To abide by the laws of the nation. (ix) Providing for their education and training. Voluntary dividend restriction is desirable. In the social contract, one party to the contract gives something and expects a certain thing or behaviour pattern from the other. Health is another field in which business firms are uniquely convenient agents. Licences, permits and registrations The licences you require … Towards Bankers and Financial Institutions: Responsibilities towards bankers and financial institution include: (i) Providing correct data and information for project appraisal. To generate more employment opportunities. b. Employee satisfaction leads to the achievement of the organisational goals. Updated March 30, 2020 When you hire your first employee, you have some legal and ethical responsibilities to that employee and to all future employees when it comes to pay, benefits, and … They can thus ensure that the company is pursuing a dynamic policy and that sufficient profit is laid aside for innovation and expansion. This can be done by establishing a corporation and endowing it with capital out of earnings and savings. (iv) To supply goods at reasonable prices even when there is a seller’s market. The development of human potentiality is so important that it is not wrong to say that “management is the development of people and not the direction of things”. An organization’s first responsibility is to provide a job to employees. To develop their skills through training and education. Responsibility Towards Employees: A business organisation can run effectively only when the morale of its employees is high and their needs are fully met. Some of the major areas where business can and does contribute towards community welfare as part of its social responsibility are: Industry/business can help rural areas by introducing ‘self- help’ and ‘earn-while-you-learn’ programmes. Besides, rural education could provide individuals with knowledge and skills to enable them to manage their families, to participate in cultural and economic life and to sharpen problem-solving capabilities. The social contract often involves a quid pro quo (i.e. (v) To make goods available according to the taste of the consumers. Political and economic security for investment through a stable government, good law and order situation and stable tax policies and fiscal measures; iv. (v) To ensure safeguards of Human Rights. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Intelligent, practical laws, easily understood and easily applied; iii. To pay a fair return on their capital investment (dividend or interest). To pay government taxes honestly and in time. To Follow Code of Conduct. When roles and responsibilities have discoursed it is all about health and safety, right for the right wage, equal opportunities, employment terms and conditions and few more. Employees make valuable contribution to the activities of a business organisation. Fair Prices: The customers should not be cheated by charging high prices. This sounds like a crony capitalism……. Business organisations also hold a responsibility towards improvement of the quality of life the people in the community. Once the company is viable the consumers’ claim on its profits is the greatest of all. A small business choosing to hire employees inherits a series of responsibilities mandated by … The rules of the game obviously include accepted ethical practices, in addition to international, national and other laws. Most of these practices boil down to cheating and playing with the lives of people. He should bury the dead and turn to building of a better world in which there will be no profits except the earned profits that come from real service and-no privilege of participation in the upward march of human life. The responsibility of business towards the customers are as follows : To ensure regular supply of goods and services. She has written for The Balance on U.S. business law and taxes since 2008. (iii) Clearance of the principal amount on or before due date. This will enable the company to plough back ample profits for innovation and expansion. The modern businessman should not tolerate a social order with so many economic corpses lying around. 4. 2. Corporate social responsibility towards Employees. They should seek their profits in a truly scientific way, and use them for public good. 5. (i) Providing technical know-how and assistance, (iii) Assuring continuous purchase of inputs, (iv) Helping them in expansion and development. (v) To provide the required after-sales services. As a businessman is as human as any other human being, he has to participate in human life, and human life is very largely social. (x) Providing opportunity for promotion and development. Business needs employees or workers to work for it. To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise”. What Responsibilities Does a Business Have Toward Its Employees?. Strangely enough, the idea of trusteeship has not had general acceptance in the land of its birth, in spite of the efforts on the part of Gandhiji to revive it. 2. To pay government taxes honestly and in time. Disclaimer To provide quality healthcare to their employees. In fact in such imperfect market conditions, consumers are exploited by raising of prices much above the cost of production, workers are exploited as they are not paid fair wages equal to the value of their marginal product. Employees have responsibilities towards their employers, even if they work part time or don’t have a written contract with their employers. 5. It is unacceptable to obstruct the forces of competition from having free play. (vi) To ensure that the product supplied has no adverse effect on the consumer. To conclude, it is suggested that business firms should act on the facts of business. If the plea of the companies that they are perform­ing a social purpose is to be accepted, it can only be judged by the test of social responsiveness shown to the needs of the society”. Thus, authors of a noted textbook on management write, “It is true that Friedman sets a rather high standard when he suggests that businesses should operate within the ‘rules of the game’, practicing neither deception nor fraud. These problems can be solved through medical help, and the help of social workers. Duties towards society (d) Preservation of environment: 5. Social Responsibilities of Organization Towards Customers Let us go through some social responsibilities of an organization towards its customers. It is sometimes argued by economists as well as by business men accused of neglecting the public interest, that the business of business is just business. Though all stakehold­ers including the society in general are affected by the business activities of a corporate enterprise, managers may not acknowledge responsibility to them. In brief, it may be said that “business must accept responsibility to the society and its various constituents as a trustee for the goods and services that it produces, consumes, saves and reinvests.”. 2. The organized movement to protect consumer rights which is termed as consumerism has been the result of the negligence of business enterprises to their responsibilities to consumers. Indeed, the principal reason for social irresponsibility is the failure of transactions to occur. The most important responsibility of a corporate enterprise towards employees is the payment of fair wages to them and provide healthy and good working conditions. The corporate enterprise should have good and fair employment practices and industrial relations to enhance its productivity. (vi) To make goods available to the consumers at the nearest point. Social responsibility of business implies the obligations of the management of a business enterprise to protect the interests of the society. Business and other agencies can help the government by undertaking studies and programmes of technical and financial assistance for the development of cheap public transport and distribution systems through improved journey planning and traffic regulation, increased operational efficiency and utilisation of road capacity, improved systems and procedures of granting licenses, more rational and scientific estimates for vehicle fleet size and manpower for different modes of transport, improved maintenance and replacement policy for the spares and structural changes in urban and rural layouts. To invest adequately in the research and development so as to make innovations to improve their productivity. Responsibility towards Employees. Responsibility towards Different Interest Groups The business generally interacts with owners, investors, employees, suppliers' customers, competitors, government and society. 4. Responsibility of Business Enterprises towards Stakeholders and Society in General contract. (ii) To bring out reality in advertisement. This is based on the fact that the enterprise is an organ of society, and that its actions have a decisive impact on the social scene. In shortage economies like India many businessmen pay scant attention to their responsibilities to consumers. A social audit should generally adopt a four-step process, viz. In this context the function of management is to see that the business enterprise fulfills its purpose by paying investors a fair return on their capital, by paying workers a fair compensation for their effort, by paying vendors a fair price for the materials and supplies, and by “paying” the consumers in terms of reasonable price, quality and service and, above all, by helping our society to function in harmony as an organic whole. (i) Taking appropriate steps to prevent environmental pollution and to preserve the ecological balance. Changing Fair Prices: -The products and services should be available to consumers at fair prices. The management should encourage the establishment of the Consumers’ Advisory Councils/Committees so that these bodies could represent the grievances of consumers to the management. To work and contribute towards the rescue and relief work in case of flood, earthquake, etc. Our mission is to liberate knowledge. 3. The business enterprises should recognise the need for providing essential labour welfare activities to their employees, especially they should take care of women workers. (v) To ensure the proper utilisation of invested capital. Avoid making fake promises and commitments which you yourself know are difficult to fulfil. The responsibility of business enterprise towards consumers of its products are: (a) Ensuring availability of products in the right quality, at the right place and at the right time. Always harmful, as it likes but it can not share posts by email enjoy... 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