SOCIAL RESPONSIBILITY OF BUSINESS

Every business organization operates in the society. It uses society's resources and sells its production to the society and earns profit. Business and society are meant and exist for each other. Without the help of society business cannot be operated. It can exist only if it fulfills its responsibility towards the society in the socially acceptable manner. Hence, fulfilling the responsibility towards society is the social responsibility of business. The idea of social responsibility is that decision-makers are obligated to take actions, which protect and improve the welfare of society as a whole along with their own interests. Every organization must share his prosperity with those members of the society who have helped the business to prosper. The growing power of pressure groups has added importance to social responsibility aspect.

Social responsibility may be defined as the obligation of an organization to protect and enhance society within which the organization operates. Adolfe Berle has defined ''Social responsibility as the management's responsiveness to public consensus''.

There are two opposing views of social responsibility. On the one hand classical view believes that business has only one responsibility-to maximize profits for the shareholders. On the other hand is the socio-economic view, which holds that the responsibility goes beyond making profits to include protecting and improving society.