Question

What do you understand by Social Responsiblity of business? How is it different from legal responsibility.

Answer 1

Social Responsibility refers to the obligations of businessmen to pursue those policies to make those decisions and to follow those lines of action, which are desirable in terms of objectives and values of our society.

Social responsibility of business is broader than Legal responsibility, as business can fulfill its legal responsibilities by compliance with law whereas to fulfil social responsibility voluntary efforts are required. Social responsibility is voluntary in nature but legal responsibility is mandatory in nature.