Under management, the scope of social responsibilities is diversified. Management plays a wide role in shouldering social responsibilities. Management’s duties or obligations towards different stakeholders can be understood by the following.
Management’s social responsibility towards important groups are as follows :
(i) Towards ownself and their profession :
1. To take rational decisions, keeping in mind social interests.
2. To respect the profession.
3. To get the membership of professional organisations.
4. To follow the professional code of contact.
5. To show professional courtesy.
6. To contribute towards the development of managerial research and knowledge.
(ii) Responsibility towards their business organisation :
1. To operate successfully the business of the organisation.
2. To create demand for business unit’s products/services.
3. To maintain competitive strength of organisation.
4. To promote innovations in business.
5. To expand and grow the business.
6. To encourage research and development activities/plans.
7. To maintain profit earning capacity of the firm.
8. To build and enhance the goodwill and public image of the business.
(iii) Towards the owners :
1. To work as a custodian of capital contributed by owners, thereby ensuring the safety of capital.
2. To share appropriate information with owners.
3. To ensure regular payment of return on capital.
4. To add value to the capital on a continuous basis to ensure capital appreciation.
5. To give equal treatment to all shareholders and work as their trustee.
6. Not to make private gains and not to do any fraud/embezzlement.
7. To provide regular, accurate, and complete information about the company’s working, as well as schemes of future growth.
(iv) Responsibility towards creditors
1. To make productive use of debt money.
2. To keep fair conditions of interest and principal amount while taking loans.
3. To make regular and timely payment of interest and the principal amount borrowed.
4. To keep custody of mortgaged assets.
5. To make available the required information to the creditors.
(v) Responsibility towards workers
1. To pay fair wages/salaries and deal fairly with employees.
2. To implement incentive wage plans.
3. To provide safe working conditions.
4. To provide healthy working conditions.
5. To give them job security.
6. To implement labour welfare programmes.
7. To give meaningful work to the employees, according to their qualification and skills.
8. To organise training and development programmes for the overall development of employees.
9. To fulfill statutory requirements for safety of workers.
10.To give fair chances of promotion.
11.To give fair share of bonus and profits.
12.To provide opportunities of career growth and personality development.
13.To give workers, than chance to participate in management.
(vi) Responsibility towards consumers
1. To study about their needs, wants, tastes, likings, etc.
2. To supply the right quality and quantity of goods and services to the consumers at reasonable prices.
3. To offer products of uniform standard.
4. To ensure fair distribution of products.
5. To refrain from indulging in profiteering, hoarding, creating artificial scarcity of products.
6. To provide prompt and quick service to consumers.
7. To handle consumer grievances promptly.
8. To refrain from misleading product-promotion practices.
9. To do research on markets, consumers and the goods of consumer utility.
10.To respect consumer protection laws.
11.To inform the consumers about the usage and features of products.
(vii) Responsibilities towards suppliers
1. To provide fair prices for the goods offered.
2. To determine/put fair conditions of purchase.
3. To make timely payments to creditors.
4. To give opportunities to suppliers to offer raw material of new type.
5. To provide necessary market information.
(viii) Responsibilities towards other business :
1. To maintain healthy competition.
2. Not to oppose and criticise other competitive business units.
3. To encourage cartels or unions for business efficiency and to promote the society’s interest.
4. To refrain from monopoly and unfair trade practices.
5. Not to use the trademark, brand, etc. of other business competitors.
(ix) Responsibility towards trade associations and professional organisations
1. To get membership of chamber of commerce and other business associations.
2. Not to make wrong use of literature published by them.
3. To follow their code of conduct made for members.
4. To give chance to the member students of these organisations to serve the business units.
5. To provide monetary contribution for implementation of programmes started by them.
6. To attend and participate in their meetings and to perform important discussions on related topics.
