Social Responsibility

of
Business
Any responsibility you have, particularly
towards member of the society with whom
you interact or towards the society in
general is called your social responsibility.
Definitions
social responsibility may be regarded as the
personal obligation of people as they act in
their own interest to assure that the rights
and legitimate interests of others are not
impinge.
By Koontz & O'Donnell
Definitions
The social responsibilities of business to do
what is in the interest of society by doing so it
will serve its own interest also.
Peter. F.Drucker
social responsibility refers to the
businessmans decisions & action taken for
reasons at least partially beyond the firms
direct economic & technical interests

By Keith Davis
Why social Responsibility?
Public image
Government regulation
Survival & Growth
Employee Satisfaction
Consumer Awareness
Spread of Education
Managerial Revolution
Areas of Social Responsibility
Society
Government
Competitors
Customers
Suppliers
Employees
Investors
Owners
Social
Responsi
bility of
Business
Responsibility Towards Owners
Proper utilization of capital & other resources
Regular & fair return on capital invested.
Responsibility Towards Investors
Safety of investment
Payment of interest
Timely repayment of principal amount
Provide information regarding the progress
Responsibility Towards Employees
Payment of wages and salaries
Proper working conditions and welfare
amenities
Opportunity for better career prospects
Job security and social security
Better living condition
Training and development
Responsibility Towards Suppliers
Regular order
Fair terms and conditions
Reasonable credit period
Timely payment of dues

Responsibility Towards Customers
Product and services must be qualitative
Regular supply
Reasonable and affordable price
All adv and disadv of product as well as
procedure to use product must be informed
to the customers
Responsibility Towards Competitors
Not to offer exceptionally high sales
commission to distributors
Not to offer heavy discounts /free products to
customers in every sale
Not to defame competitors through false
ambiguous advertisements.
Responsibility Towards Government
Setting up units as per guidelines of government
Duly payment of duties and taxes with regularity and
honesty
Not to indulge in monopolistic and restrictive trade
practices
Follows pollution control norms set up by the
government
Not to indulge in corruption and other unlawful
activities
Responsibility Towards Society
To help weaker and backward section of the society
To preserve and promote social and cultural values
To generate employment
To protect environment
To conserve natural resources and wildlife
To promote sports and culture
To provide assistance in the field of development
research on education, medical science
technology etc
Following are the various responsibilities of business towards the
different interest group as discussed above.
i. Protection of environment.
ii. Better living conditions like housing, transport, canteen,
crches etc.
iii. Promotion of sports and culture.
iv. Opportunity for better career prospects
v. Regular supply of goods and services
vi. Proper working conditions and welfare amenities
vii. Goods and services at reasonable and affordable price.
viii. Prompt after sales services.
ix. Conservation of natural resources and wildlife.
Relate the above social responsibilities of business to the
following interest groups.
Society
Customer
Employees
THANKS