SOCIAL RESPONSIBILITY OF BUSINESS AND BUSINESS ETHICS


 

➢ Concept- Social responsibility refers to the duties and responsibilities of business enterprises towards the society at large. As a business makes use of the society’s resources to undertake production and earn profits, it becomes its moral duty to work towards the betterment of the society by taking up favourable activities.

Arguments for Social Responsibility The following points justify the need of social responsibility by business houses:
i. Existence and growth of business- The existence of a business depends on how efficiently it serves the society by providing goods and services and considering the various aspects of social responsibility.
ii. Long-term interest of a firm- Giving due consideration to the welfare of the society and serving the various members of that society can help a business gain maximum profits in the long run.
iii. Avoidance of government regulations- Working in line with the values and ethics of the society will help a business avoid unwanted government intervention.
iv. Availability of resources- As compared to other members of the society, business enterprises have greater availability of financial and other resources at their disposal which can be effectively utilised for solving various socia…