The socio-economic obligation of every business is to see that the economic consequences of its actions do not adversely affect public welfare.
The socio-human obligation of every business is to nurture and develop human values.
Origin and Growth of the Concept
As the pace of industrialization quickened, employers became more and more concerned with the loss of productive efficiency
The changing image of business in recent years has lent further support to the idea of social responsibility.
Different Views on Social Responsibility
Communist View This view advocates the imposition of social responsibilities on business through the instrumentality of the State
Capitalist View This view holds that economic expediency alone is a just standard for business decisions and that business has an unbridled and an uncontrolled right to make money free from all sorts of social responsibilities.
Pragmatic View This view acknowledges the importance of profits but simultaneously stresses the need for social responsibility. It holds that a company cannot make a social contribution if it is not profitable.
Trusteeship View This view advocates the retention for personal use of so much as is necessary for an honorable livelihood, no better than that enjoyed by million others; and the utilization of the rest for the welfare of the community.
Social Responsibilities of Business Towards Different Groups
Towards Internal stakeholders
Towards External Stakeholders
1) Customers
2) Suppliers
3) Government
4) Special-interest group
5) Consumer advocates
6) Labor Unions
7) Media
