Social Responsibility of an Entrepreneur

1) Public Image. The activities of an entrepreneur towards the welfare of the society earn goodwill and
reputation for the business. People prefer to buy products of a company that engages itself in various
social welfare programs. Again good public image also attracts the honest and competent employees to
work with such employers.

2) Employee Satisfaction. Employees are the part of the society. If you satisfy your needs, then you are
doing social work.

3) Ethical Leadership. It is the belief that what entrepreneur does has a strong influence on employees.
If manager cheats, Lies, steals or manipulates, then they are sending wrong signals to employees.

4) A social Entrepreneur is an individual or organization who seeks out opportunities to improve society
by using practical, innovative and substantial approaches. Since last three decades, HDFC contributes

7% of its income to support community needs. Mahindra Tech employees donated one day salary to
help victims of Bihar floods. Wipro has set up a foundation named Azim Premji Foundation to help
improve education of the elementary schools in rural India.

5) Environment Management. Managers and Organizations can do many things to protect and preserve
the natural environment which includes plastic less business by giving paper bag, creating eco-friendly
product, by eliminating production.

6) Consumer Awareness. Consumers have become very conscious about their rights. If you are giving
high quality products at cheap rate, that is kind of social Responsibility

Social Responsibilities and accountabilities of an Entrepreneur

1. Responsibility Towards Employees:

o Fair wages and salariesLo Adequate Basic Facilities like safe drinking water, electricity, canteen,
hygienic toilets.

o Skill development programmes.

o Good and safe working environment.

o Retirement benefits and pension schemes

o Collective bargaining

o Insurance cover

o Medical facilities
2. Responsibilty Towards Customers:

o Charge reasonable price for products or services.

o Supply of right quality of goods in right quantity.

o No use of manipulated or false advertisements.

o Avoid unfair selling practices.

o Fair guarantee of product

3. Responsibility Towards Shareholders:

o A fair return on investment.o Safety of invested capital.

o Regular and complete information about the performance and progress of the company.

o Regular Payment if dividend

4. Responsibility Towards Suppliers, Creditors:

o Maintain healthy and co-operative inter-business relationship between different businesses.

o Provide accurate and relevant information to creditors.

o Payment of price of materials on time.

o Prompt payment of interest on borrowed funds.

o Producing original documents for credit processing.

5. Responsibility Towards Public in General:

o Help the weaker section of the society.

o Creation of job opportunities.

o Improvement in living standards.

o Building of basic infrastructure like roads, sewerage.

o Health and educational development schemes.

o To make best use of society’s resources for their welfare.

6. Responsibility towards Government:

o Payment of corporate tax in correct amount with no manipulation of profit figures.

o To avoid corrupting public servants by offering bribe.

o To encourage fair trade practices.

o To avoid monopoly practices.

o To improve national income.