Discuss the forces which are responsible for increasing concern of business enterprises towards social responsibility.
Discuss the forces which are responsible for increasing concern of business enterprises towards social responsibility.
Following forces are responsible for increasing concern of business enterprises towards social responsibility
(a) Threat of Public regulation—When a business institution operates in a socially irresponsible manner, action is taken by the Govt to regulate it for safeguarding peoples interest. This threat of public regulation forces business enterprises to feel concerned with social responsibility
(b) Pressure of Labour Movement—Labour unions have forced business enterprises to pay due regard to the welfare of workers instead of exploiting them by giving unfair wages, hire and fire policy etc
(c) Impact of consumer consciousness— Fast developing mass media and education and increasing competition in the market have made consumers conscious of their rights and powers in determining marketing forces. So growing consumer awareness has forced business enterprises to follow customer oriented policies
(d) Development of social standards for business—New social standards consider profit maximising objective as legitimate but with the condition that they must also serve social needs. As it is the society that permits business to exist and grow. It is on the basis of social standards that business functioning is to be ultimately justified.
(e) Development of business education— Development of business education with rich content of social responsibility and ethical behaviour has made more and more people aware of the social purpose of business. Consumers investors, labours and so on have become more sensitive towards social issues and have forced business enterprises to do business for social welfare also.
Following forces are responsible for increasing concern of business enterprises towards social responsibility
(a) Threat of Public regulation—When a business institution operates in a socially irresponsible manner, action is taken by the Govt to regulate it for safeguarding peoples interest. This threat of public regulation forces business enterprises to feel concerned with social responsibility
(b) Pressure of Labour Movement—Labour unions have forced business enterprises to pay due regard to the welfare of workers instead of exploiting them by giving unfair wages, hire and fire policy etc
(c) Impact of consumer consciousness— Fast developing mass media and education and increasing competition in the market have made consumers conscious of their rights and powers in determining marketing forces. So growing consumer awareness has forced business enterprises to follow customer oriented policies
(d) Development of social standards for business—New social standards consider profit maximising objective as legitimate but with the condition that they must also serve social needs. As it is the society that permits business to exist and grow. It is on the basis of social standards that business functioning is to be ultimately justified.
(e) Development of business education— Development of business education with rich content of social responsibility and ethical behaviour has made more and more people aware of the social purpose of business. Consumers investors, labours and so on have become more sensitive towards social issues and have forced business enterprises to do business for social welfare also.
