SOCIAL

RESPONSIBILITIES OF
ENTREPRENEUR
 Introduction
O Society has become increasingly aware of the interdependence
between business and its environment. The argument in support
of business assumption of social responsibility is based on two
basic facts:
O (a) Business operation causes serious problems and so business
has a moral responsibility to solve them or at least reduce them.
O (b) Business should do something in its own to promote social
welfare.
O According to Keith Davis. “Social responsibilities mean the
obligation of decision makers to take actions, which protect and
improve the welfare of society as a whole along with their own
interest.”
 The factors that make social
responsibility as inevitable
O • The threat of government regulation.
O • The Presence of labor movement
O • The development of business education
O • Recognition of human factors
O • The development of moral values and social
standards
 Importance
O • Build up better public image
O • Long term survival
O • Avoidance of Government regulations.
O • Prevention
SOCIAL RESPONSIBILITIES OF
BUSINESS
Responsibilities towards different
groups:
O 1. Responsibilities towards shareholders : (a)
A fair return on investment
O (b) Safety of investment
O (c) Steady appreciation of investment
O (d) Regular, accurate and full information
about the working and progress of the
company
 2. Responsibilities towards
Employees :
O (a) Fair wages and salaries
O (b) Good and safe working conditions
O (c) Adequate service benefits such as housing
O (d) Recognition of worker’s rights
O (e) Opportunities for education,
training/promotion
O (f ) Worker’s participation in decision making.
3. Responsible towards Customers
:
O (a) Regular supply of right quality goods at
right time and right place.
O (b) Charge reasonable prices
O (c) Prompt, adequate and continuous services
O (d) Prompt redressal of customer’s grievances
O (e) True and fair information through
advertisements
4. Responsibility towards Govt. :
O (a) To pay taxes honestly and in time
O (b) To avoid corrupting public servants
O (c) To encourage fair trade practices
O (d) To avoid monopoly and concentration of
economic power
 5. Responsibilities towards
community:
O (a) To make the best possible/efficient use of
society resources.
O (b) To provide maximum possible employment
opportunities
O (c) To keep the environment healthy
O (d) To contribute to the upliftment of the
weaker sections of society
O (e) To improve public health, education and
cultural life of the community
 THE STATUS OF CORPORATE
SOCIAL RESPONSIBILITY IN INDIA
O • About 36% of companies surveyed had some sort of a policy on
supporting social development.
O • Only 7 % of the companies surveyed had a written policy.
O • Of those having a written policy, as many as 86 % were supporting
activities.
O • Almost 60% of companies with a policy had a person or department
responsible for implementation of the companies surveyed, 46 % were
involved in development activities. These companies were mostly
large/old companies.
O • Over 80% of companies were working with NGO’s of which Rotary and
Lions clubs received the largest mention.
O • This is based on finding of finding of a survey of 647 companies
commissioned by partners in change/ action aid and conducted by SRI
/IMRB.