Social Responsibility of Management and Responsibilities of Managers

Social Responsibilities of Management


The term "social responsibilities" can be defined as the obligation of management towards society and others.

Reason for Social Responsibilities: Business enterprises are creatures of society and should respond to the demands of society. If 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 businesses are best served when management assumes social responsibility. The image of a business organization depends on 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 long-term success it matters a great deal if the firm has a favourable image in the public mind. Every business enterprise is an 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, advance the basic values of society, and add to its stability, strength, and harmony.

Besides taking care of the financial interest of owners, managers of business firms must also take into account the interests 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 in the enterprise.

Responsibility towards owners: The primary responsibility of management is to assure a fair and reasonable rate of return on capital and fair return on investment. With the growth of business, shareholders can also expect appreciation in the value of their capital.

Responsibility towards employees:
Responsibility towards employees relates to fair wages and salaries, satisfactory work environment, labour management relations, and employee welfare. Fair wages should be fixed in 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 superiors 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 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 by laws and the 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 government: As a part of their social responsibility, management must conduct business lawfully, honestly pay all 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 is revealed by its policies with respect to the employment of handicapped persons, 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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Comments 67 comments

jesusmyjoy profile image

jesusmyjoy 7 years ago from Bucyrus Ohio

Great hub


jacobkuttyta profile image

jacobkuttyta 7 years ago from Delhi, India Author

Jesusmyjoy, Thanks for your comment


hanish 6 years ago

good and thaks


LRobbins profile image

LRobbins 6 years ago from Germany

Great hub! Thanks for pointing out that businesses have other responsibilities besides just making money.


sravankumar 6 years ago

thanks for providing responsbilitis


sravankumar 6 years ago

thanks for providing responsbilitis


Dutch Hermit profile image

Dutch Hermit 6 years ago from Utrecht

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.


LittleTempest profile image

LittleTempest 6 years ago

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 management.


jacobkuttyta profile image

jacobkuttyta 6 years ago from Delhi, India Author

Thanks all for your visits and comments


ChrisMagnus profile image

ChrisMagnus 6 years ago

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.


kazeemjames01 profile image

kazeemjames01 6 years ago

So cool, helpful and educative.

Thanks for being a lecturer to me.


a2z50 profile image

a2z50 6 years ago

I always enjoy your hubs too.

Ron


manageresponsible profile image

manageresponsible 6 years ago

A different side of the coin here. It's a great hub...Really, business is not just money but also about social responsibilities.


projmanagerespons profile image

projmanagerespons 6 years ago

I agree with this article. Educative and nice to read. Management should also be aware of there social responsibilities.


Roger  6 years ago

Any good exercise in leadership includes an awareness of the impact of your company on other people. This is a good reminder of that.


nagarajnow profile image

nagarajnow 6 years ago from Tamilnadu

nice hubber gives us good info


satyaban sahu 6 years ago

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.


asifkhankpk 6 years ago

Welldone,i like such topics so for to aware others


jacobkuttyta profile image

jacobkuttyta 6 years ago from Delhi, India Author

I do appreciate all the love and support people have been sending my way. The extra social support really helps.

Thanks to you all


Harane Sanjay 5 years ago

A nice detailed message Let us all try for same


Mohsin 5 years ago

I really like that topic which is given on this site. Thanks for helping me


Ashfaq 5 years ago

It is appreciated. You did commendable job. Thanks for uploading such a helpful and informative article. It did much for me.


qazi 5 years ago

yeah it hyelps me a lot 4 ma presentation


krizhelle 5 years ago

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!


diksha 5 years ago

wonderful hub.


Ashish Gupta 5 years ago

I am saying only a word of this great hub : Tarrific...


rrj 5 years ago

thanks. dat was really very hrlpful


janpaulynnedacquel 5 years ago

i like it so much,it helpS me in my report..thanks!!


kasese 5 years ago

nice article keep it up


jithin 4 years ago

thanks


DJ Mithlesh 4 years ago

nice you helped me a lot......thnx


shadreck ndinde 4 years ago

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


TK 4 years ago

Very nie


job leon 4 years ago

its was wow keep up


raj ali 4 years ago

thanks baby..........i love uu 22222222 much......ummmmmahhhhhhhhhhh.......loveeeeeeeee uuuuuuuuuu


Ojo Anthony E. 4 years ago

wonderful Hub, am very greateful for how u make gud clerification on dis managerial aspect.


sabari n ravi 4 years ago

tanx


sabari mba vr siddharta eng clg 4 years ago

tanx fr gave tis... tis help to very much


Sharon 4 years ago

THANKUUU.... VERY MUCH.


rajendra parihar 4 years ago

social responsibility is a important aspect of business, otherwise weaker section has to suffer lot so there is a important role of


nabam rigum 4 years ago

im very much glad to know the point about the responsibilty of management.i got many knowledge from according to your veiw of points.


Sumit 4 years ago

I like it sis...

It hlps me in my exm..

Thnx alot.


sonia ramnarine 4 years ago

tanxxx very much 4 the points!!!!


alaa 4 years ago

thank you very much


Liban Hassan Omar 4 years ago

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


husaina banu 4 years ago

thanks 4 ur help. it is very useful to me that's why i say my thanks from bottom of my heart with sincerity.i love very much...........


Afolabi Tolulope 4 years ago

thanks for making my assignment a success


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richxxxx nzyoka 4 years ago

wow so educative. guess it will assist me pass in the next KASNEB EXAM CPA


Christopher Mangwiro 4 years ago

Thanx you helped to answer my assignment


Raph-dennis 4 years ago

Thanks hub......and managers should make use of this article.


Raph-dennis 4 years ago

Thanks hub......and managers should make use of this article.


mary joy pinongcos 4 years ago

thank you so much its a big help for me...


aarti 4 years ago

thank you so much its to information of management


kaivalyauppaluri 3 years ago

it will be very useful. i liked it very much


joseph 3 years ago

ur hub is so useful


shubham 3 years ago

thanks for ur views , it will be very useful.............for me ................


shubham rajput 3 years ago

thanks,


neha kumari. 2 years ago

social responsibility of business.plz explain


khushi 2 years ago

Thank u very much.. I got a good answers.. I hope it is going to be helpful to me from the exam point if view.,..


Dolly 2 years ago

Thank U hub got very good answers


naomy 18 months ago

I lyk it..thnx.


ZAHID BHAT 17 months ago

Thanking fr giving information about tht management also renders services to the society


zam 17 months ago

nice


zamin 17 months ago

a very thankyou jacobkuttyta .I'm glad to see such a easy answer for my que


nabina 14 months ago

Thnx...it's vry helpful 4 me.


bayoor85 2 months ago

This is highly educative ..thnx

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