Social Responsibilities of Business

Every individual living in the society has obligations towards society. Business men therefore have an obligation to run the business on those lines which make the business desirable from the point of view of society. Therefore, their decisions must be influenced by their obligations towards society. Traditionally, however the term business commonly referred to commercial activities aimed at making a profit for the owners. Therefore, the fundamental assumption was that profit maximization was the basic objective of every firm. Therefore some people argue that a business is an economic unit and therefore it does not have any responsibility towards society. However, this is not a rights approach because it would be difficult to segregate the economic aspect from other aspects.

Today, businessmen have reaffirmed their belief in the concept of "Social Responsibilities of Business". David and Blomstorm have observed that business is "a social institution, performing a social mission and having a broad influence on the way people live and work together".

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Principles of Management and Organisational Behaviour Topics