Social responsibility of business | why should business be socially responsible?

Social Responsibility of Business

Why should Business be Socially Responsible

Social responsibility of business

Social Responsibility Laws and how it is Implemented in India,

Consumer Protection Act 1986

Objects of the Consumer Protection Act 1986

What is Social Responsibility of Business

In our daily life, perform on number of activities, such as brushing our teeth, listening to our parents, showing respect to elders, obeying traffic rules on roads etc. why do we perform these activities? Is it because we live in a family as well as a society and the members of the family and society want us to do all this. They do several things for us and expect us to do several things for them. The expectations of the family or society becomes application for us, which we need to fulfill. For example, taking care of our parents of children, keeping the road clean by not littering etc. There are also applications to ours ourselves, which we need to fulfill. For example, eating our meals on time, getting the right amount of sleep etc. Which keeps us through it and takes care of our health. Now we fulfill all these obligations by performing certain activities which are called our responsibilities. Any responsibility we have, particularly towards members of the society with whom we interact or towards the society in general is called social responsibility. This is true in case of business also.

Social responsibility of business

Every business operates within a society. It uses the resources of the society and depends on the society for its functioning. this creates and obligation on the part of the business to look after the welfare of the society. So all the activities of the business should be such that they will not harm, rather they will protect and contribute to the interests of the society. Social responsibility of business refers to all such duties and obligations of business directed towards the welfare of the society. These duties can be a part of the routine functions for carrying on business activity or they may be and additional function of carrying out welfare activity.

Social responsibility of business

Social responsibility of business

Social responsibility of business

Let us consider and example: A drug manufacturing farm undertakes extensive research and thus, produces drugs which are qualitatively Superior. It also provides scholarships or fellowship to the family members of its employees for studying abroad. We find in both cases the drug manufacturing form is carrying out its social responsibility. In case of the former, it is the part of its routine business function while in the latter case it is a welfare function.

Social responsibility of business

WHY SHOULD BUSINESS BE SOCIALLY RESPONSIBLE?

Social responsibility is a voluntary effort on the part of a business to take various steps to satisfy the expectation of of different interest groups. The interest group may be owners, investors, employees, consumers, government and society or community. But the question arises why the business should come forward and be responsible towards these interest groups let us consider some points:

PUBLIC IMAGE:

The activities of business towards the welfare of the society and goodwill and reputation for the business. The earnings of business also depends upon the public image of the activities. People prefer to buy products of a company that engages itself in various social welfare programs. Again, good public image also attracts honest and competent employees to work with such employers.

Social responsibility of business

Social responsibility of business

GOVERNMENT REGULATION:

To avoid government regulations businessman should discharge their duties voluntarily. For example, if any business firm pollutes the environment it will naturally come under strict government regulation, which may ultimately force the firm to close down its business. Instead, the business firm should engage itself in maintaining a pollution free environment.

Social responsibility of business

SURVIVAL AND GROWTH:

Every business is a part of the society. So for its survival and growth, support from the society is very much essential. Business utilizes the available resources like power, water, land, roads etc of the society. So it should be the responsibility of every business to spend a part of its profit for the welfare of the society.

Social responsibility of business

EMPLOYEE SATISFACTION:

Besides getting good salary and working in a healthy atmosphere, employees also expect other facilities like proper accommodation, transportation, education and training. The employers should try to fulfill all the expectation of the employees because employee satisfaction is directly related to productivity and it is also required for the long-term prosperity of the organisation. For example, if business Spends money on training of the employees, it will have more efficient people to work and thus earn more profit.

Social responsibility of business

CONSUMER AWARENESS:

Nowadays consumers have become very conscious about their rights. They protest against the supply of inferior and harmful products by forming different groups. This has made it obligatory for the business to protect the interest of the consumers by providing quality products at the most competitive price.

Social responsibility of business

Consumer Protection Act 1986

CONSUMER PROTECTION ACT, 1986

SOCIAL RESPONSIBILITY LAWS AND HOW IT IS IMPLEMENTED IN INDIA:

CONSUMER PROTECTION ACT, 1986:

Industrial development in the field of manufactured goods has led to the influx of various consumer goods into the Indian market to cater to the needs of the consumers and a variety of services such as banking, financing, insurance, transport housing construction, entertainment have been made available to the consumers.

CONSUMER PROTECTION ACT, 1986

In order to protect the consumers from the exploitation and to save them from adulterated and substandard goods and deficient services. The consumer protection act came into force on 15th April 1986 and it applies to the whole of India except the state of Jammu and Kashmir.

CONSUMER PROTECTION ACT, 1986

Objects of the Consumer Protection Act, 1986:

The preamble to the Act States that the Act is legislated to provide for better protection of the interests of consumers and for that purpose to make provision for the establishment of consumer councils and other authorities for the settlement of consumer's disputes and for matters connected therewith.

CONSUMER PROTECTION ACT, 1986

Consumer Protection Act 1986

CONSUMER PROTECTION ACT, 1986

Basic rights of consumers as for the consumer protection act (CPA) are:

• The right to be protected against marketing of goods and services which are hazardous to life and property.

• The right to be informed about the quality, quantity, potential, purity, standard and price of goods or services so as to protect the consumer against unfair trade practices.

• The right to be very were possible, access to variety of goods and services at competitive prices.

• The right to be heard and be assured that consumers interests will receive due consideration at appropriate forums.

• The right to seek redressal against unfair trade practices are restrictive trade practices or unscrupulous exploitation of consumers.

• The right to consumer education.

CONSUMER PROTECTION ACT, 1986

The CPA extends to the whole of India except the state of Jammu and Kashmir and applies to all goods and services unless otherwise notified by the Central Government.

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