on social action programmes. It may result in dilution of valuable corporate resources. . Lack of Yard-stick Profitability is the common criteria for decision-making in business.
Tampering it with social responsibility would make the decision-making process quite complex and controversial. . Improper Role The proper role of business is to use its resources and energies efficiently so as to earn the best possible return on investment within the confines of law and ethics. Business should concentrate on economic performance leaving social service to other organisations.
. Over Loading Responsibility Business organisations are already serving society by providing goods and services, generating employment, developing technology and contributing to public exchequer through tax payments. It would be unjust to overburden them with further responsibilities. .
Kinds of Social Responsibility Social responsibility of business can broadly be divided into four categories, which are as follows: Kinds of Social Responsibility . Economic Responsibility A business enterprise is basically an economic entity and, therefore, its primary social responsibility is economic i.e., produce goods and services that society wants and sell them at a profit. There is little discretion in performing this responsibility. Kinds of Social Responsibility of Business Economic Responsibility Ethical Responsibility Discretionary Responsibility Legal Responsibility Commerce - - .
. PM . Legal Responsibility Every business has a responsibility to operate within the laws of the land. Since these laws are meant for the good of the society, a law abiding enterprise is a socially responsible enterprise as well.
. Ethical Responsibility This includes the behaviour of the firm that is expected by society but not codified in law. For example, respecting the religious sentiments and dignity of people while advertising for a product. There is an element of voluntary action in performing this responsibility.
. Discretionary Responsibility This refers to purely voluntary obligation that an enterprise assumes, for instance, providing charitable contributions to educational institutions or helping the affected people during floods or earthquakes. It is the responsibility of the company management to safeguard the capital investment by avoiding speculative activity and undertaking only healthy business ventures which give good returns on