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Social Responsibilities of Business

Social Responsibilities of Business
Social Responsibilities of Business According to Raymond Bauer, “Social responsibility is seriously considering the impact of the company’s actions on the society. It may also refer to the person’s obligation to evaluate in the decision making process, the effects of both his personal and institutional decisions and actions on the whole system, according to Keith Davis and Cobert Blomstorm. A)     SOCIAL OBJECTIVES OF BUSINESS: 1.       The focus should be on quality, safety, service and security which lead to customer satisfaction. Quality– Product superiority and durability Safety– Products should not cause any harm to the consumers Service- After sales service is the link that builds a long standing relationship between the company and customers Security– Sense of satisfaction and belief on the company’s brand  2.       The business has social responsibility of giving adequate opportunities to the members of the society. If everybody aims at white collar job, how does a nation grow economically? Developing economies should promote and encourage entrepreneurs to create more “Job Opportunities.” This especially suits countries like India and China where the pressure of population is very high.  3.       Mass production facilitates in factorizing the economy of scale and at the same time aids in providing with quality goods at reasonable prices to the consumers. We see big chain of retail shops like Cosco and Wal-Mart in the US have made this possible where consumers can avail discount for bulk purchase.  In India, Big Bazaar is a forerunner in this kind of retail marketing which enhances the material well being of a community and raises the average standard of living of the people. 4.        Another main objective of business would be to control the percentage of pollution in air, water and land. Discharge of effluent in a lake or a river by the industrial enterprise may result in water pollution and also affects the plant, animal life and fish and birds to a considerable extent. Stringent laws must be in place to avoid such incidences and protect the society. B)      RESPONSIBILITY TO CONSUMERS There is only one valid definition of business purpose: “to create a customer”, the customer is the foundation of a business and keeps it in existence. The responsibilities of a business towards its customers would be: ·         Increased productivity in order to make goods available for the consumers at the right time at right prices; this solely depends upon the increased efficiency of functioning of the business ·         Constantly strive to improve the quality of goods ·         R & D to improve product quality and to come out with better and new products ·         Proper distribution structure to reach even the remotest of locations ·         Remove hoarding, black marketing, profiteering by middlemen or anti-social elements ·         Provide them with the required after sales service ·         Ensure that the product supplied has no adverse effect ·         Sufficient information about the product has to be given to the consumers regarding the adverse effects and precautions to be taken while using the product ·        No misleading product information through improper advertisements or otherwise ·         To provide an opportunity for being heard and to redress consumer grievances Consumer courts are becoming popular in India for handling consumer grievances swiftly and efficiently. It is but a sad thing that many people do not know that they can address issues relating to quality, quantity or service.The businesses should understand the consumer needs and take necessary measures to satisfy those needs.  C)      REPONSIBILITY TO THE COMMUNITY  ·         To prevent environmental pollution and to preserve the ecobalance ·         Assisting in the overall development of a locality ·         Use alternate energy resources ·         Contributing to research and development ·         Rehabilitate the population displaced by the operation of the business ·         Development of economically backward areas ·         Promotion of small scale industries ·         Contributing to the national effort It...
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