employees and customers, etc. . Professionalism Management of business enterprises is being professionalised. An owner-manager nurses a greater greed for profiteering because all the gains go to him.
But a salaried and qualified manager is less likely to be lured because he does not benefit from the profits earned through questionable practices. . Trusteeship Mahatma Gandhi suggested that “those who own money or property should hold and use it in trust for society.” Businessmen should run business firms not for their self- enrichment but for the good of the society. .
Arguments For and Against Social Responsibility Arguments for social responsibility The rationale for assuming social responsibility lies in the following arguments; . Protection of Stakeholders Interest A business organisation is a coalition of several interest groups or stakeholders. Example – shareholders, customers, employees, suppliers, etc. Business should, therefore, work for the interest of all of them rather than for the benefit of shareholders / owners alone.
Commerce - - . . PM . Promotion of Society Business is a sub-system of society.
It draws support and sustenance from society in the form of inputs. Socially responsible behaviour is essential to sustain this relationship between business and society. . Assessment of Social Impact During the course of its functioning, a business enterprise makes several decisions and actions.
Its activities exercise a strong influence on the interests and values of society. Business must fulfil social obligations as a compensation for undermining the legitimate interests of society. . Organised Social Power Large corporations have acquired tremendous social power through their multifarious operations.
Social power may be misused in the absence of social responsibility. There should be a equilibrium between social power and social responsibility. . Legitimacy It is in the enlightened self-interest of business to assume social responsibility.
Social responsibility legitimises and promotes the economic objectives of business. By improving social life, business can obtain better customers, employees and neighbours. Social responsibility thus builds good citizenship as well as good business. .
Competence Business organisations and their managers have proved their competence and leadership in solving economic problems. Society expects them