Explain different cases for social responsibilities.
Answer:
Cases for social responsibilities:
i. Threat of public regulation: Not working in line with social welfare can attract unwanted government attention; this can further pose a threat to the image and goodwill of business enterprises. Thus, business enterprises should fulfil their social responsibility to avoid such instances.
ii. Pressure of labour: An increase in the mobility of human capital and trade unions has increased the pressure on business enterprises to pay attention to the welfare of the workers by providing them healthy working conditions and good remuneration.
iii. Impact of consumer consciousness: As consumers are increasingly getting aware of their rights and responsibilities, business enterprises are compelled to work more efficiently and to produce better quality products at reasonable rates to satisfy their demands.
iv. Optimum utilisation of resources: In comparison to other members of the society, business enterprises have greater access to financial and other resources, thus, they should effectively and optimally utilise the resources for solving various social problems.
v. Existence and trusteeship: The existence of a business depends on how efficiently it serves the society and conduct activities based on trusteeship. According to it, a business would benefit only from those activities which are good for the society.
