Arguments for Social Responsibility
The arguments for Social Responsibility are as follows:
1. Justification for Existence and Growth: Business uses the resources of society and is a creation of society, so it is expected to satisfy human needs by providing goods and services. Profit earning should be looked at as an outcome of service to the people. If the image of the business is good, it enjoys the support of society, and it can prosper and grow only when it fulfils its social responsibility.
2. Long-term Interest of Firms: A firm can be profitable and prosperous only when it thinks of being profitable in the long run. A firm and its image stand to gain maximum profits in the long run when it has its highest goal as Service to Society. A business has to fulfil social responsibility towards various groups of society, like workers, consumers, shareholders, government officials, etc.
3. Avoidance of Government Regulations: If a business does not want intervention from the government, then it must fulfil social responsibility. The government can restrict the freedom and flexibility of a business, and enact and force them to assume social responsibility, so businesses should voluntarily fulfil their obligations to society.
4. Maintenance of Society: If the people related to the business feel that they are not getting their dues from the business, then they may resort to anti-social activities. This can distort the image of the business and can be very harmful, so businesses must fulfil their social responsibility.
5. Availability of Resources with Businesses: The problems of society can be effectively solved with the help of valuable financial and human resources of the businesses. For example, managerial talent and capital resources, and years of experience in organising business activities can help society to tackle its problems better, given the huge financial and human resources at its disposal.
6. Converting Problems into Opportunities: Businesses can convert problems into opportunities by taking risks. It takes risk as the reward of profit bearing. It not only solves social problems but also provides opportunities for growth. For example, the problem of regional disparity can be solved by setting up industries in backward regions, and it can benefit the business as it gets various tax benefits.
7. Better Environment for Doing Business: There are little chances for the success of a business when society is confronted with diverse and complicated problems. Thus, in order to have a better environment for doing business, the business should meet its social responsibilities.
8. Holding Business Responsible for Social Problems: As business uses capital, physical and human resources of the society and a lot of social problems like environmental pollution, unsafe workplace, corruption, etc., arise due to the activities of a business. So it becomes the moral responsibility of the business to help society in solving problems and serving society.