taking up social responsibility. It is, therefore, the moral and right thing for business enterprises to assume social obligations. . Image in the Society A business can improve its image in public by assuming social obligations.
Good relations with workers, consumers and suppliers help in the success of business. Social obligations improve the confidence and faith of people in a business enterprise. . Public Awareness Now-a-days consumers and workers are well informed about their rights.
Consumers expect better quality products at reasonable prices. Similarly, workers desire fair wages Commerce - - . . PM and other benefits.
They exercise pressure on the employer’s through-trade unions. There will be industrial unrest and conflict in society, if business does not fulfil its obligations. . Free Enterprise A business enterprise which accepts and discharges social obligations enjoys greater freedom.
For example, the government has passed the Consumer Protection Act to prevent businessmen from indulging in adulteration, black marketing and other anti-social practices. Thus, social responsibilities are essential for avoiding governmental action against business. Such action will reduce the freedom of decision making in business. .
Law and Order Any business unit can survive and grow only when there is law and order in society. If business exploits the weaker sections of society for too long, these sections will take the law in their own hands. The resulting chaos will threaten the very survival of business. .
Moral Justification In a large country like India, government alone cannot solve all the problems. Business has money and talent with which it can assist the government in solving problems. For example, business can play a vital role in solving regional disparities, unemployment, illiteracy, scarcity of foreign exchanges and such other problems in the country. Moreover, business has created some social problems such as pollution, health hazards, etc.
Therefore, business should help society in solving its problems. . Socio-Cultural Norms India has a rich cultural heritage. Businessmen who help in preserving and promoting this heritage will naturally enjoy the patronage of the society and the government.
Business should, therefore, promote equality of opportunity, healthy relations with