There is a group discussion taking place in class XI regarding social responsibility of business. Ram feels that a business should be socially responsible towards the society it exists in while Rahul is against it as the basic objective of a business is to earn profits. Whom do you think, you will favour? Write points with respect to your opinion?
There is a group discussion taking place in class XI regarding social responsibility of business. Ram feels that a business should be socially responsible towards the society it exists in while Rahul is against it as the basic objective of a business is to earn profits. Whom do you think, you will favour? Write points with respect to your opinion?
I will favour Ram. Social responsibility is important for the success of the business.
1. Protect the interests of stakeholders:
- To get the support of employees, it has become necessary for organisations to discharge responsibility towards their employees.
- Consumer does not buy what is offered to him. He buys what he wants. Consumer sovereignty has, thus, forced firms to assume social responsiveness towards them.
- Fulfilling social obligations is beneficial for long-run survival of the firms.
2. Long-run survival:
- A firm and its image stands to gain maximum profits in the long run when it has its highest goal as ‘service to society'.
- It is in its own interest if a firm fulfills its social responsibility.
- The public image of any firm would also be improved when it support social goals.
3. Self-enlightenment:
- With increase in the level of education and understanding of businesses that they are the creations of society, they are motivated to work for the cause of social good.
- Managers create public expectations by voluntarily setting and following standards of moral and social responsibility.
- Rather than legislative interference being the cause of social responsibility, firms assume social responsibility on their own.
4. Avoids government regulations:
- Government regulations are undesirable because they limit freedom.
- It is believed that businessmen can avoid the problem of government regulations by voluntarily assuming social responsibilities, which helps to reduce the need for new laws. For example, Central Pollution Control Board takes care of issues related to environmental pollution.
5. Resources:
- Business organisations have enormous resources which can be partly used for solving social problems.
- Businesses are the creation of society and must work in the best interest of society, both economically and socially.
- It can help society to tackle its problems better, given the huge financial and human resources at its disposal.
6. Professionalisation and better environment:
- Management is moving towards professionalism which is contributing to social orientation of business.
- The ethics of profession bind managers to social values and growing concern for society.
- A society with fewer problems provides better environment for a firm to conduct its business. Holding business responsible for social problems.
- Social problems have either been created or perpetuated by business enterprises themselves.
- It is the moral obligation of business to get involved in solving these problems, instead of merely expecting that other social agencies will deal with them.
7. Converting problems into opportunities:
- Business with its history of converting risky situations into profitable deals, can not only solve social problems but it can also make them effectively useful by accepting the challenge.
I will favour Ram. Social responsibility is important for the success of the business.
1. Protect the interests of stakeholders:
- To get the support of employees, it has become necessary for organisations to discharge responsibility towards their employees.
- Consumer does not buy what is offered to him. He buys what he wants. Consumer sovereignty has, thus, forced firms to assume social responsiveness towards them.
- Fulfilling social obligations is beneficial for long-run survival of the firms.
2. Long-run survival:
- A firm and its image stands to gain maximum profits in the long run when it has its highest goal as ‘service to society'.
- It is in its own interest if a firm fulfills its social responsibility.
- The public image of any firm would also be improved when it support social goals.
3. Self-enlightenment:
- With increase in the level of education and understanding of businesses that they are the creations of society, they are motivated to work for the cause of social good.
- Managers create public expectations by voluntarily setting and following standards of moral and social responsibility.
- Rather than legislative interference being the cause of social responsibility, firms assume social responsibility on their own.
4. Avoids government regulations:
- Government regulations are undesirable because they limit freedom.
- It is believed that businessmen can avoid the problem of government regulations by voluntarily assuming social responsibilities, which helps to reduce the need for new laws. For example, Central Pollution Control Board takes care of issues related to environmental pollution.
5. Resources:
- Business organisations have enormous resources which can be partly used for solving social problems.
- Businesses are the creation of society and must work in the best interest of society, both economically and socially.
- It can help society to tackle its problems better, given the huge financial and human resources at its disposal.
6. Professionalisation and better environment:
- Management is moving towards professionalism which is contributing to social orientation of business.
- The ethics of profession bind managers to social values and growing concern for society.
- A society with fewer problems provides better environment for a firm to conduct its business. Holding business responsible for social problems.
- Social problems have either been created or perpetuated by business enterprises themselves.
- It is the moral obligation of business to get involved in solving these problems, instead of merely expecting that other social agencies will deal with them.
7. Converting problems into opportunities:
- Business with its history of converting risky situations into profitable deals, can not only solve social problems but it can also make them effectively useful by accepting the challenge.
