Q.5:- What are the major areas of social responsibility of business?
When the business commenced, social objective of the firm recognized and they are able to know to whom and for what the business and its management are responsible. The major areas of social responsibilities of business include the following
(i) Responsibility towards the Shareholders or Owners A business enterprise has the responsibility to provide a fair return to the shareholders or owners on their capital investment and to ensure the safety of such investment.
(ii) Responsibility towards the Workers Management of an enterprise is also responsible for providing opportunities to the workers for meaningful work and ensures a fair wage of their work.
(iii) Responsibility towards the Consumers Supply of right quality and quantity of goods and services to consumers at reasonable prices constitutes the responsibility of an enterprise toward its customers.
(iv) Responsibility towards the Government and Community An enterprise must respect the laws of the country and pay taxes regularly and honestly. It must behave as a good citizen and act according to the well accepted values of the society and protect the natural environment.