Social Responsibilities of Business

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.

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

1)   Towards Internal stakeholders

2)   Towards External Stakeholders

3)   Customers

4)   Suppliers

5)   Government

6)   Special-interest group

7)   Consumer advocates

8)   Labor Unions

9)   Media