Social Responsibility of Management and Responsibilities of managers
80Social Responsibilities of Management
The term social responsibilities can be defined as the obligation of management towards the society and others concerned.
Reason for Social Responsibilities: Business enterprises are
creatures of society and should respond to the demands of society. If
the management does not react to changes in social demands, the society
will either force them to do so through laws or will not permit the
enterprise to survive. Therefore the longterm interests of business
are best served when management assume social responsibilities. The
image of business organization liked with the quality of its products
and customer service and the extent to which it fulfills the
expectations of owners, employees, consumers, government and the
community at large. For longterm success it matters a great deal if
the firm has a favourable image in the public mind. Every business
enterprise is a organ of society and its activities have impact on the
social scene. Therefore, it is important for management to consider
whether their policies and actions are likely to promote the public
good, advances the basic values of society, and constitute to its
stability, strength and harmony.
Increasing concern for the social responsibility of management, it is
now recognized that besides taking care of the financial interest of
owners, managers of business firms must also take into account the
interest of various other groups such as employees, consumers, the
government and the community as a whole. These interested groups are
directly or indirectly affected by the pursuit of business activities
and they are the stake-holders of the business enterprise.
Responsibility towards owners: The primary responsibilities of
management is to assure a fair and reasonable rate of return on capital
and fair return on investment can be determined on the basis of
difference in the risks of business in different fields of activity. With the growth of business the shareholders can also expect
appreciation in the value of their capital.
Responsibility towards employees: Management responsibility towards
employees relate to the fair wages and salaries, satisfactory work
environment, labour management relations and employee welfare. Fair
wages should be fixed in the light of labor productivity, the
prevailing wage rates in the same or neighbouring areas and relative
importance of jobs. Managers salaries and allowances are expected to
be linked with their responsibility, initiative and skill. But the
spread between minimum wages and highest salaries should be
reasonable. Employees are expected to build up and maintain harmonious
relationships between superior and subordinates. Another aspect of
responsibility towards employees is the provision of welfare amenities
like safety and security of working conditions, medical facilities,
housing, canteen, leave and retirement benefits.
Responsibility towards consumers: In a competitive market, serving consumers is supposed to be a prime concern of management. But in reality perfect competition does not prevail in all product markets. In the event of shortage of supply there is no automatic correction. Besides consumers are often victims of unfair trade practices and unethical conduct of business. Consumer interests are thus protected to some extent with laws and pressure of organized consumer groups. Management should anticipate these developments, satisfy consumer needs and protect consumer interests. Goods must be of appropriate standard and quality and be available in adequate quantities at reasonable prices. Management should avoid resorting to hoarding or creating artificial scarcity as well as false and misleading advertisements.
Responsibility towards the Governments: As a part of their social responsibility, management must conduct business affair in lawful manner, honestly pay all the taxes and dues, and should not corrupt public officials for selfish ends. Business activities must also confirm to the economic and social policies of the government.
Responsibility towards the community and society: The socially responsible role of management in relation to the community are expected to be revealed by its policies with respect to the employment of handicapped persons, and weaker sections of the community, environmental protection, pollution control, setting up industries in backward areas, and providing relief to the victims of natural calamities etc.
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Jesusmyjoy, Thanks for your comment
good and thaks
Great hub! Thanks for pointing out that businesses have other responsibilities besides just making money.
thanks for providing responsbilitis
thanks for providing responsbilitis
I like you hub. The subject is of great importance. I've got aa view comments. Your viewpoint is quite a lot about bussiness that also have a social responsibility. But I believe it is a social responsibility to start and maintain bussinesses. From this responsibility entrepreneurs need to keep to a morality in which they serve the community, at first of course their employees, secondly the families of the employees and thirdly the society in general. The basis is all time the responsibility towards society to start and maintain their bussiness. In my opinion social responsibility is not some kind of hobby with some positive side-effects for companies, but it is the startingpoint of all their work.
Wonderful hub. I actually just emailed a link to it to the manager I work as an assistant to as he has admitted to me he doesn't know the first thing about managment.
Thanks all for your visits and comments
thanks jacobkuttyta. you have such a wonderful pointer for businesses. I believe they will get to this hub and use it. Profit motive is their paramnount drive. In this age of tasks and targets business organizations hardly think about their social responsibilities. The managers talk about target! target!! target!!!. Pls give us more on this.
So cool, helpful and educative.
Thanks for being a lecturer to me.
I always enjoy your hubs too.
Ron
A different side of the coin here. It's a great hub...Really, business is not just money but also about social responsibilities.
I agree with this article. Educative and nice to read. Management should also be aware of there social responsibilities.
Any good exercise in leadership includes an awareness of the impact of your company on other people. This is a good reminder of that.
I like you hub. The subject is of great importance. I've got aa view comments. Your viewpoint is quite a lot about bussiness that also have a social responsibility. But I believe it is a social responsibility to start and maintain bussinesses. From this responsibility entrepreneurs need to keep to a morality in which they serve the community, at first of course their employees, secondly the families of the employees and thirdly the society in general. The basis is all time the responsibility towards society to start and maintain their bussiness. In my opinion social responsibility is not some kind of hobby with some positive side-effects for companies, but it is the startingpoint of all their work.
Welldone,i like such topics so for to aware others
I do appreciate all the love and support people have been sending my way. The extra social support really helps.
Thanks to you all
A nice detailed message Let us all try for same
I really like that topic which is given on this site. Thanks for helping me
It is appreciated. You did commendable job. Thanks for uploading such a helpful and informative article. It did much for me.
yeah it hyelps me alot 4 ma presentation
your pages are very helpful especially to students like me. i do hope you write your whole name (or where can i find it? i'm new here at hubpages) or cite the books you used so i could put it on the reference/ bibliography part of our report. thanks a lot!
wonderful hub.
I am saying only a word of this great hub : Tarrific...
thanks. dat was really very hrlpful
i like it so much,it helpS me in my report..thanks!!
nice article keep it up
thanks
nice you helped me alot......thnx
A wonderful piece of paper , especially for those preparing for the managent exams (HEXCO) I FIND THE ARTICLE QIETE HANDY AND HAVE SHARED IT WITHY MY STUDENTS
Very nie
its was wow keep up
thanks baby..........i love uu 22222222 much......ummmmmahhhhhhhhhhh.......loveeeeeeeee uuuuuuuuuu
wonderful Hub, am very greateful for how u make gud clerification on dis managerial aspect.
tanx
tanx fr gave tis... tis help to very much
THANKUUU.... VERY MUCH.
social responsibility is a important aspect of business, otherwise weaker section has to suffer lot so there is a important role of
im very much glad to know the point about the responsibilty of management.i got many knowledge from according to your veiw of points.
I like it sis...
It hlps me in my exm..
Thnx alot.
tanxxx very much 4 the points!!!!
I would like to say thanks for you because hub is very good page and i request you to give me a hand because i want to write proposal book and i will choose social responsibility management walfare and responsibility of manager thank you Jacobkuttyta the auther of Hub
contact me xulka10@hotmail.com
thanks 4 ur help. it is very useful to me thats why i say my thanks from bottom of my heart with sincerity.i love very much...........
thanks for making my assignment a success
wow so educative. guess it will assist me pass in the next KASNEB EXAM CPA
Thanx you helped to answer my assignment
jesusmyjoy 2 years ago
Great hub