SOCIAL RESPONSIBILITY OF MANAGEMENT

Every individual living in the society has social obligations towards it.
Business managers are also a part of society. So their decisions must be influenced by their obligations towards the society. Social responsibility is widely used in many fields.

Definitions of Social Responsibility

obligation (of business) to pursue those

decisions, or to follow those lines of action which are desirable in terms of the objectives and values of our society. The assumption of social responsibilities implies recognition and understanding of the aspirants of the society and determination to contribute to its achievement.

Impact of SRs on Profits

Classical writers felt that the business would get

maximum profit and serve the best interests of the owners of the business. social responsibility is contradictory to the operation of the private enterprise system. Managers must behave in social responsible manner

Are Social Obligations in Conflict with profit Objective

If social responsibilities are taken care of at the cost of

economic objectives , the survival of the business will be in danger. Survival of a profit earning company is more than enterprise which is running into losses. Earning of profits is necessary for any business enterprise.

Assumption of SRs
controversy whether business should

assume social responsibilities or not?

It would be worthwhile to analyze the arguments

offered both in favor of and against the assumption of Social responsibilities by business.

Arguments for Assuming Social Obligations

Use of Societys Resources Long-term Business Interest

Moral Justification
Better Public Image Conscious Customers

Arguments against Assuming Social Obligations

Conflicting Consideration

Arbitrary Power
Disregard of Market Mechanism Responsibility of Government

Owners Shareholders

Workers

Results

Resources Men Money Materials Methods Machines

Management Philosophy Values Beliefs Attitudes Ethics

Management Process Planning Organizing Directing Controlling

Production to Satisfy Customers. Fulfillment of workers, owners and society

Customers

Society and Government

Different segments in the society

Responsibility towards
Shareholders or Owners
Reasonable Dividend Stability and Growth Information Protection of Assets Trustee of Shareholders

Customers
Need Satisfaction Regular Flow of Goods Courteous Service Right Information Fair Trade Practices

Responsibilities towards Workers/Employees

Fair Wages
Good Working Conditions Adequate Service Benefits

Cooperation
Recognition of Workers Rights Opportunity of Growth

Responsibilities towards Society /Community

Socio-economic Objectives Improvement of Local Environment

Create Employment Opportunities

Efficient use of Resources Welfare Activities

Business morality

Responsibilities towards Government

To abide by the laws of nation.
To pay government taxes honestly in time. To avoid corrupting government employees. To encourage fair trade practices. To discourage the tendency of concentration of

economic power and monopoly.

Responsibilities towards Suppliers

Social Responsibilities of Management in INDIA

Businessmen, in making decisions, typically apply three separate value systems.

They are

1.Technical
2.Economic 3.Human

Factors which concern Social Responsibilities

Compelling Forces Persuasive Forces Favourable Forces Change in Business Environment Need of favorable Public Image

Presented by
ASHOK REDDY ASHWINI KUMAR SINGH