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. 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. They should not expect maximum possible dividends but ought to be satisfied with a fair return on their investment which should not exceed the risk and the cost of loans. To meet the wants and needs of a consumer, the society entrusts wealth-producing resources to the business enterprise”. 2. Once the company is viable the consumers’ claim on its profits is the greatest of all. To provide the shareholders with regular, accurate and full information about its working as well as schemes of future growth. To discourage the tendencies of concentration of economic power and monopoly. They believe deeply in the purpose and the profitability follows” (Spence, pg. The demands for “social responsibility” have provoked enthusiastic discussion and debate on what new roles, if any, business firms should play in the social system. There should be a fair and wide spread distribution of goods and services among all the sections of consumers and community and. The fact is that few subscribe to Friedman s hard-line views today”. Protection of invested capital (e) Fare dividend: 6. 5. Non- agricultural activities seeking linkage with the agricultural sector and the industrialised sector can also be developed. Are we doing enough to protect consumers and small businesses from the consequences of modern capitalism in our country” Later, on May 24, 2007, while giving inaugural address at the Annual Session of CII he urged the captains of Indian industry to break cartels and abstain from greed in their quest for profit maximisation. It is evident from above, the social responsibility of business implies that a corporate enterprise has to serve interests other than that of common shareholders who, of course, expect that their rate of return, value or wealth should be maximised. To offer good quality products and services at reasonable prices. (vii) Social Audit on Factual Assessment: This should be done by trained and professional personnel to show the social performance of business. Social responsibility of business implies the obligations of the management of a business enterprise to protect the interests of the society. The specific responsibilities of business towards government may be enumerated as follows: 1. Post was not sent - check your email addresses! Then only can it build its image of a responsible business enterprise and be esteemed. It will participate in the public life of the country in helping to make policies, fair legislation and working on advisory bodies; vii. What Responsibilities Does a Business Have Toward Its Employees?. Updated March 30, 2020 When you hire your first employee, you have some legal and ethical responsibilities to that employee and to all future employees when it comes to pay, benefits, and … (iii) To avoid adulteration. vi. Narayana, Chairman of Infosys makes the idea of social responsibility of business quite clear when in a conference on corporate social responsibility he said, “Corporate’s foremost social responsibility is to create maximum shareholders’ value working in a way which is fair to all its stakeholders — workers, consumers, the community, government and the environment He further points out.”, Working in harmony with the community and environment around us and not cheating our customers and workers we might not gain anything in the short run but in the long term it means greater profits and shareholders’ value’. But in today’s world the interest of other stakeholders, community and environment must be protected and promoted. (ix) Providing for their education and training. The business or a plant is a community and justice should be its rule. 9. The social responsibilities of business towards different stakeholder’s viz., consumers/customers, employees, shareholders/stockholders, other business firms, state and community. It is not possible to fool … 2. Duties towards consumers (b) Paying fair wages: 3. Some specific responsibilities of business towards community and public in general are: (i) Ensuring best utilisation of the scarce economic resources of society. A good businessman should adopt fair means to meet his rival’s competition. Following are some of the responsibilities which a business entity has towards its employees- Timely payment Hygienic environment Good and impartial behavior … (I) Responsibility towards the Shareholders or Owners: 1. The business must also take proper precaution against adulteration, poor quality, lack of desired service and courtesy to customer. Initially, such programmes may be labour-intensive in areas like carpentry, pottery, spinning, weaving, agro-based industry, farming, dairy farming, poultry and pig rearing, storage etc., so that increasing employment could be provided in rural areas. However, these consumer rights do not apply if goods are purchased to be resold or to be transformed into a product that is sold. Adequate reserves should be built up so that it will be able to declare a reasonable dividend during a lean period as well. Social contract is a set of rules that defines the agreed interrelationship between various elements of a society. (vi) Providing freedom in promotional programmes. Invoking the notion of social contract, the management expert Peter Drucker observes, “The customer is the foundation of a business and keeps it in existence. Employees make valuable contribution to the activities of a business organisation. Thus, by