The Social Responsibilities of Management:: 1. Shareholders or Investors

The Social Responsibilities Of Management:
The need for the greater professionalization is

emphasized in the modern context by the stress on the
manager’s social responsibilities and not judging him
merely on the basis of profits or profitability. As
Professor Dasgupta aptly points out that, whether in
the public or the private sector every enterprise “must
be so conducted that it can serve its own objectives as
well as social purpose”.
Actions of the manager affect society. For example,
misleading advertising can hurt the consumers.
Personal bias and philosphies can result in unfair
treatment of certain subordinates. It is the
management’s responsibility to use most productively
the limited resources in terms of material and human
beings made available to the enterprise. In India, in
the context of the socialistic pattern of society, these
obligations increase in importance
1. Shareholders or investors
Social responsibility of business towards its

shareholders or investors is most important of all
other obligations.
If a business satisfies its funders, they are likely
to invest more money in a project. As a result,
more funds will flow in and the same can be
utilized to modernize, expand and diversify the
existing activities on a larger scale. Happy
financiers can fulfill the rising demand of funds
needed for its growth and expansion.
2. Personnel

personnel is important because they are the
wheels of an organization. Without their support,
the commercial institution simply can't function or
operate.
If a business takes care of the needs of its
human resource (for e.g. of office staff,
employees, workers, etc.) wisely, it will boost the
motivation and working spirit within an
organization. A happy employee usually gives his
best to the organization in terms of quality labour
and timely output than an unsatisfied one. A
pleasant working environment helps in improving
the efficiency and productivity of working people.
A good remuneration policy attracts new talented
professionals who can further contribute in its
growth and expansion.
Thus, if personnel is satisfied, then they will work
together very hard and aid in increasing the
production, sales and profit.
3. Consumers or customers

consumers or customers matters a lot from sales
and profit point of view. Its success is directly
dependents on their level of satisfaction. Higher
their rate of satisfaction greater are the chances
to succeed.
If a business rolls out good-quality products
and/or delivers better quality services that too at
reasonable prices, then it is natural to attract lots
of customers. If the quality-price ratio is
maintained well and consumers get worth for
their money spend, this will surely satisfy them. In
a long run, customer loyalty and retention will
grow, and this will ultimately lead to profitability.
4. Government
Social responsibility of business towards

government's regulatory bodies or agencies is
quite sensitive from the license's point of view. If
permission is not granted or revoked abruptly, it
can result in huge losses to an organization.
Therefore, compliance in this regard is
necessary.
Furthermore, a business must also function
within the demarcation of rules and policies as
formulated from time to time by the government
of state or nation. It should respect laws and
abide by all established regulations while
performing within the jurisdiction of state.
Some examples of activities a business can do in
this regard:
o Licensing an organization,
o Seeking permissions wherever necessary,
o Paying fair taxes on time,
o Following labor, environmental and other laws,
etc.
If laws are respected and followed, it creates a
goodwill of business in eyes of authorities.
Overall, if a government is satisfied it will make
favorable commercial policies, which will
ultimately open new opportunities and finally
benefit the organization sooner or later.
Therefore, satisfaction of government and local
administrative bodies is equally important for
legal continuation of business.
5. Local community
Social responsibility of business towards the local
community of its established area is significant.
This is essential for smooth functioning of its
activities without any agitations or hindrances.
A business has a responsibility towards the local
community besides which it is established and
operates from. Industrial activities carried out in a
local-area affect the lives of many people who
reside in and around it. So, as a compensation
for their hardship, an organization must do
something or other to alleviate the intensity of
suffering.
As a service to the local community, a business
can build:
o A trust-run hospital or health center for local
patients,
o A primary and secondary school for local
children,
o A diploma and degree college for local students,
o An employment center for recruiting skilled local
people, etc.
Such activities to some-extend may satisfy the
people that make local community and hence
their changes of agitations against an
establishment are greatly reduced. This will
ensure the longevity of a business in a long run.
6. Environment
Social responsibility of business with respect to

its surrounding environment can't be sidelined at
any cost. It must show a keen interest to
safeguard and not harm the vitality of the nature.
A business must take enough care to check that
its activities don't create a negative impact on the
environment. For example, dumping of industrial
wastes without proper treatment must be strictly
avoided. Guidelines as stipulated in the
environmental laws must be sincerely followed.
Lives of all living beings are impacted either
positively or negatively depending on how well
their surrounding environment is maintained
(naturally or artificially). Humans also are no
exception to this. In other words, health of an
environment influences the health of our society.
Hence, environmental safety must not be an
option else a top priority of every business.
7. Public
Finally, social responsibility of business in
general can also contribute to make the lives of
people a little better.
Some examples of services towards public
include:
o Building and maintaining devotional or spiritual
places and gardens for people,
o Sponsoring the education of poor meritorious
students,
o Organizing events for a social cause, etc.
Such philanthropic actions create a goodwill or
fame for the business-organization in the psyche
of general public, which though slowly but
ultimately pay off in a due course of time.
The world is recognizing the importance of social
responsibility of business.

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The Social Responsibilities Of Management:

The need for the greater professionalization is

Social responsibility of business towards its

Social responsibility of business towards its

Social responsibility of business towards its

Social responsibility of business towards

Social responsibility of business with respect to

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