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Lecture 8 PDF

The document discusses the social responsibility of management. It defines social responsibility as business decisions that provide for societal welfare in addition to profit. Social responsibilities are obligations for policies and actions that are desirable for society's objectives and values. Businesses have social responsibilities for reasons like self-interest, avoiding government interference, and addressing social problems. The document outlines the economic, legal, ethical, and discretionary social responsibilities of businesses and their responsibilities toward different stakeholder groups like consumers, employees, owners, and the community.

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57 views

Lecture 8 PDF

The document discusses the social responsibility of management. It defines social responsibility as business decisions that provide for societal welfare in addition to profit. Social responsibilities are obligations for policies and actions that are desirable for society's objectives and values. Businesses have social responsibilities for reasons like self-interest, avoiding government interference, and addressing social problems. The document outlines the economic, legal, ethical, and discretionary social responsibilities of businesses and their responsibilities toward different stakeholder groups like consumers, employees, owners, and the community.

Uploaded by

zozo goldz
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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SOCIAL RESPONSIBILITY OF MANAGEMENT

The social responsibility of business refers to such decisions and activities of a business
firm which provide for the welfare of the society as a whole along with the earning of
profit for the firm. According to Keith Davis, "social responsibility" refers to "the
businessman's decisions and actions taken for reasons at least partially beyond the
firm's direct economic or technical interest."
Howard Bowen is of the view that "the social responsibilities are obligations to pursue
those policies, to make those decisions or to follow those lines of action which are
desirable in terms of the objectives and values of our society."
A businessman must perform social responsibilities because of the following reason
(i) Self interest
(ii) Better environment for business
(iii) Public image
(iv) Avoidance of government interference
(v) Social power
(vi) Resources used for moral justification
(vii) Contribution to social problems

Kinds of Social Responsibilities


(i) Economic Responsibility
In an economic responsibility, business is expected to produce goods and services that
are beneficial for society and society which wants and sell them at a profit.
(ii) Legal Responsibility
Every business enterprise is expected to operate within the legal frame work of our
society. A law abiding enterprise gets no interference of government and is considered
as a socially responsible enterprise.
(iii) Ethical Responsibilities
Ethics is much more than law, while behaving ethically businessmen should not be
involved in adulteration, black marketing, etc.
(iv) Discretionary Responsibilities
This responsibility is purely voluntary. This includes contribution in charity. Participation
in social service projects, setting up educational and training institutions etc helping
people affected by flood, earthquake etc.

Social Responsibility towards Different Interest Groups

(i) Responsibilities towards Consumers


(a) Production of safe items by maintaining quality standards
(b) Being truthful in advertising
(c) To follow fair trade practices.

(ii) Responsibilities towards Employee


(a) Providing fair compensation and benefits
(b) Providing good and safe working conditions
(c) To give them opportunities to participate in decision making
(iii) Responsibilities towards the Owners / Shareholders / Investors
(a) To ensure safety of investment
(b) To ensure fair and regular return on investment
(c) To ensure appreciation of investment by proper utilisation of resources

(iv) Responsibilities towards the Government


(a) To abide by rules, regulations and laws
(b) To pay taxes and duties on time
(c) To help in solving social problem

(v) Responsibilities towards the Community


(a) To protect the environment from all types of pollution
(b) To provide more employment opportunities
(c) To help the weaker section of the society

(vi) Responsibilities towards Suppliers


(a) To ensure regular payment to the supplier
(b) To adopt fair dealing with the suppliers
(c) To protect and assist small scale suppliers by placing order with them

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