The document discusses the social responsibilities of businesses. It defines social responsibility as businesses considering the impact of their activities on society in decision making. Businesses have responsibilities to customers, employees, the environment, investors, suppliers, competitors, government, and society. They should support communities, self regulate, and conduct social audits to ensure they meet their social obligations.

1. SocialResponsibilityof aBusiness

2. Organizations should not avoid the social responsibility
of business. Many firms recognize the importance of
social responsibility and take steps to see that policies are
taken and implemented in such a way that they make a
positive impact on society.
They should practice social responsibility through
community support, self-regulation, and social audit.
Social responsibility of business towards the customer,
employee, environment, government, competitor, society,
and investor.

3. 1. Definition of social
responsibility of
business.
2. Responsibility to the
customers
3. Responsibility to the
employee
4. Responsibility to the
environment
5. Responsibility to the
investors
6. Responsibility to the
Suppliers
7. Responsibility to the
competitors
8. Responsibility to the
Government
9. Responsibility to the
society.
10. Community Support
11. Self-regulation
12. The social audit

4. Social responsibility is the awareness that business activities have an impact on society and the
consideration of that impact by firms in decision-making. The business organization produces
goods and services to generate profit.
At the same time, it does have some impact on society as well as the whole community. Social
responsibility is a must for a business organization. If business firms fail to discharge the
responsibility then they will fail to create goodwill and last long.
“Social responsibility of business refers to the obligations of businessmen’s decisions and
actions taken for reasons at least partially beyond the firm’s direct economic and technical
interest.” — said by Keith Davis
“Social responsibility is to pursue those policies, to make those decisions, or to follow those
lines of action which are desirable in terms of the objectives and values of our society.” — said
by Howard D. Bowen
“Corporate Social Responsibility is a management concept whereby companies integrate social
and environmental concerns in their business operations and interactions with their
stakeholders.” — said by United Nations Industrial Development Organization (UNIDO)
“Corporate Social Responsibility is the continuing commitment by business to behave ethically
and contribute to economic development while improving the quality of life of the workforce
and their families as well as of the local community and society at large.” — said by The World
Business Council for Sustainable Development (WBCSD).

5. 2.ResponsibilitytotheCustomers
Business organizations survive through selling their products to the customers.
And for a business organization customers are the main stakeholders. So the
business organization must have some responsibility to the customers and these
are discussed below:
The right to be sure about safety: The most basic consumer right is to be sure
about the safety of the product’s possession. The business organization should
taste the product and give direction to the consumer about its proper use. If should
also monitor the product’s safety that is sold to the customer.
The right to be informed: Customer has the right to receive available information
all relevant information belfry purchasing a product. The business organization
should inform the customer about the limitation, or any kind of problem with the
product. They should inform the customer about the harmful effects of a product
like, “smoking is injurious for health”
The right to choose: Customers have also the right to choose a variety of products
at competitive prices. They also have the right to buy a product of the right quality
at a fair price.

6. The right to be heard: The business firms should give the customers the
opportunity to be heard before taking major decisions regarding the production of
goods and services. The consumer relations
depart must be activated to learn about consumers, grievances.
After-sales service: After-sales service create faith among customers. It grows the
company’s goodwill.
Genuine advertisements: Fake advertising is very often today, it may have some
benefit for a certain period but in the long run, it will destroy a business.
Research and development: Research and development is the key to business
growth. It helps to increase the quality and decries the price of the product or
services.
Adverse effects: Company should aware of their customer if their product or
service have any adverse effects. It may decrease the sales volume but this policy
increases brand image and gain customer’s faith.

7. No business organization can run its operations without the co-operation of
employees…So; the business firms have some responsibility to the employees. The
employees expect safe working conditions, fair compensation, equal opportunities,
and adequate benefits, etc. The major rights of the employees are discussed below:
Equity in the workplace: Employees expect to be treated equitably in the workplace.
The business firms have to ensure fair treatment to all employees regardless of age,
race, gender, religion, or national origin.
Safety in the workplace: The business organization should take necessary steps for
safety programs. Emphasis on safety training to avoid different types of accidents
should decrease repetitive motion. The organization should also introduce job rotation
to avoid repetition.
Fair wages to employees: A business organization directly connected with their
employee. And they are responsible to ensure the right of their employee. So the
company should practice a fair policy for employee wages.
Provide enough training and development facility: Though this is a business
responsibility of a business organization is also a social responsibility of a business
organization.

8. Employment of women: Women’s employment is essential for women’s
empowerment. Roughly half of our populations are women. We can’t develop our
country/society or family without women’s engagement.
Promotion in due time: Getting promotion in due time is the right of every
employee but it is the business and social responsibility of the business organization.
Employee Welfare facilities: A company who are responsible to their employee they
ensure welfare facility for their employee. At the same time, it grows positivity to
worker’s mind toward the company.
Adequate social security measures: The company should take some social security
measures for its employees which are mentioned in International Labor Standards on
Social security. These social security measures are Medical care, Sickness benefit,
Unemployment benefit, Old-age benefit, Employment injury benefit, Family benefit,
Maternity benefit, Invalidity benefit, and Survivors’ benefit.
A business organization should ensure the participation of workers in management. A
worker should get an appreciation for his good work and conduct.

