Social Responsibility
Of Management
Mgt is a “social process” business
depends on the society for the needed inputs like money, men & skill. It
also depends on society for market where products may be sold. Thus, business
depends on society for existence, sustenance, & encouragement.
Social responsibility is understood as
the obligation of decision maker to take action which protect & improve the
welfare of society as a whole with their own interest.
Social responsibility implies that all
decisions and actions taken by a business organisation must be in accordance
with wider social interest. it has the following features:-
1. Social
responsibility contains 3 types of behaviour, +ve, -ve & neutral.
Understanding of the –ve &
neutral aspects of behaviour are as important as +ve as organisation may
identify neutral & -ve behaviour & refrain from it.
2. Every
person in the society has a social obligation to fulfill.
3. Social
responsibility involves fulfilling obligation to various interest groups
concerned with the functioning of an organisation.
4. The
standards fixed for fulfilling obligation to various interest group are to be
decided according to social horns & expectations. It may very society to
society.
SOCIAL
RESPONSIBILITY TOWARDS VARIOUS INTEREST GROUPS:-
1. SHAREHOLDER-
The
1st responsibility of business is to protect the interest of the
shareholders. Mgt is expected to use the resources provided to them effectively
& to protect their interest. They should be informed about the functioning
of the orgn . Mgt has responsibility to provide proper safeguard to
the money invested by shareholder through the provisions of the company act
already provides safeguard to investment made by them.
2. EMPLOYEES-
They
have direct interest in an orgn
because by working there, they
satisfy their needs following ways are there to protect the interest of
employees.
a. Mgt
should treat employees as another wheel of the cart.
b. Mgt
should develop administrative process in such a way that promotes co-operative
trust b/w employees & employers.
c. Mgt
should adopt a progressive human resources policy based on recognition of
employee’s right- participate in mgt, creating a sense of belongingness, and
improving their working condition.
d. Fair
and reasonable remuneration and other financial benefits should be paid to
employees.
3. CUSTOMER-
Mgt
primary obligation is to give a fair deal to customer. This can be done by-
a. Customer should be charged a
fair and reasonable price.
b. The supply of goods & services should be uniform standard and of reasonable
quality
c. The distribution of goods and services should be widespread so as to
minimize the problem of procurement by customer.
d. Mgt should not mislead the customer by
false advertisement.
e. Mgt should not include in
profiteering, hoarding or creating artificial scarcity.
4. CREDITORS,
SUPPLIERS AND OTHERS-
a. Mgt
should created healthy, and co-operative inter business relationship b/w
different business.
b. Payment
of price of material, interest on borrowing etc should be prompt.
c. Mgt
should provide accurate and relevant information to creditors and
suppliers.
5. GOVERNMENT-
It is very closely
related with the business system of the country. It provides various facilities
for the development of business. Mgt can discharge its obligation to government
by-
a. Being
law abiding citizen.
b. Paying
taxes and other dues fully, timely and honestly.
c. It
should not corrupt public servant and democratic process.
d. It
should not buy political favor by any means.
6. SOCIETY-
orgn exist within a social system and get facilities from the
system. Therefore It is the obligation of the mgt to protect the interest of
society because mgt process goes along way in determining the quality of life
in the society.
Therefore,
The mgt should-
a. Maintain
fair business policies & business.
b. Set
up socially desirable standard of living and avoid ostentation and wasteful
expenditure.
c. Play
a proper role civil affair.
d. Provide
and promote general amenities and help in creating better living condition in
general.
e. Protect
natural environment.
f. Set
example for others about how developmental programs taken for the benefits of
the society.
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