Question

Justify the following statement.

Business organisations have responsibilities towards different interest groups

Answer 1

1. Although business organisations are run by profit motive, commitment to society is equally important.
2. Social responsibility of business refers to its obligation to take business decisions and perform actions which are desirable or ethical, in terms of the objectives and values of society. 
3. It involves an element of voluntary action on the part of business people for the benefit of society. 
4. Business organisations need to fulfil various responsibilities towards their owners, investors, employees, consumers, government and society at large.

Hence, business organisations have responsibilities towards different interest groups.