awareness about rights is increasing among people. Overall knowledge level has also increased. Businesses must keep a check on changes in society and work according to them. It should give society what it wants. In addition, it should not do anything harmful to society.
3. Projecting Favorable Public Image:
A business that responds actively to social needs creates a good market reputation and goodwill. It also imprints a good public image. Ultimately, organizations that care for their employees, consumers, and society will be looked up to by society. Such organizations are always about to get good support from the public.
4. Protection of Environment:
Business uses natural wealth and human resources to produce the end services Business organizations should make proper use of the country's natural resources. They should work to eradicate environmental pollution and ecological imbalance. Their practices should be eco-friendly. They should not affect the interest of society and the environment. Since society allows businesses to make use of natural resources and public facilities like roads, power, water supply, etc. It becomes a moral duty of business to take care of the welfare of society. “Syngenta” has started a project "Krishi Shakti Kendra” to various places in India to protect the environment.
5. Better and Optimum Utilization of Resources:
Generally, large businesses have huge surplus resources in terms of finance, manpower, talent, and functional expertise. Businesses should use all resources for society's benefit and expansion. There should be proper balance while using surplus resources and wastages should be avoided. Many organizations have adopted a policy to minimize damages to the environment. They extract resources in limited quantity
6. Trade Union's Pressure:
In modern times, workers have become conscious of their privileges and rights. Trade unions are growing fast and play an important role in the business environment. The employees are aware that their efforts contribute to the profits of the business. So they come up with new demands. Such demands may result in poor relationships between management and workers. They expect management to provide fair wages and other benefits. To avoid such conflicts, businesses should understand the responsibility and act accordingly.
7. Growth of Consumer Movement:
Consumer movement started against business malpractices. It was grounded in India long years back. Today's age has organized consumerism. Consumers get organized when they cannot accept any injustice by the business. They have raised their voice against unfair trading practices. They expect companies to produce good quality products at reasonable prices. Due to pressure from consumer forums and associations, businessmen have realized their social responsibilities and are following fair trade practices.
8. Government Control:
The government has enacted various laws such as Consumer Protection Act, Air Pollution Act, and Food Adulteration Act, etc. There are as many as 30 environmental legislations in India. This has marked moral as well as legal pressure on the business. If business units do not operate within these limits then there is fear of strict government control. To avoid chances of takeover etc. Business should contribute their share for society. Business units should carry all activities within legal, moral, and social limits. The government's main aim is to create a favorable atmosphere for economic and industrial growth.
9. Long-Term Self Interest:
If business organizations ignore social responsibility, they may not earn good profit in the long term. The employees may not work heartily, investors and shareholders will not show a positive response. Consumers may refuse to buy low-quality products at high prices. It may even bring their existence in danger. Hence for long-term interest, the business has realized the importance of social responsibility.
10. Complexities of Social Problems:
Nowadays problems of society are more complex and increasing. Government is overburdened with social, economic, and political problems. Government has limited capacity and finance to deal with them. A progressive and socially aware business can help the government in solving social problems such as child labor, education and health facilities for the poor, etc. Businesses should share the government's burden in times of flood, earthquakes, cyclones, drought, famine, etc. Businesses can contribute to various social programs. They can help regarding pollution control, population control, and ecological imbalance by accepting social obligations.
11. Globalization:
Today's world is changing rapidly. Globalization provides more opportunities and challenges to business. It contributes to economic growth, increased specialization, circulation of ideas and languages. International trade barriers have decreased and resulted in the global distribution of goods and services. Countries that have adopted good practices are influencing the world such as Japan, England, and Germany. Other countries are also motivated to perform social responsibilities.
12. Role of Media:
Media plays an important role in people's life. Nowadays, the reach of the media to common people is very easy through the internet. The media has the power to speak against the wrong policies of the business. It is very vibrant and active. Media can influence the masses in society. Media can raise voice against business malpractices and exploitation of consumers, Television channels and Newspapers make people aware of unfair practices. So businesses should not ignore social values.
Cases of Social Responsibilities (at a glance)