Social Responsibility of

Business
Social Responsibilities of Business

• 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 situation where social
responsibility of business becomes
necessary like to create good corporate
image, social commitment, because of
legal provision etc.
 Need for social responsibility

• To create good corporate image.

• To comply with legal provisions.
• Nature calamities etc.
• To improve product positioning.
 Shareholders

Local
Community Employees

Social
responsibility
of business

Consumers Govt.

Global Env.
 Social responsibility of Business towards
different groups
I) Responsibility towards the consumers.
• 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. A happy customer is a loyal customer
• Provide sufficient information, risks & care to be
taken.
• Avoid misleading by improper advertisements.
• Redress genuine grievances.
II) Social Responsibility to shareholders
• Safeguard the capital of shareholders.
• Provide a reasonable dividend.
• Transparency and access to required
information.
III) Social Responsibility to community
• 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
IV) Responsibility to Human Resources

• 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
VI) Responsibility to Government
• To pay taxes, duties in time
• To cooperate with government in their social
policies and programmes
• To obey all laws and acts

VII) Social Responsibility to Global Business

environment
• To adhere to the conditions of such a global
environment
• To satisfy global customer needs