Social Responsibility towards Different Interest Groups
After identifying the concept and importance of social responsibility of business the various responsibilities that a business has towards different groups with whom it interacts are discussed below. The business generally interacts with owners, investors, employees, suppliers, customers, competitors, government and society. They are called as interest groups because by each and every activity of business, the interest of these groups is affected directly or indirectly.
Responsibility of Business Towards Different Interest Groups
Owners are the persons who own the business. They contribute capital andbearthe business risks. The primary responsibilities of business towards its owners are to
· Run the business efficiently.
· Proper utilisation of capital and other resources.
· Growth and appreciation of capital.
· Regular and fair return on capital invested.
Investors are those who provide finance by way of investment in debentures, bonds, deposits etc. Banks, financial institutions, and investing public are all included in this category. The responsibilities of business towards its investors are :
· Ensuring safety of their investment,
· Regular payment of interest,
· Timely repayment of principal amount.
Business needs employees or workers to work for it. These employees put their best effort for the benefit of the business. So it is the prime responsibility of every business to take care of the interest of their employees. If the employees are satisfied and efficient, then the only business can be successful. The responsibilities of business towards its employees include:
· Timely and regular payment of wages and salaries.
· Proper working conditions and welfare amenities.
· Opportunity for better career prospects.
· Job security as well as social security like facilities ofprovident fund, group insurance, pension, retirement benefits, etc.
· Better living conditions like housing, transport, canteen, crèches etc.
· Timely training and development.
Suppliers are businessmen who supply raw materials and other items required by manufacturersandtraders.Certainsuppliers, called distributors, supply finished products to the consumers. The responsibilities of business towards these suppliers are:
· Giving regular orders for purchase of goods.
· Dealing on fair terms and conditions.
· Availing reasonable credit period.
· Timely payment of dues.
No business can survive without the support of customers. As a part of the responsibility of business towards them the business should provide the following facilities:
· Products and services must be able to take care of the needs of the customers.
· Products and services must be qualitative
· There must be regularity in supply of goods and services
After learning about Social Responsibility of the business in this chapter, one can understand the significance of Social Responsibility. The next chapter is about Business Environment and Protection which deals with the organization taking steps to protect both internal and external environment for their sustained growth and development.