BY: KARUNA SHARMA SOCIAL RESPONSIBILITY OF BUSINESS Karuna Sharma

BUSINESS AND SOCIETY Business is an integral part of the society It is affected by other elements of society which in turn are affected by the business The old concept of business confining to its commerce and private profit has undergone a radical change Today, business is regarded as a social system Karuna Sharma

BUSINESS AND SOCIETY Karuna Sharma David and Blomstorm: ‘ business is a social institution performing a social mission and having a broad influence on the way people live and work together’ Calkins: ‘ it is now recognised that the direction of business is important to the public welfare, that businessmen perform a social function’

SOCIAL RESPONSIBILITY OF BUSINESS Karuna Sharma Social responsibility is the company’s mission to be responsive to social needs by earmarking a part of its resources so that they may be allocated for achieving social goals and tackling social problems. There are many situations where social responsibility of business becomes necessary like: to create good corporate image, social commitment, because of legal provision etc.

Karuna Sharma Social responsibility of business Shareholders Global Env. Employees Govt. Local Community Consumers

Karuna Sharma I. Responsibility towards the consumers II. Social Responsibility to shareholders III. Social Responsibility to community IV. Responsibility to Human Resources V. Responsibility to Government VI. Social Responsibility to Global Business environment Social responsibility of Business towards different groups

Responsibility towards the consumers Karuna Sharma Provide quality product at fair price. Produce using proper quality materials. Produce using appropriate technology. Provide proper service. Commitment to customer satisfaction. R & D for better & new products Steps to remove imperfection in distribution system (check middle man) Ensure product has no adverse effect. Provide sufficient information, risks & care to be taken. Avoid misleading by improper advertisements. Redress genuine grievances. To understand customer needs & to take necessary measures to satisfy these needs

Social Responsibility to shareholders Karuna Sharma Safeguard the capital of shareholders. Provide a reasonable dividend. Transparency and access to required information

Responsibility to Human Resources Karuna Sharma Fair wages to employees Provide good career prospects Care for the welfare for employees Best working conditions Establishment of fair work standards & norms Arrangements for proper training & education and development Proper system of promotion Recognition, appreciation & encouragement of special skills& capabilities Efficient grievance handling system Participation in management decision

Social Responsibility to community Karuna Sharma To solve problem of unemployment To develop infrastructure of country To help in natural calamities Taking appropriate steps to prevent environmental pollution & to preserve the ecological balance Rehabilitating the population displaced by the operation of the business. Taking steps to conserve scare resources & developing alternatives where ever possible Improving efficiency of business operations Contributing to R &D Development to backward areas Contribute to education & population control

Responsibility to Government Karuna Sharma To pay taxes, duties in time To cooperate with government in their social policies and programmers To obey all laws and acts

Social Responsibility to Global Business environment Karuna Sharma To adhere to the conditions of such a global environment To satisfy global customer needs

Barriers to social responsibility Karuna Sharma Urge for profiteering Desire for excessive accumulation of wealth Low profitability Frequently changing government mechanism Need for tackling other important internal issues. Recession and depression

ARGUMENTS FOR SOCIAL RESPONSIBILITY Karuna Sharma Business survives using the resources of the society has a responsibility to the society Business is resourceful and needs to oblige the society Social responsibility would foster a harmonious and healthy relationship between the society and business Discourages government regulations and intervention Better public image Financial effects like recycling saves paper etc

ARGUMENTS AGAINST SOCIAL RESPONSIBILITY Karuna Sharma Business should confine to its own business Govt and social organisations need to carry social activities Expenditure on social welfare leads to severe burden on organisations No point in exalting social involvement as the burden is shifted to the consumers A source of tax exemption Could lead to an increase in the dominance or influence over the society