What Are the Major Areas of Social Responsibility of Business Class 11
Because it is employees at all levels who implement ethical guidelines and make ethical business a reality. (i) Liability to shareholders or owners: A corporation has a responsibility to provide shareholders or owners with a reasonable return on their capital investment and to ensure the security of that investment. Now that the consumer is king, businesses have started to take a customer-centric approach. The threat of public regulation: In reality, economic institutions do not fulfill their social responsibilities alone. They deal with social responsibility due to the threat of public action. Discretionary liability: This is a voluntary liability assumed by a company. This means that a company may want to engage in community services, such as opening a non-profit school or hospital for the poor, providing assistance to victims affected by natural disasters, creating employment opportunities for people with physical disabilities, etc. Business people do not have the knowledge and training to solve social problems. Instead, other specialized agencies must deal with social issues. Commercial engagement or interference in social programs is not appreciated by the public. When a company engages in socially responsible practices, it has a positive impact on employee satisfaction and retention. It`s also great for brand identity, as CSR initiatives help build customer trust and public respect. By presenting a positive image, a company can make a name for itself because it is not only financially profitable, but also socially responsible.
Corporate social responsibility means that a company takes full ethical responsibility to make decisions and take the appropriate actions necessary to achieve the objectives and create value for our society. A better environment to do business: It provides a better environment to do business because when stakeholders are satisfied, they work better together. The relationship between the objectives, procedures and processes of the company and the well-being of society is the subject of business ethics. Leadership ethics bind them to social ideals and a growing sense of social responsibility. Improved public image: Education has raised awareness of environmental issues and they have begun to recognize the need to protect the environment. Thus, all economic enterprises that have taken pollution control measures enjoy a good status in society. When starting the business, the social purpose of the company was recognized and they can know for whom and for what the company and its management are responsible. The most important areas of corporate social responsibility are: The responsibility of a company is to provide a reasonable return to its shareholders or owners. This thinking can often lead to innovative and revolutionary solutions that help a company act more socially responsibly and increase profits. Rethinking the manufacturing process so that, for example, a company uses less energy and produces less waste, allows it to become more environmentally friendly while reducing its energy and material costs – values that can be recovered and shared with suppliers and customers. Some examples of activities that a company can carry out in this regard: A company must be commercial enough to meet society`s expectations. Justification for existence and growth: It is justified for growth and existence of enterprises.
The expansion of business education with its strong social responsibility content has increased public awareness of the company`s social mission. The company must assume its social responsibility towards its employees or employees because they are the cogs of an organization. Without their support, the business institution simply cannot function or function. When a company takes care of the needs of its office workers or employees, it increases motivation and work spirit within the organization. Instead of bearing the burden of social duty, businessmen tend to simply pass it on to their customers by charging higher costs. Environmental responsibility refers to the belief that organizations should behave as environmentally friendly as possible. It is one of the most common forms of corporate social responsibility. Some companies use the term “environmental stewardship” to refer to such initiatives.
Philanthropic responsibility refers to a company`s goal of making the world and society a better place. Legal liability: Every company must be required to comply with the laws and regulations of the country in which it operates, as the laws are designed to improve society. Every company is required by law to follow the country`s rules. A company that complies with the laws and regulations of the country is also a socially responsible company. It is conceivable that a company could be held liable to compensate persons harmed by the toxicity of gaseous, liquid or solid pollutants it has released into the environment. To avoid any possibility of liability, companies must install environmental protection systems on their premises. The socially adopted moral norms that are supposed to govern the actions of companies are called business ethics. This has forced companies to consider the well-being of their employees instead of enforcing a hiring and firing policy. The workers` movement has grown stronger around the world to bring gains to the working class. A business can be built as a service to the local community. Corporate social responsibility (CSR) is the idea that a company has a responsibility to the society that exists around it, according to the Sustainable Business Strategy online course. Chapter 6 of Grade 11 Business Administration is “Business Social Responsibility and Business Ethics.” This chapter explains the many types of enterprises and their roles in different regions of the Community.
Students must prepare the important topics of this chapter that may be requested in exams. You should refer to the CBSE Class 11 Business Studies review notes which are available on Vedantu and are absolutely free. They are created by experts and are 100% credible. The importance of social responsibility, the fields, arguments and reality of social responsibility, corporate and environmental pollution, causes and types of pollution, environmental protection, business ethics are some topics that students should focus on. A company can improve its public image by taking on social tasks such as controlling pollution, ensuring the well-being of the local community through donations and volunteer programs, building charitable health centers for local patients and recreational facilities for the population, and promoting education for poor and disadvantaged children. Business ethics should be applied in the day-to-day operations of a business. When a company acts with economic responsibility, it makes financial decisions aimed at doing good, not just making more money. This means that this type of CSR is closely related to the other types mentioned above.
Pressure from the labour movement: Commercial buildings do not obey labour laws out of a sense of social responsibility, but because the labour movement exerts pressure on them. Management is becoming more professional, which helps companies to orient themselves socially. CONCEPT OF SOCIAL, RESPONSIBILITY: A company is part of society. Thus, a company should do business and make money in a way that meets society`s aspirations. Social responsibility therefore refers to the voluntary efforts of entrepreneurs to contribute to social welfare. Businessmen use the resources of society and earn money from members of society, so they have to do something for society. Companies that assume corporate social responsibility are usually organized in such a way that they can be and act in a socially responsible manner. It is a form of self-regulation that can be expressed through initiatives or strategies, depending on the objectives of an organization. The company`s image in the eyes of people also improves if the company achieves social goals. Companies must assume their social responsibility for the following reasons: Compliance with social obligations is useful for the long-term viability of a business.
There is a need for corporate social responsibility for existence and growth: the long-term benefit of companies is to provide a good service to society.
