Question

Discuss any three reason that go against the concept of Social responsibility of the business. OR Discuss any three reason that go in favour the concept of social responsibility of the business.​

Answer 1

ANSWER :

Social responsibility of a business refers to the obligation or responsibility of it to faje those decisions and perform thise actions that are considered as desirable in terms of the objectives and values of our society.

• According to Peter F Druker, "Social responsibility requires managers to consider whether their actions are likely to promote the public good, to advance the basic belief of society, to contribute to its stability strength and harmony."

➽ Three reasons that go against the concept of Social responsibility of the business are as follows :

• [1] Conflict with profit motive of business : Social responsibility of a business is in conflict with the profit maximization motive of the business. Businesses are accused of having profit maximization as their goal. If social responsibility is considered as an objective of a business, it will reduce the profit margin and this is again the profit maximization concept. Hence, social responsibility concept may violate the concept of profit maximization.

• [2] Lack of social skill : The managers of business are having lack of social skill. They have knowledge and skill for managing business and achieving their goals as well as for facing and solving various economic problems. But they don't have the knowledge for solving or providing right solutions to the social problems. Hence, the business organization can't solve the various problems of the society effectively and efficiently.

• [3] Lack of broad public support : Generally people of the society tend to dislike the interference or involvement of business in their social problems. Therefore, they will not give full support to the business concern in solving any social problem. As the idea of business involvement in achieving social goals is not widely supported and liked by all the people in society, the business cannot operate successfully due to lack of public confidence and cooperation.

➽ Three reasons that go in favour the concept of social responsibility of the business are as follows :

• [1] Long term interest of the firm : If the goal of a business is "service to society", it may gain maximum profit in long run. It is because, a socially responsible firm gains more customers as well as employees feel proud to work for such organization. The public image of a firm would be improved when it supports social goals.

• [2] Better environment for doing business : Taking social responsibility as an objective by a business helps to create a better environment for operating the business. If a business is to operate in a society that is full of diverse and complicated problems, there may have little chance of success. But a society with fewer problems can provide a better environment for a firm to conduct and operate its business.

• [3] Maintenance of society : It is a responsibility for a business to take care of the needs of the society as the business is one the important pillars on which a society survive. People of a society who feel that they are not getting their due from the business may resort to anti-social activities, not necessarily governed by law and this may itself harm the interest of the business. Hence, it is desirable thay business enterprises should contribute to the peace and harmony of the society, also assume social responsibility.