SOCIAL RESPONSIBILITIES OF BUSINESS AND BUSINESS ETHICS CLASS XI
Social responsibility related to the voluntary efforts on the part of businessmen to contribute to the social well–being.
The businessmen cannot exist in isolation. They make use of resources of society so they must do something for the society.
For example, To install R.O. water purifier in the bank on behalf of educational institute.
ARGUMENT IN FAVOUR OF SOCIAL RESPONSIBILITIES:-
1- Self Interest: To survive and grow in society for long run, the business must come to the expectations of the members of the society.
2- Better Environment For Business: Social responsibility creates better environment for business operations as social responsibility improves quality of life, results in raising standard of living.
3- Public Image: If business is satisfying their expectations by assuming social responsibility then the businessmen can improve their image in the eyes of consumers, employees etc.
4-Avoidance Of Government Interference:
Government intervention is costly to businessmen and restricts their flexibility and freedom of making decisions. Thus social responsibilities are essential for avoiding governmental action against business.
5- Social Power: A business firm has considerable social power. There must be a balance between the power and responsibility. If businessmen avoid it, then some of its power can be withdrawn by the government and other social groups.
SOCIAL RESPONSIBILITY TOWARDS DIFFERENT INTEREST GROUPS:-
1- Responsibilities of business towards consumers:
i– Production of safe items by maintaining quality standards.
ii– To ensure regular supply of goods and services.
iii- To educate customer regarding the use and contents of the product.
iv- Being truthful in advertising.
v- To follow fair trade practices.
2- Responsibilities of business towards employees:
i- Providing fair compensation and benefits.
ii- Providing good and safe working conditions.
iii- Providing opportunities for personal growth and development.
iv- To provide incentives and services like housing, medical, insurance, retirement benefits etc..
3- Responsibilities of business towards Investors:
i- To ensure safety of investment.
ii- To ensure fair and regular return on investment.
iii- To give complete information regarding the financial position of the business.
iv- To give them opportunities to participate in decision making.
4-Responsibilities of business towards Government:
i- To follow rules, regulations and laws.
ii- To pay taxes and duties on time.
iii- To help in solving social problems.
iv- To coperate in planning, investigation and administrative activities of the government.
5- Responsibilities of business towards the community:
i- To protect the environment from all type of pollution.
ii- To provide more employment opportunities.
iii- To promote national integration.
iv- To help the weaker section of the society
v- To preserve social and cultural values.
6- Responsibilities of business towards Suppliers:
i- To ensure regular payment to the suppliers.
ii- To adopt fair dealings with the suppliers.
iii- To guide and assist the suppliers in improving quality of their products.
BUSINESS ETHICS:-
Business Ethics refers to the set of moral values or standards or norms which govern the activities of a businessman.
"Ethics defines what is right and what is wrong".
For a businessman the ethical decisions expected are:
i- To provide the customer with true information regarding the products and services.
ii- Allowing the customer to make free choice.
iii- Providing quality products at reasonable prices, etc.
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