Social responsibility of business means using the profits from business for the good of society. As a business, your business is your priority. But you also need to consider your other obligations. That’s where the social responsibilities come into play. When you take social responsibility into account, your decisions cannot be on dimensional, focusing on just the profits of your business or pleasing the shareholders. Your focus should also on your workers, the environment your business is situated in, your consumer group and the society in its entirety.
A business cannot survive on its own. The society itself helps the business to accomplish its goals and objectives, providing it with necessary components. As society provides a business with what it needs, the business must return the favor. That form of responsibility of business towards society is considered to be the social responsibility of business.
It is normal for a business to show responsibilities towards its shareholders, but it is wrong to stay bound to only one set of people. Social responsibility of business means that you have to take all the factors into account that are being affected by your business. i.e. customers, public, government … etc.
Let’s also find out more about Types of Business Ownership
Social Responsibility of Business
1. Responsibility towards Customers
Your business is designed around your customers. Social responsibility of business towards customers depends on the type of product or service you provide and their level of satisfaction regarding your business. Provide your customers with products or services at a reasonable price, take their safety into account, provide them genuine information regarding the goods or services you’re delivering, ensure proper distribution and refrain from deceiving them in any way.
If you can stay loyal to your customers, your customers will stay loyal to you. Customers are the main foundation of your business. Your business is in society and your customers are a vital part of that society. Society endows your business with the necessary resources so that you can serve those customers. Your duty should be to meet the wants and needs of your customers accordingly.
2. Responsibility towards Workers
A plane cannot fly without a pilot flying it just as a business cannot run without people running it. To run a successful business, you need a capable set of workers. People who put in their time, strength, and effort and mind every day to make sure your business runs without any bumps, deserve to have their essentials delivered.
Your responsibility towards your workers or the people associated with running your business requires that you pay them a fair wage; you pay them on time, provide them with a safe environment to work in, take special care of the elderly and female workers, and arrange employment training programs for them to get better at their designated jobs.
These are the social responsibilities of business associated with employees.
3. Responsibility towards Shareholders
The most important social responsibility of business is the responsibility of your shareholders and investors. Their contribution to your business is what keeps it running. If you can satisfy your investors, it is highly likely that they will be interested in contributing to your business in the future.
Your responsibility to your shareholders and investors ask that you respect their wish to gain any external information related to the business. Allow them their right to partake in votes, present in annual meetings and give their valuable opinions when need.
Since the shareholders and investors put in their valuable funds to help out your business. You must ensure their due return, protect their investments and treat all of them equally without showing any partiality.
4. Responsibility towards Environment
Your business environment presents you with the shelter and security you need. Your utmost responsibility should be to minimize air, water and soil pollution from your production as much as possible. Climate change is real and it’s happening right now. You might be the one responsible for it.
Any business, small or big, must enforce their own rules and regulations to protect the environment regardless of the governmental laws. Refrain from dumping any industrial wastes without ETP or similar processes. Avoid destroying forests haphazardly for establishing new factories or production materials. If extreme necessities arise for chopping down trees, plant twice as much. Your actions will impact the environment and the beings attached to it. Whether you want the impact to be positive or negative is up to you.
5. Responsibility towards the Government
Business responsibility towards government is a sensitive issue. You’re operating your business under the government’s care and protection. Abiding by the law and order enforced by your government should be your topmost priority. Breaking the law or showing disrespect towards it might cause your business license to be revoked, leading to a huge loss.
Social responsibility of business towards government also requires you to pay taxes on time, avoid unethical means, helping with political stability, implementing socio-economic programs and co-operating with the government for the economic growth of your country.
If you respect and follow the laws properly, it creates a good image for not just your business but also everyone associated with it.
6. Responsibility towards Public and Society
A business has its responsibilities to the locale it operates from. Your business activities affect the neighborhood around and the people living there. It is your responsibility to provide the society compensation for allowing you to manage your business within their community.
You can use your business profits to build institutions that can benefit everyone (school, college, hospital, health center, etc.). Offer employment facilities to local people with required skills, and use your business to promote other small organizations, protect their environment and help to conserve their resources.
In conclusion, the social responsibility of business depends on you comprehending the concept of discipline. Discipline powers your moral compass in the right way. Social responsibility means that you operate your business not only for the sake of earning profits, but also to offer the society something in return.