CORPORATE SOCIAL RESPONSIBILITY : AN INTRODUCTION- 

Social Responsibility, particularly in business organisations is one of the most favoured and talked about subjects now a day. The importance of corporate social responsibility program arose from the understanding that a business depends entirely on society either it is for inputs like money, material, labour etc. or for selling their products and services. Being so much dependent on society, business organisation must have some responsibilities toward society.

The company’s sense of responsibility toward the well-being of society can be either active i.e. by indulging in business activities that directly benefits them or can be passive i.e. by avoiding activities that cause harm to the society. So, an organisation must behave ethically towards the economic, social and environmental issues and maintain a balance between the economy and ecosystem.

DIMENSIONS OF CORPORATE SOCIAL RESPONSIBILITY-

A business is responsible towards various interest groups. Hence it is required to take possible steps to fulfill their responsibility towards each of the following groups:

  • # Responsibility towards customers:

Customer being the king, its satisfaction should be the ultimate goal of each and every business activity. In order to satisfy customers, business should take into account the following points:

  1. True & fair information to the customers
  2. Provide prompt and quality goods & services
  3. Goods charged with fair prices
  4. Satisfying variable needs of customers

 

  • # Responsibility towards employees:

Employees or workers are the important part of every business. Their cooperation is much required in order to achieve organisational goals. So a business should fulfill the responsibilities towards its employees:

  1. Fair & reasonable wages or salaries
  2. Opportunity to grow through skill development
  3. Good working environment
  4. Additional service benefits like insurance or retirement

 

  • # Responsibility towards shareholders:

    Shareholders are the real owners of business. hence, the business is required to fulfill all its responsibilities toward them:

  1. High returns or dividend
  2. Right information about company’s financial position
  3. Safeguarding assets

 

  • # Responsibility towards suppliers:

    Suppliers are the person who supply material or machinery  required to achieve the overall goals. It is important on the part of business to fulfill its responsibilities towards their suppliers:

  1. Reasonable and early payments of supplied material
  2. Right information about company’s financial position

 

  • # Responsibility towards government:

    Every business either directly  or indirectly is responsible towards government. The responsibility of every business towards government includes:

  1. Payment of taxes
  2. Managing its affairs as per laws and policies abiding it
  3. Following fair trade practices
  4. Non participation in various social evils

 

  • # Responsibility towards society:

    Business being so much dependent on society for its existence and survival, has the following obligations towards the society:

  1. Allocation of resources in efficient manner
  2. To develop & maintain healthy surroundings
  3. Providing Employment opportunities
  4. Non participation in various social evils

 

  • # Responsibility towards competitors:

    Competitors are necessary to maintain healthy competition in the market and stimulate a business to become more dynamic and innovative. the responsibilities of business towards its competitors includes:

  1. Not to make competition unhealthy
  2. No heavy discount to attract more customers
  3. No high sales commission to attract agents

 

  • # Responsibility towards investors:

    Investors provide finance to the business and includes either banks and financial institutions or public through bonds and debentures. The responsibility of every business towards its investors include:

  1. regular interest payment
  2. On time payment of principle amount
  3. safety of investment

 

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