Why should Business be Socially Responsible?

Why should Business be Socially Responsible?
Social responsibility is a voluntary effort on the part of business to take various steps to satisfy the expectation of the different interest groups. As you have already learnt, the interest groups may be owners, investors, employees, consumers, government and society or community. But the question arises, why should business come forward and be responsible towards these interest groups. Let consider the following points:

#1. Public Image
The activities of business towards the welfare of the society earn goodwill and reputation for the business. The earnings of business also depend upon the public image of its activities. People prefer to buy products of a company that engages itself in various social welfare programmes. Again, good public image also attracts honest and competent employees to work with such employers.

#2. Government Regulation
To avoid government regulations businessmen should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a pollution free environment.

#3. Survival and Growth
Every business is a part of the society. So for its survival and growth, support from the society is very much essential. Business utilises the available resources like power, water, land, roads etc. of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of the society.

#4. Employee satisfaction
Besides getting good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education and training. The employers should try to fulfil all the expectation of the employees because employee satisfaction is directly elated to productivity and it is also required for the long-term prosperity of the organisation. For example, If business spends money on training of the employees, it will have more efficient people to work and thus, earn more profit.

#5. Consumer Awareness
Now-a-days consumers have become very conscious about their rights. They protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest the consumers by providing quality products at the most competitive price.

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