Responsible business is the part of responsible society. Discuss.

CSR Corporate Social Responsability  reflects the role of business in society often focuses only on the activities of companies, without considering the context within which they are operating—what is going on in society around them. Changes brought about by major trends in science and technology, education, lifestyle and life expectancy, have disrupted many sources of social traditions and norms. There is diminishing trust in institutions to do the right thing leading to intense regulatory, political and public scrutiny of a broad range of activities. This has sometimes resulted in legislation and regulation with painful unintended consequences.

The media environment in which business operates has also changed. It is readier to challenge and to pass judgement. There is increasingly the informal running commentary of bloggers. For publicly quoted companies the implications of these trendss have been amplified by two separate trends among investors: pressure for short-term returns, and pressure from the socially responsible investment community to report on corporate ethical performance.

The social context in which business operates at the opening of the twenty-first century is uncertain, complex and demanding. And if that is not enough, the competitive global context in which we have to assess our values, intensifies daily.

In this situation it is useful to set out the relationship between business and society and the purpose for which a company, by which I am referring to a limited liability

company, was created. While the creation of profit is an important result of a company’s existence, it was not solely for the creation of profits that companies were designed.

Incorporation with limited liability was a device created by society as a means of enabling people to pool capital, exploit opportunities, to manage risks and accomplish something together, profitably, that they could not achieve separately.

As companies have evolved, like all institutions, they have been subject to both good and bad leadership and management. The industrial philanthropists of the late nineteenth and early twentieth centuries ran businesses that were the seedbed of many, now accepted, standards of employment and community good practice.

Other companies were subject to self-serving, at times illicit and exploitative practices,which brought major regulatory initiatives and constraints on corporate activity.

And the same spectrum of performance is seen today with some outstanding standards and innovations in practice and other appalling betrayals of trust. It seems to me that if society is to continue to accept the granting of substantial rewards for successful business leadership, it is entitled to expect complete leadership an approach that combines optimum returns for shareholders with responsibility for social and environmental performance. Company leaders are not only leaders of business but leaders within society. We are a part of society not apart from it.

Full Agree with Great answer given by Mrs. Ghada

Thats what Corporate Social Responsibility teaches you

It agreed with the answers to the rest.

agree with all ...................................

i fully agree with the answers been added by experts..........thanks.

According to the

Iron Law of Responsibility 

 business in a should balance theirresponsibility with the power they hold. As business holds large amount of socialpower, it affects the environment, consumers, community conditions, and manyother areas of society. In turn, an equal amount of responsibility is required tomatch its power. Responsibility is a reciprocal of power. If business insists onavoiding social responsibility, then its social power gradually be taken away byother groups.Again the profit of business is ultimately lies on the favorable response of the

society’s member (consumer), so as and when business acts its activities  in a

responsible manner to the society only then business

can gain success in today’s

competitive business environment.Sometimes governments pass laws and set regulations to control the conduct of businesses. For instances Consumer laws try to ensure that businesses do notdeliberately mislead consumers. Employment laws attempt to provide safeworking conditions and set standards for working hours and payments. Thoselaws also mandate the business to be responsible towards the society.

What are the responsibilities of business towards society:

Business operates its activities within a society and towards the member of society for earning profit. So besides earning profit business should be careful sothat by its activities, society and its member would not be negatively affected.Actually the responsibility of business depends on what the member of thesociety expects from business as a whole. It may vary from society to society andfrom culture to culture.In general the responsibilities of business towards different stakeholders(societies) like the workers, the consumers, the government and the communityand public are discussed below-

(a)

Responsibility towards the shareholders or owners:

 The shareholders or owners are those who invest their money in the business.They should be provided with a fair return on their investment. You know thatin case of companies it takes the form Business around Us dividends. It has tobe ensured that the rate of dividend is commensurable with the risk involvedand the earnings made. Besides dividends, the shareholders also expect an

appreciation in the value of shares. This is governed primarily by company’s

performance.

(b)

Responsibility towards the Employees:

A business enterprise must ensure a fair wage or salary to the workers basedon the nature of work involved and the prevailing rates in the market. Theworking conditions must be good in respect of safety, medical facilities,canteen, housing, leave and retirement benefits etc. They should also be paid

reasonable amount of bonus based on the business earnings. Preferably,there should also be a provision for their participation in management

(c)

Responsibility towards the Consumers:

A business enterprise must supply quality goods and services to theconsumers at reasonable prices. It should avoid adulteration, poor packaging,misleading and dishonest advertising, and ensure proper arrangement forattending to customer complaints and grievances.

(d)

Responsibility towards the Government:

 A business enterprise must follow the guidelines of the government whilesetting up the business. It should conduct the business in lawful manner; paythe taxes honestly and on time. It should not indulge in any corrupt practicesor unlawful activities.

(e)

Responsibility towards the Community and environment:

 Every business is a part and parcel of our community. So it should contributetowards the general welfare of the community. It should preserve andpromote social and cultural values, generate employment opportunity andcontribute towards the support of weaker sections of the society. It must takeevery step to protect the physical and ecological environment of the society.It should contribute to the community development programs like publichealth care, sports, cultural programs.

How those responsibilities affects social well-being:

Social well-being can be defined as a state of affairs where the basic needs of thepopulation are met. This is a society where income levels are high enough tocover basic wants, where there is no poverty, where unemployment isinsignificant, where there is easy access to social, medical, and educationalservices, and where everyone is treated with dignity and consideration.

The above definition is in the context of developed countries but in our societysocial well-being can be defined as the situation where the member of the societylive in peace and happy. This social well-being is depending upon the responsibleperformance of each and every member of the society. And as business is mostpowerful social member so we can say if business become responsible to thesociety then the social well-being will be more ensured.We have point out some social responsibilities towards different stakeholders of the business (also the member of the society) in above paragraph. And if thebusiness performs these responsibilities towards the member of the society thenultimately society will be benefitted and the member of the society become morepositive to the business and business will also be benefitted thus finally socialwell-being as a whole will be ensured.

Conclusion:

Today’s business

environment is very much competitive. Many alternative optionsare available to the consumer. Business firm is facing the problems of deregulation, increasing number of different pressure groups. These entiresituations leads a firm to be socially responsible one and being sociallyresponsible both business firm and society is benefitted and thus social well-beingis ensured as a whole.

Very true. Having responsible business makes you good humane not only that also fetches good business thereby being responsible can contribute for the society as a integral part of CSR and it has become mandatory as well in India as per the new amendment of the Companies Act in 2013. My 2 cents. Thanks.

Thanks for invitation

I amagreeing with my colleague’s answer Ms. Ghada Eweda  

In any case, no action is carried out

The responsibility of the responsibilities entrusted to you is the responsibility of those working for the inalienable part of your responsibilities in the community where you live

any way you must be  respect of life or the life of your tolerance for a certain responsibility

Each person is responsible for all his actions and his work in general

What makes a responsible business are:

People - Cultures - Environment - Tools & Management  abd business Activity !

All of them are part of a responsible Society !

Thank You