Write short note on social responsibilities of management.Ripunjay Tiwari
Ans. In addition to shareholders, a company contain number of stakeholders like as employees, creditors, public, customers, government, and suppliers. The goal of a company not only the maximization of the shareholders wealth, but also adheres to its social responsibility of protecting customer interests,
adoption of good hiring practices, payment of fair wages, awareness of environmental issues etc. A good business believes that corporate existence depends upon social responsibility. Some arguments for social involvement of business are given below –
(i) A favorable public image can be created by social involvement. Hence a firm may attract customers, investors and employees.
(ii) Social involvement discourages additional government regulation and intervention. The result is greater freedom and more flexibility in decision making for business.
(iii) New age society is an interdependent system, and the internal activities of the enterprise have an impact on the external environment.
(iv) It is good to stop social problems through business involvement than to cure them. It can be simpler to help the hard-core unemployed than to cope with social unrest.
(v) The social involvement may be ,in the interest of the organization itself.