Discuss the social responsibility of business?

The existence of a business totally depends on the society as a business takes so much from the society in which it exists; it becomes the responsibility of business to give some thing back to the society. By serving the society, the economic objectives of a business can be better achieved and the business also finds a motivated and satisfied work force.

Social responsibility is a very vast term and means many things. These include that a private enterprise has a responsibility towards the society that goes beyond the production of goods and services and earning profit. It also means that a corporation has a broader constituency to serve than the stock holders only and its relation with society is not only through the market. It also means that organization serve a wider range of human values than the traditional economic values that dominate the market place. Social responsibility of business means that the business organizations are more than economic institutions and thus they have responsibility to help the society in some of its most pressing needs. The concept of social responsibility received much attention during the 1960’s.While the old understanding between business and society was based on the view that economic growth was considered to be the drive for profits by private enterprises. The new understanding is based on the view that single minded pursuit of economic growth can produce some detrimental side effects that imposed social costs on certain segments of society or the society as a whole. The concept of social responsibility is basically and ethical concept and involves the changing notions of human welfare and emphasizes the concern about the social dimensions of business activity that have a direct connection with the quality of life in society. The word responsibility implies that business organizations have some kind of an obligation towards the society in which they operate.