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Social Responsibility of a business can simply be defined as activities that a
business conducts over and above the statutory requirements of a business for
the benefit and welfare of the society.

According to Howard R. Bowen “Social Responsibility of business refers to the

obligation of business to pursue those policies, to make those decisions or to Subscribe Now

follow those lines of action which are desirable in terms of objectives and
We don't spam. We Educate.
values of the society”

The obligation that every business is subjected to can be divided into four
responsibilities –

Discretionary Obligation – These refer to voluntary contributions made by a

business for the benefit of the society without any government intervention.

Ethical Obligation – These obligations make a business responsible to follow

and respect the social and cultural norms laid down by the society.

Legal Obligation – It is the responsibility of every business to abide with the

laws of the county and follow the legal rules and regulations laid down by the
government.

Economic Obligation – Since every business aims to earn profit, it is the

responsibility of every business to generate surplus cash and use it towards
further development or welfare of the society.
Advertising Management (20)
Articles (270)
Banking and Insurance (22)
Promoters and Top management Blog (36)
Board of directors Business & Entrepreneurship (6)

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Social Responsibility of a business - BBA|mantra https://bbamantra.com/social-responsibility-business/

Shareholders Business Communication (15)

Societal Factors Business Environment (21)

Industry and Trade Associations Business Ethics (2)

Government and Legal System Business Law (1)

Political Influences Business Statistics (49)

Company Law (14)
Competitors
Computer Applications (9)
Resources
Consumer Behaviour (22)
Cost Accounting (3)
E-commerce (8)
Entrepreneurship (11)
Financial Accounting (2)
Towards Shareholders –
Financial Management (29)
Financial Services (19)
To ensure safety of their investment Human Resource Management (18)
Regular payment of dividend and Timely payment of loans Income Tax (2)
To provide adequate information before investment International Business (13)
To ensure a good public image Investment Analysis & Portfolio Management
To make good and profitable decisions to give a good return on investment (11)
IT & Technical Skills (5)
Towards Employees –
Macro-Economics (9)
Management Accounting (18)
Payment of Fair wages Management Information System (4)
Providing a good working environment Managerial Economics (2)
Providing proper training and education Marketing & Advertising (7)
Providing fair performance appraisal and career growth opportunities Marketing Management (18)
Providing opportunity to participate in management decision making Marketing of Services (6)
Providing adequate grievance handling, recreational and retirement facilities. Micro-Economics (2)
Operations Management (2)
Towards Consumers – Organizational Behaviour (7)
Personal Finance (2)
To provide goods and services at a reasonable price Principles of Management (9)
To ensure good quality in products Project Management (11)
To introduce new and innovative products by proper research and Projects and Presentations (33)
development Public Finance (11)
To not mislead the customer Research Methodology (9)
To provide adequate information about the product Rural Marketing (1)
To provide good after sale services Strategic Management (14)
Uncategorized (1)
Towards Society –

To take measures for maintaining environmental harmony

To raise the standard of living of the society
To help in development of backward areas and promote small scale
October 17, 2020
industries
To help in economic development of the society
To conserve the natural resources of the country
To follow the norms and traditions laid down by the society
To maintain a fairness and equity in recruitment and compensation of
manpower
September 10, 2020
Towards Competitors –

To have a healthy competitive spirit

To not use unfair means to succeed in business September 9, 2020
To not harm or defame the competitors

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To not copy competitors strategy

June 28, 2020

Towards Government –

Timely payment of taxes and duties June 27, 2020

To not involve in corruption

To follow the norms and guidelines laid down by the government
To follow the legal system of the country
To support the government in its public welfare initiatives June 27, 2020

Towards Suppliers/Creditors –

To make regular orders for purchase

To deal on fair terms and conditions
To Have a fair credit policy
June 27, 2020
Timely payment of dues

June 22, 2020

June 22, 2020

June 21, 2020

BY: BBAMANTRA / IN: ARTICLES, BUSINESS ENVIRONMENT / WITH: 1 COMMENT

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1 COMMENT Oldest

3 of 4 10/01/2021, 8:03 am
Social Responsibility of a business - BBA|mantra https://bbamantra.com/social-responsibility-business/

Mount Woods 1 year ago

Indeed a great post.

Companies has too many things to handle but one thing which is most important to do
is to take care of our environment. Recently Amazon fire was in news and it shook the
world. Many people were sad and were willing to do anything to save it. Similarly there
were few companies which decided to do something for environment. It created an
impact on people mind that people are ready to change themselves.

0 Reply

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