This Statement is True
Reasons: Business is conducted with the help various interest groups such as investors, owners, employees, consumers, government and society at large. It should be noted that interest of these social group is conflicting in nature and business organizations have to balance it. Interest of all these should be properly protected.
Responsibilities towards owner: Business should be conducted on profit basis for prosperity and growth of owners. Then only it will be in position to perform any of its social responsibilities towards other interest groups.
Responsibilities towards Investors: Investor invests their money in business and accepts risk factor. This should be adequately recognized by business. They should get fair returns on investment regularly in the form of interest. Following points should be considered.
· Fair return on investment.
· Safety of investment.
· Steady appreciation of business.
Responsibilities towards Employees: Some companies employ workers on temporary basis for years together. Employees should get guarantee of employment. Security of job provides mental peace and employees can work with full dedication concentration. It will raise their moral and loyalty towards organization.
Responsibilities towards Consumers: While manufacturing the products, health and safety of consumers should be the prime factor. Unsafe products should not be marketed. Consumers should be warned of any unsafe good. Some rival (competitor) organizations may introduce imitation articles of interior quality, in such circumstances the producer of genuine product must alter consumer.
Responsibilities towards Government: The Government has levied various taxes on business units such as excise duty, sales tax, corporate tax, etc. business units should give proper information of product and should pay taxes accurately as per the provisions. The tax revenue helps the government to provide infrastructure and other welfare facilities.
Responsibilities towards community, Public in General: Working of business units results in air, water and noise pollution. The carbon particles, dust, harmful gases, chemical create air pollution. Harmful chemicals cause water contamination. Sound of machines from factories can disturb the peace of residents. All types of pollution should be controlled by adopting best possible measures.
