Kinds of Social responsibility
Social responsibility of business can
broadly be divided into four categories, which are as follows:
A business enterprise is basically an
economic entity and, therefore, its primary social responsibility is economic
i.e., produce goods andservices that society wants andsell them at a profit.
There is little discretion in performing this responsibility.
Every business has a responsibility to
operate within the laws of the land. Since these laws are meant for the good of
the society, a law abiding enterprise is a socially responsible
enterprise as well.
This includes the behaviour of the firm
that is expected by society but not codified in law. For example, respecting
the religious sentiments and dignity of people while advertising for a product.
There is an element of voluntary action in performing this responsibility.
This refers to purely voluntary
obligation that anenterpriseassumes, forinstance, providing charitable
contributions to educational institutions or helping the affected people during
floods or earthquakes. It is the responsibilityofthecompanymanagementto
safeguard the capital investment by avoiding speculative activity and
undertaking only healthy business ventures which give good returns on