Describe the role of social responsibility in todays era.
Describe the role of social responsibility in todays era.
1. Threat of public regulation: Business institutions operate in a socially irresponsible manner, action is taken to regulate them for safeguarding people’s interest.
This threat of public regulation is one important reason due to which business enterprise feels concerned with social responsibility.
2. Pressure of labour movement: Labour movement for extracting gains for the working class throughout the world has become very powerful. This has forced business enterprises to pay due regard to the welfare of workers instead of following a policy of ‘hire and fire'.
3. Impact of consumer consciousness: Development of education and mass media and increasing competition in the market have made the consumer conscious of his right and power in determining market forces.
Now, customer is the king and business have started following customer oriented approach.
4. Development of social standard for business: New social standards consider economic activity of business enterprises as legitimate but with the condition that they must also serve social needs.
No business can be done in isolation from society.
5. Development of business education: Development of business education with its rich content of social responsibility has made more and more people aware of the social purpose of business.
6. Relationship between social interest and business interest: Business enterprises have started realising the fact that social interest and business interest are not contradictory. Instead, these are complementary to each other.
Long-term benefits of business lie in serving the society well.
7. Development of professional, managerial class: Professional management education in universities and specialised management institutes have created a separate class of professional managers.
Professional managers are more interested in satisfying a multiplicity of interest groups in society for running their enterprises successfully than merely following profit goals.
1. Threat of public regulation: Business institutions operate in a socially irresponsible manner, action is taken to regulate them for safeguarding people’s interest.
This threat of public regulation is one important reason due to which business enterprise feels concerned with social responsibility.
2. Pressure of labour movement: Labour movement for extracting gains for the working class throughout the world has become very powerful. This has forced business enterprises to pay due regard to the welfare of workers instead of following a policy of ‘hire and fire'.
3. Impact of consumer consciousness: Development of education and mass media and increasing competition in the market have made the consumer conscious of his right and power in determining market forces.
Now, customer is the king and business have started following customer oriented approach.
4. Development of social standard for business: New social standards consider economic activity of business enterprises as legitimate but with the condition that they must also serve social needs.
No business can be done in isolation from society.
5. Development of business education: Development of business education with its rich content of social responsibility has made more and more people aware of the social purpose of business.
6. Relationship between social interest and business interest: Business enterprises have started realising the fact that social interest and business interest are not contradictory. Instead, these are complementary to each other.
Long-term benefits of business lie in serving the society well.
7. Development of professional, managerial class: Professional management education in universities and specialised management institutes have created a separate class of professional managers.
Professional managers are more interested in satisfying a multiplicity of interest groups in society for running their enterprises successfully than merely following profit goals.