discharging its responsibilities to the employees, the business advances its own interests. The responsibility of the organization to the workers include: (ii) The provision of the best possible working conditions; (iii) The establishment of fair work standards and norms; (iv) The provision of labour welfare facilities to the extent possible and desirable; (v) Arrangements for proper training and education of the workers; (vi) Reasonable chances and proper system for accomplishment and promotion; (vii) Proper recognition, appreciation and encouragement of special skills and capabilities of the workers; (viii) The installation of an efficient grievance handling system; (ix) An opportunity for participating in managerial decisions to the extent desirable. Business is allowed to earn as much profit as it likes but it cannot ignore it, commitment to society. It would then be capable of providing those who commit their capital to it with such a fair and adequate reward for risk taken. If there’s one main challenge that business managers face in the context of duty of care in corporate travel, it’s their sense of accountability towards their employees. Public. Health and Education. Protection of invested capital (e) Fare dividend: 6. Reasonable legislation for protecting units of business against monopoly and. b) Responsibility towards Employees In this task, I will discuss about the responsibilities of an organisation and how they achieve their desired responsibility. All managements also contribute indirectly to social welfare measures undertaken by the State by honestly paying the taxes out of which the State finances its welfare activities. 4. As a good citizen, business enterprise should bear the social cost of its anti-social conduct, e.g., fouling the air, destruction of natural beauty of the surrounding landscape, creation of slums and congestion. Mr. N.R. 3. Promote amenities and help, create better living conditions; c. Help in making people law-abiding and improving legislation and administration in municipal and industrial affairs and. Again, productivity ratio depends as much on education and training of workers as on economic factors. What are a business’s responsibilities toward the community in which it operates? A business has some responsibility towards: Shareholders or investors who contribute funds for business. Employees provide human resources to the organization. More importantly, he further adds, “Maximisation of profits should be within the bounds of decency and greed”. 4 To adopt fair dealings in foreign trade in order to maintain country’s image. To uplift the weaker sections of the society. What is, therefore, needed is that the government should adopt progressive legal tax policies, and to ensure their strict observance; reduction in tax burden; careful planning, keeping in view the economic principle; strict supervision of and penalty for defaulters; easily understandable laws which are not frequently changed. You need to build a strong relationship with your customers for them not only to remain your loyal clients but also bring more people along with them. If the employees are satisfied the enterprise can achieve all round progress. Business needs employees or workers to work for it. 2. Responsibility of Business Enterprises towards Stakeholders and Society in General contract. (x) Contributing to the national effort to build up a better society. A clean, prompt and efficient administration; ii. 5. If a business provide a product or service that is useful or otherwise of value to the community, then it is socially desirable that it continues to function. 3. Social responsibility of business implies that corporate managers must promote the interests of all stakeholders not merely of shareholders who happen to be the so called owners of the business enterprises. Employee satisfaction leads to the achievement of the organisational goals. The government has also some obligations towards business, such as to provide: i. (iv) Taking steps to conserve scarce resources and developing alternatives, wherever possible. This involves more than offering products at lowest possible price. It will not purchase political support by unfair means; v. It will strive fairly and honestly to stimulate economic growth even by making reasonable sacrifices on occasions of national need; vi. Responsibility of Business Enterprises towards Stakeholders and Society in General contract. Such responsibilities extend beyond the business to the lives of the people and the community and as such they should endeavour to: a. (i) Taking appropriate steps to prevent environmental pollution and to preserve the ecological balance. A part in profit, if the Memorandum so specifies, in the shape of profit-sharing or bonus payment schemes; iii. the business, the durability of the nation, and society where those businesses are operating worldwide. The first and the foremost responsibility of an organization towards its employees is to ensure that they are happy and satisfied with their jobs. 296). (IV) Responsibility towards the Government: 3. The following responsibilities of business enterprises to consumers are worth mentioning: Despite the above responsibilities which are generally regarded as good marketing practices by management experts the business enterprises in India generally do not pay heed to them and as a result consumers are dissatisfied or disappointed in a large number of cases. 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