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
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
Growth and appreciation of capital.
Regular and fair return on capital
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
Proper working conditions and welfare
Opportunity for better career prospects.
Job security as well as social security
like facilities ofprovident fund, group insurance, pension, retirement
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
Giving regular orders for purchase of
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
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.