Business

ByBy : BikramBikram NegiNegi

Social Responsibility of business refers to what the business does, over and above statutory requirement, for the benefit of the society.

Corporate Social Responsibility (CSR) refers to the moral responsibility of the business to the society by the virtue of being a part of the society.

Social obligation---social responsiveness---

social responsibility.

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The prime purpose of the business was profit maximization- Milton Friedman “ the business of business is business.”

Friedman argues that the profit earned by business belongs exclusively to the shareholders of the business and these profit cannot be diverted to any other social purpose.- social obligation

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He argued that when management decide to spend the organization’s resources for ‘social good’, they add to the costs if doing business, which have to be passed on to the consumers through higher prices or absorbed by stockholders through smaller dividend.

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‘Moral behavior pays…..at least in the long run.’

According to this view business is a social and economic institution which can not live in isolation.

The establishment and development of business depends upon the contribution made by the society.

This socioeconomic view says that managers'’ social responsibility go beyond making profit to include protecting and improving society’s welfare .

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Social responsiveness means that a company engages in social actions in response to some popular social need.

Social responsibility means a business’s intention, beyond its legal and economic obligation, to for the right things and act in ways that are good for society.

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It has been widely recognized that customer satisfaction shall be the key to satisfying the organizational goal.

To understand needs and wants of the customers.

To improve the efficiency of functioning of business so as to ….

Increase productivity Reduce prices Improve quality and services Smoothen the distribution system

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To supply goods at reasonable price. To provide required after sale services. To ensure product has no adverse

effects on consumers. To avoid misleading customers by

improper advertisement. To provide sufficient information about

product

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The successful organization depends to a very large extent on the morale of the employees.

The payment of fair wages The provision of best possible working

conditions The establishment of fair work standards and

norms The provision of labour welfare facility. Arrangement for proper training and education

of the worker.

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Reasonable and proper chance for promotion

Proper recognition, appreciation and encouragement of skills.

The installation of efficient grievance handling system.

An opportunity for participation in a management decision.

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A fair and responsible return on the capital invested by them

A part in profit or bonus payment scheme Political and economical security for

investment through stable govt. law Knowledge about the working of a n

enterprise. Fair amount of dividend or retained

earnings. Voting rights

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The social responsibility of business include a healthy cooperative business relationship between diff. businesses.

Prevention of unfair and unethical competition and unfair interference in the rival’s business.

Not to spread false rumors about rival’s product. Not to show unethical advertisement. Not to create artificial scarcity. Businessman should adopt better designs, good

advertisements, quick and safe delivery with after sale services, reasonable prices.

It will be a law abiding citizen. It will pay its dues and taxes other state fully and honestly. It will not purchase political support by unfair means; It will sell his goods, commodities and services without

adulteration at fair and reasonable prices, and It will maintain fair trade practices and refrain from activities

like restraint of trade

Major areas where business can and does contribute towards community welfare

Taking appropriate steps to prevent environmental pollution and preserve ecological balance.

Rehabilitation of population disabled by the business. Assisting in over all development of locality. Taking steps to conserve scarce resources Improving the efficiency of business operation. Contributing to R&D Development of backward areas