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Social Responsibility of Management and Responsibilities of Managers

Updated on March 4, 2017

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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    • jesusmyjoy profile image

      Betty Bolden 7 years ago from Bucyrus Ohio

      Great hub

    • jacobkuttyta profile image
      Author

      jacobkuttyta 7 years ago from Delhi, India

      Jesusmyjoy, Thanks for your comment

    • profile image

      hanish 7 years ago

      good and thaks

    • LRobbins profile image

      LRobbins 7 years ago from Germany

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

    • profile image

      sravankumar 7 years ago

      thanks for providing responsbilitis

    • profile image

      sravankumar 7 years ago

      thanks for providing responsbilitis

    • Dutch Hermit profile image

      Dutch Hermit 7 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 7 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
      Author

      jacobkuttyta 7 years ago from Delhi, India

      Thanks all for your visits and comments

    • ChrisMagnus profile image

      ChrisMagnus 7 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 7 years ago

      So cool, helpful and educative.

      Thanks for being a lecturer to me.

    • a2z50 profile image

      a2z50 7 years ago

      I always enjoy your hubs too.

      Ron

    • manageresponsible profile image

      manageresponsible 7 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 7 years ago

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

    • profile image

      Roger  7 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

    • profile image

      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.

    • profile image

      asifkhankpk 6 years ago

      Welldone,i like such topics so for to aware others

    • jacobkuttyta profile image
      Author

      jacobkuttyta 6 years ago from Delhi, India

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

      Thanks to you all

    • profile image

      Harane Sanjay 6 years ago

      A nice detailed message Let us all try for same

    • profile image

      Mohsin 6 years ago

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

    • profile image

      Ashfaq 6 years ago

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

    • profile image

      qazi 6 years ago

      yeah it hyelps me a lot 4 ma presentation

    • profile image

      krizhelle 6 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!

    • profile image

      diksha 6 years ago

      wonderful hub.

    • profile image

      Ashish Gupta 6 years ago

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

    • profile image

      rrj 5 years ago

      thanks. dat was really very hrlpful

    • profile image

      janpaulynnedacquel 5 years ago

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

    • profile image

      kasese 5 years ago

      nice article keep it up

    • profile image

      jithin 5 years ago

      thanks

    • profile image

      DJ Mithlesh 5 years ago

      nice you helped me alot......thnx

    • profile image

      shadreck ndinde 5 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

    • profile image

      TK 5 years ago

      Very nie

    • profile image

      job leon 5 years ago

      its was wow keep up

    • profile image

      raj ali 5 years ago

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

    • profile image

      Ojo Anthony E. 5 years ago

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

    • profile image

      sabari n ravi 5 years ago

      tanx

    • profile image

      sabari mba vr siddharta eng clg 5 years ago

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

    • profile image

      Sharon 5 years ago

      THANKUUU.... VERY MUCH.

    • profile image

      rajendra parihar 5 years ago

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

    • profile image

      nabam rigum 5 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.

    • profile image

      Sumit 5 years ago

      I like it sis...

      It hlps me in my exm..

      Thnx alot.

    • profile image

      sonia ramnarine 5 years ago

      tanxxx very much 4 the points!!!!

    • profile image

      alaa 5 years ago

      thank you very much

    • profile image

      Liban Hassan Omar 5 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

    • profile image

      husaina banu 5 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...........

    • profile image

      Afolabi Tolulope 5 years ago

      thanks for making my assignment a success

    • profile image

      bigcock 4 years ago

      hey hotties out their cum speak to me

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      richxxxx nzyoka 4 years ago

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

    • profile image

      Christopher Mangwiro 4 years ago

      Thanx you helped to answer my assignment

    • profile image

      Raph-dennis 4 years ago

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

    • profile image

      Raph-dennis 4 years ago

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

    • profile image

      mary joy pinongcos 4 years ago

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

    • profile image

      aarti 4 years ago

      thank you so much its to information of management

    • profile image

      kaivalyauppaluri 3 years ago

      it will be very useful. i liked it very much

    • profile image

      joseph 3 years ago

      ur hub is so useful

    • profile image

      shubham 3 years ago

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

    • profile image

      shubham rajput 3 years ago

      thanks,

    • profile image

      neha kumari. 3 years ago

      social responsibility of business.plz explain

    • profile image

      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.,..

    • profile image

      Dolly 2 years ago

      Thank U hub got very good answers

    • profile image

      naomy 2 years ago

      I lyk it..thnx.

    • profile image

      ZAHID BHAT 2 years ago

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

    • profile image

      zam 2 years ago

      nice

    • profile image

      zamin 2 years ago

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

    • profile image

      nabina 21 months ago

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

    • profile image

      bayoor85 9 months ago

      This is highly educative ..thnx

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