The business cannot afford to ignore its social responsibilities. It is business not only to do business only but it is required to serve the society as well. The business has to shoulder the social responsibilities in order to better the consumers’ service and self-improvement. There are some business obligations towards
- Consumers and
1. Business Obligations to Itself
They very first activity which the business has to ensure that it stays in the business. For this purpose perfect planning with honesty and foresight. Effect planning will really boost up the business. A business must think about growth, stability and expansion. Earning realistic profit through lawful means increase in wealth of the organization which leads to high production. This is the first task which the business has to accomplish in order to stay in the business for a longer period and also to serve the society with vigour and zeal.
2. Business Obligation to Shareholders
If it is company organization, then naturally it owes its very existence to its shareholders who in turn expect something served and reasonable from the company not only in the form of fair amount of dividend or their holdings but also they expect that the company shall also be fulfilling its obligation to the capital market as well. In company form of organization management has to ensure a reasonable amount of return and ensure company’s progress to the satisfaction of the shareholders.
3. Business Obligations to Employees
Business obligations to employees means fair wages, employment security, social security and opportunity to grow with the organization are natural expectations of every worker of any organization. It is the man who works and want that his potentialities should be recognized, fully utilized and suitably rewarded. The man never shirks the work provided he is confident that everything in the organization is fair and whatever is due to him will in no circumstances be denied. Management is the development of people. It should create healthy work environment. Collective bargaining and workers participation are two weapons which should never be lost sight of by the management.
4. Business Obligations to Consumers
The business comes into existence for serving the consuming public. In fact it is the primary objective of any business organization. Offering the goods and services at the lowest possible prices is not the only good thing. Timely and quality supply, best possible service, good relations, courtesy honest advertisement are a few of the examples which every consumer expects from the business. These are the business obligations to its customers. In fact, these are the pillars over which the firm structure of the business empire is built.
5. Business Obligations to Society
A business having faith in its self can built its image of responsible business enterprise. It then enjoys good reputation. It can then receive praise and good will of all who matters. Business cannot be treated in isolation. It is the part of the society. It is as good as a citizen. Just like a good citizen there are some more business obligations that it should not fouling the air, spoiling natural resources and natural beauty of the surrounding landscape, creation of slums and congestion.