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Question
Explain the need of social responsibilities of business organisation.
Solution
The following cases show the need of social responsibility:
i. Existence and growth of business: The existence of a business depends on how efficiently it serves the society by providing goods and services, considering various aspects of social responsibility.
ii. Long-term interest of a firm: Giving due consideration to the welfare of society and serving its various members can help a business gain maximum profits in the long run.
iii. Avoidance of government regulations: Working in line with the values and ethics of the society can help a business avoid unwanted government intervention.
iv. Availability of resources: In comparison to other members of the society, business enterprises have greater access to financial and other resources that can be effectively utilised for solving various social problems.
v. Conducive business environment: Solving social problems, such as unemployment, illiteracy and poverty, can benefit not only the society but also business houses by creating a favourable environment for their working.
