Question

State the social responsibilities of business organization towards government. 

Answer 1

The social responsibilities of a business organization towards government can be explained with the help of the following points:-

(1) Observation of Rules and Regulation: The organization is required to follow the rules and regulations laid by the government in a proper manner.

(2) Payment of Taxes: The business organizations must pay taxes and duties regularly to the government such as sales tax, income tax, octroi duty, customs duty, VAT, etc. Non-payment of taxes is an offense because it would be difficult for the government to undertake development programs.

(3) Assistance in Implementing Socio-Economic Policies: The government expects co-operation and help from the business sector to help in implementing programs and policies relating to social and economic development.

(4) Earning Foreign Exchange: The government also expects from a business organization that it will earn foreign currency by exporting goods in the foreign market. The government requires this foreign currency for importing valuable and important products.

(5) Advising the Government: The business organization has to provide timely advice to the government in respect of framing important policies such as Industrial Policy, Import & Export policy, Licensing policy, etc.

(6) No Favors: The commercial organization should not take any type of favor from government officials by bribing or influencing them.

(7) Contributing to Government Treasury: The commercial organization must contribute the funds to government during the emergencies and natural calamities like floods, earthquakes, etc.

(8) Political Stability: The commercial organizations should work towards the political stability of the country. The stable government often brings more returns and peace in a democratic country.