investment. . Social Responsibility towards Different Interest Groups After identifying the concept and importance of social responsibility of business the various responsibilities that a business has towards different groups with whom it interacts are discussed below. The business generally interacts with owners, investors, employees, suppliers, customers, competitors, government and society.
They are called as interest groups because by each and every activity of business, the interest of these groups is affected directly or indirectly. i. Business ii. Investors iii.
Employees iv. Government v. Competitors vi. Society vii.
Customers viii. Suppliers . Responsibility towards Owners Owners are the persons who own the business. They contribute capital and bear the business risks.
The primary responsibilities of business towards its owners are to a. Run the business efficiently. b. Proper utilisation of capital and other resources.
c. Growth and appreciation of capital. d. Regular and fair return on capital invested.
. Responsibility towards Investors Investors are those who provide finance by way of investment in debentures, bonds, deposits etc. Banks, financial institutions, and investing public are all included in this category. The responsibilities of business towards its investors are : a.
Ensuring safety of their investment, b. Regular payment of interest, c. Timely repayment of principal amount. Responsibility of Business Towards Different Interest Groups Social Responsibility of Business towards....
Local Community Environment General Public Shareholders or Investors Employees or Workers Consumers or Customers Government or its Adminstrative Bodies Commerce - - . . PM . Responsibility towards Employees Business needs employees or workers to work for it.
These employees put their best effort for the benefit of the business. So it is the prime responsibility of every business to take care of the interest of their employees. If the employees are satisfied and efficient, then the only business can be successful. The responsibilities of business towards its employees include: a.
Timely and regular payment of wages and salaries. b. Proper working conditions and welfare amenities. c.
Opportunity for better career prospects. d. Job security as well as social security like facilities of provident fund, group insurance, pension, retirement benefits, etc. e.