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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.

Social responsibilities 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

Social Responsibilities of Business

 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.


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.

customer satisfaction


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 is gratifying to see that many leading corporate icons of private sector in India have been instrumental in the setting up of institutions, colleges, management and research institutes, hospitals, temples and dharamshaalas.


As the shareholders are the owners of the company by way of investment and share the risk, they should be properly rewarded. The responsibilities of a business towards its shareholders would be:

To safeguard their investment

To ensure a fair return in terms of dividends

To pay dividends on time

To treat the shareholders on basis of parity

To keep them well informed about the activities and position of the company

To prepare the balance sheet and p&l account carefully for the perusal of the share holders

To ensure safety of investments by employing them in safe channels

To supply all the necessary information demanded by the owners


The success of a business organization depends to a larger extent on the morale and heart felt co-operation of the employees.

It is only but natural that they expect a fair treatment in return.

Payment of fair wages– A satisfied employee works more efficiently and honestly

Good working condition- Safety, healthy and human work environment is needed

Provision of medical aid, education and other facilities

Encouraging creativity and provision of growth opportunities- induces sense of confidence and trust on the firm and personal satisfaction

Participation in management- necessary for accomplishment of enterprise objectives

Establishment of fair work standards and norms- for each and every function

Arrangement for proper training and education of the workers- ‘On the job training’ is crucial for technical functions backed up by coaching    and mentoring

Proper recognition, appreciation and encouragement of special skills and capabilities of workers- improves productivity

Installation of efficient grievance handling system- Reduces clash between union and management


The industries of the private sector have to support the government in the following manner:

Payment of taxes- Taxes should be paid on time which are the major source of revenue for the exchequer

To implement all the statutory rules and regulations and factories act- like minimum wages, safety, regulations, submission of returns, licensing etc.,

Now that every activity has gone online, things have been made easy for business people, be it filing of returns or payment of taxes. You need a smart accountant who is tech-savvy to take care of the proceedings and updations.

Not to misuse the political connections- Now this happens in every other country, corrupt ways in securing licenses, misusing government facilities etc., and such things could be avoided.

Not to resort to malpractices of bribing government officers and employees for getting undue advantages and facilities

Avoidance of black marketing and adulteration

Implementing government policies

Not exercising the economic and political power contrary to the public interest.