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Raghvir Kaur

Any responsibility particularly towards members of the society with whom you interact or towards the society in general, are called social responsibility. Social responsibility of business refers to all such duties and obligations of business directed towards the welfare of society. These duties can be a part of the routine functions of carrying on business activity or they may be an additional function of carrying out welfare activity.

The obligation of any business to protect and serve public interest is known as social responsibility of business.

Every business operates within a society. It uses the resources of the society and depends on the society for its functioning.

This creates an obligation on the part of business to look after the welfare of society.
Business should not harm, rather protect and contribute to the interests of the society.

An enterprise is accountable for its impact on all relevant stakeholders. European Union

Wealth created from society has to be ploughed back into the society. Mahatma Gandhis Vision
Responsibility behavior should become part of business process and employee conduct. Anant Nadkarni (GM CSR TATA GROUP)

Corporate can create potential market for themselves by helping the poor. Chaitan Jain (Corporate Haed, GIVE) (Philonthropy Service)

First, any charity activities is not CSR. Because charity does not imply fulfilling responsibility. Secondly, any such activity should not be such that it is good for somebody and bad for others.

Social responsibility implies that a businessman should not do anything harmful to the society in course of his business activities.

Public Image - The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities. Good public image also attracts honest and competent employees to work with such employers.

Government Regulation - To avoid government regulations businessmen should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation.

Survival and Growth - Every business is a part of the society. So for its survival and growth, support from the society is very much essential. Business utilizes the available resources like power, water, land, roads, etc. of the society.

Employee satisfaction - Besides getting good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education and training. Because employee satisfaction is directly related to productivity and it is also required for the long-term prosperity of the organisation.
Consumer Awareness - Now-a-days consumers have become very conscious about their rights. They protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.

Conflicting Considerations: Profit maximization and CSR are opposing each other. Arbitrary Power: Businessmen will get arbitrary power regarding allocation of resources. Hence will intervene the external environment. Disregard of Market Mechanism: Acceptance of socialistic view, might lead to inefficient utilization of factors of production.

Responsibility of Government
Burden on Consumers

Owners Investors Employees

Competitor s

Business

Customers

Government Society

Suppliers

Run the business efficiently. Proper utilisation of capital and other resources. Growth and appreciation of capital. Regular and fair return on capital invested.

Ensuring safety of their investment Regular payment of interest

Timely repayment of principal amount

Timely and regular payment of wages and salaries. Proper working conditions and welfare amenities. Opportunity for better career prospects.

Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc.
Better living conditions like housing, transport, canteen, crches etc. Timely training and development.

Giving regular orders for purchase of goods. Dealing on fair terms and conditions. Availing reasonable credit period. Timely payment of dues.

Products and services must be able to take care of the needs of the customers. Products and services must be qualitative There must be regularity in supply of goods and services Price of the goods and services should be reasonable and affordable. All the advantages and disadvantages of the product as well as procedure to use the products must be informed do the customers. There must be proper after-sales service. Grievances of the consumers, if any, must be settled quickly. Unfair means like under weighing the product, adulteration, etc. must be avoided.

Not to offer exceptionally high sales commission to distributers, agents etc. Not to offer to customers heavy discounts and /or free products in every sale. Not to defame competitors through false or ambiguous advertisements.

Setting up units as per guidelines of government Payment of fees, duties and taxes regularly as well as honestly. Not to indulge in monopolistic and restrictive trade practices. Conforming to pollution control norms set up by government.

Not to indulge in corruption through bribing and other unlawful activities.

To help the weaker and backward sections of the society To preserve and promote social and cultural values To generate employment

To protect the environment


To conserve natural resources and wildlife

To promote sports and culture


To provide assistance in the field of developmental research on education, medical science, technology etc.

The tradition of Tata philanthropy goes back to 1892 when Jamshedji first gave grants to two lady doctors to go abroad and specialise in gynaecology. In the next hundred years the JN Tata Endowment for the higher education of Indians was to give loans to 2000 students towards their studies abroad. Tata Steel invested in waste separation project which ultimately resulted in earning the company twenty times of the amount invested by selling this separated waste.

Shantha Biotech recruits people who have hunger to do something for the country. The company helped the underprivileged by crashing price of a vaccine from Rs. 750 to Rs. 50 and today the vaccine is sold for as little as Rs. 15.

Arvind Eye Hospitals paramedical staff is the key to the success of its business model. The tenth standard pass girls are recruited from the villages and are trained for couple of years and placed as nurses.

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