9. Business activities have an impact on the environment. Our environment is always
polluted by the wastes of business organizations. So, the business organization has
some responsibility to the environment and these are discussed below:
Preventing air pollution: Air polluting is caused by carbon monoxide and
hydrocarbons that come from motor vehicles and smoke. Smoke comes from
brickfields. The business organizations which manufacture motor vehicles should
take a step to catalytic converters which have been developed to help control air
pollution.
Preventing water pollution: Land is polluted by coal and minerals, forest fires,
garbage disposal, cutting of trees, etc. Land pollution often results in water pollution
because; toxic water drains into the water supply.
So, business organizations can take steps by reusing materials such as papers, plastic,
glass, and aluminum to make other products and control land pollution.

10. Business organizations also have some responsibilities to the people who invest
money. Because the business is run with the investor’s money. The responsibilities
of investors are given below:
Proper management of funds: Firms have a responsibility to manage funds
properly. Management has the responsibility to safeguard the interests of the
investors. They have to be conscious of the faith of the investors.
Access to information: Firms have the responsibility to make stock information
available to all potential investors and have to stop insider trading for reserving the
faith of the investors.
Executive compensation: The Company should maintain a suitable compensation
structure for the executives. They should be well paid and rewarded for good
performance.
A fair return on investment: A business enterprise should ensure a good return on
investment to its shareholders. And this is only possible when a business earns
enough profit.

11. Make the share price stable: Fluctuation of the share price is not acceptable for a
company. It may bring harm to the company. So, a business should be concern about
share price.
Improve company image: Goodwill or brand image is everything for a product or
service. Without a growing company image, a business can’t survive long.
Generate adequate funds: A company should have enough funds in reserve so they
can use for re-investment or for various purposes.

13. Timely Payment: Suppliers are one of the most vital parts of the business. Getting
payment timely increase responsibility among suppliers toward that business.
Fair credit policy: Credit policy should be clear and fair. Unfair credit policy will be
harmful to a business in the long run.
Maintain fair terms and conditions: A business enterprise should maintain fair
terms and conditions for business goodwill.

14. Healthy competition: healthy completion in business is bringing good for all. It
encourages employees, investors, and competitors to work hard. Healthy
competition provides good products or services.
Don’t harm competitor: Doing harm to others can’t bring any good for anyone.
Though doing harm to competitors is illegal but it also a social responsibility of a
business not doing harm to his competitor.
Don’t copy competitor’s strategy or policy: Coping competitor strategy is a
common thing now but this is not fair policy.
Be fair to the competitor: A business must have competition but fair competition
is based on price, quality, service, etc. Every business should maintain fair business
competition.

15. From the beginning of a business, the government plays a vital role in business. The
government ensures so many things for a business like utility facility, security,
communication, and many more.
As well as a business also have some social security measure toward a government
which is mention below:
Pay all taxes and duties: Paying taxes and duties is not an only financial liability but
it is the social responsibility of business.
Fair-trade policy: As a part of social responsibility a business organization should
practice fair trade policy.
Ignore political favors: Now a day many businesses take political favor to grow big
or to get the new business projects. But that is not a fair policy; a business
organization should avoid political favor.
Avoid bribe: Bribe is the main barrier of economic growth, so a business
organization should avoid bribe. By not giving bribe a business can ensure its social
responsibility to the government. By abiding all relevant government legislation
businesses can be responsible for the government.

16. A business enterprise exists in us and functions among us which means in society. A
business enterprise is a part of our society; it cannot ignore the responsibility
toward society. Let’s discuss the major social responsibility of business toward
society:
Increase general amenities to society: As a part of social responsibility, a business
institution should take some steps to extend few general amenities to society like car
parking, sports, and recreation, facilities for senior citizens, tree plantation, etc.
Wasteful expenditure: A business has various types of expenditure and may some
of them are excessive and wasteful. A business organization should concern about
that expenditure. And they can use this money to improve our society.
Improve living standard: Large scale businesses can improve the living standard of
a certain community. By improving certain things like income, employment
opportunities, the cost of goods, and services living standards can be improved.
A business enterprise can adopt some village or area to improve its/their
educational, social, health, and economic development.

17. 10.CommunitySupport
Business organizations provide a wide variety of support for the community. They
donate money for the welfare of the community. They build schools, parks, roads, etc.
and sponsor academic scholarships and help to reduce distress from the community.
11.Self-regulation
Sometimes business organizations establish a code of conduct and ensure that all the
members of the community follow it.
12.Thesocialaudit
A social audit means a systematic review of an organization’s performance of social
responsibility activities. With information from social audit, managers can evaluate
how effective are the current programs, prices safety, measures, etc. and initiate a
new course of actions.

18. Form the above discussion we have understood clearly the social responsibilities of
business. At first glance, someone can think that social responsibility is not
profitable for the business.
But these types of social activities help a business in many ways. Doing social
activates increase brand value, increase company public image, grow customer’s
faith, sometimes it increase share value.
Overall a company can gain respect from people by doing social responsibility
activities. Business organizations must take proper care of social responsibility in
order to survive and grow. If you want to learn more about Social Responsibility of
business, visit Bankofinfo.com
Thank You!