Scope of social responsibility of business
Earlier, we discussed the introduction of the social responsibility of business. In this starting article, we tried to grasp the basic understanding of its concept. Now as a continuation to this series let's discuss further.
These are as follows:
- Shareholders or investors,
- Employees or workers,
- Consumers or customers and
These groups are the four areas of social responsibility of business.
The main concern of a business is to fulfill its responsibilities towards these four social groups.
The social responsibility of business towards shareholders or investors:
- Provide reasonable return on their investment.
- Protect their investment.
- Increase the market value of their shares by making a fair profit and by building a good image of the business.
- Regularly provide an up-to-date, accurate and full information on the working of business.
- Treat all shareholders fair and equally well without any bias or partiality.
- Take necessary steps to expand the business.
- Carry out research and development (R&D) activities to innovate and improve products and/or services.
The social responsibility of business towards employees or workers:
- Pay fair wages or salaries.
- Provide pleasant working conditions and better work environment.
- Make provisions for the welfare of labour and old age security (OAS) pension program.
- Arrange training and educational programs for skills enhancement and improve job performance.
- Appreciate their job well done and also recognize their talents.
- Allow their participation in management and also consider their opinions in matters of decision making.
- Provide proper and effective grievance redressal mechanism for employees.
- Introduce schemes for sharing profit with employees.
- Allow workers to execute their right to form associations or trade unions.
- Introduce schemes for recreation or entertainment of workers.
- Treat them with dignity and respect and not as work slaves.
- Give them a meaningful work that suits their individual expertise or skills.
- Guarantee them their social, religions, cultural, and political freedom.
The social responsibility of business towards the consumers or customers:
- Provide quality goods and/or services at reasonable prices.
- Provide a good after sales services and customer support.
- Accurately describe and don't falsify any information related to the products and/or services.
- Guard against adulteration, poor quality, lack of service and courtesy, misleading and dishonest advertising.
- Make research and development (R&D) to introduce new products and/or services and enhance their quality.
- Take appropriate steps to remove imperfections in the distribution system, including black marketing, profiteering and other anti-social elements.
- Provide consumers an opportunity to get heard and resolve their grievances as early as possible.
- Provide protection against monopoly and restrictive trade practices.
- Understand the needs & wants of customers and try best to satisfy them.
The social responsibility of business towards community is as follows::
- Take essential steps to maintain proper ecological balance of the surrounding environment.
- Prevent environmental degradation caused due to haphazard and unchecked pollution of air, water and land.
- Keep goodness and safety of infrastructure with regular maintenance, repairs and upgradation, wherever necessary.
- Rehabilitate the population displaced due to business operations, if any.
- Take initiative in the conservation of scare resources and try to find out their alternatives and substitutes wherever possible.
- Contribute in the development of socially-backward areas.
- Promote ancillary, small-scaled and cottage industries.
- Make possible contribution to promote education and control population.
- Assist in the overall developments of the locality.
- Improve the efficiency of business operations.
- Contribute help in events of disasters like occurrence of any natural calamities, to help victims.
- Provide health care facilities for local community, especially for children, women and senior citizens.
- Provide day-care centers for children of working mothers.
- Provide equal opportunity of employment.
- Make provisions for social accountability.
- Maintain good relationship between business and society.
- Cooperate with government and non-governmental organizations in their efforts to enhance the development and betterment of the society.
So the coverage or scope of social responsibility of business mainly covers its obligations towards above four social groups.