Reality of Social Responsibility

1. Threat of Public Regulation: There is always a threat of public regulation on businesses. Businesses have to act in a responsible manner otherwise strict actions are taken to regulate them for safeguarding people’s interests. Due to the threat of public regulation businesses now feel concerned with social responsibility.

2. Pressure of Labour Movement: Business enterprises are forced to pay due regard to the welfare of workers instead of following a policy of ‘hire and fire’ because labour is now more educated and organised. Because of such labour movements, businesses practice social responsibilities.

3. Impact of Consumer Consciousness: Consumers are more conscious of their rights and power in determining market forces because of the development of education and mass media and increasing competition in the market. The principle of Caveat Emptor or let the buyer beware has been replaced by the principle of ‘Customer is King’. Customer-oriented policies are now being followed by businesses.

4. Development of Social Standard for Business: A business cannot exist in isolation. Society permits a business to grow and prosper. Business is now not considered as a mere money-making entity. It has to follow social norms and standards as developed by society. 

5. Development of Business Education: More and more people are aware of the social purpose of business because of the development of business education with its rich content of social responsibility. Consumers, investors, employees, and owners have become more aware and sensitive towards social issues than before.

6. Relationship between Social Interest and Business Interest: Social interest and business interest are not contradictory, but complementary to each other. Businesses have realised that they cannot grow in the long run by exploiting society. Instead, they can prosper by serving society